MSE News: 'Don't take mortgage SVR hikes lying down'

tarmyg

I feel the point in this article that approximately half of homeowners with a mortgage haven't reviewed their mortgage since 2008 or 2009 is a stupid point.
I haven't check mine since 2008/9 because I know I'm on the best deal that I can get and I can't be alone. If my mortgage goes up I will have to pay more and that is that.
Fingers crossed mine doesn't increase, or at the very worse only by 0.5%.

Pincher

"Review" my mortgage?

That assumes someone will lend me money based on no "earned" income.

If I reviewed my mortgage, people would say I'm playing with myself.

alinwales

after being on a mix of halifax svr and a fix at 6.3% for the last 2.5 years, the reported svr rise was the final straw for me. Have now successfully applied (valuation tbc though) for 3.99% 5 year fix with no fees for 85%ltv.

Just hope that house prices haven't dropped too far in my area (though i noticed one house for sale at the same time we moved is back on the market for higher now!)

shortchanged_2

tarmyg wrote: »

I feel the point in this article that approximately half of homeowners with a mortgage haven't reviewed their mortgage since 2008 or 2009 is a stupid point.
I haven't check mine since 2008/9 because I know I'm on the best deal that I can get and I can't be alone. If my mortgage goes up I will have to pay more and that is that.
Fingers crossed mine doesn't increase, or at the very worse only by 0.5%.

Are you saying you can only really afford a 0.5% increase?

Had you not factored in the possibility of your mortgage increasing more than this?

This is what makes me wonder that there are quite a few people who have very little margin for increases on their mortgages.

Joe_Bloggs

The revered and respected Thrugelmir wrote:-

How would you describe the early 00's then?

Certainly not normal now that the truth is being revealed.

What truth is being revealed? Where was this truth hidden ?
Were there untruths/deceptions ? Were there unknown unknowns ?
J_B.

Thrugelmir

Joe_Bloggs wrote: »

What truth is being revealed? Where was this truth hidden ?
Were there untruths/deceptions ? Were there unknown unknowns ?
J_B.

Everything happens for a reason. That's where I was coming from. The era of cheap money was engineered by the banks. So at the moment the clocks being turned back after 40 years of credit growth.

As an example. In the early 70's. Barclays lent £7 for every £1 of capital on its balance sheet. By 2008 Barclays was lending £72 for every £1.

As we know now that was a step to far.

JamesU

Interesting thought, I have no idea what can be considered to be a normal interest rate.

Historical BoE rates from JB's link are in the graph below. The only thing that is clear to me is that 0.5% over 3yrs is very abnormal. And in general it looks like it is quite rare for BoE rates to fall below 4% (e.g. period 1955-2007).



JamesU

Consumerist

tarmyg wrote: »

I haven't check mine since 2008/9 because I know I'm on the best deal that I can get . . .

So you have reviewed your mortgage since 2008/9 otherwise you wouldn't know that.

wulliam

We took a 5.6% 25 year fix (option to leave penalty free after 10 years) with Nationwide in 2007, knowing that we'd probably 'lose out' initially. But then we love the security.

I feel sympathy for those who are going to lose their homes, but a quick look at a simple graph should have told them all they needed to know.

William

suburbanwifey

wulliam wrote: »

We took a 5.6% 25 year fix (option to leave penalty free after 10 years) with Nationwide in 2007, knowing that we'd probably 'lose out' initially. But then we love the security.

I feel sympathy for those who are going to lose their homes, but a quick look at a simple graph should have told them all they needed to know.

William

What a great fix William, for the whole term of the mortgage. Good decision! :T