End of the road for super-low trackers

Thrugelmir

Before too much excitement is generated by low repossesion rates. The next move in the game will affect many.

Thousands of homeowners who have been paying the best-ever mortgage rates of 0% are braced for a huge repayment shock in the coming weeks.
They face a tough decision as to whether they should remortgage, especially after the Bank of England’s quarterly inflation report last week suggested interest rates could stay lower for longer.
Borrowers who took out “super-low” two-year tracker mortgages with Halifax, the Co-op and Birmingham Midshires in the summer of 2007 have been paying 0% on their loans since Bank rate fell to 0.5% in March. Those on Cheltenham & Gloucester’s (C&G) deal at 1.01 percentage points below Bank rate have been paying 0% since rates fell to 1% in February. However, all face a jump in repayments of as much as £8,000 a year as deals revert to standard variable rates (SVRs) as high as 4.24% this month and next.

http://www.timesonline.co.uk/tol/money/property_and_mortgages/article6797510.ece

Thrugelmir

FallenAngel9898 wrote: »

Interesting, I'm sure the people on those rates new that 'All good things.........'. That's the bad news for the housing market really, that at best rates can only stay the same for so long, inevitably though, they must rise from their current base.

Maybe they've lost their jobs already and been hanging on in hope......

Graham_Devon

I thought most of these deals were lifetime trackers. Certainly what I gleaned from reading on here and thought most BTL's had them.

HAMISH_MCTAVISH

Thrugelmir wrote: »

Before too much excitement is generated by low repossesion rates. The next move in the game will affect many.

Again?

Bears have been rolling out this same old tired trite nonsense for several years now.

YYYYYYYYAAAAAAAAAAAAAAAAAAAWWWWWWWWWWWWWWWWNNNNNNN

Wake me up when annual repo figures are at least more than one month of sales......:rolleyes:

StevieJ

Mine is lifetime, BR +.95, it was only BR +0.25 for the first two years.

chucknorris

Graham_Devon wrote: »

I thought most of these deals were lifetime trackers. Certainly what I gleaned from reading on here and thought most BTL's had them.

All of mine are certainly lifetime trackers, 4 at 0.68% and one at 0.38% above the boe base rate.

For the borrows that are on only a limited tracker period, I cannot understand why the article claims that it would it be a 'shock' to them to return to the standard variable rate, what on earth did they expect to happen when the discounted period ended? I can't wait for the author's next article:

Sunday to follow Saturday shocker will catch out landlords!

Wookster

Let me rephrase this to make more sense:

HAMISH_MCTAVISH wrote: »

Again?

Bulls have been rolling out this same old tired trite nonsense for several years now.

YYYYYYYYAAAAAAAAAAAAAAAAAAAWWWWWWWWWWWWWWWWNNNNNNN

I can see why your posts were vetted on HPC. You are like a record, stuck in a groove sprouting the same old tired rubbish day after day.

abinanthanb

Thrugelmir wrote: »

Before too much excitement is generated by low repossesion rates. The next move in the game will affect many.



http://www.timesonline.co.uk/tol/money/property_and_mortgages/article6797510.ece

When they took out the mortgage in the summer of 2007, were they paying 0%? A small glance tells me that BOE rate was hovering around 5% during that time. Why should it be shocking if the IR goes back to the range at which these people actually started their mortgage?!!! :mad:

abinanthanb

chucknorris wrote: »

All of mine are certainly lifetime trackers, 4 at 0.68% and one at 0.38% above the boe base rate.

For the borrows that are on only a limited tracker period, I cannot understand why the article claims that it would it be a 'shock' to them to return to the standard variable rate, what on earth did they expect to happen when the discounted period ended? I can't wait for the author's next article:

Sunday to follow Saturday shocker will catch out landlords!

Spot on!! :T

chucky

Thrugelmir wrote: »

Before too much excitement is generated by low repossesion rates. The next move in the game will affect many.



http://www.timesonline.co.uk/tol/money/property_and_mortgages/article6797510.ece

i don't see how this would be a shock to anyone.

mortgage rates are historically low on average, they have to go up at sometime in the next 12/24 months.

what the article does tell us is that you should of have taken or you should take advantage of any long term fixes that are below or just over 5% to buy a house or even remortgage.

btw - i have a 4.69% 5 year and 0.9% life time tracker on my residential property.
high rates don't scare me.

Thrugelmir

abinanthanb wrote: »

When they took out the mortgage in the summer of 2007, were they paying 0%? A small glance tells me that BOE rate was hovering around 5% during that time. Why should it be shocking if the IR goes back to the range at which these people actually started their mortgage?!!! :mad:

No they wouldn't have been. They have truly benefited from the lowering of base rates though. They are rentering a world where interest rates are increasing again though with no similar mortgage product for the future.

If they haven't used the "saved" money wisely. Well its their own fault.

Soon all that will left is those with life time trackers. Which are a small minority of total mortgage holders.