Virgin hikes mortgage rates

Drip, drip, drip:

“The decision to increase interest rates is never easy.

“We have absorbed higher funding costs for the last twelve months in order to delay the impact for our home loan customers. Unfortunately, funding costs remain high and are likely to remain elevated into the foreseeable future.”

20bps on front and back book. More to come, including majors, from Credit Suisse:

Aussie bonds are grotesquely mis-priced for RBA hikes. They will be cut.


David Llewellyn-Smith is chief strategist at the MB Fund and MB Super which is long Australian bonds to profit from coming rate cuts so he is definitely talking his book.

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Comments

  1. Virgin hiking airline ticket prices would be more of a concern, didn’t even know they were still lending

  2. The Beetrooter Advocate

    Don’t the aficionados of this blog want higher rates?. You know, for the extra interest on the pension payment savings.

    • Jumping jack flash

      Yes, at least I do.

      The paltry interest on my savings over the past decade or more made me angry and jaded. The component of my super that’s in cash is underperforming compared to the component that is dependant on house prices and debt-foam.

      Unfortunately (if the banks get their way) rates are going to stay virtually frozen for another 30 years while all the debt is repaid, after which time I’ll be withdrawing what’s left of my super and using it all to buy a nice meal at McDonalds before I get ready for the next 20 years of eating newspaper soaked in water, whilst huddled around a mobile phone for warmth.

    • They’re not passing on the rate rises to savers though. This is mostly increased profits to foreign investors of our mortgage bonds and our banks (wider spread).

    • Buying foreign cars immediately subtracts from the social credit score now.

      And locally made cars are still sh!thouse.

      That graph is the result.

      • Yes, but the underlying motivation is that the local economy is on the verge of collapse and this is simply device to prop it up (kick the can down the road). The social / credit score is nothing more than a Govt device to compel behaviour.

        Obviously this is all positive for Straya and house prices going forward.

    • interesting that Chinese only buy twice as many cars as here – 2.2m in China in 2018 vs 1.1m here

  3. Backend of Virgin is wholly funded/managed by Citibank.

    Citibank currently standing in line, to announce….