Reccession ..... Calm Down & Carry On

[SK1NT]

US mentioned before, this isnt how it works. The banks dont borrow money for your mortgage at the base rate, thats for short term funding where they roll over debt for a few months, or even days. The money for you mortgage comes from depositors (getting maybe 3% even now), bonds and money markets - other banks or investors. that money costs alot more. the bank might well only be making .5% margin on your 4.5% interest. in some cases they might actually be losing money, and thats why they dont wont to lend because it costs them more to obtain the cash than is competitive to lend out. they are better off to sit it out.

So the governement need to go back to the root (the depositors) and stop the lenders to the banks charging such high rates? If i am understanding this correctly.... Either way someone is making a lot of money lending at these mortgage rates at our expense

 

[Uncle Spielberg]

US mentioned before, this isnt how it works. The banks dont borrow money for your mortgage at the base rate, thats for short term funding where they roll over debt for a few months, or even days. The money for you mortgage comes from depositors (getting maybe 3% even now), bonds and money markets - other banks or investors. that money costs alot more. the bank might well only be making .5% margin on your 4.5% interest. in some cases they might actually be losing money, and thats why they dont wont to lend because it costs them more to obtain the cash than is competitive to lend out. they are better off to sit it out.

This. There is no appetite to lend out there in the markets and with caution and the ongoing euro farce the cost of them getting funds has been going up for months. A lifetime tracker at 0.99% and the svr's of 2.50% is making the lenders nothing in real terms.

 

[SK1NT]

yes, they are at fault, but we have to share the responsiblity for taking out those 100% mortgages and lieing on the self cert.

I agree however the self cert mortgages only required you to have a 10% deposit on the value of the property (so no need to lie about the wages)... Wages weren't even mentioned... Scarey stuff... some people must really be in the shit..

 

[hans kraay fan club]

So the governement need to go back to the root (the depositors) and stop the lenders to the banks charging such high rates? If i am understanding this correctly.... Either way someone is making a lot of money lending at these mortgage rates at our expense

Whilst we all understand your frustrations, why exactly do you feel anybody would want to take the risks of lending you hundreds of thousands of pounds of THEIR money, unless there was a healthy return for them involved?

 

[SK1NT]

This. There is no appetite to lend out there in the markets and with caution and the ongoing euro farce the cost of them getting funds has been going up for months. A lifetime tracker at 0.99% and the svr's of 2.50% is making the lenders nothing in real terms.

SVR of 2.5% if only... cant they change the SVR when they want?

 

[Beach Hut]

Cash is king these days and no-one wants to spend especially in business, the company I work for are for the 1st time ever cash positive from Q1 this year - amazing feat but just shows how the market is these days.

 

[SK1NT]

Whilst we all understand your frustrations, why exactly do you feel anybody would want to take the risks of lending you hundreds of thousands of pounds of THEIR money, unless there was a healthy return for them involved?

I don't know... The thing is i have a poxy 1 bed flat.. I didn't exact buy a mansion with a pool and i still cant get a mortgage and am left on a 4.95% SVR. Just seems harsh... I can't even a get a new mortgage as my wages aren't 3.5 times the current mortgage... and the only rates i can get are the same as my SVR... so no point changing and paying a £999 fee to do so...

I just want them to have the mortgage rates that they had 3/4 months ago.... they are just going up and up and up... oh well... im sure a lot of people are in my boat

 

[Stumpy Tim]

My mortgage is up in a couple of months. The deals I've looked at are all pretty tasty. But then I've come from Oz where rates are ridiculously high

 

[Beach Hut]

My mortgage is up in a couple of months. The deals I've looked at are all pretty tasty. But then I've come from Oz where rates are ridiculously high

So presumably Oz is not suffering the financial crisis we are if high interest rates ?

 

[Stumpy Tim]

So presumably Oz is not suffering the financial crisis we are if high interest rates ?

Correct. No recession there since 1991

 

[SK1NT]

My mortgage is up in a couple of months. The deals I've looked at are all pretty tasty. But then I've come from Oz where rates are ridiculously high

What rates?

 

[Beach Hut]

The rates will be applicable to his status, as much as it may seem unjust you are a high risk when it comes to a mortgage

 

[Uncle Spielberg]

SVR of 2.5% if only... cant they change the SVR when they want?

No mate. They put a clause in their mortgage offer letters saying their svr would never be more than 2% above BBR. At the time BBR was over 5% so they have screwed themselves.

 

[Uncle Spielberg]

My mortgage is up in a couple of months. The deals I've looked at are all pretty tasty. But then I've come from Oz where rates are ridiculously high

Should be able with a 25% equity to get a fixed rate of 3-4% Tim.

 

[Uncle Spielberg]

I don't know... The thing is i have a poxy 1 bed flat.. I didn't exact buy a mansion with a pool and i still cant get a mortgage and am left on a 4.95% SVR. Just seems harsh... I can't even a get a new mortgage as my wages aren't 3.5 times the current mortgage... and the only rates i can get are the same as my SVR... so no point changing and paying a £999 fee to do so...

I just want them to have the mortgage rates that they had 3/4 months ago.... they are just going up and up and up... oh well... im sure a lot of people are in my boat

The timebomb is that is if the svr continues to go up and people are no longer able to re mortgage what do they do ?

 

[Dandyman]

but there hasnt been any slash and burn austerity. you've highlighted yourself how little austerity has been actually applied. Obama has relied on the Fed to do some massive QE and carried on spending, banking that US backed debt will be held as good debt. we are not the US, we dont have their gravitas in international trading. Hollande (the french socialist) is sticking a finger in the air and betting his way will work. bet it doesnt.

Sorry but that sounds like a comfortably off person ignoring what is actually happening to peoples lives in this country. We have a government of political zealots who are imposing massive cuts in public services, have already driven thousands onto the dole and are overseeing a deliberate attack on the living standards of the majority of the population.

 

[Beach Hut]

Sorry but that sounds like a comfortably off person ignoring what is actually happening to peoples lives in this country. We have a government of political zealots who are imposing massive cuts in public services, have already driven thousands onto the dole and are overseeing a deliberate attack on the living standards of the majority of the population.

So what is better deliberately encouraging everyone into debt and buying on the never never as borrow billions as a government like labour did ?

 

[somerset]

HAHAHAHAHAHA!

What a load of rubbish...... you need some coffee smelling sir...... Turkey is doing much better thanks as is Poland (almost totally untouched) and I believe there are quite a few countries in the East and South America.... when you use EVERY check your facts. The only trouble many countries are having because they are linked to other countries of which the UK is one of the prim culprits.

Turkey,.... you are having a laugh, possibly the most corrupt system in Europe, politically and economically, long may they remain out of the EU, it would end up being one great black hole for what is quickly becoming a shrinking funding pot from the rest of Europe.

 

[Dandyman]

So what is better deliberately encouraging everyone into debt and buying on the never never as borrow billions as a government like labour did ?

No, what is better is closing the tax gap of £70 bn tax evasion, £25 bn of tax avoidance and £25 bn of unpaid, not giving tax cuts to millionaires, promoting investment particularly in infrastructure and housing, cutting pointless expenditure on unwinnable wars and out of date weapons systems, and generating growth through employment.

 

[Beach Hut]

No, what is better is closing the tax gap of £70 bn tax evasion, £25 bn of tax avoidance and £25 bn of unpaid, not giving tax cuts to millionaires, promoting investment particularly in infrastructure and housing, cutting pointless expenditure on unwinnable wars and out of date weapons systems, and generating growth through employment.

Good response