MSE News: Bank of Ireland to raise mortgage SVR

Peelerfart

WOW! 8 pages and counting, simply because a variable rate varies.

I think MSE had better buy some more server drives,there's going to be more of these rises.

moneymagnet_2

Peelerfart wrote: »

WOW! 8 pages and counting, simply because a variable rate varies.

I think MSE had better buy some more server drives,there's going to be more of these rises.

If that's the most useful comment you can come up with may I politely suggest that you don't take up any more of the valuable server space.

opinions4u

moneymagnet wrote: »

Yes you're right, but I would have expected my IFA to spell it out for me, that's his job!

Was he an IFA? Or was he a mortgage adviser in an estate agency? Or something else?

After all if I knew about this stuff I wouldn't have gone to an IFA I'd have done it myself.

I have arranged dozens of mortgages in the past. Long time ago now admittedly. But sat in a private room for 2 hours with people means it is an absolute certainty that they won't remember everything that's said.

It takes 15 seconds to say "Here's what your payments will be for the first 3 years. After that you will be on Bank of Ireland's standard variable rate. This means that your payments will change to £xxx a month if their SVR remain the same. But they can change it whenever they choose".

I don't know if a similar conversation was held or not in your case. Your Key Facts document may well include more information in writing.

But most people will focus in on the here and now. How much it will cost NOW. Not two, three or five years in the future.

Human nature.

Peelerfart

moneymagnet wrote: »

If that's the most useful comment you can come up with may I politely suggest that you don't take up any more of the valuable server space.

No problem mm, the floor is yours

moneymagnet_2

Yes he was an IFA and whilst he did spend time with us, he did not spell out what SVR actually means. Had he said "this means they can decide how much to charge you at any time" I know I would have remembered. I have always believed in getting expert advice outside my own field of expertise and naturally you trust that advice, now I feel that I have been duped. All the paperwork says is 'a fixed rate for x years followed by a SVR". I just can't get my head around a loan that can be changed like this, with no reference to BOE base rates. My IFA did spend a lot of time talking about what could happen if BOE rates went up, I am old enough to remember the 14% rates that were around in the late 80s! At no time did he say, actually BOE base rates are irrelevant as they are at liberty to charge what they like! I am not against mortgages going up and down, that's what you expect, but normally they go up when interest rates go up and the BOE have decided to keep these low, so people like us won't get into trouble. What's the point?

suburbanwifey

moneymagnet wrote: »

Yes he was an IFA and whilst he did spend time with us, he did not spell out what SVR actually means. Had he said "this means they can decide how much to charge you at any time" I know I would have remembered. I have always believed in getting expert advice outside my own field of expertise and naturally you trust that advice, now I feel that I have been duped. All the paperwork says is 'a fixed rate for x years followed by a SVR". I just can't get my head around a loan that can be changed like this, with no reference to BOE base rates. My IFA did spend a lot of time talking about what could happen if BOE rates went up, I am old enough to remember the 14% rates that were around in the late 80s! At no time did he say, actually BOE base rates are irrelevant as they are at liberty to charge what they like! I am not against mortgages going up and down, that's what you expect, but normally they go up when interest rates go up and the BOE have decided to keep these low, so people like us won't get into trouble. What's the point?

I agree, that I thought the BOE were keeping rates low to help everyone out here in a recesssion, also to enable them to have more free money to spend out in the economy to keep shops, businesses from going under. If the BOE isn't keeping rates at rock bottom to help businesses and mortgage holders, then WHAT ARE THEY KEEPING THEM LOW FOR? I have no mortgage, paid it off a few weeks ago, if I had a mortgage, I would be very, very worried! I see them rising it every few months now until we have another 15% disaster and thousands of repossessions just like in the 80's, shocking.

ILW

moneymagnet wrote: »

Yes he was an IFA and whilst he did spend time with us, he did not spell out what SVR actually means. Had he said "this means they can decide how much to charge you at any time" I know I would have remembered. I have always believed in getting expert advice outside my own field of expertise and naturally you trust that advice, now I feel that I have been duped. All the paperwork says is 'a fixed rate for x years followed by a SVR". I just can't get my head around a loan that can be changed like this, with no reference to BOE base rates. My IFA did spend a lot of time talking about what could happen if BOE rates went up, I am old enough to remember the 14% rates that were around in the late 80s! At no time did he say, actually BOE base rates are irrelevant as they are at liberty to charge what they like! I am not against mortgages going up and down, that's what you expect, but normally they go up when interest rates go up and the BOE have decided to keep these low, so people like us won't get into trouble. What's the point?

Not having a dig, but what made you think that the SVR was linked to BoE? Seems a rather big assumption to make based on no information.

I don't think that anybody believes that the variable rate on their credit card is linked to base rate, so why assume that the variable rate on a mortgage is?

moneymagnet_2

ILW wrote: »

Not having a dig, but what made you think that the SVR was linked to BoE? Seems a rather big assumption to make based on no information.

20 years of mortgages where it has been?

Like I said I asked an expert to source my mortgage as I am clearly not knowledgeable enough to do it myself. I would expect him to point out the difference between the three types - he didn't.

suburbanwifey

ILW wrote: »

Not having a dig, but what made you think that the SVR was linked to BoE? Seems a rather big assumption to make based on no information.

You didn't ask ME that question, but I want to answer it.

Whenever BOE raised rates, my mortgage company raised rates. When the BOW started lowering rates, I immediately got a letter saying my rate was going down. If the BOE raised rates again, the mortgage company raised their SVR again ... see my point? if the SVR is not linked to a BOE base rate, then WHY did my mortgage company (and hundreds of others) raise or lower rates accordingly as to what the BOE was doing ????? Is it no wonder people assumed that SVR follow BOE rates?

moneymagnet_2

suburbanwifey wrote: »

You didn't ask ME that question, but I want to answer it.

Whenever BOE raised rates, my mortgage company raised rates. When the BOW started lowering rates, I immediately got a letter saying my rate was going down. If the BOE raised rates again, the mortgage company raised their SVR again ... see my point? if the SVR is not linked to a BOE base rate, then WHY did my mortgage company (and hundreds of others) raise or lower rates accordingly as to what the BOE was doing ????? Is it no wonder people assumed that SVR follow BOE rates?

Thanks - I couldn't have put it better myself!