henry the king Posted June 9, 2022 Share Posted June 9, 2022 Finally the pandemic mortgage costs have been reversed. https://tradingeconomics.com/united-kingdom/mortgage-rate This graph shows it all. Shows why HPI happened during covid and why it will end now. Still more rate rises to come too. Quote Link to comment Share on other sites More sharing options...
PropertyMania Posted June 9, 2022 Share Posted June 9, 2022 3 minutes ago, henry the king said: Finally the pandemic mortgage costs have been reversed. https://tradingeconomics.com/united-kingdom/mortgage-rate This graph shows it all. Shows why HPI happened during covid and why it will end now. Still more rate rises to come too. yet UK 10 year gilt yield is highest since 2014. wonder why the mismatch? https://www.marketwatch.com/investing/bond/tmbmkgb-10y?countrycode=bx Quote Link to comment Share on other sites More sharing options...
wighty Posted June 9, 2022 Share Posted June 9, 2022 2 minutes ago, henry the king said: Finally the pandemic mortgage costs have been reversed. https://tradingeconomics.com/united-kingdom/mortgage-rate This graph shows it all. Shows why HPI happened during covid and why it will end now. Still more rate rises to come too. Back to 10 year average. Pre-pandemic 3.6 - now 4.2. Come back when it's significant change Quote Link to comment Share on other sites More sharing options...
PropertyMania Posted June 9, 2022 Share Posted June 9, 2022 (edited) 2 minutes ago, wighty said: Back to 10 year average. Pre-pandemic 3.6 - now 4.2. Come back when it's significant change but prices at record high without wages catch up, so mortgage payments much higher Edited June 9, 2022 by PropertyMania Quote Link to comment Share on other sites More sharing options...
wighty Posted June 9, 2022 Share Posted June 9, 2022 6 minutes ago, PropertyMania said: but prices at record high without wages catch up, so mortgage payments much higher Give it a bit of time, lol. https://www.msn.com/en-gb/news/uknews/unions-plot-wave-of-strikes-to-trigger-a-summer-of-discontent/ar-AAYeHuZ?ocid=mailsignout&li=BBoPWjQ Quote Link to comment Share on other sites More sharing options...
msi Posted June 9, 2022 Share Posted June 9, 2022 Deals being pulled, bank appetite shrinking. Anecdotes of Brokers working through the night to get applications approved before deals are pulled, literally working to when systems are updated. My entire RM search is all marked as STC. Going to see what 'magically' comes back as down valuations or pulled approvals hit. Quote Link to comment Share on other sites More sharing options...
henry the king Posted June 9, 2022 Author Share Posted June 9, 2022 1 hour ago, PropertyMania said: yet UK 10 year gilt yield is highest since 2014. wonder why the mismatch? https://www.marketwatch.com/investing/bond/tmbmkgb-10y?countrycode=bx Takes time for mortgage rates to get jacked up I think Quote Link to comment Share on other sites More sharing options...
Si1 Posted June 9, 2022 Share Posted June 9, 2022 2 minutes ago, henry the king said: Takes time for mortgage rates to get jacked up I think yeah the lenders will already have sold say £X of fixed rate 10 year bonds at the earlier lower price and not lent it all out yet - that will cover a specific fixed rate mortgage product and once it's gone it's gone and they'll move onto another bond issuance Quote Link to comment Share on other sites More sharing options...
fellow Posted June 9, 2022 Share Posted June 9, 2022 1 hour ago, wighty said: Back to 10 year average. Pre-pandemic 3.6 - now 4.2. Come back when it's significant change The BOE haven't finished with their base rate hikes yet so mortgage rates are guaranteed to go higher. Quote Link to comment Share on other sites More sharing options...
PropertyMania Posted June 9, 2022 Share Posted June 9, 2022 44 minutes ago, Si1 said: yeah the lenders will already have sold say £X of fixed rate 10 year bonds at the earlier lower price and not lent it all out yet - that will cover a specific fixed rate mortgage product and once it's gone it's gone and they'll move onto another bond issuance that makes sense. plus there's a delay from mortgage agreement with customer to actual purchase. in a few months' time, it's going to be brutal Quote Link to comment Share on other sites More sharing options...
henry the king Posted June 9, 2022 Author Share Posted June 9, 2022 1 hour ago, PropertyMania said: that makes sense. plus there's a delay from mortgage agreement with customer to actual purchase. in a few months' time, it's going to be brutal Won't see the effects of recent rate rises or bill going up till the NW/HF indexes in September/October. Quote Link to comment Share on other sites More sharing options...
dances with sheeple Posted June 9, 2022 Share Posted June 9, 2022 1 hour ago, PropertyMania said: that makes sense. plus there's a delay from mortgage agreement with customer to actual purchase. in a few months' time, it's going to be brutal First thing to break will be chains. Quote Link to comment Share on other sites More sharing options...
Pmax2020 Posted June 9, 2022 Share Posted June 9, 2022 4 hours ago, henry the king said: Finally the pandemic mortgage costs have been reversed. https://tradingeconomics.com/united-kingdom/mortgage-rate This graph shows it all. Shows why HPI happened during covid and why it will end now. Still more rate rises to come too. Rates seem well up to me! In late 2019 we got a 1.44% fix. From our current lender, that’s now looking like 2.44% if we got for the same 2 year fix again. Quote Link to comment Share on other sites More sharing options...
JimTheHouseCat Posted June 9, 2022 Share Posted June 9, 2022 Can someone confirm if it is the Sonia swap rate that banks buy tranches of to then lend out with a margin? It keeps going up! https://www.chathamfinancial.com/technology/european-market-rates Quote Link to comment Share on other sites More sharing options...
JimTheHouseCat Posted June 10, 2022 Share Posted June 10, 2022 On 09/06/2022 at 18:48, JimTheHouseCat said: Can someone confirm if it is the Sonia swap rate that banks buy tranches of to then lend out with a margin? It keeps going up! https://www.chathamfinancial.com/technology/european-market-rates I guess noone really knows for sure... https://www.mortgagesolutions.co.uk/news/2022/05/19/the-lowdown-on-swap-rates-explainer/ This article suggests some lender do as I suggested. SONIA swaps up again big today... Quote Link to comment Share on other sites More sharing options...
Sprite Posted June 12, 2022 Share Posted June 12, 2022 You can still shop around for a good deal. I have something in principle from Halifax - 30yrs, 5 year fixed at 2.63%. Quote Link to comment Share on other sites More sharing options...
henry the king Posted June 12, 2022 Author Share Posted June 12, 2022 (edited) 8 minutes ago, Sprrite said: You can still shop around for a good deal. I have something in principle from Halifax - 30yrs, 5 year fixed at 2.63%. There are still cheap deals out there based on money secured previously. Those are drying up quickly though. Mortgages rates will rise consistently all year even if the BoE stops raising rates now (which in unlikely). The 1% BoE rate still isn't fully into the mortgage market. Edited June 12, 2022 by henry the king Quote Link to comment Share on other sites More sharing options...
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