Realistbear Posted November 25, 2010 Share Posted November 25, 2010 http://uk.finance.yahoo.com/news/Home-buyers-see-mortgage-tele-4096710044.html?x=0 Home buyers see mortgage rates rise on new deals Myra Butterworth, 16:12, Thursday 25 November 2010 Home buyers will see their mortgages increase when their initial deal comes to an end, Britain’s biggest lender has warned. Halifax, which is 41 per cent by the state following a bailout amid the financial crisis, is introducing a new standard variable rate of 3.99 per cent for all customers taking out a home loan from the beginning of the New Year. Puts one in a jubilant mood, what? Quote Link to comment Share on other sites More sharing options...
winkie Posted November 25, 2010 Share Posted November 25, 2010 ...is it not prudent and wise to factor in 5% either way. Quote Link to comment Share on other sites More sharing options...
Sour Mash Posted November 25, 2010 Share Posted November 25, 2010 http://uk.finance.yahoo.com/news/Home-buyers-see-mortgage-tele-4096710044.html?x=0 Home buyers see mortgage rates rise on new deals Myra Butterworth, 16:12, Thursday 25 November 2010 Home buyers will see their mortgages increase when their initial deal comes to an end, Britain’s biggest lender has warned. Halifax, which is 41 per cent by the state following a bailout amid the financial crisis, is introducing a new standard variable rate of 3.99 per cent for all customers taking out a home loan from the beginning of the New Year. Puts one in a jubilant mood, what? The 'interest rates' being the rates that they charge their customers, not base rates. And the rise will only applied to new customers meaning that the existing overborrowed fecktards can still cling on. Quote Link to comment Share on other sites More sharing options...
Pent Up Posted November 25, 2010 Share Posted November 25, 2010 http://uk.finance.yahoo.com/news/Home-buyers-see-mortgage-tele-4096710044.html?x=0 Home buyers see mortgage rates rise on new deals Myra Butterworth, 16:12, Thursday 25 November 2010 Home buyers will see their mortgages increase when their initial deal comes to an end, Britain’s biggest lender has warned. Halifax, which is 41 per cent by the state following a bailout amid the financial crisis, is introducing a new standard variable rate of 3.99 per cent for all customers taking out a home loan from the beginning of the New Year. Puts one in a jubilant mood, what? Indeed it does. No more cheap money? Quote Link to comment Share on other sites More sharing options...
Si1 Posted November 25, 2010 Share Posted November 25, 2010 The 'interest rates' being the rates that they charge their customers, not base rates. retail rates are still very important, indicating a greater rate-spread, indicating the mortgage lenders and indeed bond markets demand a bigger compensation for risk And the rise will only applied to new customers meaning that the existing overborrowed fecktards can still cling on. yes - but this still dampens demand and the availability of money, it will still be a negative force on house prices Quote Link to comment Share on other sites More sharing options...
Si1 Posted November 25, 2010 Share Posted November 25, 2010 Indeed it does. No more cheap money? somebody should do something, it's a disgrace Quote Link to comment Share on other sites More sharing options...
Sour Mash Posted November 25, 2010 Share Posted November 25, 2010 retail rates are still very important, indicating a greater rate-spread, indicating the mortgage lenders and indeed bond markets demand a bigger compensation for risk Yes, but it's the base rates that are enabling a vast amount of financial morons to hang on to their BTL empire, for example. They're typically on long term trackers. yes - but this still dampens demand and the availability of money, it will still be a negative force on house prices It only makes houses even more unaffordable for common people. It doesn't tackle the real issue that's holding prices up, the fact that many can cling on to what they have despite having borrowed well beyond their means to get it. Quote Link to comment Share on other sites More sharing options...
Democorruptcy Posted November 25, 2010 Share Posted November 25, 2010 Is it so they can pay their savers a better rate? Quote Link to comment Share on other sites More sharing options...
okaycuckoo Posted November 25, 2010 Share Posted November 25, 2010 Is it so they can pay their savers a better rate? Yes, that must be it! Quote Link to comment Share on other sites More sharing options...
RufflesTheGuineaPig Posted November 25, 2010 Share Posted November 25, 2010 Is it so they can pay their savers a better rate? No they have to make back all the money they lost. The goverment made it clear that the banks have to earn their way back to viability. For some reason people thought that meant raising charges for everyone apart from them. Quote Link to comment Share on other sites More sharing options...
fellow Posted November 25, 2010 Share Posted November 25, 2010 Indeed it does. No more cheap money? 3.99% seems pretty cheap to me. Quote Link to comment Share on other sites More sharing options...
longtomsilver Posted November 25, 2010 Share Posted November 25, 2010 3.99% seems pretty cheap to me. If the population of Home Owners mortgage holders are punch drunk on mortgages tracking little more than base rate then 3.99% seems high. There are alot of financially illiterate people out there taking on tracker mortgages of between 1.5-2% above base. Come the day they are unable to remortgage they'll be stuck between a rock and a hard place when BoE rates are back up to sensible figures 5-6% and the longer that base rates are kept as they are now the higher they will go up in future. My gut feeling is if the BoE doesn't start putting rates up until a ) 2012 then they'll have to reach 7-8%, 2013 9-10%, c) 2014 11-15%, d) 2015, financial meltdown. Quote Link to comment Share on other sites More sharing options...
bobthe~ Posted November 25, 2010 Share Posted November 25, 2010 If the population of Home Owners mortgage holders are punch drunk on mortgages tracking little more than base rate then 3.99% seems high. There are alot of financially illiterate people out there taking on tracker mortgages of between 1.5-2% above base. Come the day they are unable to remortgage they'll be stuck between a rock and a hard place when BoE rates are back up to sensible figures 5-6% and the longer that base rates are kept as they are now the higher they will go up in future. My gut feeling is if the BoE doesn't start putting rates up until a ) 2012 then they'll have to reach 7-8%, 2013 9-10%, c) 2014 11-15%, d) 2015, financial meltdown. If you took out a lifetime tracker before it hit the fan in '07, you would be on less than 1% over base, some (including someone I know) is paying less than the base rate on their mortgage. II remember looking at rates around June '07 and would have been able to get BBR + 0.3%. There is no money to be made from these people as far as the banks are concerned. I guess the Govt's hope is that a lot of people will spend like sailors, although my hope is that they pay off as much as they can (for the sake of their future mobility). Quote Link to comment Share on other sites More sharing options...
longtomsilver Posted November 25, 2010 Share Posted November 25, 2010 If you took out a lifetime tracker before it hit the fan in '07, you would be on less than 1% over base, some (including someone I know) is paying less than the base rate on their mortgage. II remember looking at rates around June '07 and would have been able to get BBR + 0.3%. There is no money to be made from these people as far as the banks are concerned. I guess the Govt's hope is that a lot of people will spend like sailors, although my hope is that they pay off as much as they can (for the sake of their future mobility). I sold my house last year even though my mortgage was tracking 0.19% above base. My monthly mortgage payment cost less than a meal out. I thought if it appears too good to be true then it isn't. Right now it appears I am the fool, time will tell Quote Link to comment Share on other sites More sharing options...
RufflesTheGuineaPig Posted November 25, 2010 Share Posted November 25, 2010 There is no money to be made from these people as far as the banks are concerned. This is why actual interest rates will correct themselves, one way or another. Quote Link to comment Share on other sites More sharing options...
longtomsilver Posted November 25, 2010 Share Posted November 25, 2010 Also add that banks trackers are now 1.5-2% above base and not the 0.3% you could have got pre 2007 Quote Link to comment Share on other sites More sharing options...
red Posted November 25, 2010 Share Posted November 25, 2010 Is it so they can pay their savers a better rate? nah - it's just that swap rates are higher than a few months back and they're pricing in for further rises. the cheapest deal I found was a 2.19% tracker with HSBC...that's now edged up to 2.39% (and that's 60% LTV!) Quote Link to comment Share on other sites More sharing options...
nohpc Posted November 25, 2010 Share Posted November 25, 2010 this is what we will see for the next 5 years. Rate rises (loan rates) without rate rises (interest rates on savings, BOE rates and associated tracker mortgages) Very bad for new borrowers or current borrowers needing to remortgage. Very good news for people on lifetime tracker mortgages. Quote Link to comment Share on other sites More sharing options...
nohpc Posted November 25, 2010 Share Posted November 25, 2010 I sold my house last year even though my mortgage was tracking 0.19% above base. My monthly mortgage payment cost less than a meal out. I thought if it appears too good to be true then it isn't. Right now it appears I am the fool, time will tell depends why you sold and if you can lock your mortgage in for moving for up to a year as some lenders will allow. If you have thrown away that mortgage deal just so you can sell to rent in case of a houseprice crash you will need a mammoth crash to gain in the long term. Quote Link to comment Share on other sites More sharing options...
foxy Posted November 25, 2010 Share Posted November 25, 2010 If you have thrown away that mortgage deal just so you can sell to rent in case of a houseprice crash you will need a mammoth crash to gain in the long term. Care to put some meat on that bone? I mean, show us your workings... Quote Link to comment Share on other sites More sharing options...
Optobear Posted November 25, 2010 Share Posted November 25, 2010 http://uk.finance.yahoo.com/news/Home-buyers-see-mortgage-tele-4096710044.html?x=0 Home buyers see mortgage rates rise on new deals Myra Butterworth, 16:12, Thursday 25 November 2010 Home buyers will see their mortgages increase when their initial deal comes to an end, Britain’s biggest lender has warned. Halifax, which is 41 per cent by the state following a bailout amid the financial crisis, is introducing a new standard variable rate of 3.99 per cent for all customers taking out a home loan from the beginning of the New Year. Puts one in a jubilant mood, what? Is this the end of the Base Rate link? As others have said already, this marks the start of a decoupling between official base rates and practical base rates. My guess would be that if the banks stopped offering base rate link products, then within 2 years you'd find that 80% or more of all mortgages would be entirely decoupled from the official base rates. The government can try legislating market rates but that is like trying to hold back the tide. Quote Link to comment Share on other sites More sharing options...
longtomsilver Posted November 25, 2010 Share Posted November 25, 2010 depends why you sold and if you can lock your mortgage in for moving for up to a year as some lenders will allow. If you have thrown away that mortgage deal just so you can sell to rent in case of a houseprice crash you will need a mammoth crash to gain in the long term. It wasn't about property speculation for me. The house had it's own problems but by far the greatest reasoning was that I had just started a family and the state schools in the area were average (poor). Quote Link to comment Share on other sites More sharing options...
northwestsmith2 Posted November 25, 2010 Share Posted November 25, 2010 Anyone on trackers should be paying the same as their long term average, at the moment it would be going towards capital which is worth about double whatever you pay in by saving interest. I can't understand how someone would think they are saving money by taking a very expensive payment holiday. Quote Link to comment Share on other sites More sharing options...
sammysnake Posted November 25, 2010 Share Posted November 25, 2010 Well I moved to a tracker 0.45 above base rate in 2008 from HSBC For this reason alone i'm inclined to stay put. What I'm confused about is the terminology "porting" a mortgage. I'm 90% certain, that if I truly wanted to port my mortgage now, I'd have more chance shagging Kate Middleton. Quote Link to comment Share on other sites More sharing options...
longtomsilver Posted November 25, 2010 Share Posted November 25, 2010 Well I moved to a tracker 0.45 above base rate in 2008 from HSBC For this reason alone i'm inclined to stay put. What I'm confused about is the terminology "porting" a mortgage. I'm 90% certain, that if I truly wanted to port my mortgage now, I'd have more chance shagging Kate Middleton. She's an ordinary girl. Before Wills you might have had your chance. There'll be a few of her skeletons now paid off handsomely to keep quiet! Quote Link to comment Share on other sites More sharing options...
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