Are interest rates strangled?

ukcarper

chucky wrote: »

so even less would have benefited - as i said in the post above the mortgage rate drop for me is overstated, there are bigger favourable factors that have helped people.

That’s what I was getting at I have a small SVR with A&L and although my savings are smaller than my mortgage the lost of interest on them is more than I gain from lower mortgage payments.

undetterred

ukcarper wrote: »

Some SVRs have only dropped a little

Currently fixed with YBS @ 4.89 then go on there SVR @ 4.99,what a result:rolleyes: where are these mythical low rates

maveli

Just wondering if anyone got a link to all major bank's current SVR

silvercar

I think there is a large variance in mortgage pay rates at the moment. There are still some people on 0% (probably not many now), but there are a lot on BOE plus very little as life time tracker deals. COmpare that with a standard new mortgage at about 5% and a mortgage rate of nearer 6.5-7% for those with less than 20% deposit.

0 to 7% is a big range for main stream mortgages.

MatteH

undetterred wrote: »

Currently fixed with YBS @ 4.89 then go on there SVR @ 4.99,what a result:rolleyes: where are these mythical low rates

The same place as you find the 'unicorn' 0.25% above base rate trackers

chucky wrote: »

i think it's 50% of mortgages are fixed - but you have people coming off their fixes too so they wouldn't or couldn't remortgage.

that would be my expectation too

My, that'll be 'fun' if they are in negequity & the base rate rises even a small amount. 4.0% average SVR for 0.5% B.O.E. base rate?. A move up to only 2.5% base might be a 50% increase on the SVRs (6.0%?)

HAMISH_MCTAVISH

undetterred wrote: »

Currently fixed with YBS @ 4.89 then go on there SVR @ 4.99,what a result:rolleyes: where are these mythical low rates

My deal is a tracker of 0.5% above base, then onto SVR which is capped at 2% above base. Which is the same as the best trackers available today.

All Lloyds/C&G and Nationwide customers who bought before 2008 had the same good SVR cap.

To put it into perspective, on a repayment mortgage where the payment at 1% is roughly £750, the payment at 2.5% is only £870, the payment at 5% is around £1100.

But all of those deals were taken out when base rates were 5.5% plus..... If people could afford them then, they can do so today.

I'm not seeing rising rates causing mass repo's anytime soon.

chucky

MatteH wrote: »

My, that'll be 'fun' if they are in negequity & the base rate rises even a small amount. 4.0% average SVR for 0.5% B.O.E. base rate?. A move up to only 2.5% base might be a 50% increase on the SVRs (6.0%?)

less than 8% of people with a mortgage were in negative equity, that was last summers numbers. that would be less than 5% of properties. it would then be reduced by the number on SVR's - so 2.5% approx that this would apply to.

these monthly prices increases chipped away at the NE - you'll have to get one of those that needs to sell first and then rates won't be going up for 12-18 months.

you never really thought that one through did you...

not sure how much fun it will be for the home owner if you found one though.

Graham_Devon

HAMISH_MCTAVISH wrote: »

My deal is a tracker of 0.5% above base, then onto SVR which is capped at 2% above base. Which is the same as the best trackers available today.

All Lloyds/C&G and Nationwide customers who bought before 2008 had the same good SVR cap.

To put it into perspective, on a repayment mortgage where the payment at 1% is roughly £750, the payment at 2.5% is only £870, the payment at 5% is around £1100.

But all of those deals were taken out when base rates were 5.5% plus..... If people could afford them then, they can do so today.

I'm not seeing rising rates causing mass repo's anytime soon.

The trouble with this bit is that the difference between the base rate and the mortgage rates are much wider.

Rates at 5% does not neccesarily mean that you will be paying the same mortgage rate as you were the last time rates were at 5%. For those on trackers, yes. For those on SVR, not neccesarily, and IMO, unlikely. I was always 2% above base rate. I'm now 3.25% above base rate.

nearlynew

When will people relise that they are being played?


The biggest bank robbery in istory is taking place - with the bank doing the robbng.

treliac

maveli wrote: »

Just wondering if anyone got a link to all major bank's current SVR

You need to input some details, but you should be able to find information here - http://www.fsa.gov.uk/tables/