Jump to content
House Price Crash Forum
Sign in to follow this  
Realistbear

Another Lender Ups Mortgage Rates Today

Recommended Posts

http://www.ifaonline.co.uk/public/showPage.html?page=333716

NU ups lifetime mortgage rates Monday 19th June 2006: 12:00
By Nyree Stewart Norwich Union will be raising the interest rates on its index-linked lifetime mortgage plans, starting today.
The annual interest rates on the product will be a minimum of 4.69%, or 4.9% APR, and a maximum of 9.93%, or 10.2% APR, up from the previous rates of 4.39% and 9.61%.

Alan "Big Al" Greenspan wondered why everytime the Fed moved IR up in the states mortgage rates dropped or stayed put. Now that the world credit markets (carry trade) are tightening rates will move up independently of the national banks moving. The market is driving the rates now rather than the politicians. Gordon's BoE rate may now be just academic.

Share this post


Link to post
Share on other sites

still a bad bear day though..

Why? All we have had is another Rightmove guesstimate of house prices slowing to 0.8% and falling harder in the North than the South and a few more threats of higher IR from Asia and the US (another Fed banker speaks today at around 2 pm our time--it will be the pre-hiking speech). And the services sector got hit hard today with 1000 jobs to go at RSA.

So far not a bad day at all. And its not over yet................... :o

Share this post


Link to post
Share on other sites

http://www.ifaonline.co.uk/public/showPage.html?page=333716

NU ups lifetime mortgage rates Monday 19th June 2006: 12:00
By Nyree Stewart Norwich Union will be raising the interest rates on its index-linked lifetime mortgage plans, starting today.
The annual interest rates on the product will be a minimum of 4.69%, or 4.9% APR, and a maximum of 9.93%, or 10.2% APR, up from the previous rates of 4.39% and 9.61%.

Alan "Big Al" Greenspan wondered why everytime the Fed moved IR up in the states mortgage rates dropped or stayed put. Now that the world credit markets (carry trade) are tightening rates will move up independently of the national banks moving. The market is driving the rates now rather than the politicians. Gordon's BoE rate may now be just academic.

Great post.

Is the tightening attributable to percieved risk or some other factor?

Could this be the begining of a pronounced decoupling of mortgage interest rates (from base rates)?

Share this post


Link to post
Share on other sites

Great post.

Is the tightening attributable to percieved risk or some other factor?

Could this be the begining of a pronounced decoupling of mortgage interest rates (from base rates)?

aslong as savings rates also decouple ;p

Share this post


Link to post
Share on other sites

The BoJ have not moved yet the Jap banks tightened rates on 20th March. I think we are seeing a de-coupling with the market seeking its own direction independently of the central banks. NU's rate move today and the hikes by Nationwide a couple of weeks ago all happened while the BoE sat still. This could be Mervyn's plan--keep the official rates where they are and let the market rates find their own level.

As of today, the US ARM rate (adjustable mortgages) is 7.2% yet the Fed is at 5%. That represents more than a 2% spread which is probably where we are headed in the UK: an effective "base rate" of 6.5%.

When the HPC comes Gordon might say "it wasn't me."

Share this post


Link to post
Share on other sites

Why? All we have had is another Rightmove guesstimate of house prices slowing to 0.8% and falling harder in the North than the South and a few more threats of higher IR from Asia and the US (another Fed banker speaks today at around 2 pm our time--it will be the pre-hiking speech). And the services sector got hit hard today with 1000 jobs to go at RSA.

So far not a bad day at all. And its not over yet................... :o

And a reprt from OECD saying only 5% chance of UK crash.

Oh, and screaming headlines about housing booms in the Evening Standard..

Oh and that story in the paper about new breed of FTBs buoying the market.

So, a bad day for us bears.

Share this post


Link to post
Share on other sites

Presumably fixed rate mortgages are not as cheap/long as before. Are there any graphs available for these?

Share this post


Link to post
Share on other sites

And a reprt from OECD saying only 5% chance of UK crash.

Oh, and screaming headlines about housing booms in the Evening Standard..

Oh and that story in the paper about new breed of FTBs buoying the market.

So, a bad day for us bears.

FFS If we were on the TITANTIC and NuLabour were steering it, they would imply we hadnt even left the port!!!!

All todays news is NOT NEWS AT ALL!!!

Its subliminal propaganda. How can 0.8% be a BOOM?

There are no FTB's so lets make up a new breed???? WTF!!! :blink:

I suppose these people believe in 'Spifidus Digestus'!!!!!!

TB

Share this post


Link to post
Share on other sites

FFS If we were on the TITANTIC and NuLabour were steering it, they would imply we hadnt even left the port!!!!

All todays news is NOT NEWS AT ALL!!!

Its subliminal propaganda. How can 0.8% be a BOOM?

There are no FTB's so lets make up a new breed???? WTF!!! :blink:

I suppose these people believe in 'Spifidus Digestus'!!!!!!

TB

I couldn't agree more.

However, the NU bumping up mortgage rates wasn't too bad?

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 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%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.