Friday, Jun 12, 2009
Is inflation quietly waiting in the wings?
Guardian: Buyers face hike in mortgage rates as inflation fears mount
Homebuyers are facing their first rise in mortgage rates for a year in a move by banks and building societies that could extinguish the nascent recovery in the housing market.
Nationwide was one of several leading mortgage lenders that today hiked the cost of its most popular deals, with others likely to follow suit in the coming days.
Posted by flintster1994 @ 08:07 AM (557 views) Add Comment
3 Comments
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1. Materialistic Weasle said...
I wonder if savers will be facing an interest rate rise - I suspect not !
2. symo said...
Our glorious leader said no more boom and bust. This is a government of prudence, that will not be fleeced by outrageous PFI contract terms that political climbers do not fully understand before signing. This is a time of historic low interest rates, which you never got under the conservatives.
Idiots bought believing property never goes down, harsh reality lesson coming up in how much a doubling of interest rates means on a massively overpriced asset.
3. 51ck-6-51x said...
Materialistic Weasle
Look to the interest rate swap market (which is what has driven the rates on fixed deals higher). If demand for long term fixed payments (over floating ones) increases (as it has done), the rates on fixed bonds (including fixed rate savings bonds and fixed term savings accounts) will be pulled up (otherwise the money would flow into other, competing products) and hence savings rates will be pulled up.
It's all linked together, there is only a lag.