"Thousands" with BOE trackers face mortgage interest rate rise

chucky

Graham_Devon wrote: »

A tracker that doesn't track. (Thousands appears to mean 13,000).

That's less than 0.12% of mortgages in the country. You do know that there are another 99.88% of mortgages out there...

Graham_Devon

StevieJ wrote: »

Surely it has stopped them getting a good deal with a proper bank when they were on offer?

What's stopped them getting another deal?

Aside...I doubt many were looking to get another deal considering how great this one was.

System

shortchanged wrote: »

It's not just this though is it joeskeppi. It's about precedence.

This could be the start of something bigger. If one bank gets away with it, they'll all be at it and before you know it the 'thousands' becomes tens and even hundreds of thousands.

Ah, another ticking timebomb for the pile.

StevieJ

Graham_Devon wrote: »

What's stopped them getting another deal?

Aside...I doubt many were looking to get another deal considering how great this one was.

Presumably plenty on offer as good as that when they took out their mortgage with that, erm bank.

StevieJ

wotsthat wrote: »

People exaggerate.

We saw a bit of this last year and the sky remained in the sky.

http://www.guardian.co.uk/money/2012/aug/22/santander-raise-svr-change-cap

I am lucky they took my mortgage from A&L it is still BR + 0.95%

chucknorris

Graham_Devon wrote: »

Some interesting comments here:

https://forums.moneysavingexpert.com/discussion/4470099

Apparently some landlords will have no profit at all left at 4.9%. Which seems a little odd. Surely they had thought about rates being higher than that?

From your MSE link Graham, this is the clause(s) causing the problem:

here is an extract from the conditions for the B&W Flex mortgage 2001 - Edition 2:
Condition 6(m):
Unless otherwise provided in the offer, we may change the differential (if any) at any time by giving you not less than 30 days written notice. Conditions 69(o) to 6(r) apply to any change in the differential which we make under this condition 6(m).

Condition 6 (p) Before the end of any protected period, we will only increase a positive differential or reduce a negative differential:
(i) if we believe that the increase or reduction is necessary to maintain the viability of our business following a serious adverse change in market conditions or in the relationship between the base rate and the rate which we pay on the funds we raise for use in our mortgage lending business;

It appears there was a clause that specifically allowed them to change the tracker margin (differential)

Graham_Devon

StevieJ wrote: »

Presumably plenty on offer as good as that when they took out their mortgage with that, erm bank.

Yer, but what has stopped them from choosing another deal?

You highlighted a bit about miss selling, so presumably you are suggesting or implying that something has stopped them taking another deal elsewhere....

Just wondering what that is?

brarus20

Graham_Devon wrote: »

Some interesting comments here:

https://forums.moneysavingexpert.com/discussion/4470099

Apparently some landlords will have no profit at all left at 4.9%. Which seems a little odd. Surely they had thought about rates being higher than that?

Absolutely loving it reading BTLers with newly created MSE accounts crying into their beer on that thread.

Well done BOI, screw the scumbags.

chucknorris

brarus20 wrote: »

Absolutely loving it reading BTLers with newly created MSE accounts crying into their beer on that thread.

Well done BOI, screw the scumbags.

Glad to see that you aren't bitter and don't have a chip on your shoulder.

It is something that could hit anyone with a tracker, me included. But when the base rate first hit 0.5% I was really hoping to get 3 years out of it. It is now coming up to 4 years so I have a good run. Obviously I want it to continue and I will be dissapointed when it ends, but it will end sometime.

But I can see why they are dissapointed, because it isn't ending by the base rate climbing and at least knowing that the economy is on the mend.

Graham_Devon

IronWolf wrote: »

This is also bringing to the surface the thousands that have been bailed out of repossession by record low interest rates. They are living on the breadline with rates at record lows, any movement in rates and they will lose their house.

Seems to be about 3 or 4 on that four page thread alone that are suggesting this will ruin them.

I wonder how many of these were self cert (according to the Beeb, many of these were self cert products) and wonder if the people being ruined is part of that? Certainly seems even 3% base rates is enough to finish off what are referred to as "zombie" households.

Certainly brings everything home anyway. We often discuss zombie business's and households, but haven't as yet seen it in the flesh so to speak. Brings home the problems we currently have.