PowerSwitch Main Page
PowerSwitch
The UK's Peak Oil Discussion Forum & Community
 
 FAQFAQ   SearchSearch   MemberlistMemberlist   UsergroupsUsergroups   RegisterRegister 
 ProfileProfile   Log in to check your private messagesLog in to check your private messages   Log inLog in 

Britannia launches new ten year fixed rate mortgage

 
Post new topic   Reply to topic    PowerSwitch Forum Index -> Living in the Future
View previous topic :: View next topic  
Author Message
fishertrop



Joined: 24 Nov 2005
Posts: 859
Location: Sheffield

PostPosted: Tue Aug 30, 2005 2:50 pm    Post subject: Britannia launches new ten year fixed rate mortgage Reply with quote

This may be of interest for people saddled with a huge mortgage who are planning to stick with it:

Quote:

Britannia launches new ten year fixed rate mortgage

Britannia has launched a new ten year 4.74 per cent fixed rate mortgage.
There is an arrangement fee of ?349, a ?100 administration fee and early repayment charges apply.
Britannia managing director of member business Tim Franklin says: "Unlike other lenders who are withdrawing or increasing rates on fixed term mortgages, Britannia Building Society is offering customers the chance to get their hands on a great product with a low rate that gives homeowners the security of fixed monthly payments."


[Source www.moneymarketing.co.uk]
Back to top
View user's profile Send private message
snow hope



Joined: 24 Nov 2005
Posts: 4101
Location: outside Belfast, N Ireland

PostPosted: Wed Aug 31, 2005 6:05 pm    Post subject: Reply with quote

That really is an excellent deal. If I wasn't in a 5 year fix at 5.35% I would go for it!

I would recommend anybody not able to pay off their mortgage in the nearish future and not in a decent fixed rate deal to consider going for this product.

It might also be a good idea to read the T's and C's to ensure they can't riggle out of the deal. I wonder what will happen (if anything) to this kind of deal when interest rates are 15 or 20% in a year or two or three? You might be so happy!
_________________
Real money is gold and silver
Back to top
View user's profile Send private message Send e-mail
fishertrop



Joined: 24 Nov 2005
Posts: 859
Location: Sheffield

PostPosted: Wed Aug 31, 2005 9:34 pm    Post subject: Reply with quote

snow hope wrote:
That really is an excellent deal. If I wasn't in a 5 year fix at 5.35% I would go for it!


Yeah I thought it was rather stand-out myself.

snow hope wrote:

It might also be a good idea to read the T's and C's to ensure they can't riggle out of the deal. I wonder what will happen (if anything) to this kind of deal when interest rates are 15 or 20% in a year or two or three? You might be so happy!


The ultimate "riggle" is to go bust (even in some contrived way) and sell on your mortgage to a new firm (maybe one that looks just like the old firm run by the same people..) where they can force you to renegotiate the terms, gulp Exclamation

But lets hope it doesn't come to that.

This side of TEC, and this side of early repayment (the peakers holy grail) you have to look at such options carefully and realistcally.
Back to top
View user's profile Send private message
snow hope



Joined: 24 Nov 2005
Posts: 4101
Location: outside Belfast, N Ireland

PostPosted: Wed Aug 31, 2005 11:37 pm    Post subject: Reply with quote

fishertrop said,
The ultimate "riggle" is to go bust (even in some contrived way) and sell on your mortgage to a new firm (maybe one that looks just like the old firm run by the same people..) where they can force you to renegotiate the terms, gulp Exclamation

Is their no legal protection against this? It would do my head in if it happened! Evil or Very Mad
_________________
Real money is gold and silver
Back to top
View user's profile Send private message Send e-mail
fishertrop



Joined: 24 Nov 2005
Posts: 859
Location: Sheffield

PostPosted: Thu Sep 01, 2005 8:45 am    Post subject: Reply with quote

snow hope wrote:
Is their no legal protection against this? It would do my head in if it happened! Evil or Very Mad


As I understand it, there are many safeguards and safety nets to help failing banks/building socs from shafting their customers.

If a bank goes bust it goes bust. But before that happens the gov can step in an bail it out with a loan of some sort and it can create a gov entity to take on some/all of the impacted mortages.

BUT

If the situation is BAD and the gov is worried about the amount of bail-out money it will need (and the precedent this would set) then it might decide to HELP the bank go bust, HELP it get taken over by a "new" company and HELP it force all the customers to renegotiate.

Why?

Because that way you are squeezing millions of customers for a little (a lot?) more cash instead of the government having to pay it.

From a gov balancing-the-books point of view - esp if tax revenues plummet and we stop earning from the North Sea and have to pay to import fuel - it make perfect sense.

The banks and the gov can tolerate lots of repossessions so long as most people keep paying what they owe - that way the system stays up.

I think that if everyone wised up and refused to pay the system would colapse and the courts couldn't deal with 10m+ defaulters.

Keeping the system together is EVERYTHING, bending and breaking rules here and there - esp in a crisis - means nothing.

If you want a taste of what can happen look at the Equitable Life crisis:

http://news.bbc.co.uk/1/hi/business/1066630.stm
Quote:

A shortfall in funding led Equitable to ask the GAR policyholders to accept a cut in their bonuses or give up their right to guaranteed annuity rates.

This led to an outcry among policyholders who launched the legal action alleging breach of contract and abuse of discretionary powers by the society's board.


You enter into a contract with a bank or similar institution and you expect them to honour their side of deal - since the law DEFINITELY makes you honour your side - but things just aren't as dependable as we think.

The Equitable situation was nothing more than plain old fashioned bad management - they committed to more outgoings then they could actually finance - yet they still managed to "riggle" out of contracts and legal ties that the man in the street would see as rock solid.
Back to top
View user's profile Send private message
Ballard



Joined: 24 Nov 2005
Posts: 826
Location: Surrey

PostPosted: Thu Sep 01, 2005 8:54 am    Post subject: Reply with quote

Also the cheshire building society is offering a 4.99% fixed rate for up to 20 years.
_________________
pɐɯ ǝuoƃ s,plɹoʍ ǝɥʇ
Back to top
View user's profile Send private message Send e-mail
Display posts from previous:   
Post new topic   Reply to topic    PowerSwitch Forum Index -> Living in the Future All times are GMT + 1 Hour
Page 1 of 1

 
Jump to:  
You cannot post new topics in this forum
You cannot reply to topics in this forum
You cannot edit your posts in this forum
You cannot delete your posts in this forum
You cannot vote in polls in this forum


Powered by phpBB © 2001, 2005 phpBB Group