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

Consumerist

piggypack wrote: »

. . .but am I wrong in thinking that the base rate was reduced to help people continue to afford their mortgage at a time when people (presumably main earners a lot of the time) were being made redundant or being asked to work reduced hours?

I think the bank rate was reduced primarily to reduce business costs and encourage growth rather than any direct consideration for the general public. Unfortunately, the plan hasn't worked out too well so far because growth is still hard to come by at the moment.

chrisjames699

It's how the banks are getting away with rate rises thats the problem. Everyone knows that they are busy re capitalising their positions because of reckless lending. Base rates at historic lows but lending rates at record highs explain that away?

DannyboyMidlands wrote: »

Do something? Nah.

Far better to moan about the product you chose, how the varying of a variable rate is unfair/unjust/criminal/kicking us while we're down (delete as appropriate) and conveniently forget that the rate has been massively lower than your budget cost for the last 3 years.

chrisjames699

Seen that the banks will be allowed to act with impunity and raise rates without any movement from the BoE? Rates were lowered to help the economy as a whole and what have the banks been allowed to do: Lend at historic highs while the base rate is at historic lows. This is not a borrower v savers issue as we are both getting a raw deal!

Consumerist wrote: »

I don't think it's a question of being happy at what is happening but more the disbelief that home-owners haven't seen this coming and re-organised their finances appropriately.

Recent years have provided an opportunity to pay down mortgages in preparation for the inevitable rate increase but not everyone has taken advantage. Why not?

It seems reasonable to me that a home-owner who was not able to pay down a mortgage when at historically low rates should have questioned whether they could afford to buy in the first place.

No-one seems, either, to consider the savers who provide much of the mortgage funding and have been screwed-over for years at less-than-inflation returns while home-owners enjoyed ever-increasing house prices.

Thrugelmir

chrisjames699 wrote: »

Base rates at historic lows but lending rates at record highs explain that away?

Very easy. Banks don't borrow at base rate.

Banks pay the going rate such as borrowing from savers.

Thrugelmir

chrisjames699 wrote: »

Lend at historic highs

Then your period of history must be very short.