Whinging.

ILW

There does appear the be rather a lot of indignant wailing going on because some banks have put .5% on their SVRs. Did all these people truly expect to be paying peanuts forever?

PaulF81

Speak for yourself. Im on a 1.99% above BOE base tracker. For the life of the mortgage.

Graham_Devon

ILW wrote: »

There does appear the be rather a lot of indignant wailing going on because some banks have put .5% on their SVRs. Did all these people truly expect to be paying peanuts forever?

With the BOE suggesting rates won't be rising until at least 2014, yes, I guess many people got very comfortable.

As with anything though, the longer things go on, the bigger the shock when things change. People have got used to, and realigned their finances towards their outgoings, which for a reasonably amount of time have been much lower than many will have imagined.

People have even taken out new mortgages based on low rates. Ray Boulger for instance has been advocating such.

So yes, people are being caught out. That's the problem with extending emergency stimulus.

DervProf

PaulF81 wrote: »

Speak for yourself. Im on a 1.99% above BOE base tracker. For the life of the mortgage.

Your post makes no sense as a reply to the OP.

ILW was talking about other people, no speaking for him/herself.

DervProf

GD.

Talking sense again.

I await the bull response, trying to dismiss his reasonable comments.

Rochdale_Pioneers

I passed comment on it as I am one of the Halifux customers affected, but I don't think I was whinging. I am entirely at the mercy of the bank - that its only profiteering a little bit is a relief. And compared to the long term rates of interest "enjoyed" by my parents, its a cakewalk. People would have killed for 4%.

ILW

Rochdale_Pioneers wrote: »

I passed comment on it as I am one of the Halifux customers affected, but I don't think I was whinging. I am entirely at the mercy of the bank - that its only profiteering a little bit is a relief. And compared to the long term rates of interest "enjoyed" by my parents, its a cakewalk. People would have killed for 4%.

I remember in the early 90s thinking that anything in single figures would be truly wonderful.

Rochdale_Pioneers

There are people out there who will get into major difficulties when rates go back up - and they will. The big question is what deals will the banks offer and what profit margin will they make.

ILW

How many buyers went for the biggest mortgage they could possibly get, rather than leaving a little wiggle room?

RUN_RABBIT_RUN

ILW wrote: »

There does appear the be rather a lot of indignant wailing going on because some banks have put .5% on their SVRs. Did all these people truly expect to be paying peanuts forever?

the only indignant wailing i've noticed is from savers because banks have cut interest rates on their accounts, decreasing the free money they get. did all those people truly expect to be paid generously forever for doing nothing with their money?

oldvicar

I think the recent changes confirm what I have suspected for a little while: that what the BoE does to its Base Rate is of much less significance than it used to be. Banks are ignoring BoE Base Rate and responding to market forces.

I believe this is very significant because at least until recently it has been one of the main tools BoE has used to influence the economy. In particular it has been just about the only tool used to try to achieve one of its primary functions of steering inflation to meet targets set by the Treasury.

Acknowledging that BoE Base Rate is now ignored by the market sadly confirms to me that inflation is now out of control.

I think this is but the start of a trend of increasing mortgage (and savings) rates. I have some sympathy for mortgage payers linked to SVRs. As a saver I am rather more pleased at the prospect of higher savings rates, but regret that I think saver's joy will be bridled by inflation.