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Halifax Launches 25 Year Fixed Rate Mortgage

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Is it a 100% mortgage or do you have to have a 10 or 20% deposit?

In France, you can get this rate, but the bank will require 10% minimum.

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Guest absolutezero
3% early redemption charge! Ouch!

Admittedly the charges are extortionate (particularly the one if you want to get out within 10 years) but given most people seem to think interest rates are on the rise, why would a bank offer a comparitively low rate for such a long time?

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Admittedly the charges are extortionate (particularly the one if you want to get out within 10 years) but given most people seem to think interest rates are on the rise, why would a bank offer a comparitively low rate for such a long time?

its not that low, and its ALOT higher than a year ago.... in another 12 months it could be even higher.... If you think IRs will be higher in future buy and fix at this 'low' interest rate.

Edited by moosetea

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A borrower on a £200,000 mortgage who signs up to the Halifax's new deal will face monthly repayments of £1336.70 per month. The deal also has a £599 arrangement fee.

£1,336.70 in mortgage repayment per month !!! Just exactly how many people can afford that much when it just about represents the average take-home pay ??

When will the sheeple get it ??

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HSBC fee free mortgages robbing Peter to pay Paul - Moneyfacts

Julia Harris, Mortgage Expert at Moneyfacts.co.uk, comments:

"With so much bad publicity surrounding rising arrangement fees and unfair exit charges and with many borrowers struggling to find the upfront costs needed to move home and find a new mortgage deal, its no wonder lenders are launching no fee mortgage deals. But, as with every thing you don't get something for nothing, and while the fees may be zero, the lender will make up the costs by way of higher rates.

http://firstrung.co.uk/articles.asp?pageid...&cat=44-0-0

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Guest absolutezero
A borrower on a £200,000 mortgage who signs up to the Halifax's new deal will face monthly repayments of £1336.70 per month. The deal also has a £599 arrangement fee.

£1,336.70 in mortgage repayment per month !!! Just exactly how many people can afford that much when it just about represents the average take-home pay ??

When will the sheeple get it ??

It winds me up that the cheeky bastards also want you to pay an arrangement fee!

So not only are you borrowing money and paying them a fat wad of interest for the rest of your working life, they want you to pay them to set up the mortgage!

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£1,336.70 in mortgage repayment per month !!! Just exactly how many people can afford that much when it just about represents the average take-home pay ??

When will the sheeple get it ??

so you are saying people are signing up to this and then cant even make the first repayment. That would indeed be dumb. But somehow I think the people that do sign up are a little bit smarter than that!

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Admittedly the charges are extortionate (particularly the one if you want to get out within 10 years) but given most people seem to think interest rates are on the rise, why would a bank offer a comparitively low rate for such a long time?

'Cause they just bought a load of cash el cheapo from the muppets at the ECB, lets see what's 6.93 - 4.00

why it's 2.93%

0.00293 x 95,000,000,000 == loadsamoney!!!

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A borrower on a £200,000 mortgage who signs up to the Halifax's new deal will face monthly repayments of £1336.70 per month. The deal also has a £599 arrangement fee.

£1,336.70 in mortgage repayment per month !!! Just exactly how many people can afford that much when it just about represents the average take-home pay ??

They'll have to cut out luxuries. Eating, by the look of things.

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Admittedly the charges are extortionate (particularly the one if you want to get out within 10 years) but given most people seem to think interest rates are on the rise, why would a bank offer a comparitively low rate for such a long time?

errr... a lot of people seem to think 6% is the peak, the news goes on about 1 more rise these last couple of months, on this forum most think they will rise

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Admittedly the charges are extortionate (particularly the one if you want to get out within 10 years) but given most people seem to think interest rates are on the rise, why would a bank offer a comparitively low rate for such a long time?

Well, the 3% redemption charge will be payable by a lot as they move or have a change of circumstances.

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Well, the 3% redemption charge will be payable by a lot as they move or have a change of circumstances.

...haven't read the detail ...but ..it should be at the very least portable to protect you when you move house.... :P

Edited by South Lorne

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It winds me up that the cheeky bastards also want you to pay an arrangement fee!

So not only are you borrowing money and paying them a fat wad of interest for the rest of your working life, they want you to pay them to set up the mortgage!

Exactly, never understood what that's all about.

I'd be inclined to ask what exactly the "arrangement" consists of and whether I can do it myself to save money LOL.

And maybe I can charge the bank a fee each month when I "arrange" to pay off the balance of my credit card.....

Edited by Ethel

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so you are saying people are signing up to this and then cant even make the first repayment. That would indeed be dumb. But somehow I think the people that do sign up are a little bit smarter than that!

This is not my point. What I am saying is that a £200K mortgage at this rate is completely unaffordable to most people.

So, it is one of two things -

Either IR should be cut sharply and salaries increased substantially

Or house prices should come down .....

Which of the two is more likely and/or desirable (bearing in mind that total secured lending in the UK is already over £1 trillion)?

What I mean when I say 'when will the sheeple get it?' is that very few people want to face up to the hard truth - house prices have become totally disconnected from the 'real' economy and simply cannot be sustained at their current level.

As for all the market 'experts' who say that HPI will pause whilst salaries catch up, who the ferk believes that?

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25 years at 6.39% thanks but no thanks. I'd rather have the highs and lows than be tied into that for 25 years.

I also think it's much more fun riding the IR-rollercoaster up to 15%, and then back to 6% - given no foreclosure comes along my way.

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I also think it's much more fun riding the IR-rollercoaster up to 15%, and then back to 6% - given no foreclosure comes along my way.

Hmmm yes if they go up to 15% I might regret my decision but it's a risk I'm willing to take and foreclosure is never going to be an issue for me. My earnings are guaranteed no matter what happens.

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