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27th November 2008, 12:34 | #1 |
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Northern Rock increases mortgage rates
In response to Alistair Darling's 'heartfelt' rhetoric about wanting to help home owners and put money back into the economy, I see that the government's banking subsidiary has actually increased its mortgage rates. Whether or not there was any commercial justification for doing so, the timing is like giving a two fingered gesture to borrowers. The scale of incompetence being displayed is staggering.
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27th November 2008, 12:40 | #2 |
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HSBC have also just increased their rates and added to Tracker Rates to be...wait for it...Competitive!
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27th November 2008, 16:21 | #3 |
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Mortgages
I think you're posting on the wrong forum.
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27th November 2008, 16:42 | #4 |
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It's not just mortgages either
One of my students finished his 0% period with his Virgin Money credit card this month. Being a young single male he'd maxed it out. His original interest rate was quoted as 15.9% APR when he first agreed to have the card - They have now made it ...44.9% APR. Conveniently, just as his interest free period ends. I'm left wondering how that fits into the "Let's all pull together" rhetoric from the brown and the darling Is it just me or is 44.9% APR from a mainstream company obscenely usurious? |
27th November 2008, 16:45 | #5 |
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Abbey and many others have put theirs up in recent weeks to between 35% to 39.9%
Even good value ones have gone up to 24.9% beware not many giving the advertised rates when you try to transfer balances either. To get a 0% from most now you must have excellent Credit Rating and a very Good Salary. Rip Off Britain at its best. |
27th November 2008, 16:53 | #6 | |
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Quote:
OK, my student has used his card to the limit but he has neither gone over the limit nor has he missed a payment or made a late payment. The cynical amongst us might conjecture that, having seen our own government screwing its own citizens with apparent impunity, the banks have decided to jump on the band wagon. I'm not enamoured of cliché but one particular example seems apposite to this situation:- "What goes around comes around" Let's hope that bank customers have long and vengeful memories. |
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27th November 2008, 17:19 | #7 |
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I don't blame the government for allowing Northern Rock to increase there rates. At the end of the day the last thing they want is you to keep your mortgage with them. After all if you ove they get the money back.
The entire point of bailing out Northern Rock was to stop a run on the banks. This they did. Now thats over they want some of the billions it cost to come back in. The best way to do this is to increase the rates so that people repay there mortgages by swapping out to other companies. Northern Rock was a good lender and did not risk everything unlike B&B tht mainly lent to high risk people. There is no reason that most of the NR borrowers shoud not be able to borrow elsewhere and repay NR what it owes them and us as tax payers.
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27th November 2008, 17:24 | #8 |
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Northern Rock
I remember when the rock was a pleasure to deal with
friendly ,helpful and some cracken deals. As soon as the government sticks its gruby hand in everything goes down the pan. It makes you wonder whats worse Nationalisation or Privatisation spot on Raistlin Last edited by nick nick; 27th November 2008 at 17:27.. |
27th November 2008, 18:04 | #9 |
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I agree with Steve. The new chief exec has already managed to repay 1/3 of the debt. If raising the interest rates causes people to leave then the books will be balanced so much quicker. One less bank to prop upfrom the governments perspective.
I'm not sure about the comparison with B&B. Northern Rock were always at the top of the interest league when it came to deposits. They must have had some "creative practices" to sustain those industry leading rates. I think the situation that Raistlin is describing is more worrying. That is far more exploitative Andy |
27th November 2008, 18:20 | #10 |
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The current situation is not good, but it can't really be a surprise.
The current problem with the banks is directy related to the American mortgage market, they have bought in some very poor debts and it will be a long time before they find out how deep that particular hole is. I saw some stats recently on a news report that 9% of mortgages in America are in arrears and 1-in-40 are being repossessed. Couple that with huge drops in property values and it is easy to see that with each repossession they are losing a fair bit of money. So I don't think we can be too surprised that lenders are not overly keen to reduce interest rates, the bail out by the government has propped them up, but as a business they have to make a bit of money where they can to cover the places where the cash is swilling down to drain. Ps I don't work for a bank. |
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