Recuce Mortgage interest PETITION

davieesox

DannyboyMidlands wrote: »

Yes, taxpayers have bailed out the banks but that doesn't mean it should be open season for them to bail out everybody.

You seem to be under the impression that all taxpayers are mortgage holders when, in fact, they aren't.

Very true, but i would like to think(wishfull i know) that a bank could not forclose on a mortgage if it been bailed out by us taxpayers....would be interesting to see how many folk have been forclosed by bailed out banks???

Thrugelmir

davieesox wrote: »

Very true, but i would like to think(wishfull i know) that a bank could not forclose on a mortgage if it been bailed out by us taxpayers....

Surely its in the interests of the taxpayer not to let defaults go unchecked. Otherwise the situation will merely be worse.

_Andy_

superb :):)

eddie701

No, I don't think all taxpayers are mortgage holders, I didnt make that assumption at all. What I would like is for mrtgage rates to be capped to a particular reasonable limit, 1%.

When interest rates rise, banks may keep the rate margin they have now established.

Inflation is high, the demands for rate rises will increase soon (next 2-3 years). What mechanism exists to prevent profiteering by banks? That is what I would like to see discussed by the MP's.

What seems to have been forgotten is that the UK taxpayer provided guarantees to the banks and the debts they have generated.

opinions4u

eddie701 wrote: »

Im suggesting 1% on top of the base rate, NOT 1% as the actual rate.

That would ensure every bank went bust. Then nobody could have a mortgage.

Mortgages are secured against homes, this is how banks mitigate the risk.

If mortgages aren't obtainable, due to lack of profit potential, then property values would fall dramatically. This would mean properties are not providing adequate security.

My point is that as Rates have dropped for the banks, the rate reductions have NOT been passed onto the general mortgage market.

When banks are paying 5% on a 5 year term deposit, 3.2% on easy access accounts, you think they should be charging 1.5% on a mortgage. Strikes me as bonkers.

Banks would not exit the market with a1% premium, 3 years ago, this was the premium they earned.

And what happened 3 years ago? Ah yes, many went t!ts up. Good plan!

You're living in cloud cuckoo land.

i would like to think(wishfull i know) that a bank could not forclose on a mortgage if it been bailed out by us taxpayers

Taxpayers have already lost enough money on this enterprise. Why the hell do you want them to lose more?

eddie701

Also the default rates would be less with a reduced mortgage rate. In this case profiteering benefits no-one except the banks and the balance sheets.

_Andy_

This is pure genius, keep 'em coming

GMS

Martin Lewis needs to provide an article on this forum detailing how lenders raise funds.

No mortgage lender can raise funds at 0.5% it is as simple as that. 1 year money will be cheaper than 2 year money which will be cheaper than 3 years etc.

If the OP gets his way can we go for a 25 year fixed at 1.5%? Imagine the queue for this product!!

No matter how many times it is reiterated on here about the base rate having no impact on funding it goes ignored.

Evilm

The cost of borrowing for the banks hasn't dropped - they don't use the Base Rate, they use LIBOR. It dropped in 2008/9 but has been rising since. Its still under 1% at the moment (according to the below article) but its not dropping this year. The LIBOR rate also doesn't show the cost of dealing with the mortgages that default because people can't pay them and other costs related to the business of mortgage lending.

Over the last year its actually gone up: http://www.thisismoney.co.uk/money/markets/article-1645325/LIBOR-Latest-inter-bank-lending-rate-charts.html

As with most of the people on this thread I don't agree that we need to cap what banks can charge. If we were to do this it certainly wouldn't be 1% above Base Rate! It would be more like 10%!

What we really need to do is either convince people that not every person should be able to afford their own house or bring house prices down a very large percentage. The first is going to need a long re-education of a lot of people. The second will seriously affect those who already own a house and try to regain their funds by selling - especially those who have 90% + mortgages.

eddie701

Banks have been managing on a margin of 1% for quite some time.

Banks have been going "bust" for other reasons than these.....high street vs financial markets.