when is a svr not a tracker!!

de1amo

i was having a discussion on a thread i started today and it came to a halt-i have a standrard variable rate mortgage of 55000 which is on an apr of 2pc-like most trackers and discounted mortgages it will go up with the boe moves--am i dumb or missing something??!-i see no reason to move products!! !-i know your going to rush to me by suggesting a fixed rate but they are far costlier and we never know where the next rate ceiling will be set!-as a side issue will the trackers of today keep the same premium difference as most of the mortgages i hear on here attract

_Andy_

An SVR does not have to be linked to base rate, whereas a tracker is always +/- a certain percentage of base rate.

de1amo

that accepted--in this climate of uncertainty and my good clean record with low ltv--on what grounds would my lender hype my rates out of proportion to the standard boe driven increase(when it happens!!)--it went down with equilibrium to the rate reductions -i accept in life what goes up must come down!-i have seen the high days of 15pc mortgages!-i aim to be mortgage free in 8 years and have always resisted over extending myself

TrickyDicky

de1amo wrote: »

that accepted--in this climate of uncertainty and my good clean record with low ltv--on what grounds would my lender hype my rates out of proportion to the standard boe driven increase(when it happens!!)--it went down with equilibrium to the rate reductions -i accept in life what goes up must come down!-i have seen the high days of 15pc mortgages!-i aim to be mortgage free in 8 years and have always resisted over extending myself

When it decides it's not making enough profit, it'll just jack up your rates as it wants, with not alot you can do, other than switch. They cant do this on a tracker.

I noticed one building society announced they're upping their SVR by 1.49% from march!!

de1amo

i hope it wasnt the brittainia-great lenders with high street visibility--i like the quiet days and not chasing mortgage deals!!--i once did a spell of work in a call centre pushing İFAs to the unsuspecting masses!!(it went bust)-i just did my own homework and the chelsea and brittania stood out --took about 2 hours

Mozette

My Nationwide Base Mortgage Rate (they now have an SVR for new mortgages) is guaranteed to be no more than 2% above the BOE rate, which is fab at the moment and there would need to be quite a rise before I'd go on to another deal.

Thrugelmir

de1amo wrote: »

i was having a discussion on a thread i started today and it came to a halt-i have a standrard variable rate mortgage of 55000 which is on an apr of 2pc-like most trackers and discounted mortgages it will go up with the boe moves--am i dumb or missing something??!-i see no reason to move products!! !-i know your going to rush to me by suggesting a fixed rate but they are far costlier and we never know where the next rate ceiling will be set!-as a side issue will the trackers of today keep the same premium difference as most of the mortgages i hear on here attract

Longer term due to increased FSA fees being passed on from lender to borrower. I wouldn't be surprised to see SVR's to increase to 2.5% to 3% above base.

Trackers merely guarantee that rates will move in line with base rates. Although SVR's historically did often there was a time lag when rates dropped. Lenders were accused of profiteering.

Now that competition has dropped in the lending markets as availability of money to lend is decreasing. Lenders will able to increase their margins. Partly out of necessity as they will lend less and also because the cost of money to fund mortgages is increasing.

Simply put , the banks created "credit" out of financial engineering. Over time this position is going to wound back in. If for no other reason that the world economy can't be disrupted by the actions of the major banks ever again.

de1amo

does that have a term on it or is it like a svr--my product ended about a year ago and i have just gone onto svr and await the buffeting--i paid nothing!!!!

de1amo

thanks thrug

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following this unravelling of world and bank economies could i conclude that debt is in its death throws.--i agree with what youve said and i am de-debting rapidly--ie paying my due endownment to clear a large chunk of my mortgage ---the writing is on the wall and i feel those caught in the trap will be the victims on a major scale-its all too apparent from what i am reading here

Thrugelmir

de1amo wrote: »

thanks thrug

---

following this unravelling of world and bank economies could i conclude that debt is in its death throws.--i agree with what youve said and i am de-debting rapidly--ie paying my due endownment to clear a large chunk of my mortgage ---the writing is on the wall and i feel those caught in the trap will be the victims on a major scale-its all too apparent from what i am reading here

Its not total doom and gloom. More a question of getting the balance right between saving and borrowing.

de1amo

i currently reside in turkey--the only credit people can get is on credit cards-mortgages are given but with 5 year terms and are about 20pc apr-so are pretty useless-the system is balanced people dont seem over leveraged-house values are a fraction of the uk-and the ecconomy is still growing albeit slower than of recent years-they have industry and tourisn at the base-the recession has had little affect to the non foreign invested business --people are pretty clueless about the technicalities of money and seem no less happy for that