New Mortgage E-Petition

virtual_2

This is a new e-petition and has been created to call on the government to step in and stop nationlised banks raising interest rates. Have a read and if you agree please take the time to sign the petition. Please forward to friends and family who may take the same veiw, please type the following into your address bar: epetitions.direct. gov. uk/petitions/31089

leveller2911

virtual wrote: »

This is a new e-petition and has been created to call on the government to step in and stop nationlised banks raising interest rates.

I'd rather you explain ,why would you want to stop banks raising interest rates? .Raising rates is bad for mortgagees but good for savers.

virtual_2

Over three years on from the bailouts and taxpayers are sitting on a huge loss running into billions and billions of pounds.
The Bank of England have kept rates at 0.5% yet major banks have announced rises in variable intersted base rates.
It's not right that families struggling to pay their rising costs now face an increase in monthly mortgage interest rates despite no hike from the Bank of England.
Is this how shareholders should be repaid?
The govenment needs to step in and force the banking groups that have been Nationalised to reduce their rates NOW back in line with the 0.5 rates set by the Bank of England.

Thrugelmir

As a taxpayer why I should I subsidise your mortgage?

The Nationalised banks have cheaper interest rates than the average.

LeafGreen

I have to say, I disagree. Anybody who didn't take into account in their affordability calculations, the possibility of interest rates rising from their emergency low levels is, imho, a little foolish (I'm trying to be kind by not saying incredibly foolish).

So I agree with Thrugelmir.

Slightly off topic but whilst I'm having a mini-rant, I'd also like to say that I am disgusted that tax payers money is being used to underwrite this ridiculous NewBuy scheme which serves only the interests of the developers whilst pretending to help FTBs and STBs.

Right, I'm glad I got that off my chest. Thanks for listening and have a nice day everyone

ACG

The only people that will sign this are people who have mortgages with those banks.

Youve said it yourself theyve lost billions...raising rates will reduce that loss so i as a tax payer get my share of that money back sooner.

What a crazy post!

virtual_2

I think it's great that everyone is voicing their views on the subject. I agree that it’s the individual’s responsibility to account for interest rate rises and partly the banks to check they can afford it (Subprime ring any bells). Furthermore I don’t think taxpayers should subsidise other taxpayer’s mortgages. What subsidy? I’m not saying that bailed out banks should offer lower subsided rates than other banks just that variable mortgage rates should only be increased in line with the base rate set by the Bank of England. Nationalised banks don’t on average have cheaper variable rates than other banks.

Tax payers have lost billions bailing banks out yet the banks still manage to pay huge bonus’s to their higher level management team whilst they run banks at losses.

The bank of England has not changed the base rate from 0.5% , if banks were managed correctly they could become profitable over time without raising their variable rates.

Let’s face it many people have been made redundant sometimes with hardly any notice or redundancy payout. Some people have had to accept lower wages to stay afloat and private business is not replacing jobs lost within the public sector. Many families are struggling as they face high levels of inflation, paying more for food, gas, electric, petrol, water, etc etc. Many of the job cuts and reasons behind reductions in public spending is a direct result of bailing the banks out.

I don’t thinks its right that tax payers are been used, as you say reduce the banks loss when there are other methods of reducing loss by offering competitive products. The economy is fragile and unemployment is high this is not a good time to ask people to pay more towards something they are still paying for, when all they have received so far is a loss in return.

I believe other people that do not have mortgages with bailed out banking groups will sign the petition. As some people stand up for what they believe is ethically correct and are not just focused what affects them personally.

But everyone is entitled to voice their opinion

Thrugelmir

virtual wrote: »

Nationalised banks don’t on average have cheaper variable rates than other banks.

Have you actually looked and compared?

Why does NRAM charged 4.79%? This a taxpayer owned institution as well. NRAM pays the treasury 5% above base on its £48 billion loan.

opinions4u

virtual wrote: »

Over three years on from the bailouts and taxpayers are sitting on a huge loss running into billions and billions of pounds.

Although hundreds of billions of pounds lent under the Special Liquidity Scheme have been repaid.

The Bank of England have kept rates at 0.5% yet major banks have announced rises in variable intersted base rates.

As the Bank of England base rate is not the rate at which banks raise funds for mortgage lending, this point is irrelevant.

It's not right that families struggling to pay their rising costs now face an increase in monthly mortgage interest rates despite no hike from the Bank of England.

Is it right that banks should lose even more money by not passing on increases in their funding costs to customers.

Is this how shareholders should be repaid?

As a taxpayer, therefore indirectly a shareholder, I understand that increased mortgage rates mean turning a loss making bank into a profit making bank.

A profit making bank will have a higher share price than a loss making bank.

Therefore this is exactly the sort of measure that is good for shareholders.

The govenment needs to step in and force the banking groups that have been Nationalised to reduce their rates NOW back in line with the 0.5 rates set by the Bank of England.

But this would reduce the value of the banks and increase the losses for taxpayers.

Have you thought this through? Didn't think so.

Furthermore I don’t think taxpayers should subsidise other taxpayer’s mortgages. What subsidy? I’m not saying that bailed out banks should offer lower subsided rates than other banks just that variable mortgage rates should only be increased in line with the base rate set by the Bank of England.

As stated above, banks don't raise money at BBR. Banks don't raise money at the same rate either. The wobbly nationalised banks pay more for money than the likes of HSBC who are seen as a more stable risk.

Nationalised banks don’t on average have cheaper variable rates than other banks.

Yes they do.

Tax payers have lost billions bailing banks out yet the banks still manage to pay huge bonus’s to their higher level management team whilst they run banks at losses.

While not defending the size of bonuses paid, turning a loss making bank riddled with poor quality assets in to a profit making bank with a strong lending book is not an immediate act. It takes a hell of a lot of hard work over a number of years. These are not bonuses for failure. They are bonuses for progression against a range of financial meausres.

The bank of England has not changed the base rate from 0.5% , if banks were managed correctly they could become profitable over time without raising their variable rates.

With the greatest respect, no they couldn't. They would have to reduce their savings rates, funds would flow out and their balance sheets would fall over.

Many of the job cuts and reasons behind reductions in public spending is a direct result of bailing the banks out.

The reasons for the reduction in public spending is that for way too long we (or rather our government) have been spending more than we are earning. It was always inevitable that it would blow up in our faces at some point. Despite Mr Brown's claim, boom and bust never went away. It just took longer to hit bust. But went off bigger when we hit the rocks.

I don’t thinks its right that tax payers are been used, as you say reduce the banks loss when there are other methods of reducing loss by offering competitive products.

The more competiitively you price a product, the less profit each unit sale makes. A savings account paying 3% interest loses a bank money.

The economy is fragile and unemployment is high this is not a good time to ask people to pay more towards something they are still paying for, when all they have received so far is a loss in return.

Leaving things unchanged means a bigger loss for the taxpayer. I'm sure it's not a good time for anybody to pay more for their mortgage. But the reality is that funding costs have gone up even though the BofE rate is unchanged. Do nothing and losses increase. Price up and you can stop those losses increasing.

What you are asking for is rather deluded.

Torry_Quine

I won't be signing either. The rates will still be historically very low and if you haven't thought that they would be going up at some point.......

Conrad

The IMF the FSA and other Governmental bodies are requiring Banks to re - capitalise in view of the significant risks they are exposed to through having low balance sheet numbers.

Your fight my freind is with the FSA.

If we get more economic storms such as for example a Euro zone nation defaulting, British Banks could be hugely affected, meaning more woe for the British economy, more unemployment.

I feel for your plight, but honestly it's very 1 dimensional.