looking like I will have to get a multi wheeled HGV and go and draw mine out, the cost of a warehouse to store and keep dry, and loss of interest will hit me heavy.
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| Mortgage rate doubled https://b65a9t-westlondonchatcom-7590.site.tb-hosting.com/viewtopic.php?f=1&t=1093 |
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| Author: | Westonman [ Thu May 02, 2013 9:32 am ] |
| Post subject: | Mortgage rate doubled |
The Bank of Ireland is doubling the mortgage rate. Will other lenders follow? Possibly - probably – definitely. http://www.dailymail.co.uk/news/article ... omers.html Quote: Thousands of homeowners are facing a huge increase in their mortgage repayments after the Bank of Ireland doubled rates overnight. Quote: A typical change will see a buy-to-let mortgage holder who is currently on a rate of 2.25% - made up of the base rate plus 1.75% - see it rise to 4.99% from today, representing the Bank rate plus 4.49%.
For residential customers, changes will be introduced in two stages. From today, they will pay the Bank rate plus 2.49%. On October 1, it goes up to Bank rate plus 3.99% - currently 4.49%. |
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| Author: | geezer466 [ Thu May 02, 2013 10:25 am ] |
| Post subject: | Re: Mortgage rate doubled |
Westonman wrote: The Bank of Ireland is doubling the mortgage rate. Will other lenders follow? Possibly - probably – definitely. http://www.dailymail.co.uk/news/article ... omers.html Quote: Thousands of homeowners are facing a huge increase in their mortgage repayments after the Bank of Ireland doubled rates overnight. Quote: A typical change will see a buy-to-let mortgage holder who is currently on a rate of 2.25% - made up of the base rate plus 1.75% - see it rise to 4.99% from today, representing the Bank rate plus 4.49%. For residential customers, changes will be introduced in two stages. From today, they will pay the Bank rate plus 2.49%. On October 1, it goes up to Bank rate plus 3.99% - currently 4.49%. Not quite so sure if it will apply across the board. The Government are pulling out all the stops to stop the housing market correcting, the recent FLS scheme, historically low interest rates when inflation is beginning to run away and the banks themselves have been partly compliant in forbearance so not as to start a rash of property hitting the auctions which could also affect sentiment and values. Only today we have seen the BBC start to publicise the shortfall of endowments and interest only mortgages shortfalls in the hope presumably of kick starting a bailout of sorts from the banks for these people. It seems they have forgotten that this issue has been with us for years plenty of notice has been put into the public arena with shortfall policy holders written to regularly and even a compensation scheme arranged for those that were mis-sold. The BOI issue is more about a corporate cock up in that the deal was offered quite some time ago in the belief rates would never drop as low as they did. Many jumped (particularly BTL investors) onto the scheme as it was a great deal in at the time and was very competitive, when it tracked the BOE base right all the way down that was just the icing on the cake. Many of them couldn't believe their luck. A couple of years ago another mortgage firm (the name escapes me) tried a similar increase which was in breach of the T&C, this was tested through the courts and found to be in order. BOI then saw their opportunity and took advantage of it.. There is much more info in this moneysavingexpert thread if anyone is interested in following the exact circumstances of what the BOI is doing. http://forums.moneysavingexpert.com/showthread.php?t=4470099 First post Quote: Has anyone received a letter from the Bank of Ireland recently informing them of a MASSIVE interest rate rise on their buy-to-let 'tracker' mortgage? My letter this morning notified me that my interest rate would rise from 2.25% to 4.99% as of May 1st. I have had the mortgage for 8 years and never defaulted so this isn't a penalty, it is as they describe it a 'special condition' in my loan agreement which allows them to do it. Ironically they cite the banking crisis as a special condition (something that they caused themselves!). This is a 'tracker' mortgage which follows the Bank of England base rate which hasn't changed, so I'm going to fight it - not that I stand a chance - just wondered if anyone else had fallen victim to this?
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| Author: | Kremmen [ Thu May 02, 2013 1:25 pm ] |
| Post subject: | Re: Mortgage rate doubled |
On the same day that I get a letter telling me that saver interest rates are to be cut again. |
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| Author: | geezer466 [ Thu May 02, 2013 1:44 pm ] |
| Post subject: | Re: Mortgage rate doubled |
Kremmen wrote: On the same day that I get a letter telling me that saver interest rates are to be cut again. I had the one about the Nationwide MySave account a week or two ago. Now on the look out for a good place to park with a good return. |
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| Author: | Kremmen [ Thu May 02, 2013 2:31 pm ] |
| Post subject: | Re: Mortgage rate doubled |
Nationwide - ditto e-saver plus or whatever it's called now They give you about 1% for your dosh and then charge it out at 6%+ to borrowers. Wonder if I can start a bank ? |
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| Author: | jim [ Thu May 02, 2013 7:45 pm ] |
| Post subject: | Re: Mortgage rate doubled |
looking like I will have to get a multi wheeled HGV and go and draw mine out, the cost of a warehouse to store and keep dry, and loss of interest will hit me heavy.
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| Author: | Westonman [ Thu May 02, 2013 10:06 pm ] |
| Post subject: | Re: Mortgage rate doubled |
geezer466 wrote: Not quite so sure if it will apply across the board. The Government are pulling out all the stops to stop the housing market correcting... I don't see it that way. I see the Government doing its utmost to increase indebtedness in order to increase the possibility of banks and other lenders going on a property-grab spree, and creating more homelessness at the same time. I suspect that is what the BoI's doubling of the mortgage interest rate is ultimately about. Mortgage rate doubles for buy-to-let, some landlords will default and lose their property to the bank; other more successful landlords will pass the rate rise on to their tenants, who will then default on the rent and be declared homeless, making room for more affluent tenants. The banks and the affluent elite exapand their wealth and influence. Doubling interest rates? I can remember when there was a public outcry back in the 60s if lenders raised mortgage rates by ¼ %. The news would receive full front page coverage in most daily newspapers. |
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| Author: | Jon [ Thu May 02, 2013 10:33 pm ] |
| Post subject: | Re: Mortgage rate doubled |
It's like throwing a grenade into the economy. |
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| Author: | Batty bat [ Thu May 02, 2013 10:49 pm ] |
| Post subject: | Re: Mortgage rate doubled |
jim wrote: looking like I will have to get a multi wheeled HGV and go and draw mine out, the cost of a warehouse to store and keep dry, and loss of interest will hit me heavy. I don't think you have too much to worry about Jim, I don't think it will effect the value of marbles to much.   
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| Author: | Kremmen [ Fri May 03, 2013 7:26 am ] |
| Post subject: | Re: Mortgage rate doubled |
Batty bat wrote: jim wrote: looking like I will have to get a multi wheeled HGV and go and draw mine out, the cost of a warehouse to store and keep dry, and loss of interest will hit me heavy. I don't think you have too much to worry about Jim, I don't think it will effect the value of marbles to much. Queue the loss of marbles quip >>>>>>>>>>>>>>> |
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