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Manchester Building Society

macaque_2
macaque_2 Posts: 2,439 Forumite
in Debate House Prices & the Economy
A group of mortgage holders face an unprecedented rise in home loan costs after Manchester Building Society decided to raise tracker rates for existing borrowers, even if the base rate remains unchanged.
This could add £3,360 a year to repayments on a typical mortgage, given some rates will more than quadruple.

http://www.moneysavingexpert.com/news/mortgages/2012/04/building-society-breaks-mortgage-tracker-guarantee-to-quadruple-rates
«1

Comments

  • DervProf
    DervProf Posts: 4,035 Forumite
    Another lender chooses to "ignore" the BoE base rate.

    This time trackers are being affected. Although this is only a small lender, it does add to the number of lenders who have recently increased their rates. Not good news for some mortgage payers, the one thing they didn't expect to go up in price is their mortgage (not just yet anyway). These increases may also affect RPI too.
    30 Year Challenge : To be 30 years older. Equity : Don't know, don't care much. Savings : That's asking for ridicule.
  • shortchanged_2
    shortchanged_2 Posts: 5,546 Forumite
    This is now starting to get a bit scary. I have visions of thousands of people turning their houses over looking for their mortgage contracts.
    Why are we here?......................because we are not all there.
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    shortchanged wrote: »
    This is now starting to get a bit scary. I have visions of thousands of people turning their houses over looking for their mortgage contracts.

    and the terms are fundamentally the same..........
  • chucknorris
    chucknorris Posts: 10,795 Forumite
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    Thrugelmir wrote: »
    and the terms are fundamentally the same..........

    I can't imagine that many have terms such as this:

    "The lender says a clause in many borrowers' contracts allows it to de-link trackers from base rate after five years"
    Chuck Norris can kill two stones with one birdThe only time Chuck Norris was wrong was when he thought he had made a mistakeChuck Norris puts the "laughter" in "manslaughter".I've started running again, after several injuries had forced me to stop
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
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    chucknorris wrote: »
    I can't imagine that many have terms such as this:

    "The lender says a clause in many borrowers' contracts allows it to de-link trackers from base rate after five years"

    Don't need one. There's an all encompassing exceptional clauses condition in every mortgage contract. Some lenders have invoked already, one a considerable length of time ago. So nothing unsurprising in this move.

    Surprising how few people actually read contracts before signing them. I include business in that comment as well as consumers.
  • chucknorris
    chucknorris Posts: 10,795 Forumite
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    edited 17 April 2012 at 7:52PM
    Thrugelmir wrote: »
    Don't need one. There's an all encompassing exceptional clauses condition in every mortgage contract. Some lenders have invoked already, one a considerable length of time ago. So nothing unsurprising in this move.

    Surprising how few people actually read contracts before signing them. I include business in that comment as well as consumers.

    This move has nothing to do with this which is why it is happening now (ie when the 5 year timeline kicks in). Of course it is NOT surprising! Did you miss the clause that I identified above, allow me to show it again:

    The lender says a clause in many borrowers' contracts allows it to de-link trackers from base rate after five years.

    It was specifically stated in their contracts, that's why it is not surprising
    Chuck Norris can kill two stones with one birdThe only time Chuck Norris was wrong was when he thought he had made a mistakeChuck Norris puts the "laughter" in "manslaughter".I've started running again, after several injuries had forced me to stop
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    chucknorris wrote: »
    This move has nothing to do with this which is why it is happening now (ie when the 5 year timeline kicks in). Of course it is NOT surprising! Did you miss the clause that I identified above, allow me to show it again:

    The lender says a clause in many borrowers' contracts allows it to de-link trackers from base rate after five years.

    It was specifically stated in their contracts, that's why it is not surprising

    Not as if the market hasn't been changing for a while.

    Skipton BS, Norwich & Peterborough BS, BOI (transferred to Mortgage Works). Barclays are intending to change contract terms with acquisition of Standard Life mortgage book.

    So no, not surprising in the slightest.
  • Graham_Devon
    Graham_Devon Posts: 58,560 Forumite
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    Thrugelmir wrote: »
    Don't need one. There's an all encompassing exceptional clauses condition in every mortgage contract. Some lenders have invoked already, one a considerable length of time ago. So nothing unsurprising in this move.

    Surprising how few people actually read contracts before signing them. I include business in that comment as well as consumers.

    Halifax seem to have invoked it twice since I took my mortgage in 2006! First doing away with the cap and secondly moving away from the bank rate + 2%.
  • wotsthat
    wotsthat Posts: 11,325 Forumite
    Graham_Devon wrote: »
    Halifax seem to have invoked it twice since I took my mortgage in 2006! First doing away with the cap and secondly moving away from the bank rate + 2%.

    Wasn't exactly easy for them though was it?

    How much compensation did borrowers end up getting?
  • SecondLegDownIsTheBigOne
    SecondLegDownIsTheBigOne Posts: 334 Forumite
    wotsthat wrote: »
    Wasn't exactly easy for them though was it?

    How much compensation did borrowers end up getting?

    And you don't think that Halifax considered this possibility before making the decision?
    1. The house price crash will begin.
    2. There will be a dead cat bounce.
    3. The second leg down will commence.
    4. I will buy your house for a song.
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