Reply to: HMG now realise they made a MAJOR error!!!

[milanbenes]

as it is these tax payers monies which were the basis of the government loan, shouldn't all tax paying mortgage holders get a discount on the interest % as a compensation for them being the ultimate guarantors of the government loan ?

Milan.

[bobhope]

So nobody should ever be reposessed, no matter how much they borrow or how little they repay?

Asset prices should only ever go up?

[Cyberman]

Northern Rock is clearing its overheads. Nothing wrong with pushing borrowers out to other lenders. Sounds like good business to me.



Life is unfair. Get over it. Best thing to do is make sure you are in a position where you do not get "unfairness" applied to you. If your mate had borrowed sensibly then he would not be looking at this problem. As you have so much equity in your house and you are not being affected by the house price correction then maybe you could help him out and release some of the equity in your house and lend it to him at a better rate. You have the good fortune of this low rate tracker mortgage so why not spread the love to those you care about?

Yes, I understand now. It's perfectly ok to force people out of their homes in order to pay off a government loan. I wasn't thinking straight.

[milanbenes]

Look it up in your FAQ.

Milan.

[TheFaQQer]

Stewpot,

you got me there

Milan.

Why? What did he say?

[milanbenes]

Stewpot,

you got me there

Milan.

[ferret]

As usual, certain people on here miss the point in that Northern Rock are being forced to repay a loan to HMG, and are keeping their rates higher than other banks to force people to go to those other banks. This is wrong, when other banks are also borrowing government funds but do not have this stipulation.

Northern Rock is clearing its overheads. Nothing wrong with pushing borrowers out to other lenders. Sounds like good business to me.

It also means that some people that cannot move to other banks are being forced to pay very high interest rates after coming off a low fixed rate, even though their repayments are up to date and their credit is good. If you cannot see any unfairness on these borrowers then you really are dense !!

Life is unfair. Get over it. Best thing to do is make sure you are in a position where you do not get "unfairness" applied to you. If your mate had borrowed sensibly then he would not be looking at this problem. As you have so much equity in your house and you are not being affected by the house price correction then maybe you could help him out and release some of the equity in your house and lend it to him at a better rate. You have the good fortune of this low rate tracker mortgage so why not spread the love to those you care about?

[DiscoStu]

Bob,

I think,

'Why is 4% reasonable? Why don't they just drop rates to 1% straight away, or better yet, 0%, then everything would be rosy.

Try to think it through now, you can do it.'


is a little too complicated for this lot to try to understand.

Milan.

This from someone who hasn't figured out how to use the quote button yet

[oracleslave]

Why mention the kids, is it relevant ? The fact he has 2 kids will mean he will be getting more HMG assistance than someone without the 2 kids.

It's the influence of the Daily Mail. They have a direct line to Cybercretins mouth.

[Unicorn]

Why mention kids

Reasonable is at about 4% rather than 7% !!! A mate of mine with 2 kids is currently paying 1200 pounds a month on his mortgage. No wonder the country is in a mess and people are losing their homes. Interest rates on mortgages should be much lower, because we are in recession!! Keeping those rates artificially high for current borrowers is a scandal, and totally unnecessary.

Why mention the kids, is it relevant ? The fact he has 2 kids will mean he will be getting more HMG assistance than someone without the 2 kids.

[KentPhilip]

. If you cannot see any unfairness on these borrowers then you really are dense !!

Do you eat fish?
Isn't it unfair that they are caught in those nets?
caveat emptor.

[expat]

As usual, certain people on here miss the point in that Northern Rock are being forced to repay a loan to HMG, and are keeping their rates higher than other banks to force people to go to those other banks. This is wrong, when other banks are also borrowing government funds but do not have this stipulation.

It also means that some people that cannot move to other banks are being forced to pay very high interest rates after coming off a low fixed rate, even though their repayments are up to date and their credit is good. If you cannot see any unfairness on these borrowers then you really are dense !!

That is very statist of you. Borrowers who chose to borrow from Northern Rock should not be subject to the SVR of their lender when they come off the fixed rate? Why is that? Should other lenders be forced to give them good deals? Sounds a bit too left-wing for me

[KentPhilip]

Reasonable is at about 4% rather than 7% !!! A mate of mine with 2 kids is currently paying 1200 pounds a month on his mortgage. No wonder the country is in a mess and people are losing their homes. Interest rates on mortgages should be much lower, because we are in recession!! Keeping those rates artificially high for current borrowers is a scandal, and totally unnecessary.

Your mate took out the mortgage knowing that rates might at some point go up above 15% (as they did in the early 1990's) and now he is complaining because they are up to 7%?

But look at the bright side - your mate is helping house prices to come down to allow first time buyers such as myself to get onto the ladder (yes I am a cash buyer)

[Cyberman]

As usual, certain people on here miss the point in that Northern Rock are being forced to repay a loan to HMG, and are keeping their rates higher than other banks to force people to go to those other banks. This is wrong, when other banks are also borrowing government funds but do not have this stipulation.

It also means that some people that cannot move to other banks are being forced to pay very high interest rates after coming off a low fixed rate, even though their repayments are up to date and their credit is good. If you cannot see any unfairness on these borrowers then you really are dense !!

[Bagpuss]

Maybe your mate should have looked into being able to service a mortgage at a range of interest rates before committing to buy. I am looking at buying again in the next few years and unless I can afford 10% interest rates then I will not borrow that amount. No-one forced your mate to take out a mortgage and he should have looked into being able to repay it under the range of circumstances you can expect in any 25 year period or whatever the life of the loan is. To think they will stay around 4-5% for the lifetime of the loan is a little naïve to say the least.

.

Spot on, I have never borrowed more than I can afford to repay, taking into account possibly increases in interest rates and times on the bench. Too many people have maxed out based on current earnings and current interest rates, folly IMHO