MSE News: 40,000 Halifax mortgage holders at risk of payment hike

Former_MSE_Guy

This is the discussion thread for the following MSE News Story:

"They face the threat of higher mortgage costs after Halifax raised a cap for some on a standard variable mortgage ..."

Read the full story:
40,000 Halifax mortgage holders at risk of payment hike

JimmyTheWig

Presumably it also hit those with little, no or negative equity, those whose circumstances have changed since taking out the mortgage and those who would fall foul of the credit-crunch tightening of the mortgage market?

I.e. presumably it will hit anyone who can't remortgage.

Pincher

Shame on them, BOE+3% should be perfectly profitable as an SVR. There are trackers available now that charge less.

I do wonder about Mortgage Express though, BOE+1.75% must be border line loss making. Is the tax payer subsidising my mortgage?

What happened to the BOE+1% Life Time trackers that Barclays and Woolwich did? Send in the !!!!!, make them an offer they can't refuse? Move on to another mortgage or you swim with the fishes? Good plot for a thriller, George Clooney.

GooliesOfFire

Greedy bank... Poor people.

Lucky me I have my mortgage with Nationwide at 2.5%.

Thrugelmir

Pincher wrote: »

I do wonder about Mortgage Express though, BOE+1.75% must be border line loss making. Is the tax payer subsidising my mortgage?

Yes they are.

opinions4u

Why only 40,000?

Interesting segmentation when most of the mortgage book, which is much bigger, is linked to the 3.50% SVR.

Thrugelmir

opinions4u wrote: »

Interesting segmentation when most of the mortgage book, which is much bigger, is linked to the 3.50% SVR.

Seems as these customers had a specific cap in their mortgage offers/contracts.

This potentially allows an increase across the board without exception. So all borrowers would be treated equally.

snugglepet20

How exactly does this affect only 40,000 people? I am on SVR mortgage like everyone else who couldn't remortgage after their initial deal ended due to having a high LTV. So now my mortgage will go up to 4.25% in a months time, I don't know where I will get the money. TBH I am tempted to just get repossessed and let the council rehouse me, which is something I never thought I would say. It really feels like there is no point trying to fend for yourself anymore.

Thrugelmir

2sides2everystory wrote: »

Now surely that is an oversimplistic retort Thrugelmir ?

The UK Treasury is charging NRAM a far higher rate than this on the funding that's been provided. So technically this one mortgage is costing the taxpayer money.

JimmyTheWig

snugglepet20 wrote: »

So now my mortgage will go up to 4.25% in a months time, I don't know where I will get the money.

To be fair, this is no different in reality to if the Bank of England put rates up, which they are likely to do at some point in the coming few years.

brit1234

Libor rates are higher so if the banks haven't enough money in savings they have to borrow it. That costs more as Libor rates are what are used as the cost of borrowing..

Lets hope they can also raise rates for savers as well.