Jump to content
House Price Crash Forum
Sign in to follow this  
Converted Lurker

Ten Year Fixed Rate At 4.97%

Recommended Posts

No this isn't an ad. for business ;) We all draw comparisons with the last crash (correction) and look for clues/pointers etc. What we didn't have in the late 80s/early 90`s was mortgage backed secured and securitised lending (bonds then flogged). If lenders can offer these deals, which they will continue to do, then the tanker style turnaround will not be as a consequence of higher lending charges... <_<

http://firstrung.co.uk/articles.asp?pageid...articlekey=2821

Share this post


Link to post
Share on other sites

No this isn't an ad. for business ;) We all draw comparisons with the last crash (correction) and look for clues/pointers etc. What we didn't have in the late 80s/early 90`s was mortgage backed secured and securitised lending (bonds then flogged). If lenders can offer these deals, which they will continue to do, then the tanker style turnaround will not be as a consequence of higher lending charges... <_<

http://firstrung.co.uk/articles.asp?pageid...articlekey=2821

It's value us purely dependent on redemption fees.

If you cant remortgage or move your kind of stuck. If you plan to live there for 10 years, go for it!

Share this post


Link to post
Share on other sites

No this isn't an ad. for business ;) We all draw comparisons with the last crash (correction) and look for clues/pointers etc. What we didn't have in the late 80s/early 90`s was mortgage backed secured and securitised lending (bonds then flogged). If lenders can offer these deals, which they will continue to do, then the tanker style turnaround will not be as a consequence of higher lending charges... <_<

http://firstrung.co.uk/articles.asp?pageid...articlekey=2821

Yeah but I bet if you lost your job and had to sell up, you'd be looking at paying them 6-10% of the amount owed. Not

nice if your borrowing in the 100K+ region, especially if prices slip back!

Share this post


Link to post
Share on other sites

4.97% for the next ten years does look a good deal so i'll take it and rush out and pay seven times my wages to buy this 3 bed semi i've been looking at and also borrow a little extra to cove all my credit card debts and my tax bill and i could do with a new car plus a hoiliday

look you only live once

Share this post


Link to post
Share on other sites

You can even pay capital repayments of up to 10% every year. Does anyone know the redemption charges in terms of % and timescales?

It just occurred to me. I'm not a ftb :angry:

Share this post


Link to post
Share on other sites
look you only live once

What if you don't? The next great leap for the financial world could be the 'Reincarnation Mortgage', where you promise that your future reincarnated selves will continue to pay until you reach Nirvana and stop reincarnating here...

Share this post


Link to post
Share on other sites

4.97% for the next ten years does look a good deal so i'll take it and rush out and pay seven times my wages to buy this 3 bed semi i've been looking at and also borrow a little extra to cove all my credit card debts and my tax bill and i could do with a new car plus a hoiliday

look you only live once

Well of course you might not. But a lot of people will.

You're standing in front of a stampede.

You can turn and run and join in.

Or you can get trampled on.

Share this post


Link to post
Share on other sites

You can even pay capital repayments of up to 10% every year. Does anyone know the redemption charges in terms of % and timescales?

It just occurred to me. I'm not a ftb :angry:

Looking at Leeds BS, looks like 5.19* is the rate now with upto 90% LTV

Tapered Early Repayment Charges of 6/6/5/5/5/5/4/4/3/2% of the amount redeemed.

So for the first 8 years they got you by the balls, especially if you have a large mortgage!

200K = 12K to pay back in the first 2 years, 10K for next 4

Edited by OzzMosiz

Share this post


Link to post
Share on other sites

Looking at Leeds BS, looks like 5.19* is the rate now with upto 90% LTV

Tapered Early Repayment Charges of 6/6/5/5/5/5/4/4/3/2% of the amount redeemed.

So for the first 8 years they got you by the balls, especially if you have a large mortgage!

200K = 12K to pay back in the first 2 years, 10K for next 4

Yes they would certainly have you by the short and curlies. But it just may be worth it with the potential savings to be had with a lower rate. Paying off capital would help but anything over 4% could be a big redemption fine. Still it's only an option. One which may entice ftb's.

I remember when I bought my place. I was and am still tied into a 6 year mortgage. I didn't think for a minute I would want to move before 6 years but now I am counting the days down. Next Novemebr I can move without paying such a fine. Mind you it is only 2%, half of which would be discounted if I stay with my lender for a new property.

Share this post


Link to post
Share on other sites

4.97% for the next ten years does look a good deal so i'll take it and rush out and pay seven times my wages to buy this 3 bed semi i've been looking at and also borrow a little extra to cove all my credit card debts and my tax bill and i could do with a new car plus a hoiliday

look you only live once

You only die once too !

Share this post


Link to post
Share on other sites

What we didn't have in the late 80s/early 90`s was mortgage backed secured and securitised lending (bonds then flogged).

Yes we did ! Mortgage Corporation, Household Mortgage Corporation and First Mortgage Securities to name but a few . . .

Share this post


Link to post
Share on other sites

I’m expecting interest rates to come down to the 2% to try to stop a recession – inflation will be killing the pound but I can not see IR’s staying high for long – so this deal does not appeal to me. History has shown that even if you bought a house at a peak – house prices would have doubled in the 10-year mortgage period – which would make it a good investment – although a better investment would be buying a house at the bottom

Share this post


Link to post
Share on other sites

Personal Loan fees and the way repayments are applied have been used for a long time to manipulate APR's down so they don't represent the true cost of the loan. Looks like the same thing is being done with Mortgages now. As ever the only way to compare loans of any kind is on a total cost basis - the headline interest rate is becoming meaningless.

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.