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tuggybear

Borrowers Play Musical Chairs

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Yesterday's announcement of mortgage rate increases from Nationwide Building Society, however, may change all this. Britain's second biggest mortgage lender is now charging 7 per cent for a mortgage that tracks base rates up and down, and 6.4 per cent for a two-year fixed-rate deal.

Why are rates increasing despite recent base rate cuts and the expectation of further reductions? The simple answer is that Nationwide is anxious to rein in its mortgage lending. And it's not alone. Halifax, the UK's biggest lender, has also been increasing interest rates in recent weeks. So has Abbey and a string of other mortgage banks.

Its a Morgage refinance crash

Link : http://www.independent.co.uk/news/business...ers-801840.html

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With the banks lending and Libor rate higher than 5.25%, savers rates higher than 6%. Do you think this is done so that Browne tw@t can stand up in PMQ's and repeatedly vomit the same satistics to every question, " low interest rates, low inflation, Blar,Blar,Blar"?

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I Know it me again, and its not a bump, ive just read this artical again.

get ready for this :

The most recent official figures on repossessions are at first sight reassuring, revealing that there was only a small increase in the number of people losing their homes last year. But one statistic stands out – some 95,000 orders to repossess (the stage before actual repossession) were made last year, only 8,000 fewer than in 1990.

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But one statistic stands out – some 95,000 orders to repossess (the stage before actual repossession) were made last year, only 8,000 fewer than in 1990.

:) Good news there... but at only 0.4% of households, and where not all of thse will be reposessed, there's a way to go yet. I disagree that the MPC will soon agressively cut rates like in the USA... I've just finished watching the most recent Treasury Select Comittee report and it is very enlightening. I commented on various bits:

http://www.housepricecrash.co.uk/forum/ind...showtopic=72100

I didn't comment about Branchflower... he's the American on the MPC, who has been far more agressive in calling for rate cuts than the rest of the participants - and has, in the past, come across as something of a sympathiser with US wishes rather than someone looking to act in favour of the UK (IMHO.) Anyhow, he states clearly that the data in the UK is far less bleak than in the USA - and his tone was not that our economy is following the USA's - a few months behind.

It will be different in the UK... The most significant reasons being:

* Housing market is more constrained (less land; stricter planning)

* Mortgage debt follows you even if you relinquish your home in the UK

* The UK's inflation correlates more closely with Eurozone economics than US economics.

Mervyn King makes it clear that he doesn't see the solution to the stupidity of under-pricing risk in securitisations being to underwrite the writing of more. Which is reassuring. It is game-on, and don't expect cheap and abundant retatil credit even if base rates drop.

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  • 297 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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