Realistbear Posted September 20, 2007 Share Posted September 20, 2007 (edited) http://www.thisismoney.co.uk/news/article....mp;in_page_id=2 Mortgage rates to fall after Bank U-turn Philip "Phil" Scott, This is Money 19 September 2007, 2:29pm Homeowners should see mortgage rates fall after the Bank of England announced it would inject £10bn into the money markets in a bid to make lending between banks cheaper. The Bank's aim is to help reduce the three-month inter-bank lending rates, known as Libor. The move would have the knock-on effect of lowering variable rate mortgage costs. Look up, what's that sound we hear? Its helicopters dropping billions of pounds onto the miracle to breath new life and more HPI into the wobbling economy. "The housing market appears to have reversed its recent declines and is seeing a new burst of energy as buyers flock back to estate agents armed with cheaper mortgages to snap up bargains following recent falls in house prices of up to 0.2%..." Edited September 20, 2007 by Realistbear Quote Link to comment Share on other sites More sharing options...
symo Posted September 20, 2007 Share Posted September 20, 2007 but RB where is this 10bn coming from? Quote Link to comment Share on other sites More sharing options...
DabHand Posted September 20, 2007 Share Posted September 20, 2007 yeah that 10bn is going to make aaallll the difference. I can see speculators doing rather well Soros style. Quote Link to comment Share on other sites More sharing options...
Darkman Posted September 20, 2007 Share Posted September 20, 2007 I don't know whether to cry over my tax contributions being used to continue the property owners dream boom... or laugh at this part "bargains following recent falls in house prices of up to 0.2%" 0.2% is a bargain? haha Don't make me spit my coffee out now. Quote Link to comment Share on other sites More sharing options...
Bloo Loo Posted September 20, 2007 Share Posted September 20, 2007 Dont worry its a 10bn loan over 3 months- we'll have it back for christmas Quote Link to comment Share on other sites More sharing options...
Realistbear Posted September 20, 2007 Author Share Posted September 20, 2007 but RB where is this 10bn coming from? Reuters news report said Gordon is printing at levels not seen in 16 years. He is desperate to keep the ship afloat and will risk inflation in the process. The miracle was about to collapse and he pulled the last rabbit* out of the hat: money supply growth. ________________ * IMO immigration may not work for much longer as jobs will be lost and its getting a bit of a hot political potatoe anyway. Quote Link to comment Share on other sites More sharing options...
Impartial Posted September 20, 2007 Share Posted September 20, 2007 Dont worry its a 10bn loan over 3 months- we'll have it back for christmas the thing is the £10billion was offered at 6.75% how has his dropped libor to 6.55%? Quote Link to comment Share on other sites More sharing options...
Realistbear Posted September 20, 2007 Author Share Posted September 20, 2007 the thing is the £10billion was offered at 6.75% how has his dropped libor to 6.55%? Government subsidies. Quote Link to comment Share on other sites More sharing options...
Zzzzzzzzzzzzzzzzzzzzzzzzzz Posted September 20, 2007 Share Posted September 20, 2007 = Inflation Quote Link to comment Share on other sites More sharing options...
hankdd Posted September 20, 2007 Share Posted September 20, 2007 yeah that 10bn is going to make aaallll the difference. I can see speculators doing rather well Soros style. I expressed similiar fears on another thread. I compared it to a teenager announcing the address of a party on my-space Quote Link to comment Share on other sites More sharing options...
Rinoa Posted September 20, 2007 Share Posted September 20, 2007 Another reason why mortgage rates will fall soon is that swap rates have fallen considerably. Swap Rates Every swap is now cheaper than 6 months ago. Fixed rates mortgages over 2,3 and 5 years will plummet. Quote Link to comment Share on other sites More sharing options...
Bloo Loo Posted September 20, 2007 Share Posted September 20, 2007 I was under the impression that in order to sell MBS paper, there was now a risk premium- or has the risk gone away today Quote Link to comment Share on other sites More sharing options...
Rinoa Posted September 20, 2007 Share Posted September 20, 2007 I was under the impression that in order to sell MBS paper, there was now a risk premium- or has the risk gone away today Risk premiums are are built into the rate. As the risk premium evaporates, so does the swap rate. Quote Link to comment Share on other sites More sharing options...
OnlyMe Posted September 20, 2007 Share Posted September 20, 2007 So basically, "banks won't lend to each other" is a pack of lies. Just wasn't cheap enough for the banks, and they want to carry on screwing the borrowers for as much as they can, and now the taxpayer funding the rigging of market rates! Quote Link to comment Share on other sites More sharing options...
Bloo Loo Posted September 20, 2007 Share Posted September 20, 2007 OK, so what profit margin would go on top of that rate for the mortagee? Quote Link to comment Share on other sites More sharing options...
Rinoa Posted September 20, 2007 Share Posted September 20, 2007 OK, so what profit margin would go on top of that rate for the mortagee? I guess that's up to each individual bank. But the market is very competetive. Quote Link to comment Share on other sites More sharing options...
Bloo Loo Posted September 20, 2007 Share Posted September 20, 2007 (edited) I guess that's up to each individual bank. But the market is very competetive. Thanks- what do you expect- 2% or less?- I am expecting the answer "less" Edited September 20, 2007 by Bloo Loo Quote Link to comment Share on other sites More sharing options...
Rinoa Posted September 20, 2007 Share Posted September 20, 2007 Thanks- what do you expect- 2% or less?- I am expecting the answer "less" Less. A lot less, but it depends on client and LTV. Quote Link to comment Share on other sites More sharing options...
Bloo Loo Posted September 20, 2007 Share Posted September 20, 2007 Less. A lot less, but it depends on client and LTV. are you implying a tightening of criteria for the coming period? Quote Link to comment Share on other sites More sharing options...
Rinoa Posted September 20, 2007 Share Posted September 20, 2007 are you implying a tightening of criteria for the coming period? A little, but not as severe as many on here believe. Quote Link to comment Share on other sites More sharing options...
wotser Posted September 20, 2007 Share Posted September 20, 2007 The 10 billion is at penal rates so it would not cause mortgage rates to fall by any stretch of the imagination ! THe fundamentals if anything are getting worse. Quote Link to comment Share on other sites More sharing options...
bdon Posted September 20, 2007 Share Posted September 20, 2007 http://www.thisismoney.co.uk/news/article....mp;in_page_id=2Mortgage rates to fall after Bank U-turn Philip "Phil" Scott, This is Money 19 September 2007, 2:29pm Homeowners should see mortgage rates fall after the Bank of England announced it would inject £10bn into the money markets in a bid to make lending between banks cheaper. The Bank's aim is to help reduce the three-month inter-bank lending rates, known as Libor. The move would have the knock-on effect of lowering variable rate mortgage costs. Look up, what's that sound we hear? Its helicopters dropping billions of pounds onto the miracle to breath new life and more HPI into the wobbling economy. "The housing market appears to have reversed its recent declines and is seeing a new burst of energy as buyers flock back to estate agents armed with cheaper mortgages to snap up bargains following recent falls in house prices of up to 0.2%..." Get used to it guys. If you want to live in the UK then you must understand how it works *now*. If you are one of the lucky elite with a house that you love and no debt then you are very fine. All the rest of you here (assuming you still live in UK now and in Y+2) are royally screwed This is the new age of the new people and the new paradigm. Web 2.0 as never imagined before. The archaic ones who still believe that a lump dug out of the ground on the labour of the whip on the back of the negro will restore a "balance" are incredibly and increasingly odd. Quote Link to comment Share on other sites More sharing options...
refusnik Posted September 20, 2007 Share Posted September 20, 2007 (edited) Look up, what's that sound we hear? Its helicopters dropping billions of pounds onto the miracle to breath new life and more HPI into the wobbling economy. How much would £10bn weigh in £20 notes? Edited September 20, 2007 by refusnik Quote Link to comment Share on other sites More sharing options...
the end is a bit nigher Posted September 20, 2007 Share Posted September 20, 2007 A little, but not as severe as many on here believe. I like it when people who are a bit clueless make things up - gives me a laugh Quote Link to comment Share on other sites More sharing options...
grey shark Posted September 20, 2007 Share Posted September 20, 2007 A little, but not as severe as many on here believe. Hey Mr Crapper watch this , click>> watch this report ................. http://www.channel4.com/news/articles/busi...ke+a+hit/825952 Quote Link to comment Share on other sites More sharing options...
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