Jump to content
House Price Crash Forum
Sign in to follow this  
longgone

Your Mortgage: Fix For 10 Years But Commit For 5

Recommended Posts

Looking for a long-term, fixed-rate mortgage, but worried about being tied in for years and not having the freedom to change your deal? TSB has launched a new Fix and Flex mortgage which could provide the perfect solution.

http://www.moneysupermarket.com/c/news/focus-on-tsb-fix-and-flex-mortgage-offers-best-of-both-worlds/0070073/?source=CRM-0X000000F28FCF88EC&email=true

rates look very high to me , surely 10 years fixes should be coming out at 2% :lol:

Share this post


Link to post
Share on other sites

Hey Rodders, we'll buy a couple of BTL houses for 300K, in 10 years, we'll be millionaires!

it will pay for uncle albert`s care fee`s , what could go wrong ? hopefully nothing for 10 or is it 5 years :rolleyes:

Edited by longgone

Share this post


Link to post
Share on other sites

I find it quite interesting that they are offering this deal at 3.44% and HSBC are offering a tracker at 1.79 above base.

I would say that the TSB think base rates will be 2% or below for the next 10 years.

Share this post


Link to post
Share on other sites

I find it quite interesting that they are offering this deal at 3.44% and HSBC are offering a tracker at 1.79 above base.

I would say that the TSB think base rates will be 2% or below for the next 10 years.

The HSBC tracker includes the base rate, they're tracking at 1.29% above.

I agree with your conclusion.

However again, if the banks are wrong then it's no skin off their nose because the tax payer will bail them out. Perhaps we're staring at the peak of a bubble that nobody saw coming? Peak low interest rates.

Share this post


Link to post
Share on other sites

Banks don't take the long term rate risk but hedge this out either viatheir own long term bond issuance (e.g. Securitised bonds) or by doing interest rate swaps. You should therefore look at the margin on top of the libor hedge rate 10 yrs. One of the reasons for limited long term rate options is limited depth of long term funding market for banks or securitised mortgage portfolios. Lloyds won't take a bet on rates or does this rrepresent their view on the market, it's the markets overall view on long term rate increased by the credit risk margin on the Consumer.

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • The Prime Minister stated that there were three Brexit options available to the UK:   203 members have voted

    1. 1. Which of the Prime Minister's options would you choose?


      • Leave with the negotiated deal
      • Remain
      • Leave with no deal

    Please sign in or register to vote in this poll. View topic


×

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.