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Finally Relief In The Mortgage Market

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Mortgage lenders have finally started to cut their rates

Mortgage lenders have finally started to cut their rates - bringing welcome relief for homeowners.

Nationwide will tomorrow deliver its second reduction in a week, cutting annual payments for an average borrower by a total of £550. Their move follows six months of gloom in the mortgage market in which deals have reached their highest levels for a decade

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David Hollingworth, from the mortgage broker London & Country, said he is hopeful that other lenders will follow. Over the past few months, lenders have been desperate not to lend money, and have been frantically withdrawing any rate which looks competitive.

But this has changed.

'We are starting to see jostling between the lenders,' said Mr Hollingworth. 'We have finally got a competitive spirit back into the market.'

Competitive spirit back into the market? Err I don't think so, from 100% mortgage @ 4% interest rates to 75% mortgage @ 6.18% and they call it 'competitive spirit & relief in the mortgage market' what a load of garbage :lol:

Why can't they see the simple fact that most buyers struggle to save a deposit of 10% let alone 25%?

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Mortgage lenders have finally started to cut their rates

Competitive spirit back into the market? Err I don't think so, from 100% mortgage @ 4% interest rates to 75% mortgage @ 6.18% and they call it 'competitive spirit & relief in the mortgage market' what a load of garbage :lol:

Why can't they see the simple fact that most buyers struggle to save a deposit of 10% let alone 25%?

What gives someone without or with a small deposit the right to buy???

If you dont have security then don't buy. That's what this bubble is all about anyway!!!!

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Why can't they see the simple fact that most buyers struggle to save a deposit of 10% let alone 25%?

And that the LTV is only going to get tougher as prices slide - 90% deals will be gold-dust by Xmas.

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How come the average loan is 155k?

I thought almost everyone had at least 50% equity which is why a crash wouldn't hurt that many people :angry:

avge house price 180k.

avge loan 155k

avge ltv 86.1%

sitting on the sidelines watching it all unravel

priceless

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The only relief is for lenders who don't want to lend.

They now know for sure that the sheeple they don't want are maxed out & with no savings, so it's safe to lower rates....a tad.

Mass unemployment & eye watering (de)valuations will do the rest.

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Hah.

Just realised that the "avge" mortgage of 155k on the avge house of 180k wouldn't actually qualify for the deal they are talking about, cos the LTV is too high.

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Mortgage lenders have finally started to cut their rates

Competitive spirit back into the market? Err I don't think so, from 100% mortgage @ 4% interest rates to 75% mortgage @ 6.18% and they call it 'competitive spirit & relief in the mortgage market' what a load of garbage :lol:

A small point but I'm fairly sure there has never been a 100% mortgage available for 4%, I think about 5.25% is the lowest 100% that has ever been around, but I may be wrong.

On the overall theme of the post, speaking as someone in the industry, it is embarrassing for one's colleagues to celebrate 'turning the corner' on the back of a few token rate cuts. They will go up again, then they will go down and this cycle will be repeated just as it has been for the past 10 years, because the cost of funding fluctuates.

The only thing that matters is the trend, which has clearly been a rising one.

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A small point but I'm fairly sure there has never been a 100% mortgage available for 4%, I think about 5.25% is the lowest 100% that has ever been around, but I may be wrong.

Possibly refers to this from 2002

Portman Building Society

Name of mortgage

Portman 2 Year Fixed - 3.99%

Interest Rate

3.99% (APR 5.6%)

Charges

£300 Acceptance Fee. No mortgage risk fee up to 90% LTV

Dames

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Possibly refers to this from 2002

Portman Building Society

Name of mortgage

Portman 2 Year Fixed - 3.99%

Interest Rate

3.99% (APR 5.6%)

Charges

£300 Acceptance Fee. No mortgage risk fee up to 90% LTV

Dames

That was a 100% deal was it? Interesting and if so I stand corrected. I've never really been involved with 100%ltv but on reflection you could get 2 yrs at 3.29%, five or ten years at 3.89% back in 2002. Up to 90%LTV, so it's feasible to have been 4% with no deposit.

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That was a 100% deal was it?

No , but i was pointing out thtat it may be what was being referred to.

Portman Building Society

Name of mortgage

Portman 2 Year Fixed - 3.99%

Interest Rate

3.99% (APR 5.6%)

Charges

£300 Acceptance Fee. No mortgage risk fee up to 90% LTV

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£300 Acceptance Fee. No mortgage risk fee up to 90% LTV [/i]

doesn't that suggest the actual ltv goes higher than 90%? Cos that is saying there is no fee of that type (probably Higher Lending Charge as this was before the M Day regs came in) up to 90%.

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Any FTB who buys a house now isn't average. They're special.

:lol:

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Why can't they see the simple fact that most buyers struggle to save a deposit of 10% let alone 25%?

I wouldnt say struggle. More like - dont even try. I found it quite possible to save a big deposit back in the day and I want a big earner. Just involved a bit of sacrifice. Gasp! Reality check: life is tough.

I hope the days of 100% mortgages are gone for many years to come. Sure its going to be difficult for an FTB to buy, but those of us here who are savers will be rewarded :). Sooner or later people will realise that thats what you have to do to buy a house. Just like in the old days when gramps had to save for 10 years to buy his first house. Even here some people think it was historically normal to waltz into a brand new home with no money.

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snip. Even here some people think it was historically normal to waltz into a brand new home with no money.

Thats what the amatuer trained by inside track did exactly. OPM. they loved it... especially their course members! :lol:

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Mortgage lenders have finally started to cut their rates

Competitive spirit back into the market? Err I don't think so, from 100% mortgage @ 4% interest rates to 75% mortgage @ 6.18% and they call it 'competitive spirit & relief in the mortgage market' what a load of garbage :lol:

Why can't they see the simple fact that most buyers struggle to save a deposit of 10% let alone 25%?

Personally I think your assessment of the announcement is over done. Whilst I will agree that the market is hardly close to being as competitive as it was... believe me when I say lenders cutting rates is pretty big news... it illustrates amongst other things:

That they have money to lend (albeit on constrained terms from where they were)

That they want to lend that money

That they are struggling to lend it bearing in mind current transaction levels

And most importantly for some lenders at least that they are perhaps BEGINING to be a little more competitive than they were.

The article perhaps overegged the competitiveness point but your response to it was equally unbalanced... but maybe thats normal in a HPC VI board.

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Personally I think your assessment of the announcement is over done. Whilst I will agree that the market is hardly close to being as competitive as it was... believe me when I say lenders cutting rates is pretty big news... it illustrates amongst other things:

That they have money to lend (albeit on constrained terms from where they were)

That they want to lend that money

That they are struggling to lend it bearing in mind current transaction levels

And most importantly for some lenders at least that they are perhaps BEGINING to be a little more competitive than they were.

The article perhaps overegged the competitiveness point but your response to it was equally unbalanced... but maybe thats normal in a HPC VI board.

They gotta get punters through the door.

A bank is like a shark. A shark has to swim to breath, a bank has to lend to live.

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They gotta get punters through the door.

A bank is like a shark. A shark has to swim to breath, a bank has to lend to live.

Of course you are quite correct.... it shows as I said that lenders are getting a little more competitive becasue they need to.

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This is all just a pile of sh1te. :blink:

The housing market is dead, and everyone with half a brain knows it. The banks will be pi55ing in the wind for at least 5 years, trying to flog deals to FTB. :blink::blink:

W4nkers

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This is all just a pile of sh1te. :blink:

The housing market is dead, and everyone with half a brain knows it. The banks will be pi55ing in the wind for at least 5 years, trying to flog deals to FTB. :blink::blink:

W4nkers

A really sensible and balanced reply there!! I think all is being said is its one of the first signs of slight improvement (however small or temporary) in some time. Perhpas people woudl take your views and others like you a bit more seriously if you didnt just rhyme off the same tripe regardless of what is being discussed.

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A really sensible and balanced reply there!! I think all is being said is its one of the first signs of slight improvement (however small or temporary) in some time. Perhpas people woudl take your views and others like you a bit more seriously if you didnt just rhyme off the same tripe regardless of what is being discussed.

There appears to be a 3-month cycle, where all the problems get worse at the end of the quarter, when banks try to roll-over their 3-month money. (Can someone please confirm this for me, I think I recall seeing it in an EDM post - there's an appeal to authority if ever there was one).

As we are past that I would expect to see things ease a little.

I also strongly suspect that all banks are trying to attract the really safe business and lose the crap. As abh said, that is at least better than not lending at all and will help some people trying to re-mortgage

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A really sensible and balanced reply there!! I think all is being said is its one of the first signs of slight improvement (however small or temporary) in some time. Perhpas people woudl take your views and others like you a bit more seriously if you didnt just rhyme off the same tripe regardless of what is being discussed.

Estate Agents called ColinS come and Estate Agents called ColinS go. However, the facts remain - property will crash at least 60% and FTB'ers will wait for the bottom. Simple as that.

Edited by Wait & See

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  • 401 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% +
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      • Even
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      • up 5%



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