MSE News: Bank of Ireland to raise mortgage SVR

The_J

That will just be for new customers who haven't secured a rate yet. All rates are going up at the moment.

Thrugelmir

The_J wrote: »

That will just be for new customers who haven't secured a rate yet. All rates are going up at the moment.

The squeeze has been forecast ever since the crash of 2008. QE could only shield the economy for so long. Austerity is only just hitting home.

DecoSparkle

MiserlyMartin wrote: »

I'm sorry.. people should have allowed for a rate rise when deciding to borrow whatever they did. Good job its not 8% like in 1998, which is still average!

Sweeping generalisation and grossly unfair. When I borrowed what I did it was on entirely different terms (rate was 6.something then) and my circumstances are totally different now - lives change, you cant legislate for every possibility. People aren't saying they don't expect changes, they're saying 1.5% in a short space of time when there's no apparent need snacks of taking advantage of a captive customer base just because they can.

The_J

Thrugelmir wrote: »

The squeeze has been forecast ever since the crash of 2008. QE could only shield the economy for so long. Austerity is only just hitting home.

No, the banks are being required to hold more capital and the uncertainty in Europe, with the inevitable default of Greece and the unknown fallout this will have on French and German banks as well as the CDS market... it's driving up the cost of borrowing on the money markets.

Austerity hasn't even begun yet, the UK deficit (unauthorised overdraft facility to the lay person) is still going up. If you're struggling now then you are screwed.

Thrugelmir

The_J wrote: »

No, the banks are being required to hold more capital and the uncertainty in Europe, with the inevitable default of Greece and the unknown fallout this will have on French and German banks as well as the CDS market... it's driving up the cost of borrowing on the money markets.

Austerity hasn't even begun yet, the UK deficit (unauthorised overdraft facility to the lay person) is still going up. If you're struggling now then you are screwed.

The BOE foresaw the problems in early 2009. Even before the Basle 3 regulations ( which aren't fully effect until 2018) were agreed .

Everything that is happening now is merely part of a great unwinding. A deleveraging of banks balance sheets is the first stage. That's whats driving money rates up. Fractional reserve banking is in reverse after 40 years in the ascendancy.

Bradford & Bingley created mortgage securisation in 1998. The first bank in the world to do so. Northern Rock and HBOS took it to new levels in the UK. Coupled I should add with an a poor attitude to risk management, being sales driven.

Other global banks likewise took excessive risk and joined the securitisation merry go round.

All that's happening now is the great unwinding. Coupled with the fact that Western governments welfare and public sector budgets are no longer sustainable.

suburbanwifey

What you trying to do J? have everyone looking for a noose? in what way exactly is anyone struggling now screwed? can you give it to me in plain English so I can understand the full implication of what you are suggesting is going to happen? (Thank God I have no mortgage!)

asandwhen

The_J wrote: »

Austerity hasn't even begun yet, the UK deficit (unauthorised overdraft facility to the lay person) is still going up. If you're struggling now then you are screwed.

The deficit has come down this year

http://www.thisismoney.co.uk/money/article-2104235/UK-delivers-rare-budget-surplus-January-boost-Osbornes-Plan-A-deficit-reduction.html

Thrugelmir

asandwhen wrote: »

The deficit has come down this year

http://www.thisismoney.co.uk/money/article-2104235/UK-delivers-rare-budget-surplus-January-boost-Osbornes-Plan-A-deficit-reduction.html

Only with benefit of cheaper borrowing costs. Debt owed is still rising.

The_J

2009? Only 7 years too late then.

Your last sentence is bang on. Especially here in the UK where Labour bought votes and radically altered the fabric of the country by allowing unlimited immigration and handouts to those people as well as breeding a culture of dependency on the state and a massive public sector in parts of the country (over 50% of people are employed by the local authority in some places, astonishing).

There are people in Parliament who should be in jail indefinitely but the public keep voting them in. That's the crazy thing, part of me thinks "I'm alright jack, bring it on and see how the voters like it" but then I know they'll be the first people knocking down my front gate and the police won't do anything as they'll be on strike protesting about not getting a bonus for working Tuesdays.

Madhouse, this country is a ****hole.

The_J

suburbanwifey wrote: »

What you trying to do J? have everyone looking for a noose? in what way exactly is anyone struggling now screwed? can you give it to me in plain English so I can understand the full implication of what you are suggesting is going to happen? (Thank God I have no mortgage!)

Well if you are struggling to pay for the mortgage at the cheapest it will ever be it doesn't bode well for the future.

People have to be more financially responsible. This is the great thing about this website, it encourages fiscal responsibility. Too often people just let stuff slide over their heads and don't take personal responsibility for their finances, this has to stop. It was the British people's desire for cheap credit and big mortgages that was the real cause of this recession, after all the bankers aren't special people.... they are like you and me just with a lot of cash to chuck around but they still think the same way.

I have to be honest because people need to seriously start changing their habits. Having the heating on all the time, paying for Sky, having to have the latest mobile phone, buying junk food, spoiling kids with money you can't afford, all of that comes behind paying the mortgage off asap. Interest kills you.