Sonic the Hedge Fund Posted August 19, 2007 Share Posted August 19, 2007 (edited) I have been waiting for this piece of news for some time Check out this from the front page of HPC, this is an absolute killer: http://firstrung.co.uk/articles.asp?pageid...&cat=44-0-0 This one mortgage lender cannot find a buyer for their debt, so they have had to re-price the rates on their mortgage offerings: sub-prime +2.5% near prime +1.25% This is a UK mortgage lender no doubt others will soon follow...they will have no choice, the market has spoken If the BoE cut rates by .25% it will make no difference Edited August 19, 2007 by Sonic the Hedge Fund Quote Link to comment Share on other sites More sharing options...
cells Posted August 19, 2007 Share Posted August 19, 2007 spreads have risen all over the place, even prime mortgages i remember when i joined this site (early this year) you could get long term fixed mortgages for very slightly above the BOE base rate. now the margin is at least 0.4% above BOE base rate. Quote Link to comment Share on other sites More sharing options...
Goldfinger Posted August 19, 2007 Share Posted August 19, 2007 i remember when i joined this site (early this year) you could get long term fixed mortgages for very slightly above the BOE base rate. now the margin is at least 0.4% above BOE base rate. ... and pirate equity could find financing even below base rate. Quote Link to comment Share on other sites More sharing options...
Sonic the Hedge Fund Posted August 19, 2007 Author Share Posted August 19, 2007 spreads have risen all over the place, even prime mortgagesi remember when i joined this site (early this year) you could get long term fixed mortgages for very slightly above the BOE base rate. now the margin is at least 0.4% above BOE base rate. thats also quite a big jump, but isn't that due to the swap market pricing in the risk of base rate increases? i.e. it's due to the predicted future actions of the BoE The key thing in the article is that Victoria are re-pricing because they cannot sell their debt, this is an actual example of the debt market setting UK mortgage rates. The actions of the BoE are becoming irrelivent, pushing the string, so to speak Quote Link to comment Share on other sites More sharing options...
Sonic the Hedge Fund Posted August 19, 2007 Author Share Posted August 19, 2007 ... and pirate equity could find financing even below base rate. Private equity is lucky to find any finance at all now..... Quote Link to comment Share on other sites More sharing options...
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