Rant!! Extortionate mortgage increase.

simon_templar_2

You just cant help some people can you. Despite being told the truth the OP wants to live in their pseudo conspiracy world.

GavB79

vet8 wrote: »

I still say banks are in a win - win situation, yes repossession is a last resort, but they will get back most if not all of their money - they cannot lose.

Phew, that's lucky! For a minute there I thought we were in danger of banks crashing around the globe, going bust and losing billions of pounds with thousands losing their jobs. Glad they are in a cast-iron industry after all!

THRIFTY_GIRL

There are plenty of sub 3% rates available...get up and look and move it for goodness sake!!

Yes, rates will rise at some point in the future so your tracker rate will at some point go up. If you take a tracker deal you have to accept that risk. You can't have the best of both worlds. With so much equity and as you say a regular income stream you should have no trouble in finding a good deal.

You will not find anything to match your current tracker...if the banks had a crystal ball they would never have offered these in the first place:money:

leveller2911

As others have asked Vet, have you been over paying since having the advantage of the low rate on a tracker???, "make hay whilst the sun shines".
To be honest and dont take this the wrong way, you are lucky, by that I mean think of the pensioners who have seen their income from savings fall through the floor as rates were slashed for savers.There is a flip side to the coin.
I hope to be a FTB soon, within the next couple of years, saved up £30k and have no debts whatsoever and have been quoted 5.95 for a 3 year fixed rate repayment mortgage from Nationwide and Halifax.I havent tried elsewhere yet but Id say youve been very lucky indeed and now its reverting back to what most are getting.

FraudBuster

I still say banks are in a win - win situation, yes repossession is a last resort, but they will get back most if not all of their money - they cannot lose.

Is this the same UCB?

Moody's reiterated its view that UCB will continue to report sizeable losses in the next several reporting periods as a result of continued deterioration in commercial real estate (CRE) markets. These expected losses would seriously weaken UCB's tangible common equity (TCE) position. UCB has its headquarters in California, and the majority of the company's CRE portfolio is in its home state - which is one of the more distressed real estate markets in the U.S.

http://www.istockanalyst.com/article/viewiStockNews/articleid/3351339

Thrugelmir

vet8 wrote: »

the moment we are on a tracker at 0.35% above base rate, so we are paying only £78 per month.

You are complaining about the banks current mortgage rates , yet you yourself benefited from a low rate. Which would would have been subsidised by other borrowers. As at .35% over base you were costing the bank money! :eek:

PS. Don't forget that the banks are lending savers money, not their own. A poplular misconception.

vet8

leveller2911 wrote: »

To be honest and dont take this the wrong way, you are lucky, by that I mean think of the pensioners who have seen their income from savings fall through the floor as rates were slashed for savers.There is a flip side to the coin.

Yes, I appreciate I have been lucky with my choice of tracker mortgages and if posters had read my comments, they would see that I am aware of course, that my mortgage payments will go up and I realise they are likely to go up a lot, but I think this level is unjustifed and it is not only me.

Politicians, economists, the media, financial experts are all saying that banks are now overcharging on their mortgages. In yesterday's newspapers it said that the difference between what banks charge and the rate at which they borrow is the highest ever. They are apparently making a bigger profit on mortgages than ever before. I also agree that they are not linked to base rates although banks are very quick to raise rates the second the base rate goes up.

This board appears to be populated by people desperate to justify the bank's behaviour. Look around, there are all sorts of people, not only me who think is is unjustifiable.

vet8

opinions4u wrote: »

I gave you a link to the bank swap rates. Here it is again.

http://www.swap-rates.com/UKSwap_extended.html

A mortgage is not a short term funding requirement for a bank. It is a long term funding requirement. The swap rates are an indicator of how much banks raise the money at before lending it on to me and you.

Click on the link above, look at the swap rates for 3 years+ and compare the rates now with the rates 12 months ago.

You can choose to ignore it and repeat your point over and over, but it goes a long way to explaining what you are complaining about. Those banks that can actually raise funding to lend to you are paying more for it now than they were a year ago.

There are other factors in pricing too, but you originally referred to swap rates being at an all time low. They're not.

I have looked at these swap rates, however I don't know if it makes any difference, but UCB only offer two year deals and the two year swap rates look pretty stable and below 2%.

Pobby

Yes it does seem to me that some of the lenders are making a healthy profit from low interest rates. However, rates are at the lowest I have ever seen. Most of my " mortgage " life rates were much, much higher but then in relative terms housing was much, much lower.

opinions4u

vet8 wrote: »

Politicians, economists, the media, financial experts are all saying that banks are now overcharging on their mortgages.

Politicians are deflecting attention away from their own inadequacies. A headline of "Banks screw customers" sells more papers than "Bank charges mortgage rates in line with swap rates".

Which financial experts are saying this? Financial journalists have their own paper selling agenda, but financial experts? Got a link?

In yesterday's newspapers it said that the difference between what banks charge and the rate at which they borrow is the highest ever. They are apparently making a bigger profit on mortgages than ever before.

Their losses/write-offs/provisions on mortgages are bigger than ever before. The report is sensationalist and not factual. A problem with most forms of media.

There is an element of margin widening going on, but in a world where mortgage lenders face increasing risk from unstable house prices, deteriorating unemployment and an inability to access wholesale funding markets at will, this is hardly surprising.

I have looked at these swap rates, however I don't know if it makes any difference, but UCB only offer two year deals and the two year swap rates look pretty stable and below 2%.

It is relevant to the overall discussion, so you raise a fair point. There are other factors to include though. One of the key ones with UCB is that they are trying to get rid of borrowers and not retain them. The best way to do this is to charge more. It's not about making profit though, it's about repaying the money they've raised from the wholesale markets. They are deliberately running down their mortgage book because they have no choice.

This board appears to be populated by people desperate to justify the bank's behaviour. Look around, there are all sorts of people, not only me who think is is unjustifiable.

The board is populated by a mix of the population. There are many posters supporting you. I've given you my insights from having been within the industry. Others may be able to give a different perspective again.

It's been a fascinating and healthy debate so far.