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Hsbc 90% Mortgage

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http://www.mortgagestrategy.co.uk/lenders/hsbc-launches-new-90-ltv-deals/1018187.article

HSBC is launching two new 90% LTV deals on Monday, both aimed at first-time buyers.

Its new tracker deal tracks at 3.69% above the Bank of England base rate currently 4.19%. It is also launching a two-year fixed rate deal at 5.09%.

Oh, and the fee is £99.

That's gotta be bullish?

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I've never had a mortgage and to be honest never paid much attention to rates while credit was so freely available before the crash (except perhaps to know that creditwas esceptionally cheap), but I do find a rate of 3.69% above BaseRate a bit scary... particularly under the expectation of rate hikes in the next few years.

Can anyone give me a rough idea of what the "average" tracker deals above base rate were like before the credit boom got into full swing? Like around 2001 for example? Were they really this much above Base Rate?

To me, that rate seems pretty unattractive...

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Can anyone give me a rough idea of what the "average" tracker deals above base rate were like before the credit boom got into full swing? Like around 2001 for example? Were they really this much above Base Rate?

No, and some of them were even below base rate causing some frantic examination of contracts when base rates went down to 0.5%. Technically some people would have expected to be paid by the banks to borrow money.

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Those busy, smoking factories are toiling to make these "products" for Mondays launch.

they have a laser printer working on the contract, and an office junior with his calculator out to work things out.

takes a lot of brain to work these products out.

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It's certainly interesting I will give you that. Doesn't mean they are changing their risk assessment criteria though. Just taking less of a deposit from 'the safe bets'.

Yes, the proof of the pudding is in the eating. These might be to get you in the door. Whether you're eligible is another matter.

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It's certainly interesting I will give you that. Doesn't mean they are changing their risk assessment criteria though. Just taking less of a deposit from 'the safe bets'.

What's a safe bet in this sort of economic environment? I can think of hardly anyone who may not be at risk.

What this shows to me is that the banks are going to do anything necessary to protect the money they have already loaned into the housing market - by making more and more available.

One thing puzzles me. Where do HSBC get the money to lend from? They pay feck all interest and I closed my accounts with them as a result. I'm sure I'm not the only person to have moved money out of HSBC because of the rates they pay savers ... where do they get all this money to lend?

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It's hugely bullish.

Mortgage availability and LTV is vital to any HPC - the average house price will follow the money available for mortgages like a lost puppy.

I am getting to the point now where I just can't see an HPC without a huge rise in interest rates, and that is not on the cards in the medium term.

Our housing market just seems to defy gravity. Too many sheeple queuing up to mortgage themselves to the hilt relative to the number of semi desirable properties.

It's shaping up to be a bad week for the bears.

Edited by Kyoto

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It's hugely bullish.

Mortgage availability and LTV is vital to any HPC - the average house price will follow the money available for mortgages like a lost puppy.

I am getting to the point now where I just can't see an HPC without a huge rise in interest rates, and that is not on the cards in the medium term.

Our housing market just seems to defy gravity. Too many sheeple queuing up to mortgage themselves to the hilt relative to the number of semi desirable properties.

It's shaping up to be a bad week for the bears.

You didnt read the comments section.

HSBC, reknowned in the trade for Weeks to make a decision, slow valuations and high criteria..

One comment says that the recipients of these mortgages will be delighted...both of them.

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It's hugely bullish.

Mortgage availability and LTV is vital to any HPC - the average house price will follow the money available for mortgages like a lost puppy.

I am getting to the point now where I just can't see an HPC without a huge rise in interest rates, and that is not on the cards in the medium term.

Our housing market just seems to defy gravity. Too many sheeple queuing up to mortgage themselves to the hilt relative to the number of semi desirable properties.

It's shaping up to be a bad week for the bears.

It's not bullish at all. There's plenty of 90% LTV mortgages available. The rates are crap as they are on this one. It's nothing new really and I doubt they would have relaxed their criteria.

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It's hugely bullish.

no it isn't

existence of said mortgage does not imply wide availability vis-a-vis the spectrum of credit-worthiness

Edited by Si1

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Nothing new. Skipton do a 95% mortgage. 2 year fix just 7.12% then base rate + 4.99%

I've got two...

Is there some way you can link your tenant's rent to your mortgage rate?

Something like mortgage = BOE+2% rent = BOE+7%

it would help protect property entrepreneurs from any increase in the base rate and it would allow renters cash to flow into the economy rather than sitting in bank accounts doing nothing.

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You didnt read the comments section.

HSBC, reknowned in the trade for Weeks to make a decision, slow valuations and high criteria..

One comment says that the recipients of these mortgages will be delighted...both of them.

Exactly. How much money is HSBC planning to lend out on these terms? A few million? They might just lend out a few of these so they and the government can pretend that they're doing all they can "to get banks lending again" since that's what the man on the street and idiots in the media want them to do.

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Is there some way you can link your tenant's rent to your mortgage rate?

Something like mortgage = BOE+2% rent = BOE+7%

Also all BTL landlords to get to sleep with the television starlet of their choice once a year?

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HSBC is launching two new 90% LTV deals on Monday, both aimed at first-time buyers.

Its new tracker deal tracks at 3.69% above the Bank of England base rate currently 4.19%. It is also launching a two-year fixed rate deal at 5.09%.

You would have to be an moron to accept this.

Edited by fellow

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Is there some way you can link your tenant's rent to your mortgage rate?

Something like mortgage = BOE+2% rent = BOE+7%

it would help protect property entrepreneurs from any increase in the base rate and it would allow renters cash to flow into the economy rather than sitting in bank accounts doing nothing.

I think it is important to reward savvy landlords and punish renter scum who otherwise might invest in the real economy thru shares and bonds. this should be enshrined in law.

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What is a 90% mortgage if a. it is only say 2.5 or 3 times your basic income. b. excellent credit score. c. no other debt. d.proof of income.....subject to survey. ;)

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You would have to be an moron to accept this.

You'd have to be a moron to be a first time buyer leveraging up to buy a shoebox at the moment so I guess it's moron's they're going for.

What is the point in a tracker so high above base rate? Doesn't make much sense.

I still don't see any fixed rates out there that would even make me think about coming off my low tracker.

House prices should drop another 20% to fair value. Will big government and banks be able to stop this? We shall see over the next 2 years I suppose.

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You would have to be an moron to accept this.

The problem is, there are lots of morons around.

I know because I used to be one of them.

I took out a mortgage in 2005/2006. I don't even think I looked at the rate - just the monthly repayment (fixed for 5 years) and gave a passing thought to what would happen if interest rates rose.

An extreme example yes, but there are people queuing up with the same levels of financial intelligence as I used to have. And given todays low rates, interest rate outlook, and high rents, I fear the numbers might almost stack up for them.

Edit - I think I locked in at 5.75 which was still cheaper than renting.

Sigh, I think the Halifax figures have just gotten to me today :(

Edited by Kyoto

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snip

I still don't see any fixed rates out there that would even make me think about coming off my low tracker.

snip

LOL>...you are ripe for harvesting.

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When you look at the figures with more scrutiny and also look at the political reasons behind it then it could be seen as very bearish. I think that is what you are saying?

Interesting the 3.69% above base which really is a very high mortgage indeed, normally. Base rate at end of 2011 around 3.5%? Minimum 2.5% maximum 4.5%? So this would be a slightly worse deal over 1 year period depending how quickly rates rise and definately worse over the 2 year with the only advantage being slightly lower early payments. Toward the end of the 2 year period the rate could have gone from 4.19% to 12% which could frighten anyone.

So what it tells me is that HSBC expect rates to increase significantly over the next 2 years. But why not offer a slightly better rate of say 2.5% above base and free set up cost? they would still make a killing.

The 90% LTV is the only slightly bullish part. They have estimated that house prices will only fall around 10% and probable worse case senario around 15% over the 2 years with the possibility of very low negative equity which would not be too much a problem if cherry picked clients on a repayment mortgage who have also been persauded to use all the other expensive great services HSBC offer.

So all round a great deal for HSBC.

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  • 238 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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