Curious as to possible new rate.

Kalahari

Ok, Admittedly I'm one of those sub prime borrowers but I do always pay my mortage. I have a question though.

I'm currently on a fixed rate (6.something I think) and due to end my lock in around 11 months from now. Has anyone finished their locked in fixed rate periods with a sub prime lender and got an idea about how well (or not) they are passing on the interest rate drop?

Cheers if you can help.

Dan:_4

Who is your lender?

Kalahari

Arranged through Advantage, so Morgan Stanley.

ad9898_3

It depends on your credit situation, if it's not good you could be looking at 9% +, especially with a subprime lender.

Dan:_4

Advanage Mortgages are no longer lending I beleive, so assuming your not in NE you may want to change lender at the end of the fixed period.

You will need to give them a ring to find out the SVR, which is the rate your move onto following the fixed rate period.

Conrad

Yea call them for thier svr. Note they had a clause in some of thier mortgage contracts in which they agree to cover the cost of negative equity - I THINK THEY KEEP THIS PRETTY QUIET. Newsnight could do a juicy investigation into this

loopyloopy_2

We have just come to the end of our fixed rate mortgage with GE Money at 6.99% and are now on the SVR of 2.64% above the baserate.
We are about £200 a month better off at the moment due to this change.
However we know as soon as the intrest rates go up up up we will be stuffed as cannot afford more than the 6.99%f and cannot get a new mortgage as we are sub prim borrowers although we have kept up with all mortgage payments..

PasturesNew

When taking out a mortgage, it's always best to assume it'll be 8% on average - and check out the 12% rate. That's what "we" used to do, pre about 2001-2002. Now it seems all forgotten.

abaxas

Dan: wrote: »

Advanage Mortgages are no longer lending I beleive, so assuming your not in NE you may want to change lender at the end of the fixed period.

You will need to give them a ring to find out the SVR, which is the rate your move onto following the fixed rate period.

No only no long lending, but no longer exist other than collections.

Brace for monster SVR.

baileysbattlebus

PasturesNew wrote: »

When taking out a mortgage, it's always best to assume it'll be 8% on average - and check out the 12% rate. That's what "we" used to do, pre about 2001-2002. Now it seems all forgotten.

I agree whole heartedly with that - we have always done the same - we bought our first house in 1982 with interest rates of about 12% - it certainly focuses the mind on affordability. Then we had the 14% & 15% of the early 1990's.

There are a number of people I know who would be stuffed if interest rates went into double figures - if they weren't able to renew with a decent fixed rate.

I think because we have low interest rates for quite a while now people think it is the norm. Like house interest rates can go up as well as down.

Though I expect people thought nothing would change - I must admit, I didn't see any of this coming - either the banks or house prices and I can't be the only one. The house prices weren't a particular surprise - but the banks were, for me anyway.

Pobby

Thereby is the problem. Mortgages from 1975, we always were looking at 8% +. As you said, BBB, we had 12 and up to 15%. I cannot believe how low it is right now.

The worry has got to be if it returns to much above 6%.

This whole darn hpi is nothing more than a complete mess in my eyes and certainly should never, ever been let to happen.

By the way, my wife has an Auntie and Uncle in your town, lol.