MSE News: Bank of Ireland to raise mortgage SVR

suburbanwifey

The_J wrote: »

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.

Thanks J, I see exactly what you are saying and I agree.

property.advert

kazoouk wrote: »

Got the letter this morning.. This has been what I have been dreading for a long time.. For all those smart !!!!!! who seem to think we can just change to a fixed.. No dice.. We have less than 10% equity thanks to the housing dip .. We are stuck.. 1.5% in less than a year is criminal.. We are going to be down £200 a month. I feel absolutely trapped as I know this is only going to get worse when the boe rate goes up which is inevitable

I don't see how this is possible.

When you took out your mortgage you much have budgeted for a much higher repayment figure and for all these years you have been paying much less than you anticipated but you haven't used any of this unexpected free cashflow to pay down your debt ?

Does any of this make sense ?

opinions4u

kazoouk wrote: »

Got the letter this morning.. This has been what I have been dreading for a long time

So what action did you take to mitigate it?

.. For all those smart !!!!!! who seem to think we can just change to a fixed.. No dice.. We have less than 10% equity thanks to the housing dip .. We are stuck

So what action could you have taken to mitigate this situation?

.. 1.5% in less than a year is criminal..

Did you consider it criminal when it dropped by 5% in 9 months? Come on, you've seen how fast things can change. You've had extra money in your pockets from a cheap mortgage. Why have you prioritised the spending of this saving elsewhere? (that's rhetorical question, no need to answer that one).

We are going to be down £200 a month. I feel absolutely trapped as I know this is only going to get worse when the boe rate goes up which is inevitable

I don't know how long you've been on the 2.99% rate. But it sounds like you've been about £350+ a month "up" for some time. That's £4,200 a year. Maybe more.

What action could you have taken, if you turn the clock back, to have made this situation better?

neil9313

Its not a 50% increase unless my maths is wrong.

AMILLIONDOLLARS

I remember the Good Old days when mortgage interest rates were 14%:eek: I think we have never had it so good on todays rates!!!!

AMD

suburbanwifey

AMILLIONDOLLARS wrote: »

I remember the Good Old days when mortgage interest rates were 14%:eek: I think we have never had it so good on todays rates!!!!

AMD

That may be true, but when mortgage rates were that price, the flat I was buying at the time cost 14K - rates like that on the prices some have bought for over the last 5 years or so would be lethal. So rates years ago are irrelevant as house prices were a fraction of what they are today, hence people paid higher interest on much smaller amounts.

saverbuyer

suburbanwifey wrote: »

That may be true, but when mortgage rates were that price, the flat I was buying at the time cost 14K - rates like that on the prices some have bought for over the last 5 years or so would be lethal. So rates years ago are irrelevant as house prices were a fraction of what they are today, hence people paid higher interest on much smaller amounts.

Yes but what was your salary back then?

suburbanwifey

It was 8K ...

kingstreet

Thrugelmir wrote: »

Bradford & Bingley created mortgage securisation in 1998

Unless I'm losing my marbles, the likes of National Home Loans, The Mortgage Corporation (TMC) and HMC were securitising residential mortgages back in the mid to late 80s when they first launched. That was in the UK. It's likely it was done first in the US, as TMC was Salomon Brothers' UK lending arm.

The difference back then was the mortgages packaged into each MBS were prime AAA-rated and there was no hiding of the sub-prime rubbish which caused so many institutional investors to question what the later RMBS they had purchased was really made up of.

The likes of AIG hadn't cottoned on to the idea of CDS with no collateral, based purely on their own AAA rating at that time either...

We really should have heard the tick, tick, tick...

deadrobot

neil9313 wrote: »

Its not a 50% increase unless my maths is wrong.

Your maths are wrong.

2.99% + 50% = 4.49%