Homeowners with Trackers to face shock rise?

dopester

whathavewedone wrote: »

Everyone knows now.

You're so wrong. Not everyone. All the time, every day, I hear and read so many examples of people who don't have a clue. Just this today on a car forum.

id rather live in [removed]! but thats because i know everyone!! at the end of the day a car will only lose you money. a house will always make you money! i make my first few grand in property at uni!! and i intend to make my millions the same way!!

Too many people don't realise this is one of the biggest bubbles of all time, and expect property to be a wealth creator.

hundredk

dopester wrote: »

All the time, every day, I hear and read so many examples of people who don't have a clue. Just this today on a car forum.

It was all too easy when lenders were throwing finance at you, ppl thought it must be OK if the bank wants to lend me this money.

Of course they should have considered the consequences....like maybe the lender might want repaying....or can I afford to take on this much debt....

Adebisi

dopester wrote: »

Hopefully in 50 or 100 years time, our descendants will be able to have a good laugh at us. This reality absolutely sucks. This paradigm is flawed.

Hopefully it will change with new technological breakthroughs.... if the economy and business is allowed to be put before supporting house prices - but with supporting mechanisms (shelter, food, energy - the basics) for those affected during a longer transition.

Come that time outstanding debt levels may not be seen in the same context as they are today. Money is only a means to an end.

In 100 years time the house prices will still be falling but as global warming will have kicked in big time we will be able to sleep outside.

silvercar

Do you have to be as blind as an MP to not notice your mortgage repayments?

System

Degenerate wrote: »

Homeowners with Trackers to face shock rise...

...to SVR that is probably lower than their tracker rate of a year ago, and certainly much lower than they would have expected when they took out the deal.

How will they cope?

I think this sums it up really, the author of this article should perhaps concentrate on another subject in future, one they know something about :rolleyes:

cocktail

so these cheap trackers were taken out in 2007 when the BOE rate was what 5.75%. so if they could afford the rates at that rate then surely they can afford the rates at 3.5+whatever the tracker is. it is surely lesser than the high rate they were paying in 2007. now as per the OP if rates were to be 0.5% for some time then whats the problem for these people.
i am one of these people on the cheap trackers, wasnt cheap when i took it out,though but the bottom line is if i could afford it then i can afford it now.

whathavewedone

Okay Dopester. Everyone I meet DOES know that we're in recession and that house prices are falling.

Either you're living in some sort of parallel universe or you know some people who are spectactularly thick.

Can you explain to me how the hell ANYONE that isn't actually !!!!!! could NOT know that we're in recession and that house prices are falling?

I'll leave you to your mutual masturbation fest. Enjoy

StevieJ

Why do people have to reset onto trackers when SVR is so low, Halifax the biggest lender 3.5%, do you have have to put 25% down to go on the the SVR these days

ad9898_3

I think people have it pretty easy at the moment if they have to go onto SVR's, although if they are struggling now, the future is likely to be grim for them. I think the problem for some maybe that if they had a really good tracker deal (like the - base rate ones), then these people are indeed in for a bit of a shock, even though quite a few SVR's are under 4%, although of course when they took out their mortgage I would asume they would have factored in rates of around 6-7%, just to be safe.......... wouldn't they ?

By the way Steve are you a United fan ?

StevieJ

amcluesent wrote: »

It's the immediate cash call driven by the reduction in LTV on the new mortgages that'll sink home owners, not the resetting of the interest rate to SVR.

Loads of peeps can find the incremental cash to pay 4% rather than 0.5%, it's not so easy to magic up £25K to £100K when the LTV drops from 95% to 75%.

I am no mortgage broker, but are you saying that at the end of a deal a person needs a 25% deposit to go on the SVR?
I just checked the Halifax and a 95% Fixed 5 year can be had for 5.44%, probably less than their current deal, Fee £1249.