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laurejon

Fixed Rate Mortgages 5% For Life

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It amazed me several months ago when friends scoffed at the suggestion they should fix their mortgages for life at 5%, Rates are set to fall, they are only high today they told me.

With Banks being charged 7% and above to borrow money, I wonder were the mortgage rates will be by April 2008

I am guessing 9% SVR, if that is the case then the property market is deeply flawed and will self implode for sure by end of 2008.

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Guest anorthosite

That's a rational and intelligent post.

Who are you and what have you done with the real laurejon?

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Guest DissipatedYouthIsValuable
It amazed me several months ago when friends scoffed at the suggestion they should fix their mortgages for life at 5%, Rates are set to fall, they are only high today they told me.

With Banks being charged 7% and above to borrow money, I wonder were the mortgage rates will be by April 2008

I am guessing 9% SVR, if that is the case then the property market is deeply flawed and will self implode for sure by end of 2008.

"Time for another injection, Mr Laurejon!"

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It amazed me several months ago when friends scoffed at the suggestion they should fix their mortgages for life at 5%

Are you sure they weren't scoffing simply because they (and you) knew that there was no chance they would ever possibly meet the lender's criteria to qualify for such a deal? <_<

Although other than that, you're not wrong! :blink:

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"Time for another injection, Mr Laurejon!"

In this financial climate I would guess there is plenty of that going on in the City, and Whitehall tonight. I suspect the days of a couple of snorts on a Friday night are over for the bloated kings of Socialism, they will be turning to the hard stuff to drown their sorrows.

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Guest DissipatedYouthIsValuable
In this financial climate I would guess there is plenty of that going on in the City, and Whitehall tonight. I suspect the days of a couple of snorts on a Friday night are over for the bloated kings of Socialism, they will be turning to the hard stuff to drown their sorrows.

"Some more broon for Mr Broon?"

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It amazed me several months ago when friends scoffed at the suggestion they should fix their mortgages for life at 5%, Rates are set to fall, they are only high today they told me.

With Banks being charged 7% and above to borrow money, I wonder were the mortgage rates will be by April 2008

I am guessing 9% SVR, if that is the case then the property market is deeply flawed and will self implode for sure by end of 2008.

My lord, a non pro-environment collapse, pro-tory propaganda piece from Toryjon. In fact, a senitment i agree with....oh wait, just seen your other post. Now, that's more like it... :rolleyes:

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Guest happy?
My lord, a non pro-environment collapse, pro-tory propaganda piece from Toryjon. In fact, a senitment i agree with....oh wait, just seen your other post. Now, that's more like it... :rolleyes:

I was immediately on the alert when I saw Toryjon bandying words like 'friends'...

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It amazed me several months ago when friends scoffed at the suggestion they should fix their mortgages for life at 5%, Rates are set to fall, they are only high today they told me.

With Banks being charged 7% and above to borrow money, I wonder were the mortgage rates will be by April 2008

I am guessing 9% SVR, if that is the case then the property market is deeply flawed and will self implode for sure by end of 2008.

I'm thinking you are right, I posted this earlier today

"If we see enough initial interest rate cuts, I might jump for a 10 year fixed rate mortgage, with the hope that inflation will kick in and inflate the debt away. Obviously I would expect the IRs to go up along side inflation in the medium to long term. But if the immediate plan of attack is to cut rates to stave off reccession before their hand is forced, it might be a good time to buy - I reckon I'd jump at 5%, but am doubtful we'll see it again"

Exploring the possibility of houses only falling 10 - 15 % nominally and falling in real terms over say 5 - 10 years. I'm starting to doubt that significant savings can be made waiting for a 40% fall if the interst rates sky rocket, versus going in now at 5% and hoping that inflation will erode the debt suitably.

I've pulled the 10 -15% & 40% figures out of my ****, for which I make no apologies, after 2 years of lurking around here, I'm sure that's what most of us do anyway.

D

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I have to say given the current economic crisis (That has strangely supprised nobody, except those so called proffessionals, the Government Economists, the Bank of England, and the Captain of the Ship Gordon Brown) a fall of 40% within the next two years is not being overly bearish. There is a major sea change going on, the vision that the UK is the worlds fourth richest nation is now being realised as just that, a distant vision.

The standard of living in the UK is dire in comparison to many other nations, particulary in Europe. This Government have wasted billions, we still have the same old transport system, the same old queues for the NHS, and yet we have paid dearly in terms of high taxation, pension losses, and putting our children outside the realms of home ownership.

Doomsday prediction you may thing, but its not, its a stark reality. The future is very grim for anyone starting out in this country. The generations of have gots, will slowly die off, and you will be left in 30 years time with a population of dispossesed, unskilled, benefit dependent unemployed people.

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Have inside info that one of the larger ex-building societies is to cut its fixed deals by 0.5% tomorrow... good news for those coming off current fixes if they can get 5.5% or thereabouts. Sadly, this saga is going to run and run.

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Have inside info that one of the larger ex-building societies is to cut its fixed deals by 0.5% tomorrow... good news for those coming off current fixes if they can get 5.5% or thereabouts. Sadly, this saga is going to run and run.

I suspect a Teaser rate, fixed for 2 years locked in for 5 on a projected SVR of 9%.

I am afraid they have added so much artistic licence to creative lending over the past five years that they are simply out of ideas.

The fact is that if the lender borrows at 7% and above, they may well offer rates of 3%, but the public surely are not stupid enough to realise there is no such thing as a free lunch.

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Have inside info that one of the larger ex-building societies is to cut its fixed deals by 0.5% tomorrow... good news for those coming off current fixes if they can get 5.5% or thereabouts. Sadly, this saga is going to run and run.

Whats the arrangement fee?

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I have to say given the current economic crisis (That has strangely supprised nobody, except those so called proffessionals, the Government Economists, the Bank of England, and the Captain of the Ship Gordon Brown) a fall of 40% within the next two years is not being overly bearish. There is a major sea change going on, the vision that the UK is the worlds fourth richest nation is now being realised as just that, a distant vision.

The standard of living in the UK is dire in comparison to many other nations, particulary in Europe. This Government have wasted billions, we still have the same old transport system, the same old queues for the NHS, and yet we have paid dearly in terms of high taxation, pension losses, and putting our children outside the realms of home ownership.

Doomsday prediction you may thing, but its not, its a stark reality. The future is very grim for anyone starting out in this country. The generations of have gots, will slowly die off, and you will be left in 30 years time with a population of dispossesed, unskilled, benefit dependent unemployed people.

yet you miss the point - the entire UK economy (and therefore everything we live and breath) is currently founded on the rising prices of houses - THIS is the whole reality for the next two years

houses and financial services make up >80% of our GDP. this particular train will simply not stop.

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yet you miss the point - the entire UK economy (and therefore everything we live and breath) is currently founded on the rising prices of houses - THIS is the whole reality for the next two years

houses and financial services make up >80% of our GDP. this particular train will simply not stop.

The train will stop, as the train has no driver and the deadmans handle will be pulled.

The last ten years have seen reports of a blooming economy, yet failed to identify the huge debts behind it.

I could open a factory, employ 40 million people and manufacture rubber ducks for use in childrens baths all over the world. If I have the Government behind me pumping money into the operation to the tune of billions of pounds, I care not about balance sheets I am laughing all the way to the bank.

This nation over the last decade, and under this Government has turned its back on the words "Profit" and if you are not making a profit you are going backwards, you are going into debt, and the result is predictable.

There is a limit to the debt that a nation can have, ask Argentina, or indeed Germany in the 30's, and the US in the 30's.

Lending money wisely can be a good thing, however when that lending is not managed and is secured on thin air you have a serious problem.

I dont think people realise, the huge debts our Government have run up have to be serviced, the interest alone is astronomical, and given the rate rises I would guess they have taken us all up a one way street.

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Leeds Building Society

10 year fix 5.59%

6 months ago 10 year fixes were 6.25%

Swap rates have plummeted this past 2 weeks.

Another BS in trouble I suspect.

Maybe next week we will see savers queuing up outside Leeds Building Society who lend cheaper than they borrow.

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