MSE News: When is a tracker mortgage not a tracker?

ILW

2sides2everystory wrote: »

What absolute twaddle. Could someone explain to The J why Greek debt for a starter for ten doesn't fit his agenda?

All depends on the numbers.

Owe someone £50 quid and they can crucify you.
Owe someone £50 million and you can crucify them.

The_J

2sides2everystory wrote: »

What absolute twaddle. Could someone explain to The J why Greek debt for a starter for ten doesn't fit his agenda?

Are you kidding me? This is about the worst example you could have used, no wonder you tried to dump the explanation on someone else.

Greece is barely an autonomous country. It is a protectorate of Germany.

ILW wrote: »

All depends on the numbers.

Owe someone £50 quid and they can crucify you.
Owe someone £50 million and you can crucify them.

Owe someone £50bn, accept crippling austerity to reduce the bill to £25bn and watch as they print the difference and give it to themselves.

Consumerist

nomoneytoday wrote: »

IMHO it's not sustainable to lend people money at 2%, but have to pay savers 3-4% to remain competitive...

I think that might depend on what proportion of savers are actually receiving the 3% - 4% as compared with 0.5% or less.

Paradoxically, if all savers were receiving 3% - 4% AER then such rates would disappear.

betmunch

The_J wrote: »

But betmunch, you are a nice guy, an honourable man in an honourable profession, your wealth is a reflection of your honesty. Now compare yourself, a pillar of the community, to the scum drain monkeys who work in bank branches.

Surely, the fact that you had to specifically point out that it was BBBR not BOEBR, and you remember it as such, suggests that there could be a problem?

I can assure you my wealth doesnt reflect my honesty!
Now I'd like to know if you think I am rich or in debt?

The fact I had to specifically point it out is because it is specifically stated in the KFI I read through with my clients. Nothing more cleaver or forward thinking than just doing what I am surposed to

chewback

DannyboyMidlands wrote: »

Pride doesn't come into it.

I just think it weird to sign up to a mortgage that doesn't track the BoE base rate and then be "shocked" to find out that it doesn't erm track the BoE base rate.

If I go to Tescos to buy some tomatoes I am not gonna be "shocked" to later see tomatoes in my bag.

These were sold as BoE tracker mortgages, not discounted mortgages, not variable rate but tracker. Below is what an applicant would have recieved in their KFI

A variable rate which is 0.74% above the Bank of
England Base Rate, currently 5.75% for 2 Years, to give
a current rate payable of 6.49%
______________________________________________
A variable rate which is 1.00% above the Bank of
England Base Rate, currently 5.75% thereafter, to give a
current rate payable of 6.75%

____________________________________

So what part didn't they read properly???

chewback

To use the Tesco's and tomatoes analogy.

Its like buying your tomatoes online for one price that is advertised but then being charged another because in the Tesco's website T&C buried very deep is a clause saying they can charge what they like. But of course everyone has read all of the T&C's opn Tescos website before buying haven't they??

Consumerist

2sides2everystory wrote: »

What absolute twaddle. Could someone explain to The J why Greek debt for a starter for ten doesn't fit his agenda?

It depends on the amounts involved.

If you owe a bank a few thousand pounds then it's your problem if you can't repay. If you owe a bank umpteen billion pounds then its the bank's problem if you can't repay.

Ask the banks who are being forced to accept a "haircut" for lending to the Greek government.

betmunch

chewback wrote: »

These were sold as BoE tracker mortgages, not discounted mortgages, not variable rate but tracker. Below is what an applicant would have recieved in their KFI

A variable rate which is 0.74% above the Bank of
England Base Rate, currently 5.75% for 2 Years, to give
a current rate payable of 6.49%
______________________________________________
A variable rate which is 1.00% above the Bank of
England Base Rate, currently 5.75% thereafter, to give a
current rate payable of 6.75%

____________________________________

So what part didn't they read properly???

I dont understand.
In your example there is no leaway to vary from the 0.74% or 1% above the BoE rate.

The example you have given is a BoE Tracker

The story is saying people thought they had BoE trackers when their paperwork shows they didnt and they never have.

The_J

betmunch wrote: »

I dont understand.
In your example there is no leaway to vary from the 0.74% or 1% above the BoE rate.

The example you have given is a BoE Tracker

The story is saying people thought they had BoE trackers when their paperwork shows they didnt and they never have.

That's wording from an old Woolwich KFI. Hence the reason why they'll never change it.

I definitely have you down as a rich man. Maybe not in monetary value but in happiness and virility.:money:

edit: to the person with a pink signature, why should university education be free? It adds value to your experience, your qualifications and earning prospects. You should most definitely have to pay for it and this is from someone who didn't have to. So much so that I give money on a regular basis to the universities I studied at in the form of charitable donations.

betmunch

The_J wrote: »

That's wording from an old Woolwich KFI. Hence the reason why they'll never change it.

I definitely have you down as a rich man. Maybe not in monetary value but in happiness and virility.:money:

edit: to the person with a pink signature, why should university education be free? It adds value to your experience, your qualifications and earning prospects. You should most definitely have to pay for it and this is from someone who didn't have to. So much so that I give money to the universities I studied at in the form of charitable donations.

Ahhhhhh, that would explain it.

So they have KFI/offers that specifically refers to track BoE. The ones that track BBBR comes with small print that states BBBR should be considered the same as BoE.

So why should Woolwich customers be worried their tracker is not going to perform as it should?

Definately rich in happiness and virility, and getting happier! I'll let you know when my bank balance catches up!