AIG points finger at London branch for nearly bringing the company down.

Thrugelmir

Really2 wrote: »

Confused on that point sub prime would have been around a 1/4 more than SVR two years ago.

They have paid for a house for the last two years and are fairly likely to see their payment drops. Who as a SVR higher than two years ago?
Base rate was 5.5% in june 07.

Some SVR's

Darlington BS - 5.95%
Stroud & Swindon - 6.29%
ITL Mortgages - 6.29%

and the sub prime lenders who have dropped out of the market but still have their existing loan books.

Really2

Thrugelmir wrote: »

Some SVR's

Darlington BS - 5.95%
Stroud & Swindon - 6.29%
ITL Mortgages - 6.29%

and the sub prime lenders who have dropped out of the market but still have their existing loan books.

BOE June 2007 5.5 + 25% = 6.9%

So most sub prime would be on 6.9% at least in 2007.