Omega Owners Forum
Chat Area => General Discussion Area => Topic started by: Field Marshal Dr. Opti on 07 March 2012, 12:56:42
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I've always had a very low opinion of banks. I've always believed the upper levels of the banking industry to be infested by spivs, wide-boys and self-serving parasites.
Today, I received a letter from my mortgage lender, The Bank of Ireland. Their letter glibly starts........ We have no alternative but to raise our SVR (Standard variable rate) by 1.5% in September 2012........ WHY??????????
Have I missed a mortgage payment or payment(s)......NO
Has The base rate of 0.5% dramatically risen.......NO. It remains at 0.5%. A historic low.
Have I been paying a special introductory rate (2,3,5 year etc) that finishes in September 2012..... NO. I'am paying the SVR .
Then why?
The nice lady I spoke to on the telephone finally admitted ........well, if truth be known we're trying to move all our mortgages on. :( :( :( :(
Not a surprise really. How much lower can the banks stoop?...... :-\ :-\ :-\ :-\
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I've always had a very low opinion of banks. I've always believed the upper levels of the banking industry to be infested by spivs, wide-boys and self-serving parasites.
Today, I received a letter from my mortgage lender, The Bank of Ireland. Their letter glibly starts........ We have no alternative but to raise our SVR (Standard variable rate) by 1.5% in September 2012........ WHY??????????
Have I missed a mortgage payment or payment(s)......NO
Has The base rate of 0.5% dramatically risen.......NO. It remains at 0.5%. A historic low.
Have I been paying a special introductory rate (2,3,5 year etc) that finishes in September 2012..... NO. I'am paying the SVR .
Then why?
The nice lady I spoke to on the telephone finally admitted ........well, if truth be known we're trying to move all our mortgages on. :( :( :( :(
Not a surprise really. How much lower can the banks stoop?...... :-\ :-\ :-\ :-\
Because they can, seemples
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One of the reasons is that the cost of borrowing from other banks is going up and rates are not linked to the BOE base rate.....hence they pass the rise on.
These banks borrow from the money markets.....
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I did read a bit about this the other day, something to do with those on low introductory rates. Which mean people like you are paying for them. That and I bet it is a way of raising money to pay any increased bank taxes, and line the shareholders pockets.
My first mortgage ends at the end of April, can't believe 25 years have gone by that quick.
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Why ? The cost of borrowing money on the wholesale markets has risen substantially in the last year. That is now being passed on.
Must type faster.
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Not true Albs: The rate the can borrow money at has gone down through things like QE, so they are passing that saving on to you in reverse. Another example is the ECB LTRO where they are borrowing at 1% which is lower than the current Libor rate. :o :o :o :o
They have to boost their bonus funds repair their balance sheets somehow and as a captive sucker valued customer and indirectly tax paying sucker shareholder they will treat you like a female genital how they like. >:( >:( >:( >:( >:( >:( >:(
It not only bothers you, but also Shaun Richards where he wrote about it in his blog yesterday.
http://www.mindfulmoney.co.uk/wp/shaun-richards/does-it-bother-only-me-that-mortgage-rates-are-rising-whilst-the-bank-of-englands-quantitative-easing-is-supposed-to-cut-them/ (http://www.mindfulmoney.co.uk/wp/shaun-richards/does-it-bother-only-me-that-mortgage-rates-are-rising-whilst-the-bank-of-englands-quantitative-easing-is-supposed-to-cut-them/)
Unfortunately in Rip Off Britain we have many cartels, which when one raises their prices the rest follow, normally while running expensive advertising campaigns telling us how wonderful they are and how luck we are, where they are practically giving the stuff away. >:( >:( >:( >:(
Examples are: Banks, Energy companies, Water Companies and the big 4 supermarkets, they are all increasing their profits in a depression recession, where if there was real competition they would be falling, where they were each trying hard to keep market share. Even though Tesco is losing slight market share, where their current management is not up to the job, (they forgot a long time a go how to sell them cheap, but they are currently suffering where they have also forgotten how to stack them high, with appalling stock control), increasing margins and profits is a higher priority than maintaining market share.
Don't forget their motto: At Tesco every little snidely done un-noticed price rise helps boost our profits. >:( >:( >:( >:(
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I've always had a very low opinion of banks. I've always believed the upper levels of the banking industry to be infested by spivs, wide-boys and self-serving parasites.
Today, I received a letter from my mortgage lender, The Bank of Ireland. Their letter glibly starts........ We have no alternative but to raise our SVR (Standard variable rate) by 1.5% in September 2012........ WHY??????????
Have I missed a mortgage payment or payment(s)......NO
Has The base rate of 0.5% dramatically risen.......NO. It remains at 0.5%. A historic low.
Have I been paying a special introductory rate (2,3,5 year etc) that finishes in September 2012..... NO. I'am paying the SVR .
Then why?
The nice lady I spoke to on the telephone finally admitted ........well, if truth be known we're trying to move all our mortgages on. :( :( :( :(
Not a surprise really. How much lower can the banks stoop?...... :-\ :-\ :-\ :-\
And they consistently fail to meet them. ::) ;D ;D ;D
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Because your mortgage rate is variable, not fixed, and bank profits are partly decided on their additional percentage on top of the boe base rate. All banks charge more than the boe base rate, or they wouldn't make any money on the loan.
It's also agreed that interest rates must rise from thier current rate, at some point, as they are as low as possible currently to support the economy. Savers need more return on thier savings.
So, fix your mortgage rate now if possible, it will only get worse from here on in.
Keep an ear out on the news first Thursday of the month for the monetary commission meeting decision on boe base rate. If that goes up, do will savings intetrest rates, and mortgage rates.
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Surely the answer is simple..
They're a business. They're in it to make money. As much money as possible, just like every other business. That's how Cem's beloved hated capitalism works, no?
Vote with your feet; if you're on a SVR, find a fixed rate mortgage?
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http://www.ft.com/cms/s/0/90c7702c-65f4-11e1-979e-00144feabdc0.html#axzz1oRLNgypu
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Surely the answer is simple..
They're a business. They're in it to make money. As much money as possible, just like every other business. That's how Cem's beloved hated capitalism works, no?
Vote with your feet; if you're on a SVR, find a fixed rate mortgage?
Fine.......provided banks offer true competition rather than a sleazy cartel.
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Banks.. Insurance companies.. Supermarket chains.. Pub companies.. Petrol stations..
Look where 99% of your expenditure goes and you'll find it run by a sleazy cartel. ;)
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The GREEKS
Debt write off.
Money markets need to get that back from the little people drones.
Money markets charge the banks more so banks charge the drones more.
All very simples.
Opti - thanks for doing your bit to help the poor Greeks. What a philanthropist you are! I hope you do the same when Spain goes under. :y
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Surely the answer is simple..
They're a business. They're in it to make money. As much money as possible, just like every other business. That's how Cem's beloved hated capitalism works, no?
Vote with your feet; if you're on a SVR, find a fixed rate mortgage?
Banks practice a strange type of capitalism. When things are going well they stick up two fingers and shout "f*ck you loser" before jumping into their Bentley/ Aston / Porsche...etc ...etc....
However, When business go tits up, they go running like a six year old with a grazed knee to "Nanny Taxpayer". Just what sort of capitalism is that?..... :( :( :( :(
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I did read a bit about this the other day, something to do with those on low introductory rates. Which mean people like you are paying for them. That and I bet it is a way of raising money to pay any increased bank taxes, and line the shareholders pockets.
My first mortgage ends at the end of April, can't believe 25 years have gone by that quick.
I'm with you there mate, I payed mine up 18 or so months back, 6 years before the big 25 :) I worked hard & put many hours in to finish it early. Best thing I ever did :y :y :y :y
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I bet they'd love me to vote with my feet. Got a base rate + 0.8 lifetime tracker back when the base rate was nice and high. ;D
Needless to say I'm in no hurry to pay it off. ;)
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Surely the answer is simple..
They're a business. They're in it to make money. As much money as possible, just like every other business. That's how Cem's beloved hated capitalism works, no?
Vote with your feet; if you're on a SVR, find a fixed rate mortgage?
Banks practice a strange type of capitalism. When things are going well they stick up two fingers and shout "f*ck you loser" before jumping into their Bentley/ Aston / Porsche...etc ...etc....
However, When business go tits up, they go running like a six year old with a grazed knee to "Nanny Taxpayer". Just what sort of capitalism is that?..... :( :( :( :(
We are just envious as they have the perfect business model.
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Surely the answer is simple..
They're a business. They're in it to make money. As much money as possible, just like every other business. That's how Cem's beloved hated capitalism works, no?
Vote with your feet; if you're on a SVR, find a fixed rate mortgage?
Banks practice a strange type of capitalism. When things are going well they stick up two fingers and shout "f*ck you loser" before jumping into their Bentley/ Aston / Porsche...etc ...etc....
However, When business go tits up, they go running like a six year old with a grazed knee to "Nanny Taxpayer". Just what sort of capitalism is that?..... :( :( :( :(
We are just envious as they have the perfect business model.
Yeah. Huge rewards with zero risks. >:( >:(
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Surely the answer is simple..
They're a business. They're in it to make money. As much money as possible, just like every other business. That's how Cem's beloved hated capitalism works, no?
Vote with your feet; if you're on a SVR, find a fixed rate mortgage?
Banks practice a strange type of capitalism. When things are going well they stick up two fingers and shout "f*ck you loser" before jumping into their Bentley/ Aston / Porsche...etc ...etc....
However, When business go tits up, they go running like a six year old with a grazed knee to "Nanny Taxpayer". Just what sort of capitalism is that?..... :( :( :( :(
We are just envious as they have the perfect business model.
Yeah. Huge rewards with zero risks. >:( >:(
The perfect business plan :)
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Clearly the answer is .. we all get together and start the "Bank of OOF"
Now, who's going to provide us with the start up capital? ;)
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They didnt go to the taxpayer and ask for money.Governments around the world decided very early in the crisis to begin the process of propping them up.Was it the right thing to do ? Jury is still out imo. There is a school of thought which says if some had been allowed to collapse early in the crisis (Northern Crock for example) the others would have been able to survive on their own.
History writers with the benifit of hindsight may be able to put it all into its proper perspective in years to come. :-\
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They didnt go to the taxpayer and ask for money.Governments around the world decided very early in the crisis to begin the process of propping them up.Was it the right thing to do ? Jury is still out imo. There is a school of thought which says if some had been allowed to collapse early in the crisis (Northern Crock for example) the others would have been able to survive on their own.
History writers with the benifit of hindsight may be able to put it all into its proper perspective in years to come. :-\
Bedfellows. Nice try. Don't forget that governments of all persuasions are there only for their self interests. It was in their interests NOT to let the banks fail. Us mere mortals have no comprehension of the power of lobbyists. None whatsoever as we drone around our busy daily schedule. Do not kid yourself that there was any regard for the ordinary man in the street, there was not.
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Im not that naive Varche.The financial system had to be kept going though,for absolutely everyone.The debate is did they go the right way about it. Time will tell,maybe.
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I note the T&Cs of my mortgage changed a couple of years back, instead of tracking BoE, its now tracking Barclays own SVP, which they claim will normally track BoE, giving them scope for screwing me.
Currently paying 0.95% above base rate, no lower collar
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I'm fixed at 6.19% for another three years .. I'm wondering if the base rate will still be below that when it ends; I have a feeling it's going to be well above it.
I better start saving. Or pimping my body out. One or the other..
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Because your mortgage rate is variable, not fixed, and bank profits are partly decided on their additional percentage on top of the boe base rate. All banks charge more than the boe base rate, or they wouldn't make any money on the loan.
It's also agreed that interest rates must rise from thier current rate, at some point, as they are as low as possible currently to support the economy. Savers need more return on thier savings.
So, fix your mortgage rate now if possible, it will only get worse from here on in.
Keep an ear out on the news first Thursday of the month for the monetary commission meeting decision on boe base rate. If that goes up, do will savings intetrest rates, and mortgage rates.
The mark up to the banks will soon be about 4%.... :o :o :o :o. Traditionally it has been 0.5% -0.75%. I remember when the base rate was 5.5% and my mortgage 6%.
There is little point having a base rate of 0.5% to help the economy start to grow, if the banks use it as an excuse for blatant profiteering.
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I'm fixed at 6.19% for another three years .. I'm wondering if the base rate will still be below that when it ends; I have a feeling it's going to be well above it.
I better start saving. Or pimping my body out. One or the other..
The base rate may well be, Aaron. But it seems that lenders are dismissive of the base rate and the government these days. They will charge whatever they want.... :( :( :(
Thin on the ground now, first time buyers will become almost extinct.
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I'm fixed at 6.19% for another three years .. I'm wondering if the base rate will still be below that when it ends; I have a feeling it's going to be well above it.
I better start saving. Or pimping my body out. One or the other..
The base rate may well be, Aaron. But it seems that lenders are dismissive of the base rate and the government these days. They will charge whatever they want.... :( :( :(
Thin on the ground now, first time buyers will become almost extinct.
they are not obliged to pass on every % variation.
Are you tied in to your mortgage? Re mortgage at a cheaper rate if not.
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I'm on a fixed 6% rate too, until next year. Best I could do in 2010 with just a 10% deposit.
I'm due to drop to their variable rate (Halifax) but its due to go up May 1 2012, but even so, I'll still make a saving of at least £200/m
If many more rises crop up, I'll go fixed rate again :-\
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Fixed at 2.89% here. ;)
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Fixed at 2.89% here. ;)
Lucky bugger >:(
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Indeed... Looked at deals when I came onto the SVR a while back (although that is currently reasonable) and couldn't get a deal anywhere near competitive so I'll wait until the base rate has risen a couple of times and then look again ;) ;)
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Fixed at 2.89% here. ;)
I'm going to come and set light to the bush outside your front door for that one :P ;D
I'm tied in with enormous penalties until the fixed period is up :( Bet I won't be able to find a deal like yours when my time comes :-\
Like Tunnie, it was the best deal I could find in 2009 with a ~13% deposit, which was all I could eek out back then.
'course you could argue that I simply shouldn't have bought and waited a few more years ;) but at the time I thought house prices were starting to bottom out and would rise again soon. How wrong I was!
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Fixed at 2.89% here. ;)
I'm going to come and set light to the bush outside your front door for that one :P ;D
OOH! Can you come and do mine as well? Only I've got a letter from the council saying it's obstructing the highway. :-[
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Fixed at 2.89% here. ;)
I'm going to come and set light to the bush outside your front door for that one :P ;D
OOH! Can you come and do mine as well? Only I've got a letter from the council saying it's obstructing the highway. :-[
Time to test all that explosive theory you learnt as a kid?
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Fixed at 2.89% here. ;)
I'm going to come and set light to the bush outside your front door for that one :P ;D
OOH! Can you come and do mine as well? Only I've got a letter from the council saying it's obstructing the highway. :-[
Well there's about 30L of unleaded in the Jag's tank that I don't need .. no problem! ;D
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Now now. ;D
It does help H is in financial services. She had been watching that rate for a month, and got word they would be pulling the rate for an increase with 24 hours notice. Just nipped in before they pulled it iirc.
Won't get anywhere near that now, and we'll be stuck with market products available at the time when that rate ends.
Point being, can only do the best you can at the time. Hence a good financial advisor is important, they have computer software that monitors all mortgage products available, allowing them to choose the best rate for individual customers. This simply isn't possible for Joe Bloggs in the street. There's just too many options to make the correct decision on an individual basis.
Some financial advisors dont charge a fee, some do, btw. They are also quite heavily regulated these days.
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Now now. ;D
/me hides the matches.
Sorry, what were you saying? ;D
I've used IFAs a couple of times in the past - this last time, however, they couldn't find me anything better than I could find on my own .. in fact, the first one I went to declared it would be impossible to get a mortgage at all. Proved him wrong, clearly.. ;D
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Fixed at 2.89% here. ;)
I'm going to come and set light to the bush outside your front door for that one :P ;D
I'm tied in with enormous penalties until the fixed period is up :( Bet I won't be able to find a deal like yours when my time comes :-\
Like Tunnie, it was the best deal I could find in 2009 with a ~13% deposit, which was all I could eek out back then.
'course you could argue that I simply shouldn't have bought and waited a few more years ;) but at the time I thought house prices were starting to bottom out and would rise again soon. How wrong I was!
I've found in London prices are rising slightly....
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Now now. ;D
/me hides the matches.
Sorry, what were you saying? ;D
I've used IFAs a couple of times in the past - this last time, however, they couldn't find me anything better than I could find on my own .. in fact, the first one I went to declared it would be impossible to get a mortgage at all. Proved him wrong, clearly.. ;D
It's a Battle for IFA's currently, for obvious reasons. Lending criteria are changing constantly, some of those customers that qualified a couple of years ago, won't do today.
And there's always the less scrupulous that don't see a profit in a client, so don't bother too much to help. Usually small businesses as well. Ours is good, but like Tilo, can be hard to get hold of.
Such is life.
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Well there's about 30L of unleaded in the Jag's tank that I don't need .. no problem! ;D
.. and how many will be left by the time you've driven it here? ;D
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There will be alot of people in the kakky who won't be able to afford the mortgage when their rate goes up and won't be able to remortgage either due to changed circumstances or lending criteria!! :-\
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There will be alot of people in the kakky who won't be able to afford the mortgage when their rate goes up and won't be able to remortgage either due to changed circumstances or lending criteria!! :-\
Sadly I think you may well be right, particularly with younger / newer borrowers who may have over extended when rates were low :( I am with Halifax but on a base rate tracker so sitting fingers crossed... :) We could survive a rate increase, even a biggish one, but I do worry about younger borrowers, that said everything is going up and no raise in Pay.......something going to go wrong somewhere, and I fear that this may be on a big scale..... :( :(
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That's the danger and why they have kept rates low during the recession period, the way I see it. Someone's always gong to suffer somewhere. Savers want a high interest rate, lenders want low. Can't please all the people .. Etc
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What's a mortgage?
Confused ;)
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That's the danger and why they have kept rates low during the recession period, the way I see it. Someone's always gong to suffer somewhere. Savers want a high interest rate, lenders want low. Can't please all the people .. Etc
That should read..."borrowers" want low.
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What's a mortgage?
Confused ;)
Dont worry about it AA, confusion is part of being 143 years old... ::) ;D
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That's the danger and why they have kept rates low during the recession period, the way I see it. Someone's always gong to suffer somewhere. Savers want a high interest rate, lenders want low. Can't please all the people .. Etc
That should read..."borrowers" want low.
^ confused at 43 me ^ :-\ :D
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There will be alot of people in the kakky who won't be able to afford the mortgage when their rate goes up and won't be able to remortgage either due to changed circumstances or lending criteria!! :-\
Sadly I think you may well be right, particularly with younger / newer borrowers who may have over extended when rates were low :( I am with Halifax but on a base rate tracker so sitting fingers crossed... :) We could survive a rate increase, even a biggish one, but I do worry about younger borrowers, that said everything is going up and no raise in Pay.......something going to go wrong somewhere, and I fear that this may be on a big scale..... :( :(
Yes, we're in a slightly awkward position at the moment. Sitting on a very good SVR and can afford a rise of almost as much as it fell by (which I can't see happening anywhere near as quickly, probably take 2-3 years from the first rise, minimum, to get back towards 5% BoE Base Rate) but will probably struggle to re-mortgage due to the change in personal circumstances and house prices.
Fortunately we aren't in negative equity, but we're probably close to 95% LTV which is tricky on a re-mortgage. Thankfully it seems that house prices are creeping back up in this area so should, hopefully, get back to where they were when we re-mortgaged (after the first big dip in house prices) :y