MSE News: Bank of Ireland to raise mortgage SVR

moneymagnet_2

Thank you GMS for your clear and intelligent reply, it's good to know that someone out there doesn't see me as a complete idiot, for not fully knowing the system. It never ceases to amaze me how many people will take pleasure in pointing out your mistakes on here, even when it is obvious that you are feeling very vulnerable.

ILW

moneymagnet wrote: »

Thank you GMS for your clear and intelligent reply, it's good to know that someone out there doesn't see me as a complete idiot, for not fully knowing the system. It never ceases to amaze me how many people will take pleasure in pointing out your mistakes on here, even when it is obvious that you are feeling very vulnerable.

I don't think that any is taking pleasure from others mistakes. But your tone does seem to suggest that it is all someone elses fault.

If you think your IFA mislead you, you can sue them.

GMS

moneymagnet wrote: »

Thank you GMS for your clear and intelligent reply, it's good to know that someone out there doesn't see me as a complete idiot, for not fully knowing the system. It never ceases to amaze me how many people will take pleasure in pointing out your mistakes on here, even when it is obvious that you are feeling very vulnerable.

Not knowing something does not make somebody an idiot. I know next to nothing about electrics so choose not to tinker with them and get an electrician in. Less chance of me going up in flames that way!

Unfortunately there are people who have found out the hard way and it is not a simple 'learn and move on' type of thing. Burning the toast, spilling a drink, scratching the car etc are all minor and can be learnt from. People have not fully understood what they signed up for and are now feeling let down and finacially penalised. Rates are still lower than expected for most but clearly it hurts when people thought rates were linked.

The sooner all mortgages are required to be advised on the better. It shoudl remove some of the doubts from the consumer and ensure there are no grey areas.

AMILLIONDOLLARS

The Nationwide have two Rates

BMR Guaranteed to be no more than 2% above Bank of England Rate
SMR with no upper limit, this rate is subject to the same increase that everyone is experiencing.

I am lucky to be on BMR, at the moment, as it covers the lifetime of my Mortgage.

AMD

zebbedee

MiserlyMartin wrote: »

Printing of money helps nobody, not even the people its targeted because all the inflation they have created has meant that people are spending any extra saving from their debts and mortgages on just living. Funny how Osbourne described QE as a 'desperate act of a desperate government' while Labour were in power, but then he has been doing it via Mervyn King ever since!

He knew then it was desperate, he was right, but now he hasn't the balls to change course. Firing Mervyn King would be a start and most of the MPC. They have no credibility.

Thats almost true, and its about time that those who borrowed to much money to buy an overpriced asset in the middle of a bubble during a period of low interest rates ant an inflated price with highly leveraged borrowings suffered for thier action-actions in which the banks were complicit. Those self same banks being the exception to the 'printing of money helps nobody, QE is doing precicely what it is supposed to do, taking money from the proles to give to the bankers. This prole did not contribute to the problem but up until now has been amongst the minority contributing to the solution.

The overindebted should lose assets they purchased with debt they could not afford (particularly if they cannot grasp the fundamentals of variable :shocked:), then and only then can the monetary system do what it is supposed to do.

The bakers will get away with it unfortunately.

brit1234

*Warning*

Please be aware that there maybe even more mortgage rises in the future even if the BOE stays the same or even falling to 0.25%. At some point Greece, Spain, Italy, Ireland and Portugal will go belly up. That will increase LIBOR dramatically and thus the cost of borrowing money will rise. Your mortgage rate will most likely rise to cover these extra costs. So look at your small print, understand it and plan ahead.

Cassandra_W

All the people complaining about banks increasing their mortgage rates need to ask themselves a question:

Do we want the best bankers in the world or not?

If we do, we have to give them a lot more money or else they might leave. Obviously they made fortunes deliberately driving our houses prices higher via liar loans but they simply cannot do that anymore. The UK is insolvent, so foreigners don't want to lend us money that they banks can then lend to anyone with a pulse to buy a house.

The B of E has tried to help our bankers by printing money to buy our own debt, to artificially keep interest rates low, like a dog eating it's own vomit. The trouble is investors in other countries don't want to buy debt paying 2% a year when the currency they buy it in has dropped 5% a year for the last 5 years. They lose -3% every year like all those evil savers and people who work in the UK (people on benefits got a 5.2% rise this year)

We can no longer rely on the evil savers keeping their money in the UK in a toilet currency like sterling. More and more of them are moving it abroad before sterling collapses. Then they will move it back when interest rates surge to double figures. So until then we have to give our fine bankers as much money as possible via gradually rising interest rates so they can keep collecting bonuses.

People need to realise like unlike Oxfam banks are not registered charities. They are there, with the help of the BANK of England to make as much money as they can. I heard this week about a banker who spent £200k on a party - how can he afford the next one if we don't help him?

Thrugelmir

Cassandra_W wrote: »

All the people complaining about banks increasing their mortgage rates need to ask themselves a question:

Do we want the best bankers in the world or not?

Bankers or banks?

There is a difference.

james_toney

MiserlyMartin wrote: »

Question. What would people rather have?

A. 1990 Flat at £40,000 with a mortgage rate of 14%
3 times salary or 2.5 joint

B. 2012 Flat at £225,000 with a mortgage rate of 3%
Big salary multiples requiring more than ever before - two salaries to finance said flat

...

i think it is here where is the problem, people just want to deny or not think about it,

the problem is house prices are just far too high, if they were normal or long term average 3 times salary, no -one would be in this position, Labour really messed this up with the massive housing bubble. " i will not let house prices get out of control" Gordon brown,

i genuinely feel sorry for anyone who will be in trouble with this, i i also feel sorry for the people who cant buy houses, I feel this is just the start of it, all mortages will start to rise no matter what the BOE base rate is, people laughed at the thought of 8% mortages they will be back again in next couple of years.

house prices to fall about 30% form all this, getting somewhere back to "normal" as this at the moment is not normal, been far too good for too long, Adios

Cassandra_W

MiserlyMartin wrote: »

Question. What would people rather have?

A. 1990 Flat at £40,000 with a mortgage rate of 14%
3 times salary or 2.5 joint

B. 2012 Flat at £225,000 with a mortgage rate of 3%
Big salary multiples requiring more than ever before - two salaries to finance said flat

Education is in order for some on here worried about a 4% mortgage. It is low - as long as you didn't borrow too much...

B. massively favours landowners and the rich because they do not need to borrow to buy any assets. It revalues the assets they already own much higher.

Poorer people take the bait and get into debt to buy assets and are then crushed when you get assets valued as in B. with interest rates as in A. which is the path we are headed on now.