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rantnrave

Nationwide September Report: More 'joy'

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The only part I took out of that of any significant interest is this

“Borrowers taking out fixed rate mortgages have benefited from historically low interest rates. For example, in September the average two year fix (for those with a 25% deposit) was 1.91%. While this is a little higher than the rates prevailing in the summer, it is almost two percentage points below the level prevailing in 2012 (see chart below). Moreover, for borrowers with a 10% deposit, the rates available for two year fixes are currently the lowest on record."

Illustrating, imo, something that has been mentioned a couple of times on the 'BTL Finance Watch' thread: That lenders are competing hard to chase for BTL business.

Lending to BTL is at base +1.41% / 75% LTV. The lender, therefore, clearly thinks the risk associated with the loan is very low. Is that due to the lenders' interpretation / forward view of the housing market? Or is it due to the lenders' interpretation that, if its calculation of risk proves to be incorrect, that a bail out will be forthcoming (again)?

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The only part I took out of that of any significant interest is this

“Borrowers taking out fixed rate mortgages have benefited from historically low interest rates. For example, in September the average two year fix (for those with a 25% deposit) was 1.91%. While this is a little higher than the rates prevailing in the summer, it is almost two percentage points below the level prevailing in 2012 (see chart below). Moreover, for borrowers with a 10% deposit, the rates available for two year fixes are currently the lowest on record."

Illustrating, imo, something that has been mentioned a couple of times on the 'BTL Finance Watch' thread: That lenders are competing hard to chase for BTL business.

Lending to BTL is at base +1.41% / 75% LTV. The lender, therefore, clearly thinks the risk associated with the loan is very low. Is that due to the lenders' interpretation / forward view of the housing market? Or is it due to the lenders' interpretation that, if its calculation of risk proves to be incorrect, that a bail out will be forthcoming (again)?

I think it`s just a case of too many lenders chasing to few borrowers whether it be OO or BTL

They are cutting each others throats for market share the other misnomer of these ultra low deals are the fees they are charging on two year fixes then add in the SVR at the end of term and it`s starting to look like the banks are in it as much if not more for the fees as the interest

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I've not looked at rightmove for 3 weeks. a record.

If you want to see what you might have missed put up for sale then look at the 'for rent' section. That's where they all end up! ;)

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