MSE News: Bank of Ireland to raise mortgage SVR

madoona

Morgage_Confused wrote: »

the 2.99 SVR was a fantastic rate...now BOI are almost up to "normal" svr levels. but its still cheap.

those people on NRAM svr are 4.79% for example.

Its not CHEAP no point in comparing it to other SVR like the ridiculous Mortgage advisor I spoke to today did, it is unprecedented , unreasonable, and unwelcome-please look at the bigger picture.
If your increase is only £20 for example would you not prefer to have spent the £20 on your family/ yourself? IF you let the bank get away with this action who is to say that next January they wont put it up again due to their reserve being low? same reason new hike then you might say BOI is above the rest and is no longer 'normal' . No lender can justfiy a 50% increase in its rates. Don't let them get away with it lodge a complaint.

Thrugelmir

madoona wrote: »

like the ridiculous Mortgage advisor I spoke to today did, it is unprecedented , unreasonable, and unwelcome

Two months after obtaining my first mortgage, it rose 1% a month for four consecutive months from 10% to 14%.

Unprecedented?

Obviously a newbie in the world of finance.

MiserlyMartin

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.

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...

Thrugelmir

madoona wrote: »

A low/reasonable SVR for all with no fixing is the key to kick start economy if people have low mortgage payments they have a disposable income , no disposable income no spending - result double dip recession for sure.

You appear to be complaining as its affecting the profit on your BTL empire. Nothing what so ever to do with the wider economy.

opinions4u

madoona wrote: »

Its not CHEAP no point in comparing it to other SVR like the ridiculous Mortgage advisor I spoke to today did

Why not? What else should he/she compare it to?

it is unprecedented , unreasonable, and unwelcome.

It's not unprecedented at all. It's happened before with a much bigger increases in the percentage rate.

please look at the bigger picture

There's a big picture of a tiger on my wall.

If your increase is only £20 for example would you not prefer to have spent the £20 on your family/ yourself?

Yes. But sometimes that isn't an available choice.

IF you let the bank get away with this action who is to say that next January they wont put it up again due to their reserve being low?

If they can demonstrate an unfavourable change in their funding costs they will increase their rates again.

same reason new hike then you might say BOI is above the rest and is no longer 'normal' . No lender can justfiy a 50% increase in its rates. Don't let them get away with it lodge a complaint.

Why did they justify a 73% reduction in their SVR over a 9 month period then?

Sometimes it goes for you. Sometimes it goes against you. In 2008 BOI customers had a 7.99% SVR to look forward to.

MiserlyMartin

zebbedee wrote: »

That'll be the printing of money to keep your house price up then.....

Wait for the bond market to turn its attention to sterling and the BoE raising rates to defend it, or it all goes pear shaped.

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.

MiserlyMartin

opinions4u wrote: »

Why did they justify a 73% reduction in their SVR over a 9 month period then?

Sometimes it goes for you. Sometimes it goes against you. In 2008 BOI customers had a 7.99% SVR to look forward to.

Top post. I agree, I don't remember people complaining very much about a 73% reduction in the SVR. Neither was there much fuss about savers and pensioners getting shafted in the process to save the reckless and greedy. So many pensioners are suffering in relative silence while a few squeal that the life support may be ending.

madoona

MiserlyMartin wrote: »

1.5%.... Its 1.5% is that all fuss is about? Thats nothing! There is need for banks to recaptialise. The financial system is still screwed up and will continue to be while we have QE funny money, bank bail outs and stupidly low base rates. Theres no reaching some people.

Its a 50% hike - so you go to purchase any other product for example - you need some petrol - oh but it gone up by 50% so you pay up- then get to work park the car but the car park has gone up by 50% oh so you pay up- then you go for Lunch but the price has gone up by 50% so you pay up - I don't think so a 1.5 % increase on most things , let alone your mortgage is unprecedented , unreasonable and unwelcome , clearly BOI has acted out of the ordinary and yet you find it quite normal. IF they are allowed to get away with this it paves the way for others to do like wise so its not "just about the money "is about what drove them to do this and is it legal ? Consumers have the right to defend their positions in the banking fiasco and against rogue lenders wishing to pull out of the market . Plus the BOI- HELPLINE is SMUG very very SMUG . BOI is not likely to help anyone but themselves . How Many People ARE on the Edge and may lose their houses becuse of this HIKE, how many can't move to other products , did you know they have removed self certification a dirty word now - Interest only mortgage another dirty word but this type of mortgage was widely sold in 2003 and pushed to the maximum. Existing customers should stay on current SVR and the new SVR rate as you think it is so reasonable, could be for new customers then we can see how they fair with the new uptake. But of course they will change that as they have done at the banks with two SVRS - SVRS should not be mucked about with to suit BANKS ., because that is what is beginning to happen.

littlegreenroundthings

It all seems like a massive fuss over nothing - 1.5% increase between now and September - they are variable rates !!!!!!! And for the moaners going on about their BTL loans - sorry, no sympathy here - you're a business, so your margins just got tighter - you have good years and lean years - your good ones have passed when the money rolled in, so use that money to get through the lean years.

People need to get real - it's going to get a lot worse than this very quickly.

madoona

opinions4u wrote: »

Why not? What else should he/she compare it to?

It's not unprecedented at all. It's happened before with a much bigger increases in the percentage rate.


There's a big picture of a tiger on my wall.

Yes. But sometimes that isn't an available choice.

If they can demonstrate an unfavourable change in their funding costs they will increase their rates again.

Why did they justify a 73% reduction in their SVR over a 9 month period then?

Sometimes it goes for you. Sometimes it goes against you. In 2008 BOI customers had a 7.99% SVR to look forward to.

Yep I know I was on it - practically killed me but survived