Pauly_Boy Posted September 9, 2011 Share Posted September 9, 2011 I just had a quick look on first direct and they're offering a 5yr fixed rate mortgage at 3.49% for £1499 or 3.99% fee free! And I thought I got a good deal at 4.19% for 5 years, I feel depressed now Anyway, if insanely low rates like this can't put some life into the housing market then nothing can! http://mortgages.firstdirect.com/calculators/compare-calc/products Quote Link to comment Share on other sites More sharing options...
Pent Up Posted September 9, 2011 Share Posted September 9, 2011 They are not low at all considering base rates are 0.5% and they weren't much higher than this 7 or 8 Yeats ago. It's only recently that they stopped saying mortgage rates are lowest for seven years. Quote Link to comment Share on other sites More sharing options...
Kazuya Posted September 9, 2011 Share Posted September 9, 2011 Bring back 1990 house prices and 10% rates... Quote Link to comment Share on other sites More sharing options...
NEO72 Posted September 9, 2011 Share Posted September 9, 2011 5 yr fixes do see to have dropped if you have a large deposit. The question is-what happens to prices when the supply of punters with these sorts of deposits runs out? Imo hpcers are far from typical buyers, most of whom don't have 40k kicking about. The best time to buy will be literally when the last bear has turned bull. Quote Link to comment Share on other sites More sharing options...
Damik Posted September 9, 2011 Share Posted September 9, 2011 I just had a quick look on first direct and they're offering a 5yr fixed rate mortgage at 3.49% for £1499 or 3.99% fee free! And I thought I got a good deal at 4.19% for 5 years, I feel depressed now Anyway, if insanely low rates like this can't put some life into the housing market then nothing can! http://mortgages.fir...e-calc/products what happens after 5 years when IRs will be 5% or 7% ??? Quote Link to comment Share on other sites More sharing options...
Bruce Banner Posted September 9, 2011 Share Posted September 9, 2011 Mine is 3.9% fixed for five years..... ....ie NS&I pay me 3.9% on my savings. In days gone by, you would never have been paid more interest on your savings than you'd have to pay out on a mortgage. Quote Link to comment Share on other sites More sharing options...
PopGun Posted September 9, 2011 Share Posted September 9, 2011 what happens after 5 years when IRs will be 5% or 7% ??? A couple of years ago, they were predicted to be in double figures on here, (I was one of them). Nothing is certain, but I'm guessing rates will remain low as long as the banks are in government's hands. Quote Link to comment Share on other sites More sharing options...
Guest eight Posted September 9, 2011 Share Posted September 9, 2011 Mine is 3.9% fixed for five years..... ....ie NS&I pay me 3.9% on my savings. In days gone by, you would never have been paid more interest on your savings than you'd have to pay out on a mortgage. We're on an SVR (C&G) that is capped forever at BOE + 2%. Happy days. I understand said "product" is no longer available, however. Quote Link to comment Share on other sites More sharing options...
winkie Posted September 9, 2011 Share Posted September 9, 2011 5 yr fixes do see to have dropped if you have a large deposit. The question is-what happens to prices when the supply of punters with these sorts of deposits runs out? Imo hpcers are far from typical buyers, most of whom don't have 40k kicking about. The best time to buy will be literally when the last bear has turned bull. In other words......house prices are expected to fall therefore the banks expect buyers will lose their deposits up to 40% of property valuation...in other words 40% or there about is unsecured lending that is why the rate is so much higher.......a buyer puts 50% down the interest rate is cheap as chips because it is interest money for nothing for the banks, all they need is to cover their costs a bit on top plus a juicy fee....they have the house as their asset if need be. Quote Link to comment Share on other sites More sharing options...
davidcameron Posted September 9, 2011 Share Posted September 9, 2011 Yorkshire BS 5year fix is 3.39% and has been for some weeks. 10y fix is 4.19%. This is not news and is what is supporting the London market in particular (where the deposit is generally less of an issue). Too many on here think prices will fall when rates go up. Rates are not going up. Period. (And if you think they are, then take the 10 year fix and then they don't). Quote Link to comment Share on other sites More sharing options...
ader Posted September 9, 2011 Share Posted September 9, 2011 Mortgages are currently cheap until you realise that if prices fall 50% and you buy now you'll be paying twice the capital and therefore also twice the interest. I could get a 2.5% tracker if I wanted to buy but no thanks it's cheaper to rent a nicer place for now. Quote Link to comment Share on other sites More sharing options...
winkie Posted September 9, 2011 Share Posted September 9, 2011 Mortgages are currently cheap until you realise that if prices fall 50% and you buy now you'll be paying twice the capital and therefore also twice the interest. I could get a 2.5% tracker if I wanted to buy but no thanks it's cheaper to rent a nicer place for now. Go on stretch yourself, you know it will be worth it. Quote Link to comment Share on other sites More sharing options...
bobthe~ Posted September 9, 2011 Share Posted September 9, 2011 Yorkshire BS 5year fix is 3.39% and has been for some weeks. 10y fix is 4.19%. This is not news and is what is supporting the London market in particular (where the deposit is generally less of an issue). Too many on here think prices will fall when rates go up. Rates are not going up. Period. (And if you think they are, then take the 10 year fix and then they don't). Accord, who are the Broker arm of YBS and Chelsea, are doing a track and switch - 2 years at 2.19 (unless rates move), followed by a 3 year fix at 3.39. The only problem is that then you are on the SVR which is at 5.99, compared with a lot of the others who are at around 4. So if you are tempted in and then (as some friends of ours are finding), not able to remortgage to another deal, you are in a bit of trouble. Quote Link to comment Share on other sites More sharing options...
DC10 Posted September 9, 2011 Share Posted September 9, 2011 I could get a 2.5% tracker if I wanted to buy but no thanks it's cheaper to rent a nicer place for now. Not in London. Rents have gone through the roof in the last 12 months and it is now cheaper to buy. I wish it were different. Quote Link to comment Share on other sites More sharing options...
24gray24 Posted September 9, 2011 Share Posted September 9, 2011 Rates are not going up. Period. (And if you think they are, then take the 10 year fix and then they don't). The government would like rates to stay at this level for 10 years. However: a) the Tories' core constituency is (rich) OAPs, who are being wiped out by low rates. So politically, the Tories are conflicted, banks and homeowners want low rated, OAPs want high rates. The Tories would like rates to rise to normal levels once homeowners can stand it financially. Events outside the UK can force rates to rise. eg outflows of money into PM, or China, or war. Or banks being again faced with bankruptcy as foreign banks go down. Or QE making the pound fall faster than it benefits the banks. This is quite likely in the medium term IMO, and nothing the government can do about it. Quote Link to comment Share on other sites More sharing options...
richrich Posted September 9, 2011 Share Posted September 9, 2011 Rates is low because economy is shite. Where in the world do you see high rates? Nothing to do whether banks are nationalized or not. Quote Link to comment Share on other sites More sharing options...
Democorruptcy Posted September 9, 2011 Share Posted September 9, 2011 Rates are low because we operate a semi-criminal money laundering economy. As long as the "markets" (banks, spivs and specs, etc) are getting their hands on enough of our money, they are happy. Quote Link to comment Share on other sites More sharing options...
Bloo Loo Posted September 9, 2011 Share Posted September 9, 2011 (edited) If mortgages are so cheap, why are the PsTB bleating on about mortgages not being given in sufficient quantities to FTBs, new build buyers and others? Maybe they are still way to expensive considering wages, childcare, food and other costs. Edited September 9, 2011 by Bloo Loo Quote Link to comment Share on other sites More sharing options...
richrich Posted September 9, 2011 Share Posted September 9, 2011 If mortgages are so cheap, why are the PsTB bleating on about mortgages not being given in sufficient quantities to FTBs, new build buyers and others? Maybe they are still way to expensive considering wages, childcare, food and other costs. Mortgage maybe cheap, but houseprices are still too high [outside of the affordable level of most people] Quote Link to comment Share on other sites More sharing options...
Wig Posted September 9, 2011 Share Posted September 9, 2011 5 yr fixes do see to have dropped if you have a large deposit. The question is-what happens to prices when the supply of punters with these sorts of deposits runs out? Imo hpcers are far from typical buyers, most of whom don't have 40k kicking about. The best time to buy will be literally when the last bear has turned bull. Last bull turned bear surely is the best time to buy... Quote Link to comment Share on other sites More sharing options...
ader Posted September 9, 2011 Share Posted September 9, 2011 Not in London. Rents have gone through the roof in the last 12 months and it is now cheaper to buy. I wish it were different. I doubt that's true if you think beyond 12 months.Rent is only expensive if you take a short sighted short term view at present. If prices fall only 10% in the next 2 years I bet it's cheaper to rent at the moment. Quote Link to comment Share on other sites More sharing options...
Fairies Wear Boots Posted September 9, 2011 Share Posted September 9, 2011 I doubt that's true if you think beyond 12 months.Rent is only expensive if you take a short sighted short term view at present. If prices fall only 10% in the next 2 years I bet it's cheaper to rent at the moment. Farout. I just did the maths (went to a mortgage calculator). Interest only at 3.5% is cheaper than rent! And if I took 10 percent off what I guesstimated the place is worth, renting would be 7 pounds dearer. But I guess when you meant cheaper by what you will have saved. Quote Link to comment Share on other sites More sharing options...
Mr. Piddle Posted September 9, 2011 Share Posted September 9, 2011 I just had a quick look on first direct and they're offering a 5yr fixed rate mortgage at 3.49% for £1499 or 3.99% fee free! And I thought I got a good deal at 4.19% for 5 years, I feel depressed now Anyway, if insanely low rates like this can't put some life into the housing market then nothing can! http://mortgages.firstdirect.com/calculators/compare-calc/products You try getting one though, they will think of any excuse not to give you this rate (believe me I have tried) Quote Link to comment Share on other sites More sharing options...
Pent Up Posted September 9, 2011 Share Posted September 9, 2011 Mortgage maybe cheap, but houseprices are still too high [outside of the affordable level of most people] Mortgage rates are cheap. Mortgages are hugely massive, so mortgages themselves are very expensive! Quote Link to comment Share on other sites More sharing options...
longtomsilver Posted September 9, 2011 Share Posted September 9, 2011 (edited) I just had a quick look on first direct and they're offering a 5yr fixed rate mortgage at 3.49% for £1499 or 3.99% fee free! And I thought I got a good deal at 4.19% for 5 years, I feel depressed now Anyway, if insanely low rates like this can't put some life into the housing market then nothing can! http://mortgages.firstdirect.com/calculators/compare-calc/products Teaser rates until the time comes and you get stuck on high SVRs, end of. Edited September 9, 2011 by tomposh101 Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.