Mortgage costs soar despite rate freeze

HammerSmashedFace

Interesting times ahead if mortgage costs are going up now with the BoE rate at 0.5%.

300,000 households in 3 months or more arrears, house prices rising (apparently) and 5.5 million mortgages that are linked to a lenders SVR, we are in the eye of the storm at this time, I daren't even think of the consequences going into the 18 months after the election, put it this way 2009's fake recovery will be quickly forgotten. And I haven't even mentioned the oncoming energy crisis.

Millions of homeowners are being stung by rising mortgage rates costing up to £1,400 extra a year despite the Bank of England's base rate freeze.

A string of lenders have raised their standard variable ratesince the base rate was set at 0.5% last March.Yesterday it was held at that level, the lowest since the Bank was founded in 1694.
But research from financial information firm Moneyfacts revealed that eight building societies have raised their standard variable rate during the freeze.
The SVR is the mortgage rate that customers revert to when their special deal, such as a two-year fixed rate or a three-year tracker, ends.
Around 5.5m have a mortgage which is on or linked to a lender's SVR. The number has soared in recent years because they are often the cheapest available deals.

Sorry, forgot the link.

http://www.thisismoney.co.uk/mortgages-and-homes/article.html?in_article_id=497045&in_page_id=8&ct=5

StevieJ

Soar I have told you a million times not to exaggerate.

chucky

HammerSmashedFace wrote: »

Interesting times ahead if mortgage costs are going up now with the BoE rate at 0.5%.

300,000 households in 3 months or more arrears, house prices rising (apparently) and 5.5 million mortgages that are linked to a lenders SVR, we are in the eye of the storm at this time, I daren't even think of the consequences going into the 18 months after the election, put it this way 2009's fake recovery will be quickly forgotten. And I haven't even mentioned the oncoming energy crisis.

let's read this right "Mortgage costs soar despite rate freeze".

do you know how by much?
when they're going to "soar" by?
how many people are going to "struggle"?

are these new bear threads getting more desperate or are they just threads without any facts or just the usual if's and maybe's.

Really2

Millions of homeowners are being stung by rising mortgage rates costing up to £1,400 extra a year despite the Bank of England's base rate freeze.

Is that £1400PA more than when they took it out or £1400 more than the absolute lowest they paid in march 2009.

I would say most are still considerably better off rate wise than they were when they took the mortgages out.

If rates go up to much they can always go to a fixed rate, even they are cheaper than pre credit crunch.

If they were more expensive than their old deals that would make it interesting but this is just saying they have risen from the absolute lows, I still make that considerably better than rates 2 years ago.

CLAPTON

these rates are comparable with the rates in 2007 when presumably the majority of those struggling took out their mortgages.. the current tracker types rates are unprecedentedly low

hopefully when the economy improves the umemployment rate will drop which will reduce the number of people struggling to pay the mortgage

HammerSmashedFace

StevieJ wrote: »

Soar I have told you a million times not to exaggerate.

Just quoting the article Steve.

Radiantsoul

You did mention the energy crisis though!
You implied that their is an energy crisis, which may or may not be the case, but is certainly open for debate rather than being a given.

Cleaver

HammerSmashedFace wrote: »

300,000 households in 3 months or more arrears,

Is it often said on here that there are 25 million households in the UK. So if out of those households 300,000 are experiencing 3 month arears it means that 98.8% of households aren't in arrears?

How does this compare with any other type of loan? I have no idea to be honest, but the blunt stats don't sound too bad to me.

HammerSmashedFace wrote: »

And I haven't even mentioned the oncoming energy crisis.

Y'know, I could have sworn that you've mentioned it just once or twice.

chucky

HammerSmashedFace wrote: »

Just quoting the article Steve.

i lifted this from another thread

HammerSmashedFace wrote: »

Yep, there are so many figures plucked from the air these days that have little to do with reality, this is no different.

good to see that you agree

HammerSmashedFace

chucky wrote: »

let's read this right "Mortgage costs soar despite rate freeze".

do you know how by much?
when they're going to "soar" by?
how many people are going to "struggle"?

are these new bear threads getting more desperate or are they just threads without any facts or just the usual if's and maybe's.

As you know chucky I'm not in any kind of desperate position, I'm quoting a story, and giving my opinion, which I believe is as good as yours or anyone elses, seeing as in general all of us are commenting on future events.

lemonjelly

StevieJ wrote: »

Soar I have told you a million times not to exaggerate.

Is this an example of ramping?