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Mortages Up Even If Rates Don't Move!

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http://www.dailymail...gage-rates.html

Its been a GREAT week gang!

Mike

"

The comparison website moneysupermarket.com says it is concerned that many people may be unaware that their mortgage rates could go up. "

Read more: http://www.dailymail.co.uk/news/article-1308899/Timebomb-alert-lenders-hike-mortgage-rates.html#ixzz0yXOIj1GK

translation: VI says most people are told to believe that prices go UP and costs go DOWN.

this is of course LEARNED behaviour of the last 12 months.....oops....

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A buyer with a £150,000 mortgage will have to find an extra £115.86 a month or £1,390.32 a year.

...

 Site editor Clare Francis urged consumers to move to fixed rates as soon as possible, saying that although they may be more expensive in the short term, in the long term they are best.

No equity, can't remortgage! Game over :D

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No equity, can't remortgage! Game over :D

And:

"yes, sure you can remortgage..all we need is proof that you do earn 80k in your temp admin job."

The screws just keep on tightening...

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I'm still annoyed my lender has an SVR of 4.99% (Dudley BS)

However, I had considered their new offer for when my fixed period ends in Nov. During July and Aug, they were offering 2 year discount rates of 2.99% but this has just been raised to 3.49% (1.5% discount).

The BoE base rate disconnect increases inexorably.

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Good. Rates are going up to reflect the true risk the banks are taking. They now all they need todo is bear down on multiples and LTV and we might develop a sound financial system that doesn't need taxpayers to bail it out.

Better late than never.

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I'm still annoyed my lender has an SVR of 4.99% (Dudley BS)

However, I had considered their new offer for when my fixed period ends in Nov. During July and Aug, they were offering 2 year discount rates of 2.99% but this has just been raised to 3.49% (1.5% discount).

The BoE base rate disconnect increases inexorably.

new loan, new fees.

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I'm still annoyed my lender has an SVR of 4.99% (Dudley BS)

However, I had considered their new offer for when my fixed period ends in Nov. During July and Aug, they were offering 2 year discount rates of 2.99% but this has just been raised to 3.49% (1.5% discount).

The BoE base rate disconnect increases inexorably.

Whenever I do quick mortgage calculations I normally stick in a rate of something like 6-7%. It will be interesting to see what the banks do if the BR does go up. At the moment the rates being offered to customers seem to be about 3-5%, of if the BoE BR goes up to 2% then will the banks keep their lending rates where they are (and reduce their income stream), or will the lending rates jump up within seconds of the BR being announced? I suspect it will be the latter.

Of course, there will be months of delay before the savings rate also reflect the change in the base rate. :angry:

QB

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Whenever I do quick mortgage calculations I normally stick in a rate of something like 6-7%. It will be interesting to see what the banks do if the BR does go up. At the moment the rates being offered to customers seem to be about 3-5%, of if the BoE BR goes up to 2% then will the banks keep their lending rates where they are (and reduce their income stream), or will the lending rates jump up within seconds of the BR being announced? I suspect it will be the latter.

Of course, there will be months of delay before the savings rate also reflect the change in the base rate. :angry:

QB

yes, trackers track the BoE rate in many cases.

of course, banks dont, as a matter of course, borrow from the BoE. They get their money from investors and savers.

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If rates go up, the effects will be even stronger now, as in the past couple of years, millions have switched from fixed to variable rates mortgages. Look at this:

proportionofmortgagefix.png

http://www.nationwide.co.uk/hpi/historical/Aug_2010.pdf

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What a week, REAL break thoughs, the tide has turned & you can almost smell the panic....................

As for the BOE, more & more the banks will set rates for loans & savings themselves...the BOE won't matter in 12 months, in 18 months Merv will be sacked and a basta*rd will be put in........then the BOE WILL matter!

Mike

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new loan, new fees.

No, that was the tempter. As an existing customer of the Dudley BS, anyone leaving their current deal (mine was a discount rate with cashback, remember them!) can transfer to the new deal for free. There are some savings products out there paying over 3% but now the discount deal rate has been put up to 3.49%, it makes no financial sense for me to do anything other than pay it off.

Other people's circumstances will differ, I mean you can get over 4% if you tie your money up (ICICI 3 year bond 4.15%)

As noted above, the disconnect is now so large that even though banks take the p*** mostly, I don't expect SVR's to move much above 5% until the BoE base rate goes over 2%.

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If rates go up, the effects will be even stronger now, as in the past couple of years, millions have switched from fixed to variable rates mortgages. Look at this:

proportionofmortgagefix.png

http://www.nationwide.co.uk/hpi/historical/Aug_2010.pdf

All the talk from the BOE is of new QE though and further loosening of monetary policy. and with the sovereign debt crisis seen as having come and been debt with base rates won't go up for a good few years.

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All the talk from the BOE is of new QE though and further loosening of monetary policy. and with the sovereign debt crisis seen as having come and been debt with base rates won't go up for a good few years.

Probably not.

But as this thread makes clear the laughable antics of the BoE have made them an irrelevance.

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  • 258 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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