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

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

On the same day that I get a letter telling me that saver interest rates are to be cut again.

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Lets be careful out there !

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.

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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Lets be careful out there !

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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Its not always the biggest and the bestest, its them that make the least mistakes.

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.

It's like throwing a grenade into the economy.

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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Posts often deleted................Why? I don't know.

Queue the loss of marbles quip >>>>>>>>>>>>>>>

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Lets be careful out there !