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Mortgage Rates Dropping...

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Something has happened in the mortgage market recently; the best 5 year fixes have suddenly gone from ~5% to ~4%. 2- year fixes are going under 3%, which is a bit mental.

Look at fixed under money supermarket

Any ideas? All looks a bit odd...

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Something has happened in the mortgage market recently; the best 5 year fixes have suddenly gone from ~5% to ~4%. 2- year fixes are going under 3%, which is a bit mental.

Look at fixed under money supermarket

Any ideas? All looks a bit odd...

RPI is 5.3%

CPI is 3.7%

You can get a 5 year fix at 3.99% with a 25% deposit (Britannia or Co-op)

You can get a 5 year fix at 5.99% with a 10% deposit (Post Office)

:blink:

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Something has happened in the mortgage market recently; the best 5 year fixes have suddenly gone from ~5% to ~4%. 2- year fixes are going under 3%, which is a bit mental.

Look at fixed under money supermarket

Any ideas? All looks a bit odd...

they have been slowely getting better for some time now. Won't last though SVRs are on the up!

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they have been slowely getting better for some time now. Won't last though SVRs are on the up!

This isn't a given, and even then they could double to a whopping 1%!

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Has to be done. The market has to drive real rates negative to rebalance the economy.

There's no logic in any of your posts, just a bunch of assertions.

Negative real rates means getting paid to borrow money. Our economy is already highly leveraged. Are you saying that what we really need is more debt?

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Maybe they are trying to encourage idiots to buy massively over-priced houses and give them their 25% deposits to help keep there balance sheets alives.

There's no such thing as a free lunch !!!

Edited by TheCountOfNowhere

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You can get a 5 fixed for 3.99%, that is pretty dam amazing.

Pauly Boy, are you still looking in the frimley / camberley area for houses? I am and it's not really changed in 18months, same properties, same prices! losing hope!

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Maybe they are trying to encourage idiots to buy massively over-priced houses and give them their 25% deposits to help keep there balance sheets alives.

There's no such thing as a free lunch !!!

I don't understand how having a massive deposit helps keep a bank's balance sheet alive. The deposit doesn't go to the bank lending the mortgage money does it - it goes to pay for the house (to someone else / another bank)? It simply means that the bank is not risking as much ie: if house prices fall by 20% but they only lent 50% of the value of the house then they don't lose anything.

Am i missing something? Happy for someone to explain if I am!

Edited by MinceBalls

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I don't understand how having a massive deposit helps keep a bank's balance sheet alive. The deposit doesn't go to the bank lending the mortgage money does it - it goes to pay for the house (to someone else / another bank)? It simply means that the bank is not risking as much ie: if house prices fall by 20% but they only lent 50% of the value of the house then they don't lose anything.

Am i missing something? Happy for someone to explain if I am!

It's simple - with a large deposit, the bank can't lose. Worst case is that it repossesses and gets its money back even though the overall value of the house has dropped (the deposit meant that the loan was much smaller the original price paid and can be covered by resale).

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Just because they advertise the rate doesn't mean they'll give you the mortgage. It's very easy to turn down every single application when you can hide behind

the "computer says no" excuse.

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No forced sales, low mortgages, government bailouts for the feckess = no need to sell for less than asking, with asking at 2007 plus.

Now this has been my concern also, the absence of a black swan trigger type event to force sales, however if there is a plateau in prices, this will cause an end to many investor type purchases, It will also cause some sell offs of investment type property, this could drop the market on its own and once its goes down in the current climate it is possibe that it will gain momentum. So I wonder if the plateau itself will function as the trigger.

No doubt about it the market has been changed by the presence of investors, it will I hope change again in their absence.

Brace yourself because you may not see any drops for a few months, then the fun begins for us bears.

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You can get a 5 fixed for 3.99%, that is pretty dam amazing.

no, the advert says 3.99%, the reality is mortgages are hard to get, whatever the advert says.

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no, the advert says 3.99%, the reality is mortgages are hard to get, whatever the advert says.

Only for those with no deposit or a shoddy credit history.

These people will be shown the door, just like how it used to be.

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Errrm, five year fixes coming down gives me the impression they reckon Roger Bootle is correct in that rates will stay low for quite a while. I'm not sure if I crumbled and jumped in at this stage, whether I'd take the fix, or a lower rate. What kind of floating rate can you get with a good deposit?

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Swap rates have dropped because the economy is weak and will weaken as public sector cuts come in. A 5 year fix at 4% may look cheap to you but its a great return for a lender that knows they won't lose money on that deal because of the LTV they put in place.

Something has happened in the mortgage market recently; the best 5 year fixes have suddenly gone from ~5% to ~4%. 2- year fixes are going under 3%, which is a bit mental.

Look at fixed under money supermarket

Any ideas? All looks a bit odd...

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  • 259 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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