Friday, May 04, 2007
Read between the lines - only some fixed-rate deals have been withdrawn
Times Online: Loss of fixed-rate deals squeezes borrowers
Look down the article for where the trouble starts ... "Cautious borrowers minded to fix for the full term of a mortgage have discovered that Nationwide’s widely-publicised 25-year fixed rate loan, at 5.63 per cent, is no longer available, but Kent Reliance has a 25-year fix at 5.5 per cent and Newcastle Building Society is offering 5.45 per cent, fixed for 20 years. Both have fees of under £500." >>> Now if interest rates jump to 7 or 8% (hey only kidding, its going to move up to at least 9%), what is the building society going to do when its got borrowers stuck on "lifetime" fixed-rate deals of 5.5%. Trouble looms ...
Posted by fahrenheit451 @ 12:24 PM (321 views) Add Comment
3 Comments
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1. Yes said...
What do you think? The mortgage lenders are not too dumb. They offset a fixed rate mortgage by raising fixed rate money!! They are not going to take a 25 year uncovered risk!! Hopefully!!!!!!!!!!!!
2. lvmreader said...
Can they not demand repayment in full at any time for any reason?
3. enuii said...
There are plenty of folks also out there who knew rates had bottomed, when your fixed at 5.29% till 2012 it was a wise decision!