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Mse 'fix Mortgage Deals Now'

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I'm not sure if anyone else receives their weekly e-mail but this week's lead 'story' is advice to fix your mortgage as their expert expects rates to rise.

I don't view MSE's advice as being particularly sound but plenty do, and it is one of the more impartial source of financial advice. Could this be the start of a slow realisation that things are going to start getting more difficult?

6m receive their weekly e-mail, more than the circulation of The Sun, The Daily Mail, The Daily Mirror and The Evening Standard COMBINED.

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So, the press thinks rates are to rise...surely the purveyors of money, the banks, will already know and be raising rates and criteria LONG before it gets to be released to the public.

Of course, there could be another motive.....why just change when you can MEW a few extra 000s for a few pence more?

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I suspect that most of the 6M will delete without reading. It will be an attempt to justify their existence, and focus their "importance".

Statistically, open rates for an email like that will be 25%. That's still over a million people.

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Did these same experts predict the crash and central banks co-ordinated actions?

All the central bankers are in it together I doubt they'll up rates until they are forced.

If everyone does fix and takes out long term deals it makes central bank interest rate policy irrelevant in a sense, it will also ensure that central bankers can't increase rates without weakening the banks low rates are there to protect.

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I was talking to an EA yesterday who said that the main lenders simply are not lending and that he has had numerous examples of people trying to arrange a mortgage via them, paid for the mortgage arrangement and then been turned down.

He said that the buyers are then going to smaller less known mortgage suppliers who charge considerably more in fees and interest rates. Kensington(?) was named as one.

He reckoned most of those people would be repossessed within 3 years.

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Did these same experts predict the crash and central banks co-ordinated actions?

All the central bankers are in it together I doubt they'll up rates until they are forced.

If everyone does fix and takes out long term deals it makes central bank interest rate policy irrelevant in a sense, it will also ensure that central bankers can't increase rates without weakening the banks low rates are there to protect.

MSE was a pioneer in the "use the competition to get a great deal on your mortgage"...you could, after all, move it again in two years to a cheaper lender....all very well, but people tended to add a few 000s to each "renewal" for no more monthly cost....all fine and dandy till 2008 when oops...people found they couldnt move because of poor credit, higher rates or other things like redemption fees etc etc.

MSE wants to bankrupt every vendor of every product, pushing people to buy from the cheapest, get the money back vouchers and generally forget about service....even though the price you paid is forgotten long since you need some "service" on your bargain.

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Guest eight

I was talking to an EA yesterday

Really? You do surprise me.

Oh no hang on, that's wrong. What I meant to say was -

Really? You don't surprise me.

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http://www.moneysavingexpert.com/latesttip/

Fixed rate mortgages are at historic lows. Yet Ray Boulger, from broker John Charcol - one of the UK's leading technical experts on mortgages - is warning...

"If you want a fixed rate, now is the time. There's nothing to be gained by waiting and a real risk you'll pay more if you do."

...

With a mortgage fix, the amount you repay is, er, fixed. So it's a bit like an insurance policy against rate rises. The closer the mortgage puts you to the financial brink, the more you should focus on certainty that you can repay and keep the roof over your head.

..

And finally... don't think renting is a dirty word. Many, especially younger people, think they must move heaven and earth to buy a house. Don't listen to TV property pushers. Ensure you're financially stable before embarking on such a big commitment - or you could lose the house.

A bit of mixed advice here, if your close to financial brink by borrowing, perhaps you should wait and not borrow any money?

Probably the advice at the end is the key.

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So, the press thinks rates are to rise...surely the purveyors of money, the banks, will already know and be raising rates and criteria LONG before it gets to be released to the public.

There have been multiple similar warnings over the last few years, only to be followed by a REDUCTION in rates - thus capturing any existing sensible borrowers who heeded the advice.

The introduction of the new low rate is used to tempt NEW borrowers into the game, not necessarily help existing ones.

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Sorry I don't think I'm familiar with that word could you elaborate? :P

Oops - well spotted. I am such a grammar, punctuation and spelling nazi that I now have to go outside and shoot myself.

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Really? You do surprise me.

Oh no hang on, that's wrong. What I meant to say was -

Really? You don't surprise me.

Well, some of us have to. You can't win a war without knowing your enemy.

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Where does one get a 30 year fix?

This was the US rates rising thread and somebody posted (I thought it was your good self tbh) a UK equivalent and the week-on-week rates had jumped too.

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Web portal that makes millions from clickthroughs, and commissions from peddlers of financial filth....

Says "clickthrough, and buy financial filth from our peddlers..."

Whodathunkit?

Is there any f**ker in this country that is trying to screw the rest of the population over to make a quick buck?

We're starting to make the "Merkins" look like a bunch of values-driven philanthropists

:blink:

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Where does one get a 30 year fix?

Call Goldman Sach or Barclays Wealth and they should be able to price one up for you, with their fees/margin added.

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Statistically, open rates for an email like that will be 25%. That's still over a million people.

True but then say each of those papers printed an article on mortgage rates, what percentage of readers would actually read the article? It's probably not far off a similar number.

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Have they not run the fix rates advice before? Is this not a regular bit of advice they give? Didn't rates fall after previous "fix now" alerts? I could be wrong, but that's what I seem to recall from somewhere.

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As another poster pointed out, it's pretty clear that the banksters have a good idea where rates are going to go (assuming that they follow the script set by the central banks).

Therefore, if official central bank rates were set to rise soon you'd have seen that reflected in the fixed rates that banks offer well in advance of the CB rates actually rising.

As far as I can see, that hasn't been happening.

From the point of view of pure hardened cynicism I'd have to say that I suspect that if anything, the CBs will soon be flooding the market with super-cheap money and the current hype about fixing rates is nothing more than a very cynical ploy to get people locked into current rates before they drop even further.

That was certainly the case the last time we heard the mainstream media warn of rising rates and telling people to lock in. Lots of people fixed around 5% or so only to see base rates drop to almost zero over the course of their fix and people on trackers pay in some cases less than 1%. Very nice business for the banks though.

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As another poster pointed out, it's pretty clear that the banksters have a good idea where rates are going to go (assuming that they follow the script set by the central banks).

Therefore, if official central bank rates were set to rise soon you'd have seen that reflected in the fixed rates that banks offer well in advance of the CB rates actually rising.

As far as I can see, that hasn't been happening.

From the point of view of pure hardened cynicism I'd have to say that I suspect that if anything, the CBs will soon be flooding the market with super-cheap money and the current hype about fixing rates is nothing more than a very cynical ploy to get people locked into current rates before they drop even further.

That was certainly the case the last time we heard the mainstream media warn of rising rates and telling people to lock in. Lots of people fixed around 5% or so only to see base rates drop to almost zero over the course of their fix and people on trackers pay in some cases less than 1%. Very nice business for the banks though.

As I've pointed out many times, fixed rate deals are there for the lenders benefit, not the borrowers. So yes future IR rises will be priced into fixed rate deals long before there is any danger of real rises.

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Comment noted:

yields and £ falling on BoE guidance that rise was "not warranted" by developments

They said it wasn't warranted by developments in the UK economy, which doesn't preclude the possibility that it is warranted by developments elsewhere.

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  • 242 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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