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Nationwide To Trigger I R Hiking Frenzy

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http://www.telegraph.co.uk/finance/persona...-to-follow.html

Nationwide imposes sharp rise in fixed mortgage rates

Nationwide Building Society is to raise interest rates on fixed-rate mortgages by as much as 0.86 percentage points, as rising wholesale costs put pressure on its rivals to follow suit.....In the wake of Nationwide's move, mortgage brokers warned other lenders would follow suit because swap rates on the wholesale market – where banks and building societies raise much of their funding – have increased sharply in recent days. The two-year swap rate, for example, has gone from 1.97 per cent on June 1 to 2.44 per cent a week later on June 8.

Someone just sprayed glycosphate on the green shoots. :lol:

___________________

JICAII

I am in the middle of a de-merger and aquisition which has torn me away from HPC. :(

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http://www.telegraph.co.uk/finance/persona...-to-follow.html

Nationwide imposes sharp rise in fixed mortgage rates

Nationwide Building Society is to raise interest rates on fixed-rate mortgages by as much as 0.86 percentage points, as rising wholesale costs put pressure on its rivals to follow suit.....In the wake of Nationwide's move, mortgage brokers warned other lenders would follow suit because swap rates on the wholesale market – where banks and building societies raise much of their funding – have increased sharply in recent days. The two-year swap rate, for example, has gone from 1.97 per cent on June 1 to 2.44 per cent a week later on June 8.

Someone just sprayed glycosphate on the green shoots. :lol:

___________________

JICAII

I am in the middle of a de-merger and aquisition which has torn me away from HPC. :(

RB - you used to bring us the news hot off the press.

This news is 2 days old!!!

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RB - you used to bring us the news hot off the press.

This news is 2 days old!!!

Sorry! Out of touch recently.

Anyone dug out the headlines from the last great crash where they claimed that, at the beginning of the slide, it was already at the bottom?

How anyone can believe Brown's debt of 2TR and rising unemployment is going to go away because a few EAs and "trustworthy" MPs say it is must be naive or stupid, probably both.

Edited by Realistbear

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Sorry! Out of touch recently.

Anyone dug out the headlines from the last great crash where they claimed that, at the beginning of the slide, it was already at the bottom?

How anyone can believe Brown's debt of 2TR and rising unemployment is going to go away because a few EAs and "trustworthy" MPs say it is must be naive or stupid, probably both.

So true, its like believing the moon hides in Hamish`s **** on cloudy nights.

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http://www.bloomberg.com/apps/news?pid=206...id=aik2bxsFFvWM

Europe Industrial Production Declines by Record 21.6% (Update1)

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By Brian Swint

June 12 (Bloomberg) -- European industrial production dropped by the most on record in April as the worldwide recession ravaged demand for goods.

Production in the euro region plunged 21.6 percent from a year earlier, the most since the data series started in 1986, the European Union’s statistics office in Luxembourg said today. Economists expected a 19.8 percent decline, according to the median of 14 estimates in a Bloomberg News survey. From March, output declined 1.9 percent.

The global economy will contract for the first time since World War II this year as the fallout from the financial crisis leads companies to scale back production and run down stocks, the World Bank predicts. The European Central Bank this month kept its benchmark interest rate at a record-low 1 percent and will soon buy bonds in a bid to improve the flow of credit.

“The region has simply been hammered by the downturn in global demand and hampered by the run-up in the euro,†said Peter Dixon, an economist at Commerzbank AG in London..../

We are probably in year one of several years where assett prices will fall, inflation dropping into deflation territory and Japanese style housing markets.

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http://www.bloomberg.com/apps/news?pid=206...id=aik2bxsFFvWM

Europe Industrial Production Declines by Record 21.6% (Update1)

Share | Email | Print | A A A

By Brian Swint

June 12 (Bloomberg) -- European industrial production dropped by the most on record in April as the worldwide recession ravaged demand for goods.

Production in the euro region plunged 21.6 percent from a year earlier, the most since the data series started in 1986, the European Union’s statistics office in Luxembourg said today. Economists expected a 19.8 percent decline, according to the median of 14 estimates in a Bloomberg News survey. From March, output declined 1.9 percent.

The global economy will contract for the first time since World War II this year as the fallout from the financial crisis leads companies to scale back production and run down stocks, the World Bank predicts. The European Central Bank this month kept its benchmark interest rate at a record-low 1 percent and will soon buy bonds in a bid to improve the flow of credit.

“The region has simply been hammered by the downturn in global demand and hampered by the run-up in the euro,†said Peter Dixon, an economist at Commerzbank AG in London..../

We are probably in year one of several years where assett prices will fall, inflation dropping into deflation territory and Japanese style housing markets.

RB, these reports are very interesting as they impact on the behaviour of people in the real economy. On the Gilt thread and Bond thread people have been predicting this for quite a while, but clearly Joe Public hasn't a clue about the bond market, but they soon will have - long dated bonds and swap rates have been signalling rate rises for quite sometime.

The interesting this is that whilst some indicate that these signals signal inflation, I'm not so sure, there is definitely some inflation fear in there, but I also believe the premium for default risk is being increased. In the days of easy money, risk was ignored completely, during the first phase of the crash people moved to bonds for safety, now they realise the bonds themselves may not be so safe after all and so demand higher yields.

There is going to be one hell of a car crash coming up, buckle your seat belt and make sure the passenger air bags are switched on.

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Genuine question: Can someone explain why the 2 year swap rate has increased so hugely, but yet the 3 month BBA LIBOR has fallen over the past week to 1.25?

What has changed to increase inflation expectations?

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Guest BAREBEAR_soon to be ALIVA
Sorry! Out of touch recently.

Anyone dug out the headlines from the last great crash where they claimed that, at the beginning of the slide, it was already at the bottom?

How anyone can believe Brown's debt of 2TR and rising unemployment is going to go away because a few EAs and "trustworthy" MPs say it is must be naive or stupid, probably both.

Yes well can you get back in touch, there are more and more bulls sniffing around and the Bear leader being absent all the time doesn't help.

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http://www.timesonline.co.uk/tol/money/pro...icle6485650.ece

A fresh wave of increases to mortgage interest rates by Britain's biggest mortgage lenders is set to hit hundreds of thousands of homeowners and buy-to-let landlords.

Cheltenham & Gloucester, the mortgage brand owned by Lloyds Banking Group, increased its residential and buy-to-let deals by up to 03 percentage points today. A three-year fix for borrowers with a 25 per cent deposit has risen to 5.59 per cent.

Northern Rock has also raised its five-year fixes and buy-to-let deals by up to 0.2 percentage points today. The Principality building society is also pushing up costs of its fixed rates mortgages while The Nottingham has withdrawing deals this weekend and is likely to raise mortgage rates next week.

On Wednesday, Times Online revealed that Nationwide Building Society, Britain's third biggest lender, was putting up rates by up to 0.86 percentage points today, the biggest hike in mortgage rates for months. A five-year fix has jumped from 4.78 per cent to 5.64 per cent. It blamed moves by rival lenders and a sharp rise in whole borrowing costs for the decision.

Ray Boulger, senior technical manager of John Charcol, the broker, said he expected the rest of the Lloyds Banking Group brands, including Halifax, Britain's biggest lender, to increase their fixed rates at the weekend, in some cases by quite large amounts, although no other changes have as yet been confirmed.

Homeowners are in a race to fix on to an attractive rate before mortgage costs rise over the coming months. Around seven out of ten new home loans are fixed-rate mortgages, according to the Council of Mortgage Lenders (CML).

Borrowers fear that interest rates have no where to go but upwards - from the current historically low level of 0.5 per cent - and are keen to lock into longer-term fixed rate deals now.

Economists agree that the Bank of England is likely to have to raise rates later this year or next year to control inflation, which could return when the economy recovers.

The expectation that rates will rise in the future is the main factor pushing up the cost to banks and building societies of wholesale borrowing on moneymarkets, which they use to fund new mortgage lending. Swap rates have climbed steeply in the last fortnight, which lenders say they are being passed onto homeowners in the form of more expensive home loans.

Rising Bond Yields Point The Way To Economic Recovery

Following on from this mornings thread we now have this.

Clearly the recovery is here, rates can only go up once we've had a recovery.

The recovery is clearly well under way as rates are going up.

Please buy property now before you lose out because rates have gone up.

The time is now.

As I said yesterday here.

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Sorry! Out of touch recently.

Anyone dug out the headlines from the last great crash where they claimed that, at the beginning of the slide, it was already at the bottom?

How anyone can believe Brown's debt of 2TR and rising unemployment is going to go away because a few EAs and "trustworthy" MPs say it is must be naive or stupid, probably both.

Welcome back RB.

I was pondering that.... when past crashes occurred, was there the extensive media denial we have now?

Confuses me too, how many believe all this ramping, when the economic indicators are so dire.

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I was pondering that.... when past crashes occurred, was there the extensive media denial we have now?

Confuses me too, how many believe all this ramping, when the economic indicators are so dire.

yes, there was recovery talk regularly, years before there was a recovery, someone here has compiled the headlines in the resources section

because some are very optimistic types which the world needs, but sometimes its like a moth too near the flame and they get burnt bad;

then there's the VI professionals;

then there's plainly those who have forgotten that Brown has put the whole country in huge debt on a Spend 2009, Pay Nothing Until Summer 2010 deal - he literally has put the bills under the sofa cushion for another year, making excuses for doing so but the real one being hoodwink the electorate until they have put their x in his box

Edited by loginandtonic

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yes, there was recovery talk regularly, years before there was a recovery, someone here has compiled the headlines in the resources section

Thanks, I will take a look in the resources.

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There was an interesting piece in today's Guardian which explained that the cost of a FTB mortgage at 90% LTV was now 6.2%. About the same as it was when base rates were around 5%.

The reason is that there are new funding rules for lenders which mean they have to have more capital in their institution as a cushion for high LTV loans. The result is that it now costs lenders about 4 times as much to lend at 90% LTV as at 60% LTV.

Here's a link:

Guardian Saturday

the increase in price had been driven by a lack of competition and by new rules under which lenders have to set aside more capital to cover high loan-to-value mortgages. "The cost to the lender of making one 90% LTV loan available can be four or five times the cost of offering a mortgage at 60% LTV," he said. "We're in a situation where the more lending a lender does at 90% the less lending they are able to do overall."

Has anyone noticed savings rates going up? I've got some bonds maturing in September and I'd like to be able to get a reasonable return when I reinvest them.

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Guest Steve Cook
http://www.telegraph.co.uk/finance/persona...-to-follow.html

Nationwide imposes sharp rise in fixed mortgage rates

Nationwide Building Society is to raise interest rates on fixed-rate mortgages by as much as 0.86 percentage points, as rising wholesale costs put pressure on its rivals to follow suit.....In the wake of Nationwide's move, mortgage brokers warned other lenders would follow suit because swap rates on the wholesale market �" where banks and building societies raise much of their funding �" have increased sharply in recent days. The two-year swap rate, for example, has gone from 1.97 per cent on June 1 to 2.44 per cent a week later on June 8.

Someone just sprayed glycosphate on the green shoots. :lol:

___________________

JICAII

I am in the middle of a de-merger and aquisition which has torn me away from HPC. :(

Dead right on the button regarding Rate rises RB. Swap rates are going up and there is little the government can do about it. Lenders have to pass this cost on.

Crash cruise speed resumption here we come.

In any event, I was listening to Frank Field the other day On Radio 4's QT. He seems to think the international money markets could possibly turn round and say no to our government's international borrowing in the near future unless really radical and realistic proposals are made known about how they intend to slash the monstrous deficit. If such a refusal to lend took place, it could all be over by lunchtime. Bank doors closed, ATM's shut down etc. Another Iceland in other words.

The banking part of this economic crisis aint over yet. I can feel it in my water..... ;)

Edited by Steve Cook

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Dead right on the button regarding Rate rises RB. Swap rates are going up and there is little the government can do about it. Lenders have to pass this cost on.

Crash cruise speed resumption here we come.

In any event, I was listening to Frank Field the other day On Radio 4's QT. He seems to think the international money markets could possibly turn round and say no to our government's international borrowing in the near future unless really radical and realistic proposals are made known about how they intend to slash the monstrous deficit. If such a refusal to lend took place, it could all be over by lunchtime. Bank doors closed, ATM's shut down etc. Another Iceland in other words.

The banking part of this economic crisis aint over yet. I can feel it in my water..... ;)

dont worry, you can download government food vouchers and spend those instead, at any participating british foodstore......... who accepts vouchers................... and their suppliers do to.............oh Darling!.......there might be a teency weency flaw in the vouchers plan.

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http://www.telegraph.co.uk/finance/persona...-to-follow.html

Nationwide imposes sharp rise in fixed mortgage rates

Nationwide Building Society is to raise interest rates on fixed-rate mortgages by as much as 0.86 percentage points, as rising wholesale costs put pressure on its rivals to follow suit.....In the wake of Nationwide's move, mortgage brokers warned other lenders would follow suit because swap rates on the wholesale market – where banks and building societies raise much of their funding – have increased sharply in recent days. The two-year swap rate, for example, has gone from 1.97 per cent on June 1 to 2.44 per cent a week later on June 8.

Someone just sprayed glycosphate on the green shoots. :lol:

___________________

JICAII

I am in the middle of a de-merger and aquisition which has torn me away from HPC. :(

I guess you all must be cash buyers....

  • You missed the once in a lifetime tracker mortgages :P

  • You missed that last of the decent lifetime tracker mortgages :P

  • You missed the bottom of the market :P

  • And your being cheered up by the fact you have missed th best long term fixed rate mortgages :P

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I guess you all must be cash buyers....
  • You missed the once in a lifetime tracker mortgages :P

  • You missed that last of the decent lifetime tracker mortgages :P

  • You missed the bottom of the market :P

  • And your being cheered up by the fact you have missed th best long term fixed rate mortgages :P

Ha!

The biggest housing bubble in UK history and the bottom was only 3 months :rolleyes:

Viva le recovereh!

I TO BUY 3 LOT OF BTL ON INTEREST ONLY MO-GIDGE!

HPI TOAST WITH BEANS INNIT!

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Ha!

The biggest housing bubble in UK history and the bottom was only 3 months :rolleyes:

Viva le recovereh!

I TO BUY 3 LOT OF BTL ON INTEREST ONLY MO-GIDGE!

HPI TOAST WITH BEANS INIT!

Nationwide figures show a 4.2% rise since Feb 2009, since when if the NEISR figures are correct the economy has gone from contracting 1.9% in Q1 2009 to growing in April & March.

So yes you IMHO have missed the bottom @least the nominal price bottom.

And I think you take it as read you've missed the best tracker & Long Term fixed rate mortgages.

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