Sunday, Jan 03, 2010
But ... but I thought we were heading for the sunny uplands of ever-rising house prices in 2010?
ThisIsMoney: Lenders prepare to hike mortgages rates
'Lenders are doing little new mortgage business compared with previous years and they have no choice but to offset some of the low margin business they have written in the past by hiking up their standard variable rates.'
Well, they have to make money somewhere ...
Posted by paul @ 12:35 PM (1867 views) Add Comment
12 Comments
- If you do not have an admin password leave the password field blank.
- If you would like to request a password allowing you to add comments and blog news articles without needing each one approved manually, send an e-mail to the webmaster.
- Your email address is required so we can verify that the comment is genuine. It will not be posted anywhere on the site, will be stored confidentially by us and never given out to any third party.
- Please note that any viewpoints published here as comments are user's views and not the views of HousePriceCrash.co.uk.
- Please adhere to the Guidelines
1. waitingtobuy said...
No mention of savings rates,but otherwise good news imo.
2. greenshootsandleaves said...
Is it my imagination or does the 'prepare to ...' in the headline carry a much greater degree of probability than the otherwise very similar 'are set to' or 'are tipped to' commonly found in property-related articles (and featured in a recent post)?
Wait a minute! Weren't low interest rates supposed to be one of the main reasons for (re-)entering the property market? Oh well, the best of British luck to those who took the plunge! They'll need it. Looks as though 'getting on with their lives' (one of the great bull-inspired cliches of 2009) could well prove a bit more difficult than they anticipated.
3. hpwatcher said...
Interesting that this morning Gordon Brown was boasting about the legislation that he had put in place to ensure that people won't lose their homes. Looks like the banks are going to suffer further and are probably heading for a collapse.
4. confused76 said...
Ho Ho Ho... Hollingworth says: 'I wouldn't be surprised if SVRs of 6%-plus became the norm rather than the exception this year.'
5. confused76 said...
"getting on with their lives"
great quote!
6. smugdog said...
Fear of collapse from the banks has gone; missing out on new business is the new fear.
Loans with less deposit and higher multiples will be the bait for the New Year.
7. markj69 str05 said...
@6 Smugdog... 'bait' - You make it sound like lenders will be trying to decieive people into borrowing! Oh what wicked webs we weive!
8. krustyatemyhamster said...
"Loans with less deposit and higher multiples will be the bait for the New Year."
You said the same 6 months ago flashman - the banks were gearing up greater levels of mortgage lending in the Autumn. Which Autumn?
9. confused76 said...
Eminently sensible... against the common wisdom that lending rates are "controlled" by the BofE.
You can explain the sense of false security of the home owners. if I were one of them i would sell during this short dead cat bounce.
"'Lenders are doing little new mortgage business compared with previous years and they have no choice but to offset some of the low margin business they have written in the past by hiking up their standard variable rates.'
David Hollingworth, mortgage expert at broker London & Country, agrees. 'What Marsden is doing is bad news for its borrowers, but it represents commercial reality,' he says.
'Many lenders need to restore their balance sheets to good health and an easy way of doing that is by increasing their SVR.' "
10. confused76 said...
@6
Reality bites from the Rosy Times
http://property.timesonline.co.uk/tol/life_and_style/property/buying_and_selling/article6974533.ece
Home loans market is ready to expand, but at a higher price (they can see a silver lining in every cloud!!)
"Economists warned that the prospect of a hung parliament or Labour victory at the general election would add to jitters about the economy.
Simon Rubinsohn, chief economist for the Royal Institution of Chartered Surveyors, said: “The market will push up interest rates this year even if the Bank of England does not. The markets view Labour as a bit more of a risk than the Conservatives in managing the deficit.”
Members of the Bank of England’s Monetary Policy Committee will decide whether to raise the base interest rate from 0.5 per cent. About two thirds of all mortgages, about 6.5 million, are deals linked to the base rate, according to the Council of Mortgage Lenders (CML)."
2010 is going to be a real double whammy for housing:
- new loan interest rates up (bye bye affordability, "leverage" is sooo noughties!)
- forced sellers and dowsizers flooding the market with for sale and to rent
I am going to have a really hard laugh at the BTL punters who bought during this dead cat bounce
11. flashman said...
"You said the same 6 months ago flashman - the banks were gearing up greater levels of mortgage lending in the autumn. Which Autumn?"
Mortgage lending did ramp up in the Autumn. An extra 3.2 billion in October and an extra 3.3 billion in November. It's one of the reasons that house prices kept creeping up
krusty: you are a clever chap. Why demean yourself with this flashman obsession?
12. smugdog said...
Good to see you again Flash, or is it a mirror I look into?
Have you been having fun out there?