***If you have a mortgage then this is for you***

[mrsfoot]

Hello

 

I have been reading the updates on what Mr Brown has tried to agree with the leading banks of UK. He wants them to pass on the rate cuts. All well and good. However we all know thet 10% of the mortgage products are sub prime and that it is more likley to be a sub prime mortgage payer that is evicted. Therefore I feel Mr Brown should be talking with the CML and all mortgage lenders to reduce the rates. Lets be honest...many people who have a prime market mortgage already enjoys a lower interest rate that the sub prime equivalent (if such a link actually exists). So the 10% are already being discriminated against then along comes the idea of actually passing the cut rate along to the customers (who would have thought of doing that!) and again its the sub prime market (SPM) who miss out.

 

Lets not get confused here. Many of the SPM are backed by the high street lenders. Those lenders are winning two fold. They already have a return from the rate not being passed on, and then have a further, more enlarged return, from their SPM.

 

I am in the process of writing to my MP asking what he is going to do about this clear case of discrimination. I am asking you all to do the same.

 

Please let me know of any response you have from your MPs.

 

Thanks Mrsfoot x

[mrsfoot]

Hi Adamski

 

Thats great news that you are being passed the cuts......but the main banks sub prime mortgage business is not really the problem. They work with more transparecy...unfortunately its the likes of Kensington, SPML, Swift etc who are hiking the monthly cost up and are not passing on the reductions.

 

Ok here is the response from my MP

 

Dear Mrsfoot

 

Thank you for your letter dated 18th April regarding interest rates. I have attached a copy of the Chancellors intended speech in which he addressed the difficulties we face economically globally. The UK Gvmt has only limited ability to influence the larger global situation.

There are other losers in the sub prime market besides mortgage holders including loss of jobs when companies close down offices / business's.

I would suggest that unless the Gvmt take complete ownership of all mortgage companies tey would not be able to control the interest rates, those people eho are forced to take mortgages at higher rates will be largely those who have less attractive financia; backgrounds to those eho are able to obtail lower rates of interest.

The Chancellor has already taken unprecedented steps to try to assist this market but has to balance not only the housing situation of the community but also the tax payer. It is not an easy path to tread but I reiterate the Chancellors view that banks themselves do have a responsibility to manage the risk of their own lending.

 

Anyone have any comments??

[mrsfoot]

Well what a great thread. I am a little confused over the administrator information (Capstone and SPML) and would appreciate some advice on this from someone. I have tried reading the info but I am afraid it is all going in one ear and out the other. Can anyone do an analogy / example of what this concerns?

 

Re brokers. I think we all agree that there are some brokers who do their job effeciently....but along with many other trades there are some who do the job for the commission alone and it is of course a known fact that some sub prime lenders give more commission than high street lenders do.

 

Re my MP's comments. Yes they are complete bollox and I wondered why it took so long to get the reply...of course he was waiting until after the elections before sending such drivel. Its not stopping there. As soon as I get more info a the capston / spml situation then I will be writing to mr brown et al and giving them some questions I want answers to...seems their local mp's can only say it is our own fault we have to use these "regulated" companies!

 

Thanks for a great read guys....keep it up

 

Mrsfoot