Mortgage Debt Arrears improving markedly

ess0two

Graham_Devon wrote: »

There will be a mad rush to fix....that will be the problem. Lenders won't be able to supply the demand.

Mad rush?someone on a tracker or svr that has historically been used to paying more,could probably more than stomach a rise without panicking.

Graham_Devon

IveSeenTheLight wrote: »

Do you have some statistics to show how many are 'stuck' on SVR?

No, I have no statistics, so it's safe for you to put your blinkers on and ignore everything I say.

It's all those who have higher LTV requirements though, for info.

Graham_Devon

ess0two wrote: »

Mad rush?someone on a tracker or svr that has historically been used to paying more,could probably more than stomach a rise without panicking.

And I agree, but you have just said they will fix when rates go up. When I give you the problem with that, you revert to suggesting they can stomach the rise.

You have accused me of making things cumbersome, but seriously, you must agree with my points to suddenly change tact and suggest they will just stomach it.

You need to fix before the event, that's all I'm saying. Fixing after the event won't work for the majority. They will be left with their pants pulled down if they believe it will be all so easy.

ess0two

Graham_Devon wrote: »

That's because it is cumbersome.

You only have to look at the people now, stuck on SVR, who had all intentions of switching to see how cumbersome it is making airy fairy plans.

To be honest though, there really is no point in discussing it is there. You simply do not want to know and want only to listen to the other airy fairy views.

Rubbish one phone call it took me,documents sent in post and returned back.

Many who it would likely effect the most are probably on fixed rates to begin with.

RenovationMan

Graham_Devon wrote: »

It might well be actually.

Look at all those who would "just switch" to a better interest only deal. Look at all those who would "just switch" to a better repayment deal, but no longer hit the requirements.

It's never as simple as you make out (and I honestly believe you know this). Will be even worse if interest rates rise and take banks by surprise.

To pretend that everything will simply carry on being rosy is silly really. Most of those who had plans to switch mortgages have seen their plans blown out of the water, for better or worse.

It's the same with domestic fuel, you don't wait around until british gas announces it's price hikes to fix at the better deal today, as the deal that was around yesterday won't be around when they announce the hikes.

You have to fix BEFORE the event.

Surely to expect everything to go wrong is also 'silly' really?

The reality is that the majority of people will be able to fix when BoE rates start to move. Many people are staying on SVR rates for just such an eventuality, so that they can switch to a new mortgage without financial penalties.

If people delay, then they won't get the absolutely bargain basement rates, but to imagine a scenario where all fixed rate mortgages are withdrawn or made unavailable to the masses is ridiculous and verging on 'wishful thinking' rather than having any basis in logic.

This is comparable with lifetime low BoE trackers. Some people were fortunate enough to get onto them BEFORE the credit crunch and ended up on amazing rates of 0.25% above base rate. These amazing rates were quickly locked down, but other decent trackers were still available. I got a 2.05% base rate tracker in May 2010, well after the credit crunch. Not as good as a 0.75% mortgage but I'm happy with a 2.55% mortgage rate.

The same will happen with fixed rates. Some have already managed to jump onto the Chelsea 3.99% 10 year fix. Some will get onto a 4.3% fix and others will 'miss the boat' and get onto a (say) 4.9% 10 year fix. Doesn't matter, the main point of the argument is that these are still decent historically low rates.

wotsthat

Graham_Devon wrote: »

That's because it is cumbersome.

You only have to look at the people now, stuck on SVR, who had all intentions of switching to see how cumbersome it is making airy fairy plans.

To be honest though, there really is no point in discussing it is there. You simply do not want to know and want only to listen to the other airy fairy views.

I've never found it cumbersome.

When one deal ends you switch to another. One of my fixed rates ends in 2015 - I'll probably get another. Obviously I don't need someone on the internet to explain that I'll only have the choice of what's available at the time rather than what I could have got 3 years earlier.

Some people stuck on SVR's are doing something about it - check out the OP.

ess0two

Graham_Devon wrote: »

And I agree, but you have just said they will fix when rates go up. When I give you the problem with that, you revert to suggesting they can stomach the rise.

You have accused me of making things cumbersome, but seriously, you must agree with my points to suddenly change tact and suggest they will just stomach it.

I suggested some may fix,many may not.

Graham_Devon

Well I wish you lot had been around in 2006, telling us what would happen with such succint detail.

I have a feeling I've pulled some down to the ground with a bit of reality and it's offended. I'm sorry for doing that, but to suggest you will all just fix when rates start going up is fantasy.

ess0two

Graham_Devon wrote: »

Well I wish you lot had been around in 2006, telling us what would happen with such succint detail.

I have a feeling I've pulled some down to the ground with a bit of reality and it's offended. I'm sorry for doing that, but to suggest you will all just fix when rates start going up is fantasy.

Here starts the derail of the thread.

I've said my bit on this,leave it with you.

Fortune favours the brave in life.

RenovationMan

Graham_Devon wrote: »

Well I wish you lot had been around in 2006, telling us what would happen with such succint detail.

I have a feeling I've pulled some down to the ground with a bit of reality and it's offended. I'm sorry for doing that, but to suggest you will all just fix when rates start going up is fantasy.

Wishful thinking again. You talk rubbish a lot of the time and people try to set you straight but you refuse to listen and then get defensive, You simply won't move from the 'bear' beliefs.

You only have to look at what happened to mortgage rates in the past to see what will happen in the future. Super low trackers were quickly withdrawn when BoE rates fell and were replaced by not-so super low trackers. When rates go up, super low fixed rates will be withdrawn to be replaced by not-so super low fixes.

Try opening your eyes and take a more balanced view for once and perhaps you won't be so wrong all the time.