Homeowners with Trackers to face shock rise?

silvercar

Tracker deals end and they go on an SVR around 4%, they should be able to afford that, as that was the rate at the start of these deals, interest rates are forecast to remain at 0.5% for another year, so I don't see a problem yet.

The problem will occur for those on reduced incomes, those on no incomes will be able to claim mortgage interest benefit after signing on for 13 weeks at the govenrment rate of 6.08% upto 200k.

StevieJ

ad9898 wrote: »

By the way Steve are you a United fan ?

Of course That Sky capture is great.

Generali

StevieJ wrote: »

Of course That Sky capture is great.

Well done on the win old boy. Bad luck for next season ;-).

Not the greatest game to win it with (a bit like getting the century with an edge that hits the wicket keeper's helmet) but well deserved.

whathavewedone

AD rates were close to 6% in 2006/2007 so yes, I expect most people who bought at the peak did take the possibility of rates amounting to 6 or 7% into account. Even in a rising market if interest rates are high you are still going to get stung on a fixed rate mortgage. They're not going to be lower than the base rate are they?

dopester

Generali wrote: »

Well done on the win old boy. Bad luck for next season ;-).

Not the greatest game to win it with (a bit like getting the century with an edge that hits the wicket keeper's helmet) but well deserved.

Didn't they win it last season, with a 1-0 loss at home to West Ham ? [scratch that - they were already Champions before the last match, I think, because of the guard-of-honour other teams gave them.]

They are still Champions. Didn't think Benitez showed any honour in what he said about them just having more points.

Generali

dopester wrote: »

Didn't think Benitez showed any honour in what he said about them just having more points.

Until we work out a different way to sort out the ladder then that's always going to be how to win the League - get more points!!! Perhaps he can persuade the FA to change the criteria to 'most Spanish manager' or 'team with most people with the surname Gerrard' next year. Or even (perhaps) get more points than any other team!

Gorgeous_George

The problem will be in three years' time, when those who bought at the peak of the housing bubble need to remortgage. They will find their homes are worth 40% less than they paid originally (in 2007) and interest rates will probably be much higher than today.

Those who took two and three year tracker deals in 2007 will probably be ok. A little pain early on will give them time to refocus their finances while interest rates are still historically low. I hope those on five year deals take note.

GG

Gorgeous_George

Generali wrote: »

Until we work out a different way to sort out the ladder then that's always going to be how to win the League - get more points!!! Perhaps he can persuade the FA to change the criteria to 'most Spanish manager' or 'team with most people with the surname Gerrard' next year. Or even (perhaps) get more points than any other team!

What is needed is some form of control on the total wage bill.

Premier League football is all about money. If you have enough to pay for a massive squad of the best players money can buy, you will win. It is hardly a competition.

Of course, it helps if there's a few quid left to bung the referee.

GG

SingleSue

whathavewedone wrote: »

Good god almighty, you do not have to be a whizz at economics to grasp that when your deal ends, be it a tracker or a fixed rate that if you can't secure another deal you will be stuck on the SVR at pretty much whatever rate the banks sees fit to place above base.

1. People with mortgages are aware that interest rates go up and down.

2. People with mortgages realise that we are in a recession and house prices are falling.

The fact that everyone with a mortgage isn't going around weeping and tearing out their hair does not mean that they think their house hasn't fallen in price and they will have no problem remortgaging when their deal comes to an end. No, they're getting on with their lives because that's what people do. Running around panicking doesn't help anyone does it?

Predicting the recession may have been the preserve of people who take an interest in economics. Your average 10 year old is aware that we're in the middle of one now and that house prices are falling. So I think most adults are too.

I really don't see understand why most adults should be incapable of holding down a job, a relationship, managing the household bills (living a normal and functional life in other words) AND be completely unaware that we are in the middle of a recession. So if you have a job you never have the radio on and hear the news? You never talk to anyone? You never buy a newspaper?

Face it you are no longer a member of some elite club that is uniquely in the know with some sort of moral duty to spread the word to the sheeple. Everyone knows now. They're getting on with their lives, maybe saving a bit, maybe not. I know it's a bit of anti climax for you all but please all these "omg what's going to happen, these people should be so frightened" "I know it's so frightening, they just don't know what's coming to them do they?!" type threads are becoming nothing more than a source of amusement frankly.

You would be surprised at the amount of people who think falling prices and the recession doesn't actually impact upon them.

My parents (on reading the newspapers, listening to the radio etc) are now firmly in the belief that the recession is over and house prices are rising again....until I told them they are being sheeple, explained why and now they are questioning their belief.

For information, they do own a property, mortgage free for the last 35ish years and are aware their property has reduced in value. They couldn't quite get the hang of the idea that if a property sold for a lower amount that it would then have a run on effect on other similar properties in the area though.......

whathavewedone

Okay, old people often believe that their homes only ever go up in value but given that most of them have paid off their mortgages (as indeed have your parents) they aren't particularly relevant to a discussion about the carnage that will ensue when people come off their trackers.