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MSE News: Some tracker mortgage rate rises to hit TODAY
Comments
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When I first took out my mortgage 10 years ago, it was around 5.63% and ever since dropped to it's lowest 2.25%, now it will be 2.5% - I'm prepared for it.0
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There is something very wrong if people haven't factored in a 0.25% increase in payments each month.
It's not whether it's factored in, it's whether it's reasonable. This is a site dedicated to saving as much money as possible.
Nationwide has customers on a tracker who have no idea what their rate will be next month, because of this decision made in 2009.
https://www.theguardian.com/business/2009/jan/01/nationwide-accounts-glitch
Only this text message so far.....
"Hi, Nationwide here. As the Bank of England changed the base rate today, we will write to you before the end of the month if your mortgage is affected."
On the web site they say:
"Tracker rate customers
Most of our members on a tracker rate will see an increase by 0.25% to 0.50% plus the set percentage you agreed to when you applied (some rates will not increase as they've previously reached their minimum floor)."
But this doesn't specify whether it's referring to the contractual floor, or the varied floor. They could decide to invoke the contractual floor and customers could see their tracker mortgage jump by 0.75%, or they could just raise it by the recent 0.25%. While I would argue they shouldn't raise the tracker until base rate reaches 2%.
On here:
https://www.moneysavingexpert.com/news/mortgages/2017/11/uk-interest-rates-decision---heres-what-you-need-to-know-?_ga=2.155255794.850810619.1509608158-886375946.1487093321
"1) Mortgages taken out before 30 April 2009 are currently 2.25% and will rise to 2.5%. Those taken out after that date are 3.74% and will rise to 3.99%."
This isn't clear as older nationwide mortgages tracked base rate down to 2%, not 2.25%.
Whether I can afford to pay the increase or not is irrelevant.0 -
There is something very wrong if people haven't factored in a 0.25% increase in payments each month.
I think the issue is firstly getting people used to the idea rates can go up.
Secondly the debt bubble over the last few yrs has ballooned and that is, amongst many reasons, going to be down to changes in circumstances (lost jobs etc) - difficult to prepare too much when you have nothing coming in anyway (let's not debate those who have Sky TV etc etc - I'm just talking about the ones closest to the water line)0 -
marsman802 wrote: »I think the issue is firstly getting people used to the idea rates can go up.
Secondly the debt bubble over the last few yrs has ballooned and that is, amongst many reasons, going to be down to changes in circumstances (lost jobs etc) - difficult to prepare too much when you have nothing coming in anyway (let's not debate those who have Sky TV etc etc - I'm just talking about the ones closest to the water line)
Part of the issue is that productivity has flatlined since the crash, lots of people are underemployed and - rightly or wrongly - people have used cheap credit to fill the gap. We're a consumer-based economy kept afloat on cheap debt, household budgets are squeezed and we're heading into Brexit with no real plan and not much prospect for anything other than economic catastrophe.
Making debt more expensive, then, is going to be absolutely brutal for a lot of people. 0.25% isn't too bad a rise, but if the rate goes up by a couple of percentage points you'll start to see some serious issues, especially if Brexit goes as poorly as basically anyone sane says it will.urs sinserly,
~~joosy jeezus~~0 -
It's not whether it's factored in, it's whether it's reasonable. This is a site dedicated to saving as much money as possible.
You can only save money on something you can control. If you're not able to remortgage elsewhere due to circumstances then the 0.25% rate rise is hitting you whether you like it or not.
If you want a cheaper car insurance renewal and it's renewal time then it is in your hands.0 -
You can only save money on something you can control. If you're not able to remortgage elsewhere due to circumstances then the 0.25% rate rise is hitting you whether you like it or not.
If you want a cheaper car insurance renewal and it's renewal time then it is in your hands.
I'm not sure how your point relates to my post.
I'm hoping that nationwide don't increase my rate because they didn't lower it when BOE went from 0.5% to 0.25%. If my mortgage rate hits 3% then I might just pay it off. I don't think I can remortgage unless I release equity, because it's below their minimum lend.
If people on a tracker can't cope with this increase, then they need to get their finances in order now because greater increases are coming. Reasons are very rarely not under your control, even if it's down to past mistakes or things that seem unfair.
I think it's a little weird that some lenders are increasing the rate immediately, I thought you were supposed to be given written notice. However I can see their point & as long as they do it the same on the way down as the way up then it's kinda ok.0 -
I'm not sure how your point relates to my post.
I specifically edited your post to highlight what was relevant.
Myself, and others, have noted that if you haven't prepared, or can't handle, a small increase in mortgage payments then you have not considered the cost of a mortgage properly. You countered by saying this was a site for people to save money on. I've mentioned that many people will be trapped in their remortgage without being able to move and therefore this rise will hit them regardless and therefore they can try all they want but this will affect them regardless.
Let me know if you don't see how this post relates to your last one :rotfl:0 -
I specifically edited your post to highlight what was relevant.
Myself, and others, have noted that if you haven't prepared, or can't handle, a small increase in mortgage payments then you have not considered the cost of a mortgage properly.
My post was purely about whether it was fair to increase without giving adequate notice, even if it's only pennies. Plus my dissatisfaction that I am still unaware if my mortgage is going to increase at all, my mortgage didn't decrease when base rate was cut to 0.25% as it had already gone past the 2% floor. Which again would be a little unfair. I had made it very clear that I wasn't discussing whether I could afford to pay it or not, so that point is irrelevant.You countered by saying this was a site for people to save money on. I've mentioned that many people will be trapped in their remortgage without being able to move and therefore this rise will hit them regardless and therefore they can try all they want but this will affect them regardless.
I didn't counter with that, it was my first post on this thread. I agree if someone is trapped in a remortgage and cannot afford to pay the extra 0.25% then they need to do something serious thinking. It was clear from my post that this wasn't the situation I was in, so that point is irrelevant.Let me know if you don't see how this post relates to your last one :rotfl:
You not only missed the original point, but you repeated the same post again trying to make it look like you hadn't missed it a second time. Congratulations. Let me know if you come up with anything that remotely relates to my post.
In case you missed my point: Not everyone discussing the rate rise is unable to pay it.0 -
Does anybody have some sort of a crystal ball to tell me when is the next increase likely going to happen? May 2018? Sep 2018? My fixed rate runs out end of July 2018 and I would like to remortgage at that time if I can...current credit debt Jan-2018 £12000 @ 0% // initial debt Sep-2017 £142000
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If we did we would not be on here trying to save money0
This discussion has been closed.
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