Wednesday, May 28, 2008
Think rates are coming down eh?...Abbey just put em' up again!
BBC News: Reversal of Abbey mortgage rates
''...Abbey has reversed cuts it made to mortgage rates two weeks ago, one of two lenders lifting borrowing costs. The Abbey is raising rates on new fixed-rate deals by between 0.15% and 0.56% from 29 May...''
Posted by hpwatcher @ 04:25 PM (2122 views) Add Comment
21 Comments
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1. renting2 said...
Yes we did what GB/AD wanted and lowered rates, just for a few days whilst the spotlight was on us.
2. mark wadsworth said...
Brilliant. This sort of behaviour is enough to scare anybody from taking out a mortgage - roll on the buyer's strike! What do we want? Low house prices! When do we want them? Now!
3. Ijjhall said...
The Daily Express led with the Abbey cut under the headline 'Happy days' trumpeting a return to cheaper lending for its readers with linked quotes from an ecstatic Stuart Law et al. How will the 'Greatest Newspaper in the World' treat this sudden turnaround I wonder ?
4. symo said...
Errr .......... Am I being thick or is this now higher than before the cuts?
5. growler said...
@ renting2: Yep, exactly. Just proves that the 50bn was always a total pr job
6. it_is_going_with_a_bang said...
Why not? They need to earn the same money from less 'turnover' of business.
That is done by increasing your prices, lets face it 0.15% or 0.56% is nothing really. Its only a problem for those who are stupid enough to have made it a problem.
7. jack c said...
I have just had a call from a Broker I know (is the England game on TV tonight?) and he mentioned in passing that even prime rates for a new fixed rate are nearing 7% - big jump for someone coming off A&L old rate of 4.59% !!
8. uncle tom said...
I just tried running a few searches on Moneyfacts - seems the days of an APR below 6% are now over for even the best borrowers, but I was surprised to find a handful of 100% deals on offer..
..will they never learn?
9. Rental John said...
C&G put up its mortgage rates whilst still sending me letters that my savings interest rates were going down!!!
I think that regardless of the BoE base rate and the government jumping up and down on the touch-line ain't going to make a jot of difference to the lenders! But if rates do go up - as suggested by HSBC recently - I bet the lenders mortgage rates go up again - within a nanosecond!
It guess it won't be long until building societies and banks have petrol forecourt type signs showing the interest rate (ticking ever upwards)...
10. Endisnigh said...
I wonder if this reversal will be reported in the Daily Express, in the same way that the cuts were euphorically declared on the front page a few days ago.
11. scandinavian pessimist said...
Non-secured loans are getting rapidly more expensive too; only 6 months ago my bank offered me £10,000 at 6.99%, today they offered me the same amount for 10.49% - that's a pretty hefty 50% increase in monthly payments. And this is during a time when the IR is actually DECREASING. Not that I rely in these types of loans any way, but I'm sure there are many people who do.
12. Chasbmw said...
Abbey are offering 6.87% to savers, fixed until october, plus NR have just brought out a new savings account at 6%, so no wonder mortgage rates are going up.
Charles
13. jack c said...
The Rock were, during the first half of 2007, offering unsecured loans (subject to status) under 7% with no early settlement penalty - now that they are effectively out of the frame and the banks are adopting a more cautious stance the rates have increased significantly. The other reason that the rates are rising IMO is that the lenders made their profit primarily on the PPI (pay prot ins) - this is now under huge scrutiny and must be genuinely be justified - hence less PPI sold = higher rates to compensate.
14. paul said...
Classic.
Its almost like Abbey wants to expose the government for the idiots they are.
15. tyrellcorporation said...
I noticed the banks were also being asked to complete standard money transactions within 2 hours or so as opposed to the 3-5 days nonsense. My guess is that this is another red hot poker rammed up the jacksie of banking profits and they'll need to ramp up rates everywhere else to compensate.
16. hpwatcher said...
You can imagine the conversation:-
Abbey: C'mon Gord, give us the money?
GB: NO. You have to reduce interest rates first!
Abbey: But, but, but.....
GB: Look, not cuts no cash.
Abbey: Okay, okay, we will cut our interest rates.
GB: When will you do that?
Abbey: We will do it next week.
GB: Fine. How would you like the money?
17. paul said...
GB: You raised rates when we weren't looking!
Abbey: You took away our three-working-day clearing privileges!
GB: I didn't take that away from you. It was innovative progress.
Abbey: So is our latest rate hike!
18. mark wadsworth said...
GB: OK, if you won't Do My Bidding and tide me over 'til the next election, I'll go and ask the oil companies to increase production to help the 'cash strapped motorist'
Big Oil: [comment withheld under legal advice]
19. titaniccaptain said...
GB: Please will you make the appropriate adjustments to your interest rates to ensure that no fool enters Downing street as PM in the future
Abbey: OK will do
20. Orwell said...
Abbey: Gord, those house prices....
GB: Errrm yeeeeessss....
Abbey: Well you know if they fall... less taxes, more repossessed people to house socially...
GB: But you know, and there will be more houses on the 'market' won't there?
Abbey: Errrrrm yeees but errrm slight problem for you. We will enter possession and errrrm rent them out..
Abbey: And, errrm you will pay the bill in Housing Benefit, less taxes....
GB: Oh OK, OK another round (£50 billion) anyone?
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