fixed mortgages should banks gain from their sub-prime fiasco

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  • BillJones wrote: »
    Well yes, but to repeat your own comment fromm previously, that says more about you tan it does about me.

    If you want a more detailed explanation as to why your complaint is misguided, from the point of view of someone paid to trade interest rates professionally, then you could always ask for it, but as what you seem to actually want is to act in a patronising fashion towards anyone who tries to help you out, I'll not expect a response in that direction.

    Your complaint demonstrates a real ignorance of interest rates, mortgages, and financial markets, and has a real seam of conspiracy theory running through it.

    I dont think ive tried act in a patronising way with anyone who has tried to help, only anyone has acted in a patronising way to me. ie calling me son
  • Unless I've missed something over the past four, admittedly very interesting, pages - if you weren't advised on the product, where exactly do you think your complaint should be upheld?

    That's like buying a Ford Ka and taking it back 5 years later and claiming it wasn't fit for purpose because you started a family three years after buying it...?

    Back to the patronising threads I write of.
    Its nothing like your analogy at all.
  • Me neither. Which is why I would be selling the signatures rather than keeping them!



    I'm afraid this is round the wrong way again.
    I would claim that going for a variable rate (or even a short(er) term fix) is more like gambling. When you place a bet the future outcome is unknown. With a fixed rate (especially one that lasts the duration of the whole mortgage term) there is no unknown.
    So your horse race analogy would be like going for a variable rate mortgage (or a shorter term fix) then the bank doing naughty things and pushing rates up.
    What happened is more like this...

    You consider putting a bet on horse A. [Variable rate or shorter term fix mortgage.]
    The odds [interest rates] aren't favourable so you decide not to. [Long term fixed rate mortgage.]
    The bookmaker [bank] runs in front of horse B [lends irresponsibly and manipulates rates] and horse A wins [it turns out a variable rate would have been cheaper in the end].

    But you didn't bet [you went for a long term fixed rate mortgage] so the outcome of the race [which mortgage would have been better in hindsight] is irrelevant to you.

    You'd be kicking yourself for not betting on horse A [for not getting a variable rate deal] but the fact that horse A won [interest rates came down] and the reason that that happened don't affect your outcome.

    Again, all you've lost by the bookmaker's naughty actions is the smug feeling that you would have got had horse B romped home to victory.

    The only trouble with this revised analogy is I wouldn't let the odds affect my choice.
    My choice would be on past form like whether on not the horse I was backing had fallen before and likely to let me down by poor form.
  • Back to the patronising threads I write of.
    Its nothing like your analogy at all.

    You mention patronising posts and yet you fail to answer a genuine question I had for you?

    Good luck with your complaint, however frivolous people may deem it.
    I am a mortgage adviser.
    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • Unless I've missed something over the past four, admittedly very interesting, pages - if you weren't advised on the product, where exactly do you think your complaint should be upheld?

    In answer to the question at risk of being accused of whining.

    Where did I ever say I was advised....my complaint is how could I have possibly known that the banks had been buying up subprime loans that would affect the interest rate for 5 years?
    I think I may have mentioned this at some point somewhere Ill have to look back.
  • But the point is that you bought a product that met your needs at that time. Similar to my car analogy, at the time you bought the car, it was what you needed. The manufacturer can't be held responsible for the fact that you wanted a different product half way through - they sold the product at the agreed price.

    When they lent you that money, it was priced at the level they'd 'bought' it for, so they haven't 'made money' out of you at all - the level of interest rates after you've taken out that mortgage are irrelevant, they've paid the price for your particular loan at the point you took it out.
    I am a mortgage adviser.
    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • But the point is that you bought a product that met your needs at that time. Similar to my car analogy, at the time you bought the car, it was what you needed. The manufacturer can't be held responsible for the fact that you wanted a different product half way through - they sold the product at the agreed price.

    When they lent you that money, it was priced at the level they'd 'bought' it for, so they haven't 'made money' out of you at all - the level of interest rates after you've taken out that mortgage are irrelevant, they've paid the price for your particular loan at the point you took it out.

    It is relevant to Barclays/Woolwich but not me but I do get your point on not made money out of me.
  • dunstonh wrote: »
    Not a good analogy as you have got exactly what you bought.

    Perhaps a better analogy is that you put the bet on Wednesday and it rained on Friday and the ground was heavy on Saturday which no longer suited the horse you bet one.


    Back in the room, I nearly missed your thread.

    You analogy fails to see this would be an act of god and not an act incompetence.
  • JimmyTheWig
    JimmyTheWig Posts: 12,199
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    The only trouble with this revised analogy is I wouldn't let the odds affect my choice.
    My choice would be on past form like whether on not the horse I was backing had fallen before and likely to let me down by poor form.
    What? So if you were offered odds of 100/1 on a roll of a fair die landing on 6 you wouldn't take it? [Or, at least, no more likely to take it than if the odds were 2/1?]
  • That only tells me more of you than
    me

    If you say so. Please tell me how you come to this conclusion? and how much do you know about me after one sentence of disagreement with your thought process on the matter!

    If you succeed in your complaint, then please share. My bank have also been implicated in the credit crunch saga and I may have a few cases against them then:
    - Very low interest rates on my savings, my savings were doing much better before.
    - Credit crunch meant my pay rises have failed to keep up with inflation and hence lower quality of life.
    And many other issues other people have encountered I'm sure. Listen, we, as a collective, all have grievances and feel an injustice with the way some in the financial world have acted, and how their wrongdoings brought the whole system to almost collapse, and hence pain and suffering to many. But I genuinely feel that your argument if flawed and that you are comparing apples and oranges.
    Good luck to you anyway.
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