Fixed rate 10yr mortgage 6.59%

JimmyTheWig

Thrugelmir wrote: »

What deals?

I believe they mean when people have crazy low trackers and the banks won't let them port, etc.

shortchanged_2

The question is, would we be having this conversation if the base rate was currently 5-6% or higher instead of the actual 0.5%.?

I'm sure we wouldn't. Instead we would have a raft of threads along the lines of 'why wasn't I advised to take a long term fix out?'

In other words there are always going to be winners and losers in every situation with the losers often looking to be compensated for their choices.

kingstreet

shortchanged wrote: »

The question is, would we be having this conversation if the base rate was currently 5-6% or higher instead of the actual 0.5%.?

I'm sure we wouldn't. Instead we would have a raft of threads along the lines of 'why wasn't I advised to take a long term fix out?'

In other words there are always going to be winners and losers in every situation with the losers often looking to be compensated for their choices.

It's buyer remorse and an automatic human reaction to look for someone to blame...

fewcloudy

JimmyTheWig wrote: »

I believe they mean when people have crazy low trackers and the banks won't let them port, etc.

No no, sorry, I meant like the deals that the West Bromwich case recently judged on, banks allowed to increase the rate of lifetime trackers despite no base rate rise.

If the banks borrowed the money at that rate, the same time as the customer did (according to Thrugelmirs post), then what was the fuss about? His post made it sound as though the banks are not gaining hugely, 1% gross margin, when folks are stuck on high rates such as 6.59%, then presumably they also had 1% built in as their gross margin when they sold trackers at 0.99% above base rate?

So is it just that they are not profitable enough for them, at 1% gross margin built in, that they would go through lengthy court battles to be able to increase the rates for those customers?

fc

JimmyTheWig

fewcloudy wrote: »

If the banks borrowed the money at that rate, the same time as the customer did (according to Thrugelmirs post), then what was the fuss about? His post made it sound as though the banks are not gaining hugely, 1% gross margin, when folks are stuck on high rates such as 6.59%, then presumably they also had 1% built in as their gross margin when they sold trackers at 0.99% above base rate?

I believe that the banks lock in a fixed rate but don't with a variable rate.