Mortgage rates going up

wotsthat

Graham_Devon wrote: »

I think I would have to strongly disagree with you that it's a vote of confidence in the improving economy. I'm not even sure where you get that from.

If I'm selling a product, losing money and I've taken out all the cost I can then I need to put the price up. My customers might desert me but I've lost nothing because I was losing money anyway.

On the other hand if I've a product that is already profitable then I'm going to think very carefully about putting prices up because, in this case, there's a risk that my already profitable customers will leave me. I need to know that they can afford the price increase and that I'm not going to lose them to a cheaper supplier. So if I put prices up I'm taking a view on whether customers will be able to afford the increase and I need to take a future view on where I think the economy's going to do this.

Halifax et al are showing confidence in their customers ability to pay. They need to because SVR customers tend to be the least financially mobile so they'll just end up with increasing arrears if they get it wrong.

setmefree2

smamst wrote: »

Anyone stupid enough to have bought a house at inflated prices over the last ten years deserves everything that's coming their way.

I don't think they were that stupid

Homeowners £500bn better off thanks to 0.5pc Bank Rate

Britain's home owners have saved more than half a trillion pounds in mortgage interest payments as a result of record low interest rates, figures from the Bank of England suggest.

http://www.telegraph.co.uk/finance/personalfinance/borrowing/mortgages/9111248/Homeowners-500bn-better-off-thanks-to-0.5pc-Bank-Rate.html

The Bank of England has released figures that reveal collectively UK homeowners have saved half a trillion pounds in mortgage interest payments in the last three years since the Bank of England reduced base rate to its historic low level of 0.50 per cent. This works out at £50,820 for each of the 11.2 million mortgages in the UK

What a house buyer pays for a house is only part of the cost of buying a house. Almost the same amount is paid in interest as is paid in capital on most mortgages - so interest rates matter too:)

julieq

If you're worried about corporations making big profits, buy shares in corporations. It's really that simple. Big companies work for the benefit of their shareholders, and their major investors - for the most part pension funds - are ruthless at demanding that.

As for the SVR increases, the irony here is that they'll be increasing for existing borrowers who have been too lazy or too complacent to move off them onto (for example) a base rate tracker, but it will increase the capacity of lenders to lend at cut prices to new buyers. Far from forcing prices down, it heralds an increase in mortgage fund availability.

Blacklight

You'd be well chuffed if you're one of those that's had money in the bank for years waiting for the crash that never was:

Your money worth 10% less than it used to be.
House prices starting to rise again.
Interest rates going up.

Plenty of doom and gloom for you there.

ess0two

Does this mean if the BOE put the IR up,these banks wont pass this on:cool:

julieq

ess0two wrote: »

Does this mean if the BOE put the IR up,these banks wont pass this on:cool:

They will to a certain point, but when that is happening there will be a general recovery and banks will be starting to compete with each other for lending business. So the two effects balance out. You'll probably see higher SVRs but decent deals for remortgages.

Graham_Devon

julieq wrote: »

As for the SVR increases, the irony here is that they'll be increasing for existing borrowers who have been too lazy or too complacent to move off them onto (for example) a base rate tracker, but it will increase the capacity of lenders to lend at cut prices to new buyers. Far from forcing prices down, it heralds an increase in mortgage fund availability.

Oh do pipe down Julie.

Where are all these magical mortgages enabling people to switch? In one thread you and Hamish moan in harmony about 25% deposits being the problem....on here, you are suggesting people just switch to a magical tracker.

The majority of trackers that people on SVR could have achieved are all but gone.

If it's so easy...tell me. Let's say I have a 90% LTV. I'm on SVR. Which tracker should I switch to in order for me to become "less lazy"? Show me the product.

wotsthat

Graham_Devon wrote: »

Where are all these magical mortgages enabling people to switch? In one thread you and Hamish moan in harmony about 25% deposits being the problem....on here, you are suggesting people just switch to a magical tracker.

The majority of trackers that people on SVR could have achieved are all but gone.

If it's so easy...tell me. Let's say I have a 90% LTV. I'm on SVR. Which tracker should I switch to in order for me to become "less lazy"? Show me the product.

You misread what JQ wrote. She said people on SVR's have been (past tense) too lazy or complacent to get a better deal.

This is being paid for now because, as you say, your options have been limited by complacency.

Graham_Devon

wotsthat wrote: »

You misread what JQ wrote. She said people on SVR's have been (past tense) too lazy or complacent to get a better deal.

No I didn't misread it. You have just noted the problem with what Julie stated and are trying to packpedal on her behalf. She also said "too complacent" which suggests shes talking about people taking the SVR rate through choice over the last couple of years.

Mortgages siezed up way back in 2008. There will be a hell of a lot of people who have come off fixes and onto SVR between 2008 and today.

Julie has stated in no uncertain terms that it's ironic, as they are too lazy to switch.

Therefore I would simply like to know what product they should switch to. Should be a simple question, to a simple insult for SVR holders. But the question won't be answered, instead there will be much bluster and put downs as to put it bluntly, she's talking out of her rear again.

Carl31

michelle2008 wrote: »

I am sorry but smamst is a horrible person. There is a generation of people who simply wanted to buy their first home. How small minded to sit back and sneer at others misfortune. People caught by house price fluctuations weren't all people trying to make a fast buck.

well, its not really 'misfortune', anyone with a financial eye have known house prices have been ridiculous over the past 10 years

and, although his comment is a bit harsh, hes only pointing out a fact