Sunday, Jul 20, 2008

For how Long?

Financial Times: Halifax cuts cost of home loan deals

Halifax, the UK's largest lender, yesterday brought momentum to the trend of falling mortgage rates as it cut the cost of a number of deals for the second time in a week.
The bank reduced its two- and five-year fixed rates by up to 15 basis points. Other brands within the HBOS group - BM Solutions, Bank of Scotland (BoS) and Intelligent Finance - also cut a number of rates, including on some buy-to-let and self-certification loans.

Posted by herrbbiiee @ 12:48 PM (1687 views) Add Comment

19 Comments

1. whiteknight said...

Just can't help themselves can they.

Sunday, July 20, 2008 03:20PM Report Comment
 

2. new_order said...

A small bandage on a heavily bleeding body.

Sunday, July 20, 2008 04:32PM Report Comment
 

3. renting2 said...

The VIs will of course hail this as the bottom of the market and urge FTBs etc to jump on now before the prices ramp up again.

Sunday, July 20, 2008 05:08PM Report Comment
 

4. Cheekie Charlie said...

" The best deals are only available for borrowers with deposits of at least 25 per cent. Those with smaller deposits are still having to pay much higher rates, and are unlikely to see any improvement soon."
The longer first time buyers wait their deposits will grow against falling house prices.

Sunday, July 20, 2008 06:47PM Report Comment
 

5. Blister Soul said...

"The best deals are only available for borrowers with deposits of at least 25 per cent. Those with smaller deposits are still having to pay much higher rates, and are unlikely to see any improvement soon."

Next!

Sunday, July 20, 2008 07:05PM Report Comment
 

6. paul said...

Now there's only the small problem of fixing demand, lowering rates more clearing the debt backlog and restoring confidence in the intra-bank lending market.

Then all will be well in the housing market.

My bets are that the UK is on target to achieve this sometime in 2012.

Sunday, July 20, 2008 07:06PM Report Comment
 

7. deepak said...

But the important issue is what amount of money are we talking about here. Pittens.
We have heard that the mortgage squeeze is still on. Its not the rate its have you got the money on the deal.

Also they haven't been able to raise money on their right issue. So there is no money to lend on this rate.

Also remember that this rate has risen by almost 200 basis points before falling 15 points at best

Sunday, July 20, 2008 08:25PM Report Comment
 

8. deepak said...

As the article says for people over 25% deposit. 6.34 - 6.47%
Smaller deposits paying higher.

Sunday, July 20, 2008 08:27PM Report Comment
 

9. Bull said...

Better get saving hard for your deposit then.
Buy now whilst prices are subdued

Sunday, July 20, 2008 08:57PM Report Comment
 

10. Bull said...

Now prices have dropped you renters still cant afford to buy LOL
Guess i will just have to keep buying repo's for you lot to live in.

Sunday, July 20, 2008 09:07PM Report Comment
 

11. japanese uncle said...

Rest assured, UK house prices will keep falling for (possibly quite) a few years from now, and banking crisis will repeat at each wave of house price drop. This chaos will continue until the HP hits the rock bottom, unfortunately.

Sunday, July 20, 2008 10:06PM Report Comment
 

12. tyrellcorporation said...

I reckon this has more to do with the Building Socs and Banks getting their hands on the large deposits to just keep them going a little longer. Offering 'good' rates on loans which go for 25 years makes a lot of sense when you can get £50k (approx) instantly into your bank account.

Sunday, July 20, 2008 10:11PM Report Comment
 

13. jackas said...

The VIs talk about signs that the market will return to normal.

The problem is, when they say "normal", what they are referring to is pre-crunch lending standards.

That will never happen again. Not in our lifetime anyway.

Sunday, July 20, 2008 10:48PM Report Comment
 

14. gardeniadotnet said...

>That will never happen again. Not in our lifetime anyway.

Easy now... many contributors to HPC will try to have you banned for such subversive talk.

Sunday, July 20, 2008 11:12PM Report Comment
 

15. Mytimeisnigh said...

Any first time buyers who have a 25% deposit will not be buying at this time, because after all that careful saving, they will not be throwing it down the drain. Any parents of first time buyers who do equity release from their life of hard work to assist first time buyers in this time of financial mayhem need their heads looking at. I feel sorry for all victims concerned apart from BTLs who ruined the market in the first place + government VI, estate agents, media dependents and MEWs. They deserve what's coming.

Sunday, July 20, 2008 11:18PM Report Comment
 

16. Mytimeisnigh said...

Nobody knows what is going to be normal 20 years from now.....get real.

Sunday, July 20, 2008 11:33PM Report Comment
 

17. new user 2007 said...

Bull...

thanks, very charitable of you, given that with an 80% mortgage (never mind the opportunity cost of the 20% deposit) you would be lucky to cover your interest only mortgage, and the 200k house you bought would be losing £600pm in capital:)

Monday, July 21, 2008 12:25AM Report Comment
 

18. new user 2007 said...

p.s. most of the repos are from smug BTL investors, not from FTBs. What a dim comment "lol".

You are why the pyramid lastED as long as it did.

Monday, July 21, 2008 12:30AM Report Comment
 

19. This comment has been removed as it was found to be in breach of our Blog Policies.

 

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