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longgone

Your Mortgage: Fix For 10 Years But Commit For 5

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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:

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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

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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.

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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.

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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.

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  • 406 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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