MississippiJohnHurt Posted April 8, 2009 Share Posted April 8, 2009 He he. You lot are certainly predictable.Nit pick all you like, but it's still another 90% LTV mortgage that wasn't available last month And further evidence of lenders easing their criteria. Time to start waving bye bye to the crash. Sounds like you've analysed and identified a good opportunity - you get in there and fill your boots old son. I'll have to agree to disagree though as a 2 year fix that is 4.5% above the base rate, with an astronomical fee, seems to me about as attractive as a punch in the face. Nice margin for the banks though for any fools who sign up. I also wonder how many will actually get offered 90%, but you might be right and this might be a signal of a return to the halcyon days of 2007. Oh, to return there.....the 2 bed boxes in Zone 4 selling for half a million . The new builds springing up from former petrol stations. The warm feeling of taking out a self cert loan on a Friday night. I do miss it. PS: Look at 5 and 10 yr fixes to see where the banks think rates are headed (also did you see the comments from Ray Boulger the other day - I presume Boulger is something of a hero to people like you so you may have taken notice.....) Quote Link to comment Share on other sites More sharing options...
the primitive Posted April 8, 2009 Share Posted April 8, 2009 I see all the usual daft comments are on this thread....e.g. Why don't they offer a 3%ish mortgage fixed for 10 years. Er, how do you think they all got into trouble in the first place. this is proof that prices will plummet - and more 'arithmetic' to provide 'real incontrovertible proof' - more people pretending a single average income with no deposit is what is used to buy the average house why are rates 5% for 2 years fixed when the base rate is 0.5% - surely you've been on here long enough to work that bit out ? Sodding obvious, I'd have thought. It's this sort of kneejerk stuff that means people think HPC people have tinfoil on their windows and have large sprays of lizardman repellant on them at all times. It's a large margin, but it's a 90% mortgage, what do you expect - it prices in the risk for the lender of not having adequate security. I could be wrong - but have you not misunderstood the bears today? The comments on here AGREE with you - i.e. this mortgage's terms and conditions are clearly indicative of priced-in risk, because of the risk of default, and of price falls. HSBC are quite rightly protecting themselves by charging a hefty fee, and a hefty rate premium, and restricting the offer to affluent customers. All of this is bearish, as you say, but also as everyone else except the bulls are saying. The T&Cs of this mortgage are screaming "more falls to come". Who is asking "Why don't they lend at 3%" If the WERE lending like that it woudl be crash over probably - but they're not, and that's the whole point - i.e. crash still on. Apologies if I have misunderstood you Quote Link to comment Share on other sites More sharing options...
renterbob Posted April 8, 2009 Share Posted April 8, 2009 HSBCAre lenders beginning to see an end to falls? Yes. Can I go now, miss? Quote Link to comment Share on other sites More sharing options...
renterbob Posted April 8, 2009 Share Posted April 8, 2009 He he. You lot are certainly predictable.Nit pick all you like, but it's still another 90% LTV mortgage that wasn't available last month And further evidence of lenders easing their criteria. Time to start waving bye bye to the crash. I feel like you've just pulled down my pants and ****** me! Quote Link to comment Share on other sites More sharing options...
Rachman Posted April 8, 2009 Share Posted April 8, 2009 I could be wrong - but have you not misunderstood the bears today? The comments on here AGREE with you - i.e. this mortgage's terms and conditions are clearly indicative of priced-in risk, because of the risk of default, and of price falls. HSBC are quite rightly protecting themselves by charging a hefty fee, and a hefty rate premium, and restricting the offer to affluent customers. All of this is bearish, as you say, but also as everyone else except the bulls are saying. The T&Cs of this mortgage are screaming "more falls to come".Who is asking "Why don't they lend at 3%" If the WERE lending like that it woudl be crash over probably - but they're not, and that's the whole point - i.e. crash still on. Apologies if I have misunderstood you The comments LEFT on here say that, I think there's been some editing going on, let's put it that way..... If they lent at 3% like this, then the crash would be off today, but Christ, it'd be much bigger later...... This mortgage is a 2 year fix, I'd suspect that will bring you out in the eye of the storm on inflation (if you took it now). you could be coming out (in so far it's possible to predict at all) into a world of 8-10% rates and if you are a 90%er and have not paid down significantly, you would be in all sorts of trouble (because let's face it, wage inflation's not going to help by keeping up is it...). But at least it buys you two years of knowing what's going out to get this. The current tracker holders (and I hold one mortgage on a tracker and one fixed) are laughing their socks off (I am, I am paying zero interest on it) but when rates come back, they will come with a vengeance I suspect - and those people may find it very hard to get a decent price on a fix.... if you had to ask me, and you didn't (!), I'd want a 5 year fix at 5% as a decent deal....... - or 10 years at between 5 and 5.5%..... with a 5 year break. Quote Link to comment Share on other sites More sharing options...
thecrashingisles Posted April 8, 2009 Share Posted April 8, 2009 HSBC have also just revised their criteria for Premier customers. Previously if you had an income of £75k and a mortgage with them of £250k then you qualified. Now you need an income of £100k and they don't care about your mortgage. Anyone who was a Premier customer on the basis of their big mortgage will now have to pay a £25 per month fee! Quote Link to comment Share on other sites More sharing options...
Valerius Posted April 8, 2009 Share Posted April 8, 2009 The timing of this anouncement could not have been better, mid spring where the market is getting most boyant. This proves that lenders are willing to lend more than what they announced a few months back to rebuild their balance sheet, and is a step in the right direction IMO. It is a matter of time until LTSB, NR, and RBS start following suit with more products offering. Quote Link to comment Share on other sites More sharing options...
Godley Posted April 8, 2009 Share Posted April 8, 2009 The timing of this anouncement could not have been better, mid spring where the market is getting most boyant.This proves that lenders are willing to lend more than what they announced a few months back to rebuild their balance sheet, and is a step in the right direction IMO. It is a matter of time until LTSB, NR, and RBS start following suit with more products offering. weyhey 'eres the other one. Two sides to that, could you tell us the other one? When you can you will understand you are talking through your backside. Quote Link to comment Share on other sites More sharing options...
tiggerthetiger Posted April 8, 2009 Share Posted April 8, 2009 The bank base rate is 0.5%. Why is this a good deal at 4.99%? BOE base rate has very little to do,with mortgage rates anymore Quote Link to comment Share on other sites More sharing options...
ace100 Posted April 8, 2009 Share Posted April 8, 2009 where have you been for the last few years? a bull in a bear market is like a child who always misses the school bus..They end up not learning.. Sorry to disappoint but I got off the bus a year ago, at the sunshine stop. Quote Link to comment Share on other sites More sharing options...
PopGun Posted April 8, 2009 Share Posted April 8, 2009 The timing of this anouncement could not have been better, mid spring where the market is getting most boyant.This proves that lenders are willing to lend more than what they announced a few months back to rebuild their balance sheet, and is a step in the right direction IMO. It is a matter of time until LTSB, NR, and RBS start following suit with more products offering. Nope this proves nothing. This is desperate straw clutching (disguised as bear baiting) of the highest order. Explain how an average FTB can access this product please..... Still waiting for Rinoa to answer this one from over an hour ago. Quote Link to comment Share on other sites More sharing options...
bear_or_bull Posted April 8, 2009 Share Posted April 8, 2009 Sorry to disappoint but I got off the bus a year ago, at the sunshine stop. Sunshine for you, rainy leftovers for everyone else. Nice. Quote Link to comment Share on other sites More sharing options...
ace100 Posted April 8, 2009 Share Posted April 8, 2009 Sunshine for you, rainy leftovers for everyone else.Nice. You can always get up and do something for yourself. There is no law that says you have to stay in the UK, you are free to go wherever you want. Oh wait, that would mean taking a chance, you had better stay put. Quote Link to comment Share on other sites More sharing options...
drrayjo Posted April 8, 2009 Share Posted April 8, 2009 Explain how an average FTB can access this product please.....Still waiting for Rinoa to answer this one from over an hour ago. Shhhhhhhhhhhhhhhhhhhhhh...... Bulls. Pfff. Veal calves more like. Quote Link to comment Share on other sites More sharing options...
Bloo Loo Posted April 8, 2009 Share Posted April 8, 2009 Nope this proves nothing. This is desperate straw clutching (disguised as bear baiting) of the highest order.Explain how an average FTB can access this product please..... Still waiting for Rinoa to answer this one from over an hour ago. course the average FTB has £50,000 to deposit into their new HSBC Premier account, or single income of £100,000 PA. I think 90% LTV to these high earners is not a problem, but as they buy at teh top end and account for less than 1% of the population, i hardly think the effect is going to be huge. Nice one Darling, force those banks to lend....why dont you....still you didnt say who to, now did you? Quote Link to comment Share on other sites More sharing options...
PopGun Posted April 8, 2009 Share Posted April 8, 2009 course the average FTB has £50,000 to deposit into their new HSBC Premier account, or single income of £100,000 PA.I think 90% LTV to these high earners is not a problem, but as they buy at teh top end and account for less than 1% of the population, i hardly think the effect is going to be huge. Nice one Darling, force those banks to lend....why dont you....still you didnt say who to, now did you? Still no Bull answers to my earlier questions I notice. How strange? Quote Link to comment Share on other sites More sharing options...
bomberbrown Posted April 8, 2009 Share Posted April 8, 2009 fixed for two years Considering the average mortgage is over a 25 year period, 2 year fix is meaningless. Why doesn't everyone else see this? Quote Link to comment Share on other sites More sharing options...
thecrashingisles Posted April 8, 2009 Share Posted April 8, 2009 Considering the average mortgage is over a 25 year period, 2 year fix is meaningless. Why doesn't everyone else see this? Yeah but you can just remortgage, innit. Quote Link to comment Share on other sites More sharing options...
Godley Posted April 8, 2009 Share Posted April 8, 2009 What interests me in all this is that the bull arguments are so weak that it actually makes me feel even more bearish. If they came on here with some revelation, then I would stop and think, but it just strikes me as clutching at straws. Quote Link to comment Share on other sites More sharing options...
fluffy666 Posted April 8, 2009 Share Posted April 8, 2009 Considering the average mortgage is over a 25 year period, 2 year fix is meaningless. Why doesn't everyone else see this? The thing is, there is/was a whole network of mortgage brokers who pretty much depended on people coing back every 2 years - also gave an opportunity to tack on some MEW. This seems to be why 2 year fixes got pushed so heavily.. If people have been re extending the term to 25 years and adding the fees to the balance, they'd hardly be paying anything off at all. Quote Link to comment Share on other sites More sharing options...
Rinoa Posted April 8, 2009 Author Share Posted April 8, 2009 Well as you need to earn as a SINGLE income £100000 a year to open an Premier Account which I believe these mortgages are being aimed at, I think they will be buying a little more than a £150k property don't you which reduces the % of the market even more does it not? Nope this proves nothing. This is desperate straw clutching (disguised as bear baiting) of the highest order.Explain how an average FTB can access this product please..... Still waiting for Rinoa to answer this one from over an hour ago. course the average FTB has £50,000 to deposit into their new HSBC Premier account, or single income of £100,000 PA.I think 90% LTV to these high earners is not a problem, but as they buy at teh top end and account for less than 1% of the population, i hardly think the effect is going to be huge. Nice one Darling, force those banks to lend....why dont you....still you didnt say who to, now did you? Still no Bull answers to my earlier questions I notice. How strange? Why do you lot not read the opening post or do 30 seconds of research before making yourselves look silly? Quote Link to comment Share on other sites More sharing options...
drrayjo Posted April 8, 2009 Share Posted April 8, 2009 Why do you lot not read the opening post or do 30 seconds of research before making yourselves look silly? Oh touche! Quote Link to comment Share on other sites More sharing options...
PopGun Posted April 8, 2009 Share Posted April 8, 2009 Why do you lot not read the opening post or do 30 seconds of research before making yourselves look silly? And your answer please? Quote Link to comment Share on other sites More sharing options...
Rachman Posted April 8, 2009 Share Posted April 8, 2009 Considering the average mortgage is over a 25 year period, 2 year fix is meaningless. Why doesn't everyone else see this? Correct, the average term when signed is. However, the average length of time it takes someone to pay off their mortgage is NOT 25 years. It used to be, but far more people are savvy (or less stupid) and overpay and pay them off early. We will have paid ours off in just over 7 years. We've had three mortgage deals on our current home - 4.49% fix for 2 years and SVR would have been back to 6% at the time - £500 fees overall, 4.39% fix for two years with £550 fee over the period and SVR would have been back to 6.5% and the current one (which is fixed) at 5.49% for two years (oh, well..... at least the other house is on a tracker at a 0% rate) for two years with zero fees. All have allowed overpayments at 10% of the principal each year. We have used that and also made bullet repayments when changing terms too. 2 year fixes have been the cheapest deals for us over the period (until the current rate cutting lunacy which I will happily admit I called wrong). It's also a good length of time for people to plan forward, as it offers some security for the foreseeable future. Quote Link to comment Share on other sites More sharing options...
PopGun Posted April 8, 2009 Share Posted April 8, 2009 (edited) Over the past 12 months, neither first-time buyers nor homeowners with relatively low levels of equity have been able to take advantage of the falling cost of borrowing. By making £1bn available to buyers with deposits of just 10%, HSBC is trying to remedy the situation with a market leading rate of 4.99%, fixed for two years. Again, how many FTB will be able to obtain this product? Oh look following the FTB link on the HSBC website, and funnily enough competitive products already exist, be it at 75%LTV Given the restrictions on obtaining the proposed 90% 4.99 2 year fix, this is just pi55ing in the wind at best. Edited April 8, 2009 by PopGun Quote Link to comment Share on other sites More sharing options...
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