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giesahoose

0% Teaser Interest Rates From Leeds Building Society

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Only at the top of a market - and new houses have that buyers premium and as soon as it's wheeled off the forecourt the possible selling price is likely to drop.

Disclaimer

This is not investment advice.

(Just in case)

Edited by billybong

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A 10-year deal offers borrowers three months at 0% before moving them to a rate of 5.16%, or six months at 0% and then 5.34%; the five-year deal offers three months at 0% and then 4.13%, or six months at 0% and then 4.4%; and the two-year version offers three months at 0% and then 2.88%.

Interesting if you took the 6 months option how much would you have to over pay for the 5.34% to be worth the hit?

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During the first months of the mortgage customers will still have to pay off the capital, and the interest they do not pay at the beginning will be added into the later payments.

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What deal are they offering savers ?

0% interest for the first 6 months followed by collapse and a hair cut there after ?

I mean really...it's time the banks were properly regulated and this sort of nonsense stopped.

Edited by TheCountOfNowhere

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During the first months of the mortgage customers will still have to pay off the capital, and the interest they do not pay at the beginning will be added into the later payments.

So it's not 0% then.

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This crap would not be happening if we did not bail out the banks. If thing continue in this vain we will need to bail them out again for exactly the same reason we did the first time. What is going on?

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During the first months of the mortgage customers will still have to pay off the capital, and the interest they do not pay at the beginning will be added into the later payments.

Correct. It is based on their 10 year (or 5 year) fixed deal of 4.99%. Anyone who was thinking of buying a house should be locking into a10 year fix and planning for possiblly that the house could be worth less by the end of the deal. Really looking to overpay and pay the deal off by the end of the 10 years, so no risk of getting hurt by large interest rate rises which I still think (although there are no signs on the horizon at the moment) could jump up due to unseen circumstances.

The last time I looked at the numbers for this sort of deal it still appeared that I would be better off renting.

(I just notice that this 0% deal can also be included in their 2 year fix deal, what the hell would be the point of that!)

Edited by renting til I die

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As soon as Interest Rates go up (in a matter of months) these mortgage holders will be the first to go under.

It's irresponsible.

Help To Buy should be stopped right now before more innocent people get sucked in.

The first comment on the article is totally wrong. However irresponsible these products seems, if the mortgage holder has a 10 year fix the first interest rate changes will have no affect on them, hence the point of fixing!

Interest rates won't be going very far for a very long time.

And this person thinks they can see far into the future!

Anyone who thinks rates are going up sharply might be mistaken

OR might not....

Edited by renting til I die

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So it's not 0% then.

no, its deferred interest, which means those savings will be paid for over the 10 years of the loan.

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The first comment on the article is totally wrong. However irresponsible these products seems, if the mortgage holder has a 10 year fix the first interest rate changes will have no affect on them, hence the point of fixing!

snip

not strictly correct as these are for HTB 1 borrowers, so the government part becomes payable @ 5 years as well, there is a formula for the interest payments on that part.

So this borrower, assuming he is using the scheme to the max, will see payment rises at month 6, then again in month 60.

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I'm sure that nice Mr Carney is remaining vigilant and monitoring the situation. ( :lol: )

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The first comment on the article is totally wrong. However irresponsible these products seems, if the mortgage holder has a 10 year fix the first interest rate changes will have no affect on them, hence the point of fixing!

And this person thinks they can see far into the future!

OR might not....

Mortgage rates rise at fastest pace in more than two years as the impact of FLS withdrawal hits home. :)

It is looking increasingly likely that the best mortgages homeowners have ever seen have passed, with lenders now lifting the rates on new home loans.

The average rate on a two-year fixed-rate mortgage across all loan-to-value levels increased by 0.09 per cent in one month, according to data.

This increase may be relatively minor but its significance is that it marks the fastest increase in mortgage rates in a single month since February 2012, when rates went up 0.13 per cent, statistics from financial information specialists Moneyfacts.co.uk show.

Sylvia Waycot, of Moneyfacts, said: 'Don’t make the mistake of thinking that we need a change to base rate to increase the cost of mortgages, as prices are creeping upwards now. So if fixed-rates are your preference, now is the time to fix.'

Money market swap rates, the cost of funding that heavily influences fixed rate mortgages, have been volatile, rising and falling weekly, in a response to continual speculation of when Bank of England base rate will rise.

With two-year swap rates at 1.17 per cent and the average two-year fix at 3.61 per cent, it looks as if lenders have a reasonable margin to absorb rising funding costs.

But the tight correlation between the movements in two-year fixed rate and two-year swap rates suggests there is little willingness from banks to absorb the increased cost to them of borrowing money.

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not strictly correct as these are for HTB 1 borrowers, so the government part becomes payable @ 5 years as well, there is a formula for the interest payments on that part.

So this borrower, assuming he is using the scheme to the max, will see payment rises at month 6, then again in month 60.

Good point, I forgot about the 5 year HTB deadline! I found myself just looking at the 10 year fix 4.99% and thinking "that's not too bad, if only I could find a house I thought was fair value!"

Edited by renting til I die

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Good point, I forgot about the 5 year HTB deadline! I found myself just looking at the 10 year fix 4.99% and thinking "that's not too bad, if only I could find a house I thought was fair value!

This is not advice but I imagine there is a hefty repayment fee on that ten year fix and limits on overpayments.

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This is not advice but I imagine there is a hefty repayment fee on that ten year fix and limits on overpayments.

I didn't see what the fees were and couldn't be bothered to look into it any deeper but these deals normally do have high fees, about 2k to 2.5k, and a restriction of maximum over-payments of 10% during the deal are not uncommon.

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