MSE News: Building society breaks tracker mortgage deal to quadruple rates

JHC

At the risk of sounding unsympathetic, it seems to me that anyone who has been paying only 1 - 2% pa for their mortgage has been having an incredible deal - and perhaps should have been overpaying to reduce the outstanding loan. In that case they could afford to pay the more normal interest rate that their lender is now asking.

MiserlyMartin

This whole 0.5% base rate thing is a complete joke. The UK economy and financial system is still broken with nothing but sticking plasters trying to keep it together. Banks and BSocs know this. No wonder they want higher rates. The sooner the BoE, government stopped trying to prop up this ponzi scheme with quantative thieving and ultra low rates the quicker this depression will be over.

photome

JHC wrote: »

At the risk of sounding unsympathetic, it seems to me that anyone who has been paying only 1 - 2% pa for their mortgage has been having an incredible deal - and perhaps should have been overpaying to reduce the outstanding loan. In that case they could afford to pay the more normal interest rate that their lender is now asking.

A deal that the customer signed up to in good faith.

I spent years with a fixed interest rate mortgage, paying more than the market rate. When that finished last year I was switched to a base rate plus 1%

I didnt complain or change the terms when I was paying to much, why should a lender cahnge the terms when it is in mine/customers favour

System

JHC wrote: »

At the risk of sounding unsympathetic, it seems to me that anyone who has been paying only 1 - 2% pa for their mortgage has been having an incredible deal - and perhaps should have been overpaying to reduce the outstanding loan. In that case they could afford to pay the more normal interest rate that their lender is now asking.

Agree, but its not really the point, these customers have been deceived by small print. Its similar to someone being on a long term low fixed rate and suddenly having that rate changed due to 'exceptional circumstances'. You would be just as sore, even if you could afford the new payments.

dtaylor84

michaels wrote: »

I must admit I would never deal with them after this whatever was offered as how could you be sure there wasn't something sneaky hidden in the small print?

You could take the drastic step of actually reading what you're signing - particularly when hundreds of thousands of pounds are involved.

Thrugelmir

teepee83 wrote: »

Agree, but its not really the point, these customers have been deceived by small print.

We've all been deceived on a major scale and now the chickens are coming home to roost.

As there's no sign that the BOE base will be increased any time soon.

So lenders are being forced to increase rates to stay afloat (insolvent). The crash of 2008 was merely the appetiser. The main course is now upon us.

datostar

The vultures will be circling the Manchester by now. This indicates possible difficulties in balancing the books. Nationwide seems to like to snap up distressed BS's. The Co-op seems to have swallowed the Britannia satisfactorily now, but might be about to lose out on the Lloyd's branches so they might be a possibility. Santander hasn't completely digested the A&L and B&B yet but might fancy a minnow. Watch this space...

Pincher

My Interest Only tracker deal is still intact.
I'm not with Manchester BS.

It's bizarre, other people's deals seem to be falling apart left right and centre, but Mortgage Express just keeps going.
Maybe there is just a computer running, with nobody in charge.
Don't call them, and mess up a sweet deal.

Thrugelmir

Pincher wrote: »

It's bizarre, other people's deals seem to be falling apart left right and centre, but Mortgage Express just keeps going.
.

Make hay while the suns shines.

At some point there's going to be a bouncing bomb that hits the dam holding up low mortgage interest rates..

socks_uk

4 years ago we took out a 10 year fixed rate mortgage with Nationwide (around 5.4% I think) and we don't regret it at all. For another 6 years we know exactly how much we will be paying a month and throughout the 9th year we can monitor the market and adjust our day-to-day living and outgoings for that last year.

We may be paying above the average rates but it's worth it for the peace of mind.