Is the mortgage timebomb about to go off? RBS and NatWest hike home loan rates for 200,000 customers

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Is the mortgage timebomb about to go off? RBS and NatWest hike home loan rates for 200,000 customers

Post by Guest on Fri Mar 02, 2012 7:09 pm

Is the mortgage timebomb about to go off? RBS and NatWest hike home loan rates for 200,000 customers - and Halifax could be next It's a signal banks are starting to pass on the rise in cost of borrowing on wholesale money markets
Comes as 7/10 Britons are in debt sparking fears they will struggle to make monthly payments
A rise from 3.5% to 3.99% would add £735 a year to cost of a Halifax £150,000 interest-only mortgage

Royal Bank of Scotland has hiked mortgage rates for 200,000 of its customers, it emerged today.
It is the first major signal that banks are ready to trigger what experts have called a 'mortgage timebomb.
It comes just days after it emerged seven in 10 Britons are in debt and will raise fears that many will struggle to make monthly mortgage payments and even face repossession of their homes.
The hike will anger many struggling homeowners because the Bank of England base rate has remained unchanged at a record low of 0.5 per cent.

And banks will be accused of double standards as savers will almost certainly not see an increase in the interest paid back on their investments.
Rate rise fears: Other borrowers are braced for increases in mortgage rates after the hike at RBS-NatWest
RBS, which is 82 per cent owned by British taxpayers, has already ordered the increase of 0.25 per cent to 4 per cent on its RBS and NatWest-branded offset mortgages.

But with banks facing increased costs, others are likely to follow suit with rate increases.

Earlier this month RBS revealed it was paying out a staggering £785million in bonuses to staff - including £390million for its investment bankers.
RBS has already ordered the increase of 0.25 per cent to 4 per cent on its RBS and NatWest-branded offset mortgages
Meanwhile, the firm announced total losses of £2billion in 2011 - nearly doubling its losses of £1.1billion in 2010 after taking a near-£1billion hit for mis-sold payment protection insurance compensation.
A SHARP RISE FOR 1M HALIFAX BORROWERS?Homeowners sat on Halifax standard variable rate mortgages at 3.5 per cent could be in for a rude shock, as the lender has paved the way to hike their monthly payments, an expert warned earlier this week.

The mortgage lending giant has an estimated 1million borrowers paying its standard variable rate (SVR), many of whom will have reasoned that they are safe from having their rate jump as long as the UK base rate remains at its record 0.5 per cent low.

But Halifax’s recent move to lift a cap - a special deal that only affects 40,000 of its borrowers - on its SVR could actually mean an imminent rate rise of almost 0.5 per cent for all, says Ray Boulger, of mortgage broker John Charcol.

He said: ‘There would be little point in changing the cap if Halifax didn’t want to increase rates in the very near future.’

A rise from 3.5 per cent to 3.99 per cent would add £735 a year to the cost of a £150,000 interest-only mortgage.
Earlier this week it was reported that Britain's biggest lender, Halifax, is expected to announce a sharp increase in its standard variable rate from 3.50 per cent to 3.99 per cent, affecting around one million customers.
A rise from 3.5 per cent to 3.99 per cent would add £735 a year to the cost of a Halifax £150,000 interest-only mortgage.
Halifax is part of the Lloyds Banking Group which is 41 per cent owned by the UK government.
Lloyds and RBS were rescued with taxpayer funds during the banking crisis of 2008-09.

Today's news on the RBS mortgages comes just ahead of next week's expected third anniversary of the Bank of England base rate remaining pinned down at 0.5 per cent. The Bank's monetary policy committee will announce the March decision on rates on Thursday.
Banks constantly borrow money to fund their mortgage lending, even for existing borrowers who may have taken a standard variable rate years ago.
The costs are linked to inter-bank lending rates - markets where banks lend to each other.
The key rate is the three-month sterling LIBOR rate.

It soared at the peak of the credit crunch in 2008, rising 130 points above the then base rate of 5 per cent. The gap closed to nothing after the base rate was cut to 0.5 per cent in March 2009 but has since been on a near-constant incline with a particularly steep increase at the end of 2011.

Many experts feared the three-year high of 1.08 per cent for LIBOR at the start of the year signalled that a second full-blown credit crunch lay ahead.

Seven in 10 Britons are in debt and will raise fears that many will struggle to make monthly mortgage payments and even face repossession of their homes
But emergency measures by the European Central Bank has eased the pressure on banks and LIBOR has fallen back slightly to 1.06 per cent.

WHY IS MY MORTGAGE GOING UP WHEN THE BASE RATE HASN'T CHANGED?It’s the fear factor in markets that drives up borrowing costs – even when the UK base rate remains unmoved.
The Bank of England has kept its key bank rate pinned down at 0.5 per cent for nearly three years in a bid to keep borrowing cheap for individuals and businesses.
However, banks also need to borrow from each other on money markets so that they have enough to lend out as loans and mortgages. Even money they have lent years before on mortgages needs to be ‘funded’ by borrowing fresh batches of money.
The rates on this inter-bank lending - known as LIBOR - are influenced by the fear factor in the markets.
The concerns about the Eurozone crisis in the second half of 2011 made banks suspicious of one another so the key LIBOR rate – the three-month sterling rate – steadily rose, up from 0.75 per cent at the start of 2011 to 1.08 per cent by the end of the year.
Banks say they have largely absorbed the rising cost, but feel that they need to pass it on – despite the ‘Big Four’ making profits of more than £10bn from British High Street banking last year.
Recent intervention by the European Central Bank to dole out colossal, cheap loans to banks across the Continent appears to have stabilised these money markets and LIBOR has fallen marginally in recent weeks.
The most recent loans bonanza was earlier this week. RBS took around €5billion to add to a similar size European loan in December.
An RBS spokesman said the rate hike was due to the increased cost of borrowing on wholesale markets.
He said: ‘Over the last year the cost of funds at which we need to borrow at to fund our mortgage commitments has risen considerably.
‘We have absorbed the cost during this period but have now decided to pass on some of this increase, 0.25 per cent to our offset and One Account customers.
‘For the majority of our offset and One Account customers their new rate will be 4 per cent, the same as our standard variable rate.
‘We have written to all customers impacted to advise them of the changes. The bank has a range of alternative options for any customers who prefer to switch from their current product.’
The rate change will add further strain to hard-pressed households. On a £150,000 interest-only mortgage based on a term of 25 years at a rate of 3.75 per cent, the monthly repayments are £779.15.
With the 0.25 per cent hike, the monthly repayments would increase to £800.15 – a rise of £21 a month.

Chris Taylor, chief executive of insurer MarketGuard, offers a RateGuard policy that protects holders from rises. He said the news underlined how 'how misguided people’s obsession with the Bank of England rate is'.

He said: ‘Banks borrow money at LIBOR which has risen 0.25 per cent since the autumn and will rise further if banks continue to believe there is risk in the market. Mortgage holders on SVRs must understand that they may not know what their mortgage payments next month will be.
‘Two rate rises in the space of a week are a blow to the already squeezed middle who will inevitably find their finances shrinking further. SVR mortgages are a timebomb waiting to happen.’
Borrowers initial signs of tackling debts in the aftermath of the 2008 crisis, using the excess cash from lower repayments to pay down mortgages.




The fall and rise of borrowing costs: The key rate of three-month sterling LIBOR - the interest rate banks charge each other for short term loans - fell from 6.3% in 2008 to a low of 0.50% in 2009 before steadily climbing to a peak of 1.08% at the start of 2012
Feeling the pinch: RBS boss Stephen Hester, on a £1.2million salary, was pressured into waiving a £1million bonus
But experts say this has largely abated with becoming too blase about the new era of ultra-low rates.
Banks came in for stinging criticism earlier this week when the true extent of rate hikes was revealed in Bank of England data.

The figures showed the average 'agreed' overdraft rate in January was 19.51 per cent, the highest level since the Bank’s records began nearly two decades ago and nearly 40 times higher than the 0.5 per cent base rate. It means an overdraft of £1,000 a year would cost £195.
The average credit card rate is currently 17.32 per cent, which has jumped from 15.73 per cent in March 2009, the crucial month when the base rate was cut to its current low level.
Millions of homeowners with a standard variable rate mortgage are typically paying 4.16 per cent – again, the highest rate since March 2009.
The data comes just days after the five largest banks – HSBC, Santander, Barclays, Lloyds and Royal Bank of Scotland – revealed their results for last year.
Overall, the ‘Big Five’ made total profits of £10.7billion from their high-street operations while RBS chief executive Stephen Hester gave up his £1million bonus but only have widespread public anger.

NORTHERN ROCK PAID BACK £2BN BACK TO TREASURY LAST YEAR - BUT IT STILL OWES £47BN
The state-owned company responsible for winding down the mortgage books of bailed-out lenders Northern Rock and Bradford & Bingley said today it increased its repayments to the Treasury to £2.15 billion last year.

Lending balances fell by 10% to £75.3 billion in 2011, enabling the repayment to the Government, but the business still owes £46.6 billion and remains the sixth biggest mortgage provider in the UK. It has 722,000 customers.

Richard Pym, chairman of UK Asset Resolution (UKAR), said it was “our expectation and our determination” to repay the debt in full without loss to the taxpayer.

A report this week from UK Financial Investments, which manages the Government’s bank stakes, said Northern Rock and Bradford & Bingley should generate a cash return of between £95 billion and £97 billion, compared with £64 billion of initial funding.

However, it warned the process could take up to 15 years to complete.

As much as £1 billion has been secured from the recent sale of Northern Rock’s retail savings and mortgage book to Virgin Money, while £3.1 billion has been repaid from the closed mortgage book of Northern Rock, run by UKAR, since the split in October 2010.

Bradford & Bingley commenced Government repayments during 2011 and contributed £150 million to the £2.15 billion repaid by UKAR last year, a figure which compared with £1.1 billion in 2010.
UKAR also paid a further £688 million in interest, fees and corporation tax, resulting in an overall figure of about £2.8 billion.

The organisation said more than 90% of its customers were fully up to date with their payments, a similar level to last year, but that it made 37,000 mortgage arrangement and account modifications to assist customers.

The total number of mortgage cases three or more months in arrears, including those in possession, reduced by 14% to 33,216 at the end of the year. The improved arrears performance meant underlying profits improved 145% to £1.1 billion.

UKAR recently announced plans to close its operations at Gosforth in Newcastle and run the business from Doxford in Sunderland and Crossflatts in West Yorkshire.


Read more: http://www.dailymail.co.uk/news/article-2109335/Fears-thousands-homeowners-face-repossession-taxpayer-backed-NatWest-hikes-mortgage-prices-200-000-customers.html#ixzz1nzI7YSn7

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Re: Is the mortgage timebomb about to go off? RBS and NatWest hike home loan rates for 200,000 customers

Post by Guest on Mon Mar 05, 2012 5:00 pm

Having been mortgage free for years we recently bought a holiday home with a significant mortgage on a variable rate. Hmmmmm I'm really not sure it was a good idea now.

However if everyone does nothing out of fear everything would grind to a halt.

However during the first decade people kept borrowing more and more as their equity grew. That didnt make sense then it certainly doesnt now. You cant if you want to in any case. It isnt debt that is the problem it is uncontrolled debt. Borrowing beyonds your means to repay. That is the message in the story above. The underlying risk is that it wont just be personal tragedies lising homes the banks assets may come under pressure again as the writ downs begin ti accrue.

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Re: Is the mortgage timebomb about to go off? RBS and NatWest hike home loan rates for 200,000 customers

Post by Guest on Mon Mar 05, 2012 5:15 pm

Drinky wrote:Having been mortgage free for years we recently bought a holiday home with a significant mortgage on a variable rate. Hmmmmm I'm really not sure it was a good idea now.

However if everyone does nothing out of fear everything would grind to a halt.

However during the first decade people kept borrowing more and more as their equity grew. That didnt make sense then it certainly doesnt now. You cant if you want to in any case. It isnt debt that is the problem it is uncontrolled debt. Borrowing beyonds your means to repay. That is the message in the story above. The underlying risk is that it wont just be personal tragedies lising homes the banks assets may come under pressure again as the writ downs begin ti accrue.


"Borrowing beyonds your means to repay"

Greedy banks lending far beyond peoples ability to repay

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Re: Is the mortgage timebomb about to go off? RBS and NatWest hike home loan rates for 200,000 customers

Post by Guest on Mon Mar 05, 2012 6:09 pm

I take they held people at gunpoint and forced them to borrow did they. I take it in your view that if a bank lends money only it is to blame.

Nothing surprising there nems. When my wife and I recently borrowed "we" decided what we could afford. We decided on our repayment. We decided to birrow at all. I forget sometime im debating with a lefty who expects the,state to do everything for her and likes to blame everyone but herself.

In any contract there are two sides both have responsibilities comrade.

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Re: Is the mortgage timebomb about to go off? RBS and NatWest hike home loan rates for 200,000 customers

Post by Guest on Mon Mar 05, 2012 6:47 pm

Drinky wrote:I take they held people at gunpoint and forced them to borrow did they. I take it in your view that if a bank lends money only it is to blame.

Nothing surprising there nems. When my wife and I recently borrowed "we" decided what we could afford. We decided on our repayment. We decided to birrow at all. I forget sometime im debating with a lefty who expects the,state to do everything for her and likes to blame everyone but herself.

In any contract there are two sides both have responsibilities comrade.

Dont call me comrade I have repeatedly said I dont like it. Please dont do it.
People always want to borrow more than they can afford I think the banks were irresponsible in their lending.

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Re: Is the mortgage timebomb about to go off? RBS and NatWest hike home loan rates for 200,000 customers

Post by Guest on Tue Mar 06, 2012 7:02 am

With regards to sub prime that is absolutely right. However the lending I am referring to is more normal but were people themselves have gambled on prices continuing to go up.

That isnt the banks fault that is thir own. As to me caling you comrade if you issue comments blithely blaming the banks and excusing individuals with the implication that we havent got any responsibility then you do leave yourself open. Your assertions seems to be highly prejudicial and stereotypically lefty. Hence the comrade.

If you talk like a comrade and act like a comrade then what am I to presume.

I talk like a Tory and act like a Tory and guess what im a Tory. Very Happy

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Re: Is the mortgage timebomb about to go off? RBS and NatWest hike home loan rates for 200,000 customers

Post by Guest on Tue Mar 06, 2012 8:30 am

I have asked you not to call me comrade I even asked you nicely I wonder why you continue to do it?

Dont do it Drinky please

People were gambling on prices continuing to rise? Dont you think that is exactly what the banks were doing or did they see the crash coming and blindly carry on?

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Re: Is the mortgage timebomb about to go off? RBS and NatWest hike home loan rates for 200,000 customers

Post by Guest on Tue Mar 06, 2012 9:26 am

Drinky, please do not use the term as you have been asked very nicely ok Very Happy

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Re: Is the mortgage timebomb about to go off? RBS and NatWest hike home loan rates for 200,000 customers

Post by Guest on Tue Mar 06, 2012 9:29 am

Seren wrote:Drinky, please do not use the term as you have been asked very nicely ok Very Happy

Thanks Seren I appreciate that xx

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Re: Is the mortgage timebomb about to go off? RBS and NatWest hike home loan rates for 200,000 customers

Post by Guest on Tue Mar 06, 2012 12:58 pm

Ok I shall use other adjectives to keep the peace.

However you seem to think that adults entering into a financial transaction are not responsubke only the banks.

That is a very very cynical and typically left wing view. Bash the bankers they are responsible for all the ills.

That us frankly pathetic and worthy if some of the Jeremy kyle herberts who forever looking to sue someone for their own mistakes.

Sub prime is I repeat solely the bankers fault. Borrowing to the max is your own.

When I said we recently borrowed a significant sum we still have made sure we can cover the payments fir many months in case the worst happens. If we couldnt we would not have borrowed.

I despise those who seek to blame others for their own mistakes and despise even more the bleeding hearts who encourage that mind set.

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Re: Is the mortgage timebomb about to go off? RBS and NatWest hike home loan rates for 200,000 customers

Post by Guest on Tue Mar 06, 2012 7:29 pm

Drinky wrote:Ok I shall use other adjectives to keep the peace.

However you seem to think that adults entering into a financial transaction are not responsubke only the banks.

That is a very very cynical and typically left wing view. Bash the bankers they are responsible for all the ills.

That us frankly pathetic and worthy if some of the Jeremy kyle herberts who forever looking to sue someone for their own mistakes.

Sub prime is I repeat solely the bankers fault. Borrowing to the max is your own.

When I said we recently borrowed a significant sum we still have made sure we can cover the payments fir many months in case the worst happens. If we couldnt we would not have borrowed.

I despise those who seek to blame others for their own mistakes and despise even more the bleeding hearts who encourage that mind set.

Please stop telling me what I think Rolling
I didnt say people were not responsible, I said people naturally want to borrow the max and banks were irresponsible in allowing it.
Not sure why the Jeremy Kyle reference? Day time tele is not for me so I will take your word regarding Jeremy Kyle.

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Re: Is the mortgage timebomb about to go off? RBS and NatWest hike home loan rates for 200,000 customers

Post by Guest on Tue Mar 06, 2012 9:40 pm

No you havent understood nems. The banks check how much you earn etc etc. they cam only check so much. People then squandered their ever growing equity borrowing to the max.

Dont keep getting exasperated because I reflect back at you what you are saying if you dont mean it be more precise. You said because some choose to borrow to the max. Hello!!!!!!!!! The clue is in your,sentence they chose!!!!!!!!!! Really do you expect every institution to wipe your derrier for you.

Your making the excuses and laying it at the banks door you are a candidate therefore for bleeding heart whether you like it or not.

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Re: Is the mortgage timebomb about to go off? RBS and NatWest hike home loan rates for 200,000 customers

Post by Guest on Tue Mar 06, 2012 9:56 pm

Drinky wrote:No you havent understood nems. The banks check how much you earn etc etc. they cam only check so much. People then squandered their ever growing equity borrowing to the max.

Dont keep getting exasperated because I reflect back at you what you are saying if you dont mean it be more precise. You said because some choose to borrow to the max. Hello!!!!!!!!! The clue is in your,sentence they chose!!!!!!!!!! Really do you expect every institution to wipe your derrier for you.

Your making the excuses and laying it at the banks door you are a candidate therefore for bleeding heart whether you like it or not.

Im not exasperated dear! Remember I worked for the Royal banks of Scotland and before than William and Glyns for more years than I care to think about I express my opinions dont worry about reflecting them back at me! Your job is not to change my mind on anything!! I think what I think, you think what you think be a boring old world if we all thought the same. Very Happy

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Re: Is the mortgage timebomb about to go off? RBS and NatWest hike home loan rates for 200,000 customers

Post by Guest on Tue Mar 06, 2012 10:05 pm

My wife worked for RBS for some time at HQ.

Now as to changing your mind surely that is part of debate moving someone towards your own position. It rather defeats the object if eveyone was so obstinate and entrenched they cant acept new thinking.

I have accepted some very left ideas when they have been argued in a compelling way . The point is to find counter intuitive ideas and facts and use them to create a paradigm shift in the mind of your opponent.

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Post by Guest on Tue Mar 06, 2012 10:14 pm

Drinky wrote:My wife worked for RBS for some time at HQ.

Now as to changing your mind surely that is part of debate moving someone towards your own position. It rather defeats the object if eveyone was so obstinate and entrenched they cant acept new thinking.

I have accepted some very left ideas when they have been argued in a compelling way . The point is to find counter intuitive ideas and facts and use them to create a paradigm shift in the mind of your opponent.

Well Drinky I think the banks are guilty of irresponsible lending.
It seems the Tories agree with me.

The origins of the financial crisis lie in a complex interaction of underlying macroeconomic imbalances,
poor understanding of the risks created by financial innovations and weak regulation of financial
institutions. These led to a rapid and unsustainable increase in leverage and debt. British households and
banks became the most indebted of any major economy in history, leaving the British economy
particularly exposed to the crisis.
At the same time consumers have suffered as a result of irresponsible lending and unfair practices. And
when the crisis broke, the free option at the heart of the banking system was exposed.We cannot continue
with a system where banks make huge profits in the good times but benefit from an implicit taxpayer
guarantee when things go wrong.

Taken from FROM CRISIS TO CONFIDENCE:
PLAN FOR SOUND BANKING
Conservatives.com @ www.conservatives.com/~/media/files/.../planforsoundbanking.ashx?

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Re: Is the mortgage timebomb about to go off? RBS and NatWest hike home loan rates for 200,000 customers

Post by Guest on Tue Mar 06, 2012 10:21 pm

That was sub prime lending. It made no sense at any level.

Let me be precise. I shall illustrate. If I go into a casino which I do from time to time and I gamble my houses away who is to blame.

According to you it is the casino.

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Post by Guest on Wed Mar 07, 2012 9:48 am

Drinky wrote:That was sub prime lending. It made no sense at any level.

Let me be precise. I shall illustrate. If I go into a casino which I do from time to time and I gamble my houses away who is to blame.

According to you it is the casino.

No, I don't agree that you can compare losing in a casino to going to the bank for a mortgage. Although if you are saying it is always stacked for the house (bank) to win they you may have a point.

Everyone thought the house prices would continue to rise, now the man in the street, ok what does he know? But these bankers, the backbone of the economy as you keep telling me they are, the saviours of our nation and the last of the great white hope to listen to you! They didnt see it coming they thought house prices would go up and up and continued to lend on that premise. They were wrong and that was in my view irresponsible.
FSA thinks so too.


FSA outlines plans to cull irresponsible mortgage lending

The Financial Services Authority today announced plans to prevent a return of the risky mortgage lending seen in boom times, by proposing what it called "common sense" sales and underwriting standards across the market.



The regulator has made a raft of changes to its proposals under the Mortgage Market Review.
It aims to prevent a recurrence of the irresponsible lending which resulted in some borrowers taking on mortgages which only seemed affordable on the assumption that house prices would always rise.

Many of those borrowers ended up struggling to repay their mortgage and in danger of losing their home.
The proposals will see prospective borrowers - whether they are first time buyers, right-to-buy tenants or home movers - get the right information and advice, at the right time, and ensure mortgage lenders will be properly checking each applicant's realistic ability to repay their mortgage.
The FSA has significantly amended the proposals following detailed feedback from lenders, consumer groups and other stakeholders.
It is now encouraging consumers, industry and all other interested parties to give their opinions on this new, full, set of proposals as well as on the accompanying cost benefit analysis.
Following consultation, the FSA Board will make a decision on the final form of rules in summer 2012, but implementation will not be before 2013.
At the core of the proposals are three principles of good mortgage underwriting:
Mortgages and loans should only be advanced where there is a reasonable expectation that the customer can repay without relying on uncertain future house price rises. Lenders should assess affordability;

This affordability assessment should allow for the possibility that interest rates might rise in future: borrowers should not enter contracts which are only affordable on the assumption that low initial interest rates will last forever; and
Interest-only mortgages should be assessed on a repayment basis unless there is a believable strategy for repaying out of capital resources that does not rely on the assumption that house prices will rise.

Key features of the proposed future regime include:
Income will have to be verified in every mortgage application;
Lenders do not have to consider in detail what borrowers spend but cannot ignore unavoidable bills, such as heating and council tax;
Interest-only mortgages can still be offered as long as borrowers have a credible plan to repay the capital. But relying on hopes of rising property values is not enough;
Lenders will have to consider the impact of increases in interest rates in line with current market expectations;
Some applicants, such as those trying to consolidate debts with a mortgage, will have to get advice to ensure they understand the full implications and costs; and
Existing borrowers will be unaffected and lenders will have the flexibility to provide new mortgages to some existing customers even where they do not meet the new affordability requirements.
Lord Turner, chairman of the FSA, said: "We believe that these are common sense proposals which serve the interests of both lenders and borrowers. While the excesses of the pre-crisis period have largely disappeared from the current market, it is important to ensure that better practice endures in future when memories of the crisis recede and the dangers of poor practice return."
The consultation is open until March 30 2012.





Read more: http://www.ifaonline.co.uk/ifaonline/news/2133592/fsa-outlines-plans-cull-irresponsible-mortgage-lending#ixzz1oQGtiEvG

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Re: Is the mortgage timebomb about to go off? RBS and NatWest hike home loan rates for 200,000 customers

Post by Guest on Wed Mar 07, 2012 8:31 pm

Well you were half way there in terms of the illustration.

However you still think an individual doesnt have a mind only an institution. Interesting perspective. Now that word I am no longer able to use which you felt was deeply hurtful seems more then ever to have resonance.

We are all responsible for our own actions except it seems in a left wing universe where only banks are to blame .

See what I mean Sister?.



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Re: Is the mortgage timebomb about to go off? RBS and NatWest hike home loan rates for 200,000 customers

Post by Guest on Wed Mar 07, 2012 8:50 pm

Drinky wrote:Well you were half way there in terms of the illustration.

However you still think an individual doesnt have a mind only an institution. Interesting perspective. Now that word I am no longer able to use which you felt was deeply hurtful seems more then ever to have resonance.

We are all responsible for our own actions except it seems in a left wing universe where only banks are to blame .

See what I mean Sister?.



No sorry, can you show me where I said an individual doesnt have a mind?
Sister?! I like that! Class used to call me Sis! ( I miss her Sad )
Can I call you sister too, it will be like old times! xxx

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Re: Is the mortgage timebomb about to go off? RBS and NatWest hike home loan rates for 200,000 customers

Post by Guest on Wed Mar 07, 2012 8:56 pm

Most people in the past when taking out a mortgage went to a Financial Adviser who invariably advised them to stretch themselves and get the most expensive house they could so that they would make more money. The Financial Adviser would get a cut of what he sold, so it was in his interests to say so. Unfortunately the general population think that by getting the advice of a Financial Adviser they are doing the right thing and being responsible poor souls.

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Re: Is the mortgage timebomb about to go off? RBS and NatWest hike home loan rates for 200,000 customers

Post by Guest on Wed Mar 07, 2012 8:57 pm

Nems Again wrote:

No sorry, can you show me where I said an individual doesnt have a mind?
Sister?! I like that! Class used to call me Sis! ( I miss her Sad )
Can I call you sister too, it will be like old times! xxx

We can all be brothers and sisters and make the world a happy smiley place cheers lol!

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Re: Is the mortgage timebomb about to go off? RBS and NatWest hike home loan rates for 200,000 customers

Post by Guest on Wed Mar 07, 2012 9:05 pm

sassy1261 wrote:

We can all be brothers and sisters and make the world a happy smiley place cheers lol!

cheers

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Re: Is the mortgage timebomb about to go off? RBS and NatWest hike home loan rates for 200,000 customers

Post by Guest on Thu Mar 08, 2012 7:55 am

Nems Again wrote:

cheers

All those terrible people who were told to be good little capitalists and buy as big as they possibly could were bad people then. Hell, we all did it, I would not have had so much equity in my house when I sold it if we hadn't have done exactly that. I was just lucky enough to sell it about a month before the slump started.

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Re: Is the mortgage timebomb about to go off? RBS and NatWest hike home loan rates for 200,000 customers

Post by Guest on Thu Mar 08, 2012 8:38 am

sassy1261 wrote:

All those terrible people who were told to be good little capitalists and buy as big as they possibly could were bad people then. Hell, we all did it, I would not have had so much equity in my house when I sold it if we hadn't have done exactly that. I was just lucky enough to sell it about a month before the slump started.

You misunderstand, as usual, what I am saying though frankly my description was clear enough.

What I said was people bought their houses and instead if getting busy paying down the debt they got busy borrowing more as the price of their property grew. This draw down of equity put the roof over their heads ar risk that isnt a sensible strategy.

I paid my own mortgage of by the age of 40 because I hated debt particularly on my home. That meant doing without some things. During the noughties people spent spent spent just like their govt. Some people admire profligacy. I dont.

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Re: Is the mortgage timebomb about to go off? RBS and NatWest hike home loan rates for 200,000 customers

Post by Guest on Thu Mar 08, 2012 8:56 am

Drinky wrote:

You misunderstand, as usual, what I am saying though frankly my description was clear enough.

What I said was people bought their houses and instead if getting busy paying down the debt they got busy borrowing more as the price of their property grew. This draw down of equity put the roof over their heads ar risk that isnt a sensible strategy.

I paid my own mortgage of by the age of 40 because I hated debt particularly on my home. That meant doing without some things. During the noughties people spent spent spent just like their govt. Some people admire profligacy. I dont.

But that is exactly what the capitalist system is based on. If people don't spend we crash. I think its stupid as well and don't owe anyone anything thank goodness, but one of the reasons the country has not bounced back after the recession is because people are not spending. So by following your advice the country is going to hell in a hand cart. (Although they are not following your advice of course, they just ain't got no dosh!)

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Re: Is the mortgage timebomb about to go off? RBS and NatWest hike home loan rates for 200,000 customers

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