BBC illustrative mortgage payments 5 November 2022 at 10:17PM in Mortgages & endowments 2 replies 342 views

Strummer22

Can anyone explain to me the BBC's illustrations of the effect on mortgage rates for those on tracker or standard variable mortgages? To quote https://www.bbc.co.uk/news/business-57764601

"The increase in the Bank rate from 2.25% to 3% means those on a typical tracker mortgage will pay about £73.50 more a month. Those on standard variable rate mortgages face a £46 jump.

This comes on top of increases following the previous recent rate rises. Compared with pre-December 2021, average tracker mortgage customers will be paying about £284 more a month, and variable mortgage holders about £179 more."

The article doesn't give any of the assumptions behind these figures, so they are about as useful as a saying there's a £2,500 energy price cap (i.e., as useful as a chocolate teapot). Why do they think those on variable rate will have less of an increase than those on a tracker? Other articles I've seen say those on variable rates don't know what will happen and it depends what the lender decides to do, which is much more accurate.

dunstonh

Welcome to mainstream media reporting aimed at the bottom end of the IQ scale.

simon_or

Most media articles on mortgages are quite uninformed, meant to alarm and includes comments from publicity hungry folk. You should see some of the BS published on the Telegraph peddling stories of high street banks pulling offers.

https://www.telegraph.co.uk/personal-banking/mortgages/banks-pulling-mortgage-offers-costing-homebuyers-thousands-legal/

The journo writing that crap didn't even know the difference between a mortgage product, a decision in principle, offer, etc.