Return of the tracker.......

HAMISH_MCTAVISH

Graham_Devon wrote: »

So now it's down to one type of mortgage that didn't have the collar on it?

Shoud have said that to start with instead of making out that this new tracker is worse than existing ones

The statement I made is that millions of mortgages (N'wide and Lloyds) SVR rates beat the best tracker available today.

You have in no way disproved that statement, or the subsequent assertions.

Graham_Devon

It effected a total of 4m mortgages. I don't know the numbers who had a collar. But it's certainly not millions as you suggested!

http://www.telegraph.co.uk/finance/personalfinance/borrowing/mortgages/3482365/Will-you-get-trapped-in-a-mortgage-collar.html

HAMISH_MCTAVISH

Graham_Devon wrote: »

It effected a total of 4m mortgages. I don't know the numbers who had a collar. But it's certainly not millions as you suggested!

http://www.telegraph.co.uk/finance/personalfinance/borrowing/mortgages/3482365/Will-you-get-trapped-in-a-mortgage-collar.html

Of the 4m borrowers with tracker mortgages, only 300,000 had "collars" or minimum interest rates, he said – all others will receive the full benefit of the fall in the base rate.

http://www.telegraph.co.uk/finance/personalfinance/borrowing/mortgages/4174959/Interest-rates-cut-Mortgage-cheer-for-six-million-home-owners.html

And I think you are referring to the total numbers of trackers, whereas all short term deals, be they tracker of fixed, will revert to SVR when they end.

Thrugelmir

HAMISH_MCTAVISH wrote: »

Of the 4m borrowers with tracker mortgages, only 300,000 had "collars" or minimum interest rates, he said – all others will receive the full benefit of the fall in the base rate.

http://www.telegraph.co.uk/finance/personalfinance/borrowing/mortgages/4174959/Interest-rates-cut-Mortgage-cheer-for-six-million-home-owners.html

And I think you are referring to the total numbers of trackers, whereas all short term deals, be they tracker of fixed, will revert to SVR when they end.

On the basis that NR had 18% of the mortgage market when it collapsed.

Around 800,000 of their borrowers could be falling back onto their SVR as the months pass. Existing customers are now on a SVR of 4.54%.

Some people are on good rates, some bad.

Whilst SVR for Lloyds and Nationwide is currently good. Doesn't mean that it will last for another 10 years. They could increase it at any time.

HAMISH_MCTAVISH

Thrugelmir wrote: »

Whilst SVR for Lloyds and Nationwide is currently good. Doesn't mean that it will last for another 10 years. They could increase it at any time.

Not true. The base plus 2% cap is on my key features document.

For pre crash borrowers, it is locked in for life.

new borrowers are less lucky.

Thrugelmir

HAMISH_MCTAVISH wrote: »

Not true. The base plus 2% cap is on my key features document.

For pre crash borrowers, it is locked in for life.

new borrowers are less lucky.

That would apply until you took out a new mortgage product. With Nationwide you would come out onto their new rate in the future.

The gamble is do you want to stay on a variable rate of interest. What will rates be in 3 years time?

Though at the moment fixed rates make variable look very attractive. Providing you take advantage and use the cash to repay debt. Which many won't be doing.

StevieJ

Graham_Devon wrote: »

I think this is where you will find you are wrong.

There was a clause in the capping at 2% above base rate, if the base rate went below (normally) 3%.


I doubt there are that many, on trackers at the moment who are paying 2.5%, though I'm sure most of the bulls will be....but they will also be on a fix for 52 years, and mortgage free, depending on what suits best at the time

Yep you are correct, (more or less two out of three:p ) mine is BR + .95% - 1.45% A&L pity I have paid most of my mortgage off, although I can actually borrow the money back.
Accepted there is a collar on some but certainly not all, anyway I thought you lot were saying that 0.5% BR was supporting the market and 'as soon as rates go up' now you are saying that they can increase 2% without anyone noticing :rolleyes:

payless

the collars generally only effected those on a tracker.. not those on a SVR that happned to have a max rate that "tracked " the BofE rate

It was a bit more luck than judgement inn many cases...

HAMISH_MCTAVISH

Thrugelmir wrote: »

That would apply until you took out a new mortgage product. With Nationwide you would come out onto their new rate in the future.

The point of SVR is that it is the rate you have until you change product. You can keep it for life if its the best rate available.

The gamble is do you want to stay on a variable rate of interest. What will rates be in 3 years time?

Yes. And I bet still low, or at least, base rates still low. I'd imagine the banks will still be making userous margins on new customers though.

Though at the moment fixed rates make variable look very attractive. Providing you take advantage and use the cash to repay debt. Which many won't be doing.

I'm overpaying nearly a grand a month. I reckon 30K plus by the time this crash is over. Which will save me close to double that over term assuming 5% to 6% average over term.

A 60K saving on a 200K house is not bad going........ for someone that bought before the crash.;)

As I said, there will be many people that were better off buying before peak than after in this crash. Something the bears seem to forget.

Graham_Devon

HAMISH_MCTAVISH wrote: »

As I said, there will be many people that were better off buying before peak than after in this crash. Something the bears seem to forget.

You forget negative equity?