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Surrey cash buyer

Abbey Fixed Rates Keep Going Up

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Back in the summer they were offering 5yr fixed at 4.4%. A few weeks ago 4.8% now the best on offer is 5.04%, 5.14% if you haven't got a large deposit.

Don't forget, that is not 1% more

Its a 25% increase...........well 16.8% to be precise

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With the current uncertainty over future rates surely you would be foolish to take a mortgage with anything but a 5 year fixed rate.

For £150,000:

If you had agreed a mortgage like this in August it would have cost £548pm IO or £822pm 25yr repayment.

Now it will cost £628pm IO or £877 25yr repayment.

That's a 14.5% increase on the IO monthly payment or 6.7% increase on the 25yr

This will reflect in an equal decrease in the Halifax and Nationwide sale price agreed figures by December won't it???? Shouldn't we be excited by this??

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Just out of interest I tried the mortgage calculator:

Salary: £50,000 (a pretty good wage)

Monthly outgoings: £800 (conservative but reasonable for food, clothes, pension, travel, utilities etc)

Result:

£145,440.00 - if you have a deposit of 5%

£169,680.00 - if you have a deposit of 10%

£169,680.00 - if you have a deposit of 25%

Is that all?!!?!!?! :blink: You won't buy much for that in London or South East.

Are Abbey tightening the lending criteria also?

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Just out of interest I tried the mortgage calculator:

Salary: £50,000 (a pretty good wage)

Monthly outgoings: £800 (conservative but reasonable for food, clothes, pension, travel, utilities etc)

Result:

£145,440.00 - if you have a deposit of 5%

£169,680.00 - if you have a deposit of 10%

£169,680.00 - if you have a deposit of 25%

Is that all?!!?!!?! :blink: You won't buy much for that in London or South East.

Are Abbey tightening the lending criteria also?

I suspect mortgage calculators are generally kept low because they don't want it to be taken as an offer of a mortgage. I suspect any mortgage broker in an Abbey branch would add 100K to that without too much prodding.

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  • 301 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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