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Realistbear

R B S : U K Interest Rates Are Moving Higher

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http://today.reuters.co.uk/investing/finan...TS-UPDATE-3.XML

UK gilts, short sterling slip, with Bunds, Euribor

Mon Apr 10, 2006 11:41 AM BST

By Ross Finley

LONDON, April 10 (Reuters) - British gilts and short
sterling interest rate futures fell on Monday, in line with
selling in Euribor futures and Bunds, where benchmark yields
touched an 18-month high earlier.
Analysts said the market was trading in relatively thin
volumes before the Easter holiday weekend and was largely
unmoved by data on producer prices and house prices.
"It's an almost perfect across the curve shift.
Almost every
sector is two to three basis points up which suggests to me that
it's a drifting market being taken higher (in yield)," said
Kevin Gaynor, head of economics and rates research at RBS
.
Data showing an easing in factory gate inflation and house
price inflation provided little support to the market, which has
been following
global pressures from expectations of higher
interest rates in both the U.S. and the euro zone
.

What the B o E refuses to do the markets do anyway. TTRTRates very soon.

Edited by Realistbear

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http://today.reuters.co.uk/investing/finan...TS-UPDATE-3.XML

UK gilts, short sterling slip, with Bunds, Euribor

Mon Apr 10, 2006 11:41 AM BST

By Ross Finley

LONDON, April 10 (Reuters) - British gilts and short
sterling interest rate futures fell on Monday, in line with
selling in Euribor futures and Bunds, where benchmark yields
touched an 18-month high earlier.
Analysts said the market was trading in relatively thin
volumes before the Easter holiday weekend and was largely
unmoved by data on producer prices and house prices.
"It's an almost perfect across the curve shift.
Almost every
sector is two to three basis points up which suggests to me that
it's a drifting market being taken higher (in yield)," said
Kevin Gaynor, head of economics and rates research at RBS
.
Data showing an easing in factory gate inflation and house
price inflation provided little support to the market, which has
been following
global pressures from expectations of higher
interest rates in both the U.S. and the euro zone
.

What the B o E refuses to do the markets do anyway. TTRTRates very soon.

TTJTE Time to join the Euro soon !! Bring on those 2.5% IR's.

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:lol::lol:

More sh1te from the thickest fool on the forum. :lol:

Are we gonna join yesterday then pal and backdate the interest?? :lol:

The same thickest fool that has been right up to now (thats not the same as being wrong since 2003) :lol::lol::lol:

If UK IR's increase significantly, there would be massive calls from industry and hard working families with mortgages to join the Euro with IR's half that in the UK. No political party would be willing to oppose it. JWAS (just wait and see Mr thicky be proved right again).

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:lol::lol:

The same thickest fool that has been right up to now (thats not the same as being wrong since 2003) :lol::lol::lol:

If UK IR's increase significantly, there would be massive calls from industry and hard working families with mortgages to join the Euro with IR's half that in the UK. No political party would be willing to oppose it. JWAS (just wait and see Mr thicky be proved right again).

I'd like to point out that you can't just 'join the Euro' as you're not happy with your current IRs... and what would be the point when the Euro rate is rising too?

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I'd like to point out that you can't just 'join the Euro' as you're not happy with your current IRs... and what would be the point when the Euro rate is rising too?

Exactly: it seems quite likely that Euro rates will rise above 4.5% in the next couple of years. They only care about Germany, not housing bubbles in some third-rate nation that doesn't make anything other than overpriced houses anymore.

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And yet the RBS's NatWest mortgage business is confident enough of low IRs to offer 10 year fixed rate deals.

Based on actuarial statistics of the liklihood of the average borrower moving within about 4-5 years and paying the stinger penalties for early redemption. Banks are smart and know how to screw the consumer with enticing offers.

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Based on actuarial statistics of the liklihood of the average borrower moving within about 4-5 years and paying the stinger penalties for early redemption. Banks are smart and know how to screw the consumer with enticing offers.

Er, except that it's portable, and you can take it with you when you move.

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Er, except that it's portable, and you can take it with you when you move.

Haven't read the small print--are U sure?

What happens if the borrower takes his mortgage to a property worth less than the one he borrowed against? What if the surveyor tells the bank that the property to which the loan is transferred is over valued?

In my experience a mortgage is only for the property you are buying and is not transferable :blink:

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Haven't read the small print--are U sure? [...] In my experience a mortgage is only for the property you are buying and is not transferable :blink:

From NatWest's Mortgages booklet:

Moving your mortgage

Most of our mortgages are fully "portable" (however the Foundations account is not).

This means you can take it with you when you move and use it as the basis for your new mortgage arrangements.

This can have many advantages.

For example, if you are only halfway through an attractive fixed-rate deal, you can continue to enjoy that rate on what you still owe for the rest of your fixed-rate period. As you are carrying forward the terms of your original mortgage, there won't be an early repayment charge to pay.

It's up to you to choose what type of mortgage you want to choose to repay any extra amount you are borrowing.

Edited by Seamaster

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And yet the RBS's NatWest mortgage business is confident enough of low IRs to offer 10 year fixed rate deals.

I think you will see these deals being withdrawn/changed within a few months. The long term gilts and other securities which institutions use as a vehicle for mortgages, etc, the rates have been steadily rising, and Greenspans connundrum seems to be fixing itself.

Have you seen the graph which shows UK interest rates against US interest rates. It is interesting.

If Japan starts tightening soon, which it looks like it may and the Euro zone continue upward, the cheap credit is effectively being withdrawn from the WORLD market.

This may be a problem for the WORLD house price bubble.

Edited by BubbleTurbo

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This may be a problem for the WORLD house price bubble.

And then the world economic bubble. After all, it's that cheap credit from MEW-ing out of overpriced houses that's been pumping up the Chinese economy, which has been pumping up commodity prices.

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Most of our mortgages are fully "portable"

I wouldn't trust the bar stewards further than I could throw them. Make sure that "most" includes the mortage in question.

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Most of our mortgages are fully "portable"

I wouldn't trust the bar stewards further than I could throw them. Make sure that "most" includes the mortage in question.

It does — I was offered it yesterday.

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From NatWest's Mortgages booklet:

Portable - yes - but only in a rising market.

You really think a bank will lend you money, secured against something with a value less than the loan?

Edited by jp1

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And yet the RBS's NatWest mortgage business is confident enough of low IRs to offer 10 year fixed rate deals.

If my memory serves, the 10-year fix was as low as 4.75% just a few weeks ago, now its 5.19%. Note that 10yr £ swaps have risen from 4.35% in mid-Jan to 4.75% today. The bank's happy to lend on a secured basis at (at least) 34bps over its funding cost. If and when 10yr swaps hit 6%, then the 10-year fix will probably be around 6.35% or so. The bank isn't taking necessarily taking a view on rates you see, just matching assets and liabilities and taking a turn for the (secured) credit risk...

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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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