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taxmyrs

25 Year Fixed Rate Mortgages @ 4.98%

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Max 75% of value.

I think what he/she is implying is, are we indeed headed into a sustained low interest enviroment. And if so how does that impinge on the HPC theory.

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I think what he/she is implying is, are we indeed headed into a sustained low interest enviroment. And if so how does that impinge on the HPC theory.

If we are heading for a recession, especially a long and deep one, then long term IRs will be low for a longtime. BUT that doesn't mean they won't go up over the short-term, let's say the next year or so, creating problems for those over-extended in their mortgage (or other) debt.

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Whilst I haven't actually read the small print in detail I'd guess this figure is just a headline grabber and there are probably charges and caveats that make it less attractive.

Maybe their working on the worst case scenario that average interest rates have been around 6%?

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Remember the "sting in the tail" article a few weeks back? These VIs set people up with "cheap loans" knowing that few stay put in one house these days for much more than 5-7 years (job movers, unemployment, divorce, death, more kids, mother-in-law moves in, downsize etc.) and then the sting comes--a huge redemption penalty.

Edited by Realistbear

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These 'fixed deals' - are they really fixed?

Is there a get-out-clause somewhere in the terms and conditions that enables the lender to revert the mortgage back to variable rate at some time in the future if they see fit?

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  • 301 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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