Mortgage rates going up

yellowmonkey

Sibley wrote: »

Anyone cheering the rate rises is a scumbag. Savers won't be getting any more interest. This is just classic wishing bad on people on a better position.

There is the problem. Some Homeowners think they are better than people who rent.

chucknorris

yellowmonkey wrote: »

There is the problem. Some Homeowners think they are better than people who rent.

He didn't say they were better, he said 'on a better position' obviously meaning 'in a better (financial) position'.

I don't consider Richard Branson any better than me but he is obviously in a better financial position than me.

PaulF81

You can add Santander to the list too!

http://www.telegraph.co.uk/finance/personalfinance/borrowing/mortgages/9121324/Millions-face-higher-mortgage-bills-as-Santander-joins-NatWest-and-Halifax-to-raise-rates.html


Had to laugh at the Halifax home insurance advert, guarantee not to raise home insurance, but dont worry we will screw you on the mortgage!

DervProf

HAMISH_MCTAVISH wrote: »

Thankfully, not all major lenders are in a position to rip off the public in this way.

Says the man who openly celebrates HPI and wants the banks to lend more to FTBers.

If banks keep interest rates low, it simply ends up in new borrowers having to borrow more, which means they'll be paying more in interest to the lenders anyway.

The HPI you crave, or at least celebrate, means that the public are effectively "ripping off" each other, and the banks get more of a taste of the action.

DervProf

PaulF81 wrote: »

You can add Santander to the list too!

http://www.telegraph.co.uk/finance/personalfinance/borrowing/mortgages/9121324/Millions-face-higher-mortgage-bills-as-Santander-joins-NatWest-and-Halifax-to-raise-rates.html


Had to laugh at the Halifax home insurance advert, guarantee not to raise home insurance, but dont worry we will screw you on the mortgage!

This news will be a bit of a shock to those who thought that lower borrowing costs were here to stay. It may also negate some of the recent excitement that house prices are rising.

I had a sneaking suspicion that this may happen. I think it isn't such a bad thing in that it will remind people that rates can go up as well as down. I`ve said many times that low rates for too long a period will lull people into a false sense of security. A small increase might help to hold back any signs of a boom that certain posters have been suggesting is starting to happen. I'm sure we won't see a rise in reops, and as long as we don't this rise will send out a valuable message.

Although some mortgage payers will have a little less to spend in the wider conomy, we might see some savers benefit. Maybe the pensioner with a nest egg that they saved for retirement will have a little more cash to spend in the shops.

wotsthat

DervProf wrote: »

Although some mortgage payers will have a little less to spend in the wider conomy, we might see some savers benefit. Maybe the pensioner with a nest egg that they saved for retirement will have a little more cash to spend in the shops.

I hold shares in a couple of banks. I'd be pretty upset if the directors were spending time hand wringing about a cuddly old fart who has a nice little nest egg (not too big mind) that they built up during their hard-working lifetime.

There's a big demand for ultra-low risk investments. If our cuddly old chap doesn't like the returns on offer it seems that there are plenty that do.

There seems to be some confusion about these rates increasing. The banks don't NEED the money they just WANT it to enhance margins and so they are targeting the customers that can do least about it. I doubt very much whether it's going to find it's way into a crinkley's pocket.

More likely some nice mortgage teaser rates on the way.

JanCee

How does mortgage rates going up benefit savers of any age?

DervProf

JanCee wrote: »

How does mortgage rates going up benefit savers of any age?

I would have thought that savings rates are related to mortgage rates.

If a bank is bringing in more money from borrowers, it can afford to pay savers more.

Obviously, that is not always the case, and it is a little more complex than that.

I have been reading reports that some lenders are going to have to turn to savers to get the funding for lending. If the banks are struggling to raise funds elsewhere, they may well increase the cost of borrowing for current borrowers, and entice savers by increasing savings rates.

Thrugelmir

DervProf wrote: »

I have been reading reports that some lenders are going to have to turn to savers to get the funding for lending. If the banks are struggling to raise funds elsewhere, they may well increase the cost of borrowing for current borrowers, and entice savers by increasing savings rates.

That's the way banking has worked for centuries.

Only in the space of a decade or so. Has the situation changed.

ILW

Think this points out how little BoE have control anymore. They have lost a lot of credibility over their lack of control over inflation and are now virtually ignored by the real economy. Pity but they seem to have blown it.