Friday, Jun 15, 2007
The real MPC are in the US and Japan
Mail: Two million to be hit by fixed-rate rises
"Mortgage lenders have dramatically increased the cost of fixed-rate deals despite interest rates being kept on hold"..of course, why shoud they mind Gordon's puppets? "30 banks and building societies have increased their rates by up to 0.7%...a 6.09% two-year fix last month, replaced with one at 6.79%. difference is £56 a month on a £130,000 mortgage or £1,344 over the two-year period. Some 820,000 borrowers will come off cheap two-year fixed rates as low as 4.29% between August and December and two million in the next 18 months" From 4.29% to 6.79% means a difference of £271/month or £3,250/year on £130k... good luck!!
Posted by confused76 @ 12:59 PM (161 views) Add Comment
4 Comments
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1. paul said...
"The real MPC are in the US and Japan"
Yes, that's quite true. That'll choke prices rises quicker than any rate rise from the sleeping incumbents at the MPC.
2. confused76 said...
Well said Paul!
BoE MPC has become quite irrelevant. Many diverging interests, poor governance, lack of leadership, afraid of being criticized for their actions, ... have chosen "inaction" to cover their @..es
I am quite a conservative person, I like prudent decisions, but I do not quite get how prudence can be equated to laissez faire !? Not rising IRs is not a prudent action, it is like leaving a time bomb ticking
3. waitingfor hpc said...
confused - i have been reading your comments recently and i have to say you are spot on. quite the ticket!!! I agree.
4. dobber said...
Dear BTL Borrower,
Due to the fact your fixed rate deal has now come to an end we will be raising your next fixed rate from 4.29% to 6.79%. Bearing in mind when we lent you £2,000,000 for your BTL portfolio we asked for your rent to cover the mortgage by 120% of the loan repayments. Can you now let us have details of your current rental incomes as the monthly repayment is being raised from £7,150 to £11,316. Alternatively can you please provide additional security for our loan.
Yours Truly,
Your Sub-Prime Lender