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zugzwang

Six Year Fixes Now Available From Virgin Below 3%

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The UK economy increasingly beginning to resemble France...

... Italy, Venezuela and North Korea.

Cheaper access by banks to the money they lend in the form of mortgages - coupled with increased competition - has led to attractive new mortgage deals where the rate is fixed for far longer than usual.

Typically fixed-rate mortgages apply for two, three or five years.

After that the borrower pays a "follow-on" rate, which is variable and usually rises and falls at the whim of the lender.

But changing market conditions - as reported here - mean Britain's mortgage market is looking increasingly like those in France and elsewhere, where longer-term fixed rates are widely available if not the norm.

The rates on offer are appealing. Virgin Money, the new bank trying to win business from established high street rival lenders, has launched a six-year loan charging 2.99pc.

To qualify borrowers need a minimum 30pc deposit and must pay an upfront fee of £995. The deal is available through Moneysupermarket.com.

http://www.telegraph.co.uk/finance/personalfinance/borrowing/mortgages/11103504/Mortgage-price-war-Now-you-can-fix-for-six-years-at-under-3pc.html

Edited by zugzwang

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Demand seems to be relatively weak and presumably the margins are falling on the increased competition.

The boe seem relaxed about the risks of deflation.

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I don't understand why a lender would offer something like this exclusively through a broker, presumably paying a significant commission too?

The 5 year fix at the same rate is available on Virgin's website - why not the 6 too? What's the business rationale?

http://uk.virginmoney.com/mortgages/find/Find-A-Mortgage/5yr_everyday_fixed_68qm

The fees too high, and an early repayment charge of 5% of the outstanding balance just makes this a teaser rate that scalps you later (it's basically a bait and switch deal). You get the "cheap" rate now then you`ll either pay whatever they like later or cough up 5% as an exit fee. No thanks Virgin.

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The fees too high, and an early repayment charge of 5% of the outstanding balance just makes this a teaser rate that scalps you later (it's basically a bait and switch deal). You get the "cheap" rate now then you`ll either pay whatever they like later or cough up 5% as an exit fee. No thanks Virgin.

I'm pretty sure the early exit fee is only applied if you leave during the 6 year fix period.

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Virgin Money, the new bank trying to win business from established high street rival lenders, has launched a six-year loan charging 2.99pc. To qualify borrowers need a minimum 30pc deposit and must pay an upfront fee of £995.

Things are busy out there, seeing so much go Sold STC.

US mortgage applications and refi have really tumbled, even though rates remain historically attractive. Hopefully that is coming here too, after this surge to pay what it's worth... property property can't go wrong, forever hpi.

The third is the fact that we're entering the autumn, one of the busiest times in the property market so lenders are cutting their rates to woo new customers. "Also, most lenders' financial years run January to December, so as we enter the final quarter of the year some lenders will be aiming to boost their lending figures by offering good deals to remortgage customers so they can write new business quickly." 16 Sept 2014: http://www.moneywise.co.uk/news/2014-09-15/why-mortgage-rates-are-tumbling

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I'm pretty sure the early exit fee is only applied if you leave during the 6 year fix period.

or miss one payment.

With fees for letters, and interest on interest, with a penalty rate for every day you are in arrears.

Edited by Bloo Loo

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I don't understand why a lender would offer something like this exclusively through a broker, presumably paying a significant commission too?

Plausible Deniability when the loan goes T***s up ? Al la , pre 2008?

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Read the small print.

a six-year loan charging 2.99pc. To qualify borrowers need a minimum 30pc deposit and must pay an upfront fee of £995.

Now how much does that add to the rate of interest charged?.....compounded? ;)

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Yield on the 5 yr US treasury is now at its highest since May 2011. Ditto the 2yr. The 10yr's a little over 2.6%. Clear evidence that the market is expecting a rate rise from Yellen.

Branson's fix already looks whacked to me.

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