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Woolwich Cuts 0.5% Off Fixed Rate Mortgages

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Woolwich is launching a raft of lower fixed rate mortgages at rates of 5.59% for two and five year deals.

The five year rate is 0.5% per annum lower than the previous five year fixed rate. The two year fixed rate is also being priced at 5.59%, a cut of 0.30% and with no upper limit on the amount borrowed.

http://www.mortgagestrategy.co.uk/cgi-bin/...;h=24&f=254

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Woolwich is launching a raft of lower fixed rate mortgages at rates of 5.59% for two and five year deals.

The five year rate is 0.5% per annum lower than the previous five year fixed rate. The two year fixed rate is also being priced at 5.59%, a cut of 0.30% and with no upper limit on the amount borrowed.

http://www.mortgagestrategy.co.uk/cgi-bin/...;h=24&f=254

It's called a "credit crunch" don't you know? This will crush a lot of borrowers to dust.

It's worth remembering that our government will stand fast against any risk of inflation, so these borrowers will be the ones who pay the price.*

* :lol::lol::lol::lol: As if!

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Thats weird, their website still shows 5.89% with an arrangement fee of £995.

http://www.personal.barclays.co.uk/BRC1/js...mp;target=_self

2-year fixed rate

5.89% until 30 November 2009, then for the remaining term Barclays Bank Base Rate + 0.95%, currently 6.70%. The overall cost for comparison is 6.9% APR. Application fee: £995. Borrow up to 80% of the value of your home.

Edited by Jimmy2Times

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What's the arrangement fee ?

Oi oi oi, stop asking difficult questions about arrangement fees, LTV limitations, terms and conditions, credit history, indemnity guarantees, redemption penalties... just look at the amazing rate! :lol:

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It's called a "credit crunch" don't you know? This will crush a lot of borrowers to dust.

It's worth remembering that our government will stand fast against any risk of inflation, so these borrowers will be the ones who pay the price.*

* :lol::lol::lol::lol: As if!

I think people are getting confused on what a credit crunch is. It means the spreads are widening. Banks are flooding to low risk borrowers and abandoning subprime. This is a sign of this.

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I think people are getting confused on what a credit crunch is. It means the spreads are widening. Banks are flooding to low risk borrowers and abandoning subprime. This is a sign of this.

I agree. These mortgage deals are aimed at prime borrowers only. I am a year away from remortgaging but always like to keep an eye on what's available and the mortgage market is far more attractive today than it was a month ago for a prime borrower with good equity.

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I agree. These mortgage deals are aimed at prime borrowers only. I am a year away from remortgaging but always like to keep an eye on what's available and the mortgage market is far more attractive today than it was a month ago for a prime borrower with good equity.

Is this mortgage from the Woolich available in Auckland?

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Banks borrow money from different places and fixed rates were expected to fall. The upshot will be that BTL LLs with good credit histories will be able to buy houses when sub-prime borrowers will not.

The biggest losers will be the government. There is far less tax/Stamp Duty paid on BTL properties than on owner occupied homes.

What is needed is some better form of control over BTL. Perhaps a change of use from owner occupied to rental and vice versa would prevent LLs from cashing in on price fluctuations.

GG

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I agree. These mortgage deals are aimed at prime borrowers only. I am a year away from remortgaging but always like to keep an eye on what's available and the mortgage market is far more attractive today than it was a month ago for a prime borrower with good equity.

still a prime borrower can borrow more cheaply or borrow more for the same cost. So whilst sub-prime borrowers might feel a crunch, there is a good number of prime borrowers who can afford more...I'm not sure how this helps a hpc as if you are forced to sell there will still be plenty of buyers.

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still a prime borrower can borrow more cheaply or borrow more for the same cost. So whilst sub-prime borrowers might feel a crunch, there is a good number of prime borrowers who can afford more...I'm not sure how this helps a hpc as if you are forced to sell there will still be plenty of buyers.

errrrrrrrr...........no

one of the reasons for hpi was that borrowers who wouldn't normally get lots of money suddenly did - this pushed prices up as they were competing for properties they wouldn't have preiously been able to - prime borrowers have never had any difficulty getting good deals to the best of my knowledge - it's sub-prime, including btl we want hitting

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Sub prime will then have no choice but to rent from the BTL. ;)

Exactly. This will make BTL landlords sub-prime, because their revenue stream will depend upon exactly those people who were unable to afford the property themselves.

It is only a matter of time until they stop paying the rent.

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Exactly. This will make BTL landlords sub-prime, because their revenue stream will depend upon exactly those people who were unable to afford the property themselves.

It is only a matter of time until they stop paying the rent.

I don't quite agree with that. It depends on what you mean by "sub prime." If you lost your job tomorrow that would make you "sub prime."

Lets say you miss three mortgage payments as a result of your job loss, but find another job and repay the arrears. You may still be classed as subprime, as the missed/late mortgage payments will still be on your credit record.

I don't like this term "sub prime" and lumping everyone into it as "near do well." The finance industry I think has serious issues when it refers to a significant amount of its customers as "sub" anything.

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this is simple bravado marketing on the part of the woolwich. I bet they have really tightened their lending criteria like many other banks, all this does is get them a bit of positive publicity.

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still a prime borrower can borrow more cheaply or borrow more for the same cost. So whilst sub-prime borrowers might feel a crunch, there is a good number of prime borrowers who can afford more...I'm not sure how this helps a hpc as if you are forced to sell there will still be plenty of buyers.

We were going for a Woolwich 10 year fix in June/July, just before IRs were expected to go to 5.75 (can't remember the month exactly). As you may all remember, another rise was guaranteed if not for September, certainly for October at that stage, before everything seized up badly. So with a universal expectation of IRs being 6, or even 6.25 we were accepted at 5.57% with a set up fee of 695.

Now, with the prospect of a rate cut to possibly 5.25 (a whole 1% less than the possible 6.25), the rate is marginally higher than it was in June/July and the fee has gone up another 300.

To say they have reduced the rate by 0.5% is true, but it is still more expensive than it was in the summer and in a much more "benign" BoE Base Rate IR environment, so worse than the summer.

If it wasn't for the fact that we are sorting out our STR for next month, I might do some investigation to see if they will still lend us the same amount! It was a low LTV though, and I notice this is 80%. I can't remember what the max ltv was in the summer, either as we weren't close to it. I bet it wasn't lower though. :)

I also looked at the Early Repayment Charges and they are unchanged from the summer.

As mentioned there are other ways to ensure that very few people qualify for this for instance they can tighten their credit scoring criteria without actually publically stating it.

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