Two more building societies increase interest rates

carolt

http://www.timesonline.co.uk/tol/money/property_and_mortgages/article7011360.ece

Borrowers with building society mortgages face a sharp rise in repayments after a further two mutual lenders announced plans to hike standard variable rates (SVRs).

Norwich & Peterborough, which has 53,000 borrowers, is increasing its variable rate by half a point to 5.35 per cent tomorrow. Homeowners with a £150,000 interest-only mortgage will face a jump of over £700 in the annual cost of repayments.

Meanwhile, Holmesdale, a smaller lender, is pushing up the cost of its standard variable rate by 0.35 percentage points to 4.89 per cent.

It follows similar moves by Skipton and Nationwide building societies last week.

carolt

honeypopper wrote: »

I wouldn't call 0.35 and half a point increase as SHARP HIKE!!!!:rotfl:

What do you teach, Carol? And why aren't you at work?

0.35% is a sharp hike when it's an increase on 4.54%. A pretty large relative rise.

As for your second point, I am. I'm self-employed and working on my PC right now.

Why aren't you working, pickledpink?

silvercar

carolt wrote:

0.35% is a shrp hike when it's an increase on 4.54%. A pretty large percentage rise.

A 7.7% rise. Well interest only would mean a 7.7% increase in your monthly mortgage payments. For a repayment mortgage the increase would be a bit less.

Big increase to find if you have suffered in the recession/ aren't seeing a pay rise this year. Although it is easy to say people should have put money aside whilst interest rates have been low, that isn't always easy to do.

Quote is a bit misleading as not all borrowers would be on SVR, many will be on base rate trackers or fixed rates.

System

silvercar wrote: »

Big increase to find if you have suffered in the recession/ aren't seeing a pay rise this year.

Possibly but these people are most likely paying less than they were pre-interest rate reductions.

Would also be interesting to know how many of the customers are actually on the SvR as well.

We're talking < 100,000 people in total across the 2 lenders, a large proportion of which will have no change due to being on deals as you mentioned and to the remaining people an increase of £58 a month. (using the example).

What it might mean is a small increase in remortgaging, if SVR is less appealing now.

It's not going to be making big headlines.

chucky

Joeskeppi wrote: »

We're talking < 100,000 people in total across the 2 lenders, a large proportion of which will have no change due to being on deals as you mentioned and to the remaining people an increase of £58 a month. (using the example)

is that all!!!!!

that's less than 0.66% of the UK SVR market... :eek:

very little impact on very few people

Harry_Powell

If I were a bank, I'd be raising my SVR too. It's a good ploy to get people to remortgage onto lower rates with a decent arrangement fee for the lender. A lot of borrowers are sitting on the SVR rates, waiting to see how the market goes before they get their next mortgage deal. This sort of tactic merely gives them an incentive to arrange their next deal.

Why have you posted this thread carolt? I'm sorry, I don't see the point of it?

carolt

Tell you what, honeypopper, you answer the question I asked you first, and I'll tell you.

Why are you not at work?

Do you not have a job, or are you wasting your employer's time?

Answers please.

PS Do you teach mathematics?

carolt

Harry_Powell wrote: »

If I were a bank, I'd be raising my SVR too. It's a good ploy to get people to remortgage onto lower rates with a decent arrangement fee for the lender. A lot of borrowers are sitting on the SVR rates, waiting to see how the market goes before they get their next mortgage deal. This sort of tactic merely gives them an incentive to arrange their next deal.

Why have you posted this thread carolt? I'm sorry, I don't see the point of it?

You seem to be having difficulties seeing the point of a lot of stuff today, Harry.

See my answer on the other thread.

Maybe you should get some fresh air, Harry - refresh yourself.

I'm off out soon - see you later.

System

Harry_Powell wrote: »

Why have you posted this thread carolt? I'm sorry, I don't see the point of it?

Because at first glance it looks like bear food.

westv

honeypopper wrote: »

I wouldn't call 0.35 and half a point increase as SHARP HIKE!!!!:rotfl:

Joe public would when they know that base rates have been at 0.5% for some time.

carolt

Joeskeppi wrote: »

Because at first glance it looks like bear food.

Because - perchance - it might be relevant to House Prices, one of the subjects of the forum?

Or is that just too radical a rationale?