Killer Bunny Posted July 24, 2020 Share Posted July 24, 2020 Quote Link to comment Share on other sites More sharing options...
rantnrave Posted July 24, 2020 Share Posted July 24, 2020 Mortgage rates up, savings rates slashed - trebles all round at the banks Quote Link to comment Share on other sites More sharing options...
spyguy Posted July 24, 2020 Share Posted July 24, 2020 (edited) On 24/07/2020 at 13:12, Killer Bunny said: Why would mortgage rates go down when BoE cuts rates? At least, once you go below ~5%. People dont borrow directly from the BoE They borrow from banks, whove a lots of costs of raising capital, administering the loan book, keeping solvent. All very expensive tasks. Im not sure what the average SVR is these days.///// mcNatWest SVR is 3.85. HSBC's is 3.54% (HSBCs BTL SVR is 4.6%. Pretty chunky spread over resi. And far higher than the rental yields LL have been getting) Edited July 25, 2020 by spyguy Quote Link to comment Share on other sites More sharing options...
Unmoderated Posted July 24, 2020 Share Posted July 24, 2020 If it weren't for redemption penalties I'd be remortgaging my fixed rate 70ish% LTV from 1.98% to 1.25% right now. Anecdotal but due to remortgage next October. The reduction would get me a shiny car on the never never if I were a feckless cretin. Quote Link to comment Share on other sites More sharing options...
Killer Bunny Posted July 24, 2020 Author Share Posted July 24, 2020 53 minutes ago, spyguy said: Why would mortgage rates go down when BoE cuts rates? At least, once you go below ~5%. You know that and we know that but the ? don’t. The more they see this... Quote Link to comment Share on other sites More sharing options...
TheCountOfNowhere Posted July 24, 2020 Share Posted July 24, 2020 2 hours ago, Killer Bunny said: Do I read this right ? 2 years fixed mortgage rates slashed, i.e. the one the desperate new build buyers will be wanting. 90% LTV mortgages up Everything else the same ? Isn't this what someone posted how the TermFunding was being structured, i.e higher rates at the bottom but cheaper debt for the people already on the pyramid to prop up the prices at the top ? The TermFunding is the bankers lending magicked up cash straight to home owners, it's criminal, how the **** are the BoE getting away with this. It's beyond any belief that I have. There's little point in worrying about buying a house any time soon. The prices are extreme, the support from London unfathomable, IRs are rock bottom, the country in turmoil and the MSM pumping the bubble as heard as they can. Quote Link to comment Share on other sites More sharing options...
TheCountOfNowhere Posted July 24, 2020 Share Posted July 24, 2020 (edited) 1 hour ago, spyguy said: Why would mortgage rates go down when BoE cuts rates? At least, once you go below ~5%. Mortgage rates/Saving rates held firm till that little rat bag at the BoE /No 11 brought in term funding. It is literally lending out thin air. Edited July 24, 2020 by TheCountOfNowhere Quote Link to comment Share on other sites More sharing options...
MarkD Posted July 24, 2020 Share Posted July 24, 2020 Not forgetting interest rates are still at 'emergency' levels following the GFC. Back to 'normal', say 5 or 6%, shouldn't be a problem should it? Quote Link to comment Share on other sites More sharing options...
zugzwang Posted July 24, 2020 Share Posted July 24, 2020 9 minutes ago, MarkD said: Not forgetting interest rates are still at 'emergency' levels following the GFC. Back to 'normal', say 5 or 6%, shouldn't be a problem should it? 5 or 6%?! 0% is the new normal. Quote Link to comment Share on other sites More sharing options...
MarkD Posted July 24, 2020 Share Posted July 24, 2020 1 minute ago, zugzwang said: 5 or 6%?! 0% is the new normal. This we know!!! What if though........painted oneself into a corner wouldn't you say? Quote Link to comment Share on other sites More sharing options...
oracle Posted July 24, 2020 Share Posted July 24, 2020 2 hours ago, MarkD said: Not forgetting interest rates are still at 'emergency' levels following the GFC. Back to 'normal', say 5 or 6%, shouldn't be a problem should it? new normal isn't the new normal! there has been a shift for quite a while now to shift the burden of interest rates into indirect taxation... Quote Link to comment Share on other sites More sharing options...
MarkD Posted July 24, 2020 Share Posted July 24, 2020 3 hours ago, oracle said: new normal isn't the new normal! there has been a shift for quite a while now to shift the burden of interest rates into indirect taxation... That’s the thing though, indirect taxation is fine if you’ve got the financial where with all. At the moment there is much talk of mass unemployment. I hope benefits are generous, otherwise there’s going to be a lot of pain. Quote Link to comment Share on other sites More sharing options...
MonsieurCopperCrutch Posted July 24, 2020 Share Posted July 24, 2020 8 hours ago, TheCountOfNowhere said: Mortgage rates/Saving rates held firm till that little rat bag at the BoE /No 11 brought in term funding. It is literally lending out thin air. How's that chateau in France going? Good to see you back on top form BTW. Quote Link to comment Share on other sites More sharing options...
Speed1987 Posted July 25, 2020 Share Posted July 25, 2020 To me, all this is smoke and mirrors. I've heard all this ******** before, rates will go up and it's best to fix now. Banks paying the media, to encourage people to fix, so the banks have a better long-term return. From 2010-2020 we heard how rates are going to go up, fix now, fix now. Every other month on ITV news ???. The banks know, money/credit is going to get cheaper, through which ever schemes or initiatives the BOE or government concoct. Rates will not go up, if rates went up to 10% house prices would fall drastically. NOT going to happen. Rather credit and rates will get cheaper, that's all.... Quote Link to comment Share on other sites More sharing options...
Simhadri Posted July 25, 2020 Share Posted July 25, 2020 6 minutes ago, Speed1987 said: To me, all this is smoke and mirrors. I've heard all this ******** before, rates will go up and it's best to fix now. Banks paying the media, to encourage people to fix, so the banks have a better long-term return. From 2010-2020 we heard how rates are going to go up, fix now, fix now. Every other month on ITV news ???. The banks know, money/credit is going to get cheaper, through which ever schemes or initiatives the BOE or government concoct. Rates will not go up, if rates went up to 10% house prices would fall drastically. NOT going to happen. Rather credit and rates will get cheaper, that's all.... +1 Quote Link to comment Share on other sites More sharing options...
zugzwang Posted July 25, 2020 Share Posted July 25, 2020 19 hours ago, MarkD said: This we know!!! What if though........painted oneself into a corner wouldn't you say? Increasingly so. Johnson said yesterday that he wanted to help young people share the dream of home ownership while neglecting to mention that his govt is in fact the principal obstacle to that ambition. Quote Link to comment Share on other sites More sharing options...
longgone Posted July 25, 2020 Share Posted July 25, 2020 5 hours ago, Speed1987 said: Rather credit and rates will get cheaper, that's all.... cheaper but to only those with good credit ratings and low existing debt, those already in debt will be imprisoned in a house they never wanted in the first place. ? Quote Link to comment Share on other sites More sharing options...
Switch625 Posted July 25, 2020 Share Posted July 25, 2020 4 hours ago, zugzwang said: Increasingly so. Johnson said yesterday that he wanted to help young people share the dream of home ownership while neglecting to mention that his govt is in fact the principal obstacle to that ambition. This government, the previous governments and no doubt the governments to come Quote Link to comment Share on other sites More sharing options...
Si1 Posted July 25, 2020 Share Posted July 25, 2020 https://www.dailymail.co.uk/news/article-8559173/Furloughed-workers-unable-buy-new-home-TSB-lists-salary-just-1.html Banks not accepting furlough income as salary.... Quote Link to comment Share on other sites More sharing options...
Roman Roady Posted July 25, 2020 Share Posted July 25, 2020 1 hour ago, Si1 said: https://www.dailymail.co.uk/news/article-8559173/Furloughed-workers-unable-buy-new-home-TSB-lists-salary-just-1.html Banks not accepting furlough income as salary.... Why would they? Quote Link to comment Share on other sites More sharing options...
Si1 Posted July 25, 2020 Share Posted July 25, 2020 8 minutes ago, Roman Roady said: Why would they? Because houses Quote Link to comment Share on other sites More sharing options...
Speed1987 Posted July 25, 2020 Share Posted July 25, 2020 (edited) 2 hours ago, longgone said: cheaper but to only those with good credit ratings and low existing debt, those already in debt will be imprisoned in a house they never wanted in the first place. ? Well I wouldn't quite call it that, they can always sell the property. Hasn't it always been the case, that banks offer poorer terms, to individuals with low LTV or poor credit ratings or high risk. I would say it's highly unlikely, rates are going to go up and if they do, people will just fix before they get out of control. What, I would be really concerned about, is the amount of HPI likely, from all the extra money they've created. That now 1.3 million property, is gonna be 3-5 Million in 10 years time. Edited July 25, 2020 by Speed1987 Quote Link to comment Share on other sites More sharing options...
PeanutButter Posted July 25, 2020 Share Posted July 25, 2020 2 hours ago, Speed1987 said: Well I wouldn't quite call it that, they can always sell the property. Hasn't it always been the case, that banks offer poorer terms, to individuals with low LTV or poor credit ratings or high risk. I would say it's highly unlikely, rates are going to go up and if they do, people will just fix before they get out of control. What, I would be really concerned about, is the amount of HPI likely, from all the extra money they've created. That now 1.3 million property, is gonna be 3-5 Million in 10 years time. Peckham Rye?? Blimming PECKHAM RYE?!! ffs that’s insane Quote Link to comment Share on other sites More sharing options...
locky82 Posted July 25, 2020 Share Posted July 25, 2020 2 hours ago, Speed1987 said: Well I wouldn't quite call it that, they can always sell the property. Hasn't it always been the case, that banks offer poorer terms, to individuals with low LTV or poor credit ratings or high risk. I would say it's highly unlikely, rates are going to go up and if they do, people will just fix before they get out of control. What, I would be really concerned about, is the amount of HPI likely, from all the extra money they've created. That now 1.3 million property, is gonna be 3-5 Million in 10 years time. Madness. I bet the vendor couldn't believe their luck. Quote Link to comment Share on other sites More sharing options...
Simhadri Posted July 25, 2020 Share Posted July 25, 2020 3 hours ago, Speed1987 said: Well I wouldn't quite call it that, they can always sell the property. Hasn't it always been the case, that banks offer poorer terms, to individuals with low LTV or poor credit ratings or high risk. I would say it's highly unlikely, rates are going to go up and if they do, people will just fix before they get out of control. What, I would be really concerned about, is the amount of HPI likely, from all the extra money they've created. That now 1.3 million property, is gonna be 3-5 Million in 10 years time. Beyond insane from 1197 to 2020 price jumped by almost 2000% Quote Link to comment Share on other sites More sharing options...
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