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MSE News: Homeowners hit by Santander mortgage rise
Former_MSE_Helen
Posts: 2,382 Forumite
"Hundreds of thousands of customers will see their standard variable rate soar ..."
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This is the letter I got back in August-
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Homeowners hit by Santander mortgage rise
Surely the title of this article is wrong. It should be Santander SVR mortgage holders hit by mortgage rises or similar. With an emphasis on the Variable part...
If you own your home outright (i.e. a home owner!) or you have a mortgage with another provider you don't give a fig?0 -
So what? It's a variable rate.0
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DannyboyMidlands wrote: »So what? It's a variable rate.
Exactly. It is in the process of varying, which is what it should be expected to do. And still very low.0 -
What is your next story Helen
"Halifax 2 year fixed rate mortgage has kept payments fixed for 2 years"0 -
Sorry Helen but this is sensationalist rubbish. Variable rates go up and down. That is their nature. An adjustment of 0.5% p.a. is the typical scale of movement that occurs in either direction historically. To refer to the rate as soaring is just plain wrong.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0
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Unless you had fees debited to the mortgage when it commencedCredit-Crunched wrote: »What is your next story Helen
"Halifax 2 year fixed rate mortgage has kept payments fixed for 2 years"
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Why is the increase higher on an interest only mortgage rather than capital repayment? Surely the SVR is the same on the capital balance except that the borrower pays slightly more to repay some of the mortgage?0
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Why is the increase higher on an interest only mortgage rather than capital repayment? Surely the SVR is the same on the capital balance except that the borrower pays slightly more to repay some of the mortgage?
Because the figures for repayment are based on the 15 year point, at which you would have repaid a significant amount of the original capital leaving a lower balance remaining to pay interest on.
If you had just started the repayment mortgage the values would have been similar.• The rich buy assets.
• The poor only have expenses.
• The middle class buy liabilities they think are assets.
Robert T. Kiyosaki0 -
Because the figures for repayment are based on the 15 year point, at which you would have repaid a significant amount of the original capital leaving a lower balance remaining to pay interest on.
If you had just started the repayment mortgage the values would have been similar.
I don't know about that.
The above info is on the 'mortgage balance' so a balance of £50k would increase by £21 on an interest only mortgage but £13 on a capital repayment mortgage. Nowhere does it say the balance would be lower for the latter.
Same mortgage balance and same interest rate ... so why the difference in increase?
I do understand what you're saying though ....
If you use their website's calculator, my increase is much higher than they calculate .... about £10 more actually.0
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