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Lenders Raise Mortgage Rates -- It's Frenzy Time!

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http://uk.finance.yahoo.com/news/Lenders-raise-mortgage-rates-tele-3108020929.html?x=0

Lenders raise mortgage rates
Rosie "Rosalinda" Murray-West, 13:00, Friday 11 February 2011
The Bank of England decision to hold interest rates at their record low has not stopped lenders from putting up the price of fixed-rate mortgages...../
Fixed-rate mortgages rose to their highest level in six months
, with the typical rate on a five-year fixed rate mortgage now being 5.45 pc. This is expected to continue because swap rates - the rates at which banks lend to each other and which determine the price of fixed-rate mortgages - are soaring on the expectation of a Bank Rate rise soon.

The coffin nails are flying thick and fast now folks. Better days ahead for all who have been priced out of basic shelter.

Edited by Realistbear

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even if the BOE dont react to inflation, the banks and everyone else in the country will.

the idea they can put their fingers in their ears, pretend inflation isnt happenning, and expect everyone else to do the same, is ridiculous.

inflation reduces the real value of money, there is only one outcome - a rise in interest rates. whether the BOE raise base rates will be irrelevant.

Edited by mfp123

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even if the BOE dont react to inflation, the banks and everyone else in the country will.

the idea they can put their fingers in their ears, pretend inflation isnt happenning, and expect everyone else to do the same, is ridiculous.

inflation reduces the real value of money, there is only one outcome - a rise in interest rates. whether the BOE raise base rates will be irrelevant.

It won't be irrelevant to people on SVRs and base rate trackers ... that will constrain supply as those who stupidly borrowed money to buy overpriced housing should be able to hold on if base rate stays at 0.5%. This will drag things out a lot longer.

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This isn't my area of expertise, but I know several folks who locked in their rates for five year fixes in 06 when IRs looked like they were going up and up. They can't wait to get to the end of that period and move on to lower SVRs!

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It won't be irrelevant to people on SVRs and base rate trackers ... that will constrain supply as those who stupidly borrowed money to buy overpriced housing should be able to hold on if base rate stays at 0.5%. This will drag things out a lot longer.

I reckon the BoE will not raise rates to more than 1.5% in the next five years and maybe 2.5% by year 10. Good if your tracking at 0.17%above base like I once was but bad news for those track at 3.5% above BoE rate. The banks have detached themselves from the loons at the Bank of Nonsengland they should be in the Mr. Men collection the fantasists that they are can somebody make it happen... mr topsy merv ? I lack the artistic ability to pull it off.

Edited by tomposh101

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This isn't my area of expertise, but I know several folks who locked in their rates for five year fixes in 06 when IRs looked like they were going up and up. They can't wait to get to the end of that period and move on to lower SVRs!

+1

A bit deja vu all this, the same in 2008 as well.

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http://uk.finance.yahoo.com/news/Lenders-raise-mortgage-rates-tele-3108020929.html?x=0

Lenders raise mortgage rates
Rosie "Rosalinda" Murray-West, 13:00, Friday 11 February 2011
The Bank of England decision to hold interest rates at their record low has not stopped lenders from putting up the price of fixed-rate mortgages...../
Fixed-rate mortgages rose to their highest level in six months
, with the typical rate on a five-year fixed rate mortgage now being
5.45 pc. This is expected to continue because swap rates - the rates at which banks lend to each other and which determine theprice of fixed-rate mortgages -
are soaring on the expectation of a Bank Rate rise soon.

The coffin nails are flying thick and fast now folks. Better days ahead for all who have been priced out of basic shelter.

The question that must be asked is at what point dose the swap rate {as highlighted above} make svr`s and base rate tracker`s non profitable as I think that will determine the time of a B.O.E base rate rise as those mortgages will have to be refinanced sooner or later but how long that scenario will take to come to fruition I have no idea

Edited by long time lurking

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This isn't my area of expertise, but I know several folks who locked in their rates for five year fixes in 06 when IRs looked like they were going up and up. They can't wait to get to the end of that period and move on to lower SVRs!

A few yrs ago a colleague took out a 15yr fixed. He moans about how much he's paying. For the last 2yrs (and probably the next 2) he's been paying about £200/month more than if he were on the SVR.

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5 year swap rates are around 3.2% and svr's will just move with them. I recently went to hsbc to ask about their base +1.79% tracker. It's being assessed but I see no harm in locking that rate for 6 months just in case, as they told me they think even their variable rates were going up (that one to base +1.99% in next few weeks).

http://www.swap-rates.com/UKSwap.html

...looking like the only way is up. ;)

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It won't be irrelevant to people on SVRs and base rate trackers ... that will constrain supply as those who stupidly borrowed money to buy overpriced housing should be able to hold on if base rate stays at 0.5%. This will drag things out a lot longer.

base rate trackers maybe ok, but SVR's will increase as and when banks want to.

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Maybe, but 5y swap rates are only back to about where they were a year ago.

OK but if the money is not so easy...the money is not so free...the money has to real money and available to be available to lend...would you want to trust your money to anyone who you felt was not fit or capable to repay.

With easy money there was no need to repay....it was sold off, diluted good money with the bad.......no one wants to buy the brown stuff anymore....... ;)

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Money is never free. If you want to avoid a great deal of timing anxiety and repayment stress, borrow when money is expensive.

It is if you don't pay for it.....I agree prices are lower when money is more expensive. ;)

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  • 276 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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