keef319 Posted May 19, 2010 Share Posted May 19, 2010 My father in law just rang me (been trying to get us to buy). Tells me the Skipton BS have just brought out a new 5% mortgage, no strings (by that I mean there's no "put 20% in savings" like the Lloyds Lend a Hand) 7.12% ! http://www.skipton.co.uk/mortgages/fixed_rate_mortgages/2yr_new.aspx Quote Link to comment Share on other sites More sharing options...
deflation Posted May 19, 2010 Share Posted May 19, 2010 Fixed til July 2012, then BoE base rate + 4.45%! By then you could easily be paying 7 - 8% . Get in now. Quote Link to comment Share on other sites More sharing options...
miko Posted May 19, 2010 Share Posted May 19, 2010 My father in law just rang me (been trying to get us to buy). Tells me the Skipton BS have just brought out a new 5% mortgage, no strings (by that I mean there's no "put 20% in savings" like the Lloyds Lend a Hand) 7.12% ! http://www.skipton.co.uk/mortgages/fixed_rate_mortgages/2yr_new.aspx I think the string is in the 7.12% more than 14 x the base rate . Quote Link to comment Share on other sites More sharing options...
Bloo Loo Posted May 19, 2010 Share Posted May 19, 2010 My father in law just rang me (been trying to get us to buy). Tells me the Skipton BS have just brought out a new 5% mortgage, no strings (by that I mean there's no "put 20% in savings" like the Lloyds Lend a Hand) 7.12% ! http://www.skipton.c...es/2yr_new.aspx wow, a new product...must have taken the skills of a dozen hand chosen craftsmen, lovingly gilding every delicate creviss, checking the apprentices on the line, choosing the very best materials and artizans to package and gift wrap it to you. Quote Link to comment Share on other sites More sharing options...
200p Posted May 19, 2010 Share Posted May 19, 2010 (edited) wow, a new product...must have taken the skills of a dozen hand chosen craftsmen, lovingly gilding every delicate creviss, checking the apprentices on the line, choosing the very best materials and artizans to package and gift wrap it to you. nah, boardroom flip chart, a facilitator and some brainstorming. Edited May 19, 2010 by Money Spinner Quote Link to comment Share on other sites More sharing options...
Pent Up Posted May 19, 2010 Share Posted May 19, 2010 (edited) My father in law just rang me (been trying to get us to buy). Tells me the Skipton BS have just brought out a new 5% mortgage, no strings (by that I mean there's no "put 20% in savings" like the Lloyds Lend a Hand) 7.12% ! http://www.skipton.co.uk/mortgages/fixed_rate_mortgages/2yr_new.aspx Surely if someone can afford to pay 7.12% they could afford to save up a half decent deposit beforehand! Utter madness. Edit: Also, if they lent you 4x earnings plus a 5% deposit it wouldn't amount to enough even for a shared ownership con! Edited May 19, 2010 by Pent Up FTBer Quote Link to comment Share on other sites More sharing options...
geoffk Posted May 19, 2010 Share Posted May 19, 2010 I HOPE YOU ASKED HIM TO BAIL YOU OUT WHEN RATES RISE? Quote Link to comment Share on other sites More sharing options...
ad9898 Posted May 19, 2010 Share Posted May 19, 2010 Surely only a complete knobhead with sh!t for brains would even give this a second look, it's just so plainly obvious to all but the hard of thinking that we are approaching the peak of 'return to normal', fundamentals through the next few years are absolutely dire. You surely have to be a complete **** to borrow large sums of money when BOE base rate is at rock bottom for a product that's laughabley overpriced. We're going to make Greece look and investor's paradise in the not to distant future. Quote Link to comment Share on other sites More sharing options...
keef319 Posted May 19, 2010 Author Share Posted May 19, 2010 I feel like there's been a case of "shoot the messenger"!!! I was merely mentioning the fact that the 5% mortgage is back. I generally agree with your comments. Quote Link to comment Share on other sites More sharing options...
Pent Up Posted May 19, 2010 Share Posted May 19, 2010 I feel like there's been a case of "shoot the messenger"!!! I was merely mentioning the fact that the 5% mortgage is back. I generally agree with your comments. I don't think any were aimed at you, just everyone venting their anger with a touch of sarcasm. Just makes me want to punch the wife when I see things like this! Quote Link to comment Share on other sites More sharing options...
keef319 Posted May 19, 2010 Author Share Posted May 19, 2010 Oh I sensed quite a bit of sarcasm... What I'm wondering is...are many other lenders about to follow suit? They all seem to copy each other within a week or 2. Are they doing it now to prop up a market that is turning again? Quote Link to comment Share on other sites More sharing options...
Pent Up Posted May 19, 2010 Share Posted May 19, 2010 Oh I sensed quite a bit of sarcasm... What I'm wondering is...are many other lenders about to follow suit? They all seem to copy each other within a week or 2. Are they doing it now to prop up a market that is turning again? If they thought the market was turning a 95% LTV mortgage would be very silly. Unless the higher rates are enough to offset the potential losses from repossesions. Those are pretty high rates! Quote Link to comment Share on other sites More sharing options...
keef319 Posted May 19, 2010 Author Share Posted May 19, 2010 Just seems a strange time to launch a new 5% mortgage when there's all this talk from various sources (not just hpc!) of the market turning, more properties available, lenders becoming stingy, BTLers selling up etc etc... Quote Link to comment Share on other sites More sharing options...
Kazuya Posted May 19, 2010 Share Posted May 19, 2010 Just seems a strange time to launch a new 5% mortgage when there's all this talk from various sources (not just hpc!) of the market turning, more properties available, lenders becoming stingy, BTLers selling up etc etc... Straws, clutching and all that. Quote Link to comment Share on other sites More sharing options...
NEO72 Posted May 19, 2010 Share Posted May 19, 2010 My father in law just rang me (been trying to get us to buy). Tells me the Skipton BS have just brought out a new 5% mortgage, no strings (by that I mean there's no "put 20% in savings" like the Lloyds Lend a Hand) 7.12% ! http://www.skipton.co.uk/mortgages/fixed_rate_mortgages/2yr_new.aspx Sooo let me see: I'm paying £675 monthly rent for a house currently worth around 200K. I buy said house with a 5% deposit: 190K interest-only mortgage @ 7.12% = £1,127 (& buildings insurance and maintenance costs) If base rates went up to a mighty 6%, IO mortgage would be £1742 No brainer really: Mortgage it is - cos house prices only go up innit Quote Link to comment Share on other sites More sharing options...
Topher Bear Posted May 19, 2010 Share Posted May 19, 2010 Heard this and did some sums. We cant get a 10% deposit but 5% is there, so maybe our chance. We pay £765 a month rent. On a repayment at 7.19% ( thats what I heard it was ) paying £800 a month, that is £110k. Add in our deposit and we could get to £120k. Can't get jack sh1t for that in our town. Cheapest places we were looking at were £155k, our rental was bought for £200k. Rental remains best value for money! So thanks skipton, but no thanks Quote Link to comment Share on other sites More sharing options...
fallingbuzzard Posted May 19, 2010 Share Posted May 19, 2010 Seems like a bargain to me... Heard this and did some sums. We cant get a 10% deposit but 5% is there, so maybe our chance. We pay £765 a month rent. On a repayment at 7.19% ( thats what I heard it was ) paying £800 a month, that is £110k. Add in our deposit and we could get to £120k. Can't get jack sh1t for that in our town. Cheapest places we were looking at were £155k, our rental was bought for £200k. Rental remains best value for money! So thanks skipton, but no thanks Quote Link to comment Share on other sites More sharing options...
right_freds_dead Posted May 19, 2010 Share Posted May 19, 2010 (edited) i think the father in law should buy the house since he thinks property is great and then let it back to the OP. when the mortgage goes insane due to the IR, the OP can move out and the father in law can deal with the great investment himself. Edited May 19, 2010 by right_freds_dead Quote Link to comment Share on other sites More sharing options...
mrpleasant Posted May 20, 2010 Share Posted May 20, 2010 Just seems a strange time to launch a new 5% mortgage when there's all this talk from various sources (not just hpc!) of the market turning, more properties available, lenders becoming stingy, BTLers selling up etc etc... The answer to the mystery is.... They're not very bright. Not long after the August 2007 crunch, my wife and I were passing our branch of the Yorkshire Building Society in Cardiff and there in the window was a big yellow poster advertising 125% mortgages. We debated whether to walk in there and then and withdraw our cash, citing imbecility and general financial incompetence. Quote Link to comment Share on other sites More sharing options...
AskFrank Posted May 20, 2010 Share Posted May 20, 2010 My father in law just rang me (been trying to get us to buy). Tells me the Skipton BS have just brought out a new 5% mortgage, no strings (by that I mean there's no "put 20% in savings" like the Lloyds Lend a Hand) 7.12% ! http://www.skipton.c...es/2yr_new.aspx Very interesting. This could indicate the start of many 95% mortgages being introduced again! I always said as soon as this happens, FTBs will flock back onto the property ladder. I wait in anticipation.... Quote Link to comment Share on other sites More sharing options...
Ash4781 Posted May 20, 2010 Share Posted May 20, 2010 It looks like a marketing gimmick or straight from the Northern Rock ! I doubt they will sell many. Though if they sell thousands think of the loan book quality! (I can see the headlines- Skipton in the skip) Quote Link to comment Share on other sites More sharing options...
shindigger Posted May 20, 2010 Share Posted May 20, 2010 Very interesting. This could indicate the start of many 95% mortgages being introduced again! I always said as soon as this happens, FTBs will flock back onto the property ladder. I wait in anticipation.... What? At 7.12%? Paaaaaaaaaaaaaaaaaaaaaaaaaaaat!!!!!! Quote Link to comment Share on other sites More sharing options...
TheEmperorHasNoClothes Posted May 20, 2010 Share Posted May 20, 2010 What? At 7.12%? Paaaaaaaaaaaaaaaaaaaaaaaaaaaat!!!!!! He he I dare someone to put a 50% below asking price offer on a house, based on the affordability of THIS mortgage. Find a £200k asking price house. Say I have £700 a month to spend on a mortgage, so based on this I offer you £100,000. When they say no, say ok I'll just rent then it's cheaper Quote Link to comment Share on other sites More sharing options...
bomberbrown Posted May 20, 2010 Share Posted May 20, 2010 Fixed for 2 years! I've said it before, and I'll say it again. What muppet signs an agreement to pay a loan back where the monthly repayments are fixed for 8% of the period of the loan and for the remaining 92%, the repayments can be anything that the lender damn well pleases? Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.