MSE News: Will lenders follow the Halifax and RBS mortgage rate hikes?

Tillydot

Now that Northern Rock has split does anyone think the NRAM with put up rates? I suppose its no longer owned by the Government, although does that make any difference.

kingstreet

Ginak wrote: »

The Bank of Ireland has just put my rate up on my SVR mortgage. As of June it will go up 1% and then in September a further 1%. What a joke!! :mad:

Cold comfort perhaps, but it's 0.5% in September, so 1.5% overall.

kingstreet

Tillydot wrote: »

Now that Northern Rock has split does anyone think the NRAM with put up rates? I suppose its no longer owned by the Government, although does that make any difference.

Northern Rock is no longer government owned. NRAM still is, under the UKAR umbrella with Mortgage Express and Bradford & Bingley.

kippygirl

RBS's offset customers who signed up to what was originally the Virgin One account were repeatedly promised and guaranteed that their interest rate would follow the B of E rate so RBS are now acting unlawfully hence the group legal action that is currently being prepared. This affects all the Virgin One customers who opened their accounts up to about 2002. Ongoing cost is a overcharge of 2.3% per annum or £2300 per £100K of mortgage.

MSE staff - if you want to contact me, I can confirm details of the solicitors preparing the case and you may want to put a mention about this in the newsletter as this potentially affects thousands of early Virgin One account holders.

northerngal_2

:eek:
I have received a letter from my lender the Bank of Ireland informing me that their SVR mortgage rates are to rise in two stages from June 2012 increasing from 2.99% to 3.99% and a further increase from September to 4.49%, a staggering total increase of 1.50%. Given the Bank of England rate has remained unchanged by 0.5% how could this be justified? :eek:

Conrad

northerngal wrote: »

:eek:
how could this be justified? :eek:

Regulators accross the West have asked lenders to get thier balance sheets in better order, and to re - capitalise, to make them safer, which is critically important if Greece and others end up in default.

As such some lenders need to increase rates to help improve thier balance sheets.

Here's the irony. When ordinary folk read a Daily Mail headline reading 'Banks told to get thier houses in order and protect us from another crash', they applaud it.

It's only when it dawns on them there's a cost involved they suddenly wake up and realise there's more to regulation and Bank safety than meets the eye.

Next time you are about to applaud Vince Cable on Question Time for saying 'we must get back to old fashioned lending, and safe Banking', you might want to reflect that someone you know will pay a price for this. Another adverse effect of old fashioned lending is that millions are forced to rent. Maybe all this tight regulation isn't quite as good for us as we thought. The UK mortgage market has always been ordered, the credit crunch had nothing to do with UK mortgages really.

ILW

Did people really expect to go on paying next to nothing forever?

koexelek

I think the lenders who did not (luckily for them ) pledge to keep their SVR's within a specified percentage of the Bank of England base rate will be tempted to follow the Halifax's lead.

The ones who made that pledge will just look at Halifax's actions enviously

graveplot

just received notice from Bank of Ireland increase from 2.99% to 4.49% by September - this will be in 2 stages i% increase from June and )>50% from September.
So yes , others will follow suit.

Thrugelmir

kippygirl wrote: »

RBS's offset customers who signed up to what was originally the Virgin One account were repeatedly promised and guaranteed that their interest rate would follow the B of E rate so RBS are now acting unlawfully hence the group legal action that is currently being prepared.

The threatened action by mortgage holders with the Skipton Building Society never got off the ground in the end. Selling any product at a loss is commercial suicide. There'll be no support from the FSA either. Better to spend your money repaying your mortgage.