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

captainhaggis

The point of my post is that I think it's disgusting that the banks are prepared to - and ABLE to - do this to borrowers.

They don't offer anything back to us in the good times, and want to absolutely rape us in the bad. People have signed up to these mortgage deals in the perhaps mis-guided belief that the banks' ability to increase SVRs in house is unlikely to ever be exercised.

Will we see the banks lower their rates again when the BoE rates increase? I doubt it.

I really should have asked you for your ID. You're always meant to ask for ID when police come knocking aren't you? So the forum police are surely no different.

HAMISH_MCTAVISH

captainhaggis wrote: »

The point of my post is that I think it's disgusting that the banks are prepared to - and ABLE to - do this to borrowers. .

Banks are making near record high profit margins on mortgage lending at the moment.

That they would now increase SVR rates, whilst paying themselves billions in bonuses, is beyond despicable.

GB350

Thrugelmir wrote: »

And the purpose of your post?

I guess you've nothing to add to the debate.

You'll be in better company in the MoneySaversArms.

Thrugelmir you are as useful to these forum pages as the guy walking up and down the street with the sandwich board tied to his front and back reading "The end of the world is nigh ". If you have nothing constructive or statististically relevant to add then please refrain from commenting..................

senza7

Advice please, I am on the halifax svr, I have contacted Halifax to see what deals is available, there offered me a rate of 4.39% fixed for 2 years they say i only owe 18% equity. I was stunned I asked what have they valued my house at they said £105,000. Three houses on my street have sold from £157500 - £145000 in the lst three months , How can they value mine at just £105,000 obviously they will gain from this because the rate is higher. instead rates of 3.49 0-60 lvr 3.79 0.60-0.75 ltv They said if i am disputing the value i will have to pay a valaution fee of £108 (colleys) who they own !! it disguting why should i have to do , Advice Please

alexlyne

Halifax are doing what some other lenders are doing - offering unattractive rates so that people don't stay with them. If I can leave them, I will....

Premier_2

... the move allows the lender to increase charges should it wish, although it insists there are no plans to do so...

Dated Wednesday 29 February 2012

Mortgage misery as Halifax and RBS raise standard rates
(Embargoed until Sunday 04 March 2012, so presumably decided upon by c.o.b. Friday 02 March 2012 latest)

So the question is: Are Halifax making decisions on the hoof or were their pants well and truly on fire on Wednesday? :cool:

I don't think either answer would instill me with any confidence in that bank now.

kingstreet

senza7 wrote: »

Advice please, I am on the halifax svr, I have contacted Halifax to see what deals is available, there offered me a rate of 4.39% fixed for 2 years they say i only owe 18% equity. I was stunned I asked what have they valued my house at they said £105,000. Three houses on my street have sold from £157500 - £145000 in the lst three months , How can they value mine at just £105,000 obviously they will gain from this because the rate is higher. instead rates of 3.49 0-60 lvr 3.79 0.60-0.75 ltv They said if i am disputing the value i will have to pay a valaution fee of £108 (colleys) who they own !! it disguting why should i have to do , Advice Please

The Halifax indexed valuation system normally shows a lower figure than most of us expect. If you ask them, they will have the property revalued by Colleys, the in-house surveyors, at your expense of course. If the valuation is improved, your product transfer rate will improve too, if you fall into a better LTV band.

cumbrianlady

kingstreet wrote: »

You will be affected if you are on Standard Variable Rate (SVR). If you are on a limited-term product (ie to 31/12/2012) which is either variable or fixed, you are unlikely to be affected.

If you hadn't stuck "SVR" in the middle of;-


it would have been straightforward to simply say you would not be affected.

If you're on SVR you will be affected. If you aren't on SVR you won't.

I am on a tracker taken out in Feb 2010 expires Feb 2012 so I guess this increase means me.

The Halifax are just telling people to wait as letters are being sent out - to arrive at the end of this month beginning of April with the new calculated costs - 2 weeks before the new payments start.
I am in bits now never mind waiting another 6 weeks.

Thanks

Credit-Crunched

Having read this thread I am somewhat confused around peoples shock that a 'variable' mortgage has gone up?

When you took out this mortgage and knew it would revert to a SVR then you should accept that a standard VARIABLE rate may vary?

If you required the certainty of knowing that your monthly payments will remain the same then you could have easily switched to one of their FIXED rate mortgages.

You have enjoyed the benefit of insanely low mortgage rates over the past 2 years and now the balance is shifting slightly.

Heaven forbid how you will cope when BOE decides its time to look at the base rate and start moving it northwards.

People need to take stock of their own ability to plan for future occurances when taking on such a huge liability as a charge secured against their home and have the cushion to absorb such rises. If this is hitting you hard now, I suggest you sell up and downsize as this is just the start.

cumbrianlady

Credit-Crunched wrote: »

Having read this thread I am somewhat confused around peoples shock that a 'variable' mortgage has gone up?

When you took out this mortgage and knew it would revert to a SVR then you should accept that a standard VARIABLE rate may vary?

If you required the certainty of knowing that your monthly payments will remain the same then you could have easily switched to one of their FIXED rate mortgages.

You have enjoyed the benefit of insanely low mortgage rates over the past 2 years and now the balance is shifting slightly.

Heaven forbid how you will cope when BOE decides its time to look at the base rate and start moving it northwards.

People need to take stock of their own ability to plan for future occurances when taking on such a huge liability as a charge secured against their home and have the cushion to absorb such rises. If this is hitting you hard now, I suggest you sell up and downsize as this is just the start.

Which would all be good advice if anything was selling, after all who wants to be in a position of worrying about repayments.

Nothing in my neck of the woods is moving, people are not wanting to move to rural areas, what with the cost of fuel (or is that our fault as well)!

Always easy when on the outside looking in.

Thanks