Hacker News Board Hacker News, browsed like a classic message board
Live data from Hacker News

UK banks and lenders suspend offering new mortgages amid market turmoil

news.stv.tv

Post reply on HN
Print view View original

11–20 of 54 posts

Re: UK banks and lenders suspend offering new mortgages amid market turmoil

#11

Post by mschuster91 »

simonswords82 wrote: post #7
highwaylights wrote: post #5

I imagine it’ll nix all fixed rates for a good lot of years. There’s a lot of people that are going to be really hurt in the UK this winter. Many will lose their homes, even those that are renting (who probably won’t see it coming). It’s all well and good to smugly say “you should have understood what you were signing up for” but that doesn’t help people in this situation or their families. It was already becoming im…

I’m sorry but I just don’t see how “many will lose their homes”. Mortgage companies are ruthless but not in the business of turfing out families that legitimately cannot afford their repayments. Evicting people is risky long winded and generally speaking their last option. Unless you've got some data to back up what you are saying in which case I’ll shut up. Edit: Lots of replies saying "but they're not charities etc…

> Mortgage companies are ruthless but not in the business of turfing out families that legitimately cannot afford their repayments.

German mega-landlord corporation Vonovia announced just a few days ago that they will evict everyone too far behind on payments for heating [1], in order to pacify investors.

Never trust rabid capitalism to keep the people in mind. For the beancounters, all that matters is the current stock price.

[1] https://www.spiegel.de/wirtschaft/nebenkosten-vonovia-droht-...

Re: UK banks and lenders suspend offering new mortgages amid market turmoil

#12

Post by highwaylights »

dazc wrote: post #10
highwaylights wrote: post #5

I imagine it’ll nix all fixed rates for a good lot of years. There’s a lot of people that are going to be really hurt in the UK this winter. Many will lose their homes, even those that are renting (who probably won’t see it coming). It’s all well and good to smugly say “you should have understood what you were signing up for” but that doesn’t help people in this situation or their families. It was already becoming im…

Interest rates have been considerably higher in the past though. What is different now is that people have gotten used to an endless supply of cheap credit and thinking they are well off so long as the monthly payments can be maintained. Also, the social media pressure to have the apperance of a perfect life doesn't help.

I agree with all of this, and I’d argue that it’s even worse as I very much doubt anyone gave good advice to most of those people before they took out those mortgages.

I mean, sure, some of us know better - but that’s probably because someone along the way made it clear in very stern terms that you never sign anything you don’t fully understand.

Re: UK banks and lenders suspend offering new mortgages amid market turmoil

#13

Post by the_mitsuhiko »

simonswords82 wrote: post #7
highwaylights wrote: post #5

I imagine it’ll nix all fixed rates for a good lot of years. There’s a lot of people that are going to be really hurt in the UK this winter. Many will lose their homes, even those that are renting (who probably won’t see it coming). It’s all well and good to smugly say “you should have understood what you were signing up for” but that doesn’t help people in this situation or their families. It was already becoming im…

I’m sorry but I just don’t see how “many will lose their homes”. Mortgage companies are ruthless but not in the business of turfing out families that legitimately cannot afford their repayments. Evicting people is risky long winded and generally speaking their last option. Unless you've got some data to back up what you are saying in which case I’ll shut up. Edit: Lots of replies saying "but they're not charities etc…

When I lived in the UK my experience was that not only me, but a lot of folks in my age range back then ("young professional") moved all the time. The tenant protections were pretty appalling, particularly if you rented from a private landlord. It does not seem very unlikely that people will lose their homes and have to move.

Re: UK banks and lenders suspend offering new mortgages amid market turmoil

#14

Post by roenxi »

Not exactly on topic, but a good moment to think - are mortgages even fundamentally desirable? The price of a house is always going to be exactly savings + mortgage, if nobody was taking out mortgages the prices would adjust and people would end up in the same house as before.

It is interesting to ask if mortgages should be rare. It isn't obvious why everyone needs to pledge years of their life to the wealthy in order to own a home. I can imagine alternative scenarios where I own a home without agreeing to give large amount of money to bank shareholders.

Mortgages are the entry point to a world of debt that doesn't make sense. The market keeps trying to draw down debt with financial crisis after crisis and the people in control of the monetary system keep making sure it comes back.

Re: UK banks and lenders suspend offering new mortgages amid market turmoil

#15

Post by richbradshaw »

ndr wrote: post #8
highwaylights wrote: post #5

I imagine it’ll nix all fixed rates for a good lot of years. There’s a lot of people that are going to be really hurt in the UK this winter. Many will lose their homes, even those that are renting (who probably won’t see it coming). It’s all well and good to smugly say “you should have understood what you were signing up for” but that doesn’t help people in this situation or their families. It was already becoming im…

How do you predict those that are renting (you mean tenants right?) to be affected?

I presume they mean the landlord will not be able to pay the mortgage and hence have the house repossessed. I'm unclear on what that means for tenants in UK.

Or maybe thinking that rents might suddenly spike due to increased mortgage costs.

Re: UK banks and lenders suspend offering new mortgages amid market turmoil

#17

Post by Neil44 »

jonatron wrote: post #4
Neil44 wrote: post #3

Misleading title. A couple of mortgage lenders have temporarily paused some of their products because of uncertainty about interest rates in the short term. BofE is holding fast on interest rates despite tremendous pressure to put them up to protect the pound. Many predict they will give in and raise them.

They're probably avoiding an immediate kneejerk emergency raise, which would look like they're panicking. If they wait a little bit before they raise, it'll look more calm and considered which should give the market more confidence.

GPB to Dollar seems to have levelled out and started coming back slowly so I guess they might get away with it. As the dollar is also up against Euro and many other currencies, possibly due to it being a default 'safe port' in uncertain times, I guess they're trying to take a measured approach.

Re: UK banks and lenders suspend offering new mortgages amid market turmoil

#18

Post by happymellon »

dazc wrote: post #6
Varyag wrote: post #2

Title reads like all banks have ceased trading mortgages, which is ludicrous. here's a BBC article with a more reasonable title: https://www.bbc.co.uk/news/business-63041679

A more reasonable title but also no mention of the fact that currencies elswhere are also under pressure.

Because that would be whataboutism. There is currently inflation which is being stoked by the current government who is also making statements which don't add up that then makes financial institutions nervous.

Mortgage rates jumping from 1.5% to 6% in one year is quite a lot regardless of other people's problems. Freezing new mortgage offers during a very volatile period is understandable and also concerning.

Re: UK banks and lenders suspend offering new mortgages amid market turmoil

#19

Post by Neil44 »

highwaylights wrote: post #9
jonatron wrote: post #4

Earlier quoted context omitted.

They're probably avoiding an immediate kneejerk emergency raise, which would look like they're panicking. If they wait a little bit before they raise, it'll look more calm and considered which should give the market more confidence.

Time is a factor here, too. The longer they wait the harder it’ll be to get it back under control - which may not even be possible at this stage, given that they’ve grossly underestimated the scale of the problem at every step. The thing that really worries me is that most people don’t understand how any of this works and are still worried about fuel costs. They have no idea that a further (minimum) 1.5% hike is immi…

You seem to be talking about inflation rather than interest rates

Re: UK banks and lenders suspend offering new mortgages amid market turmoil

#20

Post by highwaylights »

highwaylights wrote: post #9
jonatron wrote: post #4

Earlier quoted context omitted.

They're probably avoiding an immediate kneejerk emergency raise, which would look like they're panicking. If they wait a little bit before they raise, it'll look more calm and considered which should give the market more confidence.

Time is a factor here, too. The longer they wait the harder it’ll be to get it back under control - which may not even be possible at this stage, given that they’ve grossly underestimated the scale of the problem at every step. The thing that really worries me is that most people don’t understand how any of this works and are still worried about fuel costs. They have no idea that a further (minimum) 1.5% hike is immi…

I appreciate the downvotes from the landlord who thinks they’re an astute investor and not just exploiting someone further down the wealth pyramid.

For anyone not aware of this - housing is not a free market, especially in the UK (your tenants are universally forced against their will to rent from you due to nimbyism).

Post reply on HN