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Bled Dry By The Banks: Uk Mortgages Worst Value In The World

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http://www.dailymail.co.uk/news/article-1314140/Bled-dry-banks-UK-mortgages-worst-value-world.html

Britain's banks are using homebuyers as cash cows, according to new research revealing the mark-up on our mortgages is the highest in the Western world.

The difference between what British banks pay for funds and what they charge homeowners is more than twice that in the U.S., France or Germany.

British banks add 2.5 percentage points to the cost of the money they borrow before lending it out, while U.S. banks add just 0.85 points.

This ‘homebuyers tax’ means that on the average £150,000 loan, borrowers in Britain pay £120 more a month on their mortgage than those in the U.S.

Findings by consultancy Autonomous Research used official rates, such as Bank of England base rate, as a fair comparison across countries.

Yesterday, Money Mail looked at swap rates — which banks use to buy money from each other. We discovered banks were paying 1.4 per cent to borrow money, but typically charging 3.72 per cent to lend to homeowners — a difference of 2.32 percentage points.

Last night, Lloyds TSB was charging 3.79 per cent for a two-year fixed rate. Natwest and Santander were offering 3.19 per cent.

This will be a hard pill to swallow for thousands shut out of the market by a shortage of cheap deals and tough lending rules.

Is the analysis here flawed or not?

Any important information missing?

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<br /><a href='http://www.dailymail...alue-world.html</a><br /><br /><br /><br />Is the analysis here flawed or not?<br /><br />Any important information missing?<br />

If they all go on Mortgage 'strike' en masse - they would take down the Govt/City/banking system in one nuke!

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Yes you're missing one big fundamental part, our banks make much bigger profits and pay bigger bonuses. These have to come from somewhere!

Not to mention the mortgage parasite brokers who also take a cut , an interesting article in money mail today about these people, I would imagine there will be some nice comments later in the day.

Edited by papag

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The DM seems to be going to town with producing articles about the property market, mortgages and house prices. It certainly always produces a lively reaction and debate from their readers.

If you have time it would be good to see some readers comments pointing out the fundamental flaws of the DM argument of wanting Banks to reduce mortgage rates and get the whole house price boom going again. The DM seems to be advocating a return to Gordon Brown economics of irresponsible mortgage lending and fuelling the house price boom. Perhaps some readers comments pointing out the consequences are in order?

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The DM seems to be going to town with producing articles about the property market, mortgages and house prices. It certainly always produces a lively reaction and debate from their readers.

If you have time it would be good to see some readers comments pointing out the fundamental flaws of the DM argument of wanting Banks to reduce mortgage rates and get the whole house price boom going again. The DM seems to be advocating a return to Gordon Brown economics of irresponsible mortgage lending and fuelling the house price boom. Perhaps some readers comments pointing out the consequences are in order?

At least some of the last couple of lines are true

The Council of Mortgage Lenders insists funding mortgages is not as simple as what lenders pay for funds.

Banks face increased costs because some borrowers are still on older, low-cost, cheap loans; red tape costs more; and there is a need to bring in funds to build reserves.

Or in HBoS case fill in the black hole when they have to repay the BoE

Edited by koala_bear

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slightly off topic, but it looks like the 'homeowner guy' from the article had an encounter with a seagul.. :lol:

article-1314109-0B4AFF6B000005DC-865_468x762.jpg

that christopher plumber was much better looking when he was in the Sound of Music.

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No harm to them, but they are like millions of others, believing that 3.5% IR's or less are the norm. It isn't. They have been "lucky" to buy at a time when IR's rates have been historically low. They can only move one way. North. Although when that will happen is anyone's guess...

And their jobs look unlikely to be safe when the market crashes. An EA and a plumber :o

I don't like the banks, but I reckon they are doing this young couple a favour by not allowing them to remortgage. No kids, so at least they'll be able to pick up their lives quite quickly should the crash impact them. :)

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that christopher plumber was much better looking when he was in the Sound of Music.

deleted, as I see Pole made the same comment

Edited by bobthe~

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slightly off topic, but it looks like the 'homeowner guy' from the article had an encounter with a seagul.. :lol:

article-1314109-0B4AFF6B000005DC-865_468x762.jpg

I did not have sexual relations with the mortgage broker.

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why dont Brits take out a foreign loan like the E Europeans, you can get a 10 year fix here at 1.75% what could possibly go wrong :lol:

Sterling. ATM still sitting on that bed of nitroglycerine.

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  • 244 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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