Reccession ..... Calm Down & Carry On

[Uncle Spielberg]

But there are plenty of repayment mortgages up to 80% and some even more. Maybe now is the time to switch to a repayment deal?

That would be their only option. The point being that even if people have perfectly good plans to repay an interest only mortgage they are not being allowed to do this anymore.

 

[SK1NT]

That would be their only option. The point being that even if people have perfectly good plans to repay an interest only mortgage they are not being allowed to do this anymore.

Exactly... i want to go to repayment (they dont allow interest only now) but i can get a better rate than my dam standard variable rate i am currently on which is 4.95% they are making things really tough...

and i have 20% equity... people that took out 100% mortgages or only put down 10% deposit and then the house prices dropped.... These people are royally f***ed... Ok they maybe shouldnt have been able to do any of the above... however they were and now the banks are just leaving these people to be screwed over now...

 

[SK1NT]

Oh and ofcourse there are some good mortgage rates left though...

If you own more than 50% of the mortgage and your wages are 3.5 times your martgage... Sheeesh who's wages are 3.5 times any mortgage...

Again the rich get cheap mortgages and the stugglers get the highest rate mortgages

 

[hans kraay fan club]

Oh and ofcourse there are some good mortgage rates left though...

If you own more than 50% of the mortgage and your wages are 3.5 times your martgage... Sheeesh who's wages are 3.5 times any mortgage...

Again the rich get cheap mortgages and the stugglers get the highest rate mortgages

The higher risk to the banks, the worse the terms. What do you expect?

 

[SK1NT]

The higher risk to the banks, the worse the terms. What do you expect?

Were they not a risk 2 years ago then when the rates were better? and the base rate was still 0.5% ??

Don't you think there is more risk of them then defaulting on their payments with such high rates?

The house will then just go to auction. Likely to sell cheaper than the market value and then the banks lose more. This is the last thing that they want to happen.

 

[hans kraay fan club]

Were they not a risk 2 years ago then when the rates were better?



.

Given that the whole sorry mess started when the US sub-prime market blew up, I don't think the banks will see what the situation was 2 years ago, as a good guide to how best to operate now.

I'm not saying for one second I agree with it, or that they are right, or denying that they are undoubtably profiteering off the back of it, but simple economics will tell you that a borrower with less equity is never going to get offered the best deals.

My fixed term ends in six weeks, so I'm sure I'll be sharing your pain soon.

 

[Beach Hut]

Given that the whole sorry mess started when the US sub-prime market blew up, I don't think the banks will see what the situation was 2 years ago, as a good guide to how best to operate now.

I'm not saying for one second I agree with it, or that they are right, or denying that they are undoubtably profiteering off the back of it, but simple economics will tell you that a borrower with less equity is never going to get offered the best deals.

My fixed term ends in six weeks, so I'm sure I'll be sharing your pain soon.

Surely you will go on the SVR which will be ok ?

 

[hans kraay fan club]

Surely you will go on the SVR which will be ok ?

If I do nothing, yes. I'm expecting a better offer than that though, when I get round to ringing them. I'm in a pretty fortunate situation, equity-wise.

 

[beorhthelm]

But if the austerity measures are all implemented here, you can bet your arse that won't work either.

well, theres no plan or provision for how to provide services post austerity, so you are correct. in theory if you were to apply them fully, then the subsequent cut in borrowing and savings from interest payments would make us better off. but the policy is ill thought out, with an assumption that private sector will magically step in and ignoring services which have no private provision. i think some of the current government do get the idea, ie Gove and IDS, but in general is not a coorindinated programme.

 

[beorhthelm]

If you own more than 50% of the mortgage and your wages are 3.5 times your martgage... Sheeesh who's wages are 3.5 times any mortgage...

those who didnt over-extend themselves? (assuming you mean a mortgage 3.5 times earnings.)

 

[Beach Hut]

If I do nothing, yes. I'm expecting a better offer than that though, when I get round to ringing them. I'm in a pretty fortunate situation, equity-wise.

Tell me about it, equity makes a lot more difference now days than previously

 

[Beach Hut]

well, theres no plan or provision for how to provide services post austerity, so you are correct. in theory if you were to apply them fully, then the subsequent cut in borrowing and savings from interest payments would make us better off. but the policy is ill thought out, with an assumption that private sector will magically step in and ignoring services which have no private provision. i think some of the current government do get the idea, ie Gove and IDS, but in general is not a coorindinated programme.

They don't make us better off but interests rates need to stay low to at least give people a chance to spend.

 

[SK1NT]

Surely you will go on the SVR which will be ok ?

SVR is still atroshess...

Given that the whole sorry mess started when the US sub-prime market blew up, I don't think the banks will see what the situation was 2 years ago, as a good guide to how best to operate now.

I'm not saying for one second I agree with it, or that they are right, or denying that they are undoubtably profiteering off the back of it, but simple economics will tell you that a borrower with less equity is never going to get offered the best deals.

My fixed term ends in six weeks, so I'm sure I'll be sharing your pain soon.

Yea i 100% see what you are saying about who is more of a risk... However it isnt going to help the economy screwing the majority of people who own less than 50% of their mortgages... Or dont earn 3.5% their mortgage...

I think if the base rate is 0.5% 3% would be a fair rate.. They are still getting 2.5% off a huge lump sum...

New rates are now around 4.5% thats 4% profit (4.5% profit in my case) on around 200k its day light robbery.

If i had a mortgage of 3% instead of 5% i would be spending more cash and boosting the economy like many others would be... As it stands i dont go out, never buy an item or clothing or go out for a meal etc because most of my money goes on the mortgage and bills...

With a 3% mortgage id have a bout £200 exra a month to spend and boost the economy...

ffs we bailed out the bank i have my mortgage with and yet they are screwing me over... f*** this subject gets me angry... f ing banks

 

[beorhthelm]

They don't make us better off but interests rates need to stay low to at least give people a chance to spend.

that too, but i was rather thinking about the government interest on their borrowings. 2-3% on £1 trillion is a shit load of tax money down the tubes.

 

[SK1NT]

those who didnt over-extend themselves? (assuming you mean a mortgage 3.5 times earnings.)

Oh come on... i dont know where you live but in SW london a one bed flat isnt cheaper than 200k...

Now i have to be on about 60k... not likely... The banks f***ed up but letting people have 100% mortgages and self cert and then pull the rug from under us...

So we just have to make do now? They aren't helping so we just sell up or pay each month until finally we default...

The f***ing tories wont even address anything like this as they dont even have a clue what a mortgage payment is...

 

[SK1NT]

They don't make us better off but interests rates need to stay low to at least give people a chance to spend.

Makes no real difference if the interest rates are low and the banks are still passing off 5% mortgage rates..

 

[SK1NT]

Tell me about it, equity makes a lot more difference now days than previously

I disagree... equity is initially important when choosing the mortgage you want.. however the most important thing is that the mortgage isnt over 3.5% of your wages

 

[beorhthelm]

I think if the base rate is 0.5% 3% would be a fair rate.. They are still getting 2.5% off a huge lump sum...

New rates are now around 4.5% thats 4% profit (4.5% profit in my case) on around 200k its day light robbery.

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.

 

[Deleted member 2719]

I'd rather be in the short term shit then want to be in Europe or the USA when that royally big time hits the fan.

He's right, long term shit is very messy.

 

[beorhthelm]

Now i have to be on about 60k... not likely... The banks f***ed up but letting people have 100% mortgages and self cert and then pull the rug from under us...

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