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29929BlackTuesday

Newcastle Building Society Fixed Mortgage 2.25%

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Why don't we talk about this sort of thing? This looks like massively massively cheap credit! WTF is going on?

ARE banks tightening credit? With a website like moneysupermarket you just immediately find the cheap deals even if the highstreet banks stop theirs.

Bloody hell.

Boom for the foreseeable future then.

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Why don't we talk about this sort of thing? This looks like massively massively cheap credit! WTF is going on?

ARE banks tightening credit? With a website like moneysupermarket you just immediately find the cheap deals even if the highstreet banks stop theirs.

Bloody hell.

Boom for the foreseeable future then.

:lol::lol::lol:

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Why don't we talk about this sort of thing? This looks like massively massively cheap credit! WTF is going on?

ARE banks tightening credit? With a website like moneysupermarket you just immediately find the cheap deals even if the highstreet banks stop theirs.

Bloody hell.

Boom for the foreseeable future then.

Couldn't find anything on that, but I thought this was interesting:

http://online.newcastle.co.uk/invest/GPB14...1183481754556-1

Do we think they're betting against the housing market over the next five years?

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Why don't we talk about this sort of thing? This looks like massively massively cheap credit! WTF is going on?

ARE banks tightening credit? With a website like moneysupermarket you just immediately find the cheap deals even if the highstreet banks stop theirs.

Bloody hell.

Boom for the foreseeable future then.

And you are only tied into it until 2013! At their variable rate, currently 7.49%.

Excellent value I think :lol:

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Couldn't find anything on that, but I thought this was interesting:

http://online.newcastle.co.uk/invest/GPB14...1183481754556-1

Do we think they're betting against the housing market over the next five years?

Intriguing offer. Particularly the 5-year tie-in period. You still get your money back if the house price index falls (but no rise to keep up with inflation). Do you think this is a way of shoring up the Building Society's books with some deposits?

I'd love to know how they work their calculations to create these products.

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Why don't we talk about this sort of thing? This looks like massively massively cheap credit! WTF is going on?

ARE banks tightening credit? With a website like moneysupermarket you just immediately find the cheap deals even if the highstreet banks stop theirs.

Bloody hell.

Boom for the foreseeable future then.

I just looked at this offer on their website: http://online.newcastle.co.uk/mortgage/index.htm

2.25% certainly is an eye-catching initial rate, but this is only until 30 June 2009 (i.e. probably only for 21 months by the time you complete) and is followed by a whopping 4-year extended tie in at the standard variable rate until 30 June 2013! Moreover, the early repayment charges are huge: as much as 7% of the outstanding balance if you try to get out in 2009. :o

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Couldn't find anything on that, but I thought this was interesting:

http://online.newcastle.co.uk/invest/GPB14...1183481754556-1

Do we think they're betting against the housing market over the next five years?

With our Guaranteed Property Bond (Issue 14) you can combine the security and simplicity of a Building Society Account with the growth potential of the Halifax House Price Index (HHPI), one of the most authoritative measures of the UK housing market. This bond has been designed to provide a return equivalent to 115% of any growth in the HHPI over the five-year term.

Any bull worth his socks is going to invest in this one.

HPI + 15%

Of, course if HPI over 5 years is zero or negative, you lose nothing. You just get your initial investment back (and forego the interest you could have got on an interest-bearing account).

If anyone believes that house price inflation is going to outperform interest rates over the coming 5 years then here's the place for you.

I wonder why they're offering it? Surely they are going to lose a bundle, because house prices only ever go up!

[actually, this is perhaps the most bearish thing I have seen in weeks].

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