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10 Year Fix 90%

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If base rate is set to rise so soon according to carney, then why are the number of 10 year fixed rates so high... And for the first time I've ever seen 90% ltv 10 year fixes

What Carney is saying doesn't match what the banks think he will do does it ???

Thoughts?

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What might banks do in the future is the point. No one is dragging people to the banks and forcing them to take out mortgages, to buy at these prices.

Want house? Apply for mortgage, pass MMR checks, get low-rate happy mortgage, buy house. Almost that simple + other fees. Just there can be no complaint if, in a few years time, some young couple buy next door for 50% less than you paid.

Banks: They will want to lend you money at an inappropriate time. If they think you are a good bet they will want to 'sell' you money. The clever bit about selling is that the seller decides when they intended victim will buy, and the subtle thing about buying is buying exactly when you want to. If you let them suck you in you could be making fatal mistakes.

In the slightly extreme example where the buyer commits more than half of their salary to mortgage payments to begin with, the initial interest payment on a £100,000 repayment loan at a 15 per cent interest rate is the same as that for a £300,000 loan at 2 per cent.

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If base rate is set to rise so soon according to carney, then why are the number of 10 year fixed rates so high... And for the first time I've ever seen 90% ltv 10 year fixes.

Get stuck in? You too can buy a house.

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The banks have a clause in their mortgage contracts which says something like

"the interest of your mortgage is fixed untill the BOE IR gets within x% of the IR you are paying, then it will track the BOE IR + x%"

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The banks have a clause in their mortgage contracts which says something like

"the interest of your mortgage is fixed untill the BOE IR gets within x% of the IR you are paying, then it will track the BOE IR + x%"

Thats not clasic FIXED rate is it? These 10 year fixes are fixed.

Usually comes with penalties etc if you try move, or pay off early.

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