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Hbos Lowers Mortgage Rates.

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According the link on the front page, HBOS have reduced rates on a number of products. The FT reckons this is adding momentum to a trend of falling rates.

I was under the impression that rates were on the up, not the down. With the UKs biggest lender now dropping its rates, will this be enough to restore the madness momentum to the market and if so, will we see YoY growth again in 6 months time?

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The best deals are only available for borrowers with deposits of at least 25 per cent. Those with smaller deposits are still having to pay much higher rates, and are unlikely to see any improvement soon
.

Fear not. with no first time buyers, there can be no rise.

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Great PR trick, isn't it?

Shave a bit off the headline percentage figure but only for folk with a lot of equity/deposit. The arrangement fees aren't getting smaller either, when you factor that into a 2 year fix deal it has a dramatic effect on that lowered interest rate.

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I was under the impression that rates were on the up, not the down. With the UKs biggest lender now dropping its rates, will this be enough to restore the madness momentum to the market and if so, will we see YoY growth again in 6 months time?

These rates have become available because the economic news over the past few weeks has been so nightmarish that forecast rates for the next few years are down. The reasoning being that recession will do the job of rate rises in reining in inflation. This being the case I think it's unlikely this will kick start the housing market - it might help some people facing 'repayment shock', which might mean there are fewer forced sellers than there might have been, but if they lose their jobs it's a moot point anyway. Also, bear in mind rates are only one part of the story - we don't know how many people these lower rates will be available to.

edit:

see this thread for more

Edited by Ted D. Bear

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Surely mortgage rates are just starting to follow swap rates which have dropped about 0.5% over past month or so.

Well, that's it isn't it.

The banks simply borrow off the money markets, and add a margin. Money market rates have peaked, for the time being, and the banks are simply passing along cuts. The banks may be struggling a bit financially, but if they can sell reasonable quality loans, they still make money - and they *need* to make money to survive, so this isn't a surprise.

It doesn't mean that anyone who applies for one of these mortgages is getting anything remotely approaching a 'good' deal, comapred to 12 months ago. Arrangement fees are through the roof, lending criteria are tightening like a noose, and there is still a generous spread over and above BoE base rate and LIBOR.

The real worry is why money market rates are falling - and it's primarily because of dire predictions for the economy.

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Falling rates are fine by me.

If we head into a period of deflation we are likely to see lower rates ala Japan. Lower rates are unlikely to re-ignite the market this time as lending standards will remain tough and possibly get tougher. Rising unemployment, tougher standards and distressed sellers who cant meet new criterias are likely to counter any bullish effects of lower rates.

Would expect tracker mortgages are becoming popular again. Cant wait to take one out myself, when i see value ;)

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5 or 10 year fixed where 5% a year ago. now they are 6.5% or 30% more expensive. wake me up when they are 5% again

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5 or 10 year fixed where 5% a year ago. now they are 6.5% or 30% more expensive. wake me up when they are 5% again

Are you prepared to have your head cut off and be stored in liquid nitrogen until kingdoms come?

That'll be sooner than waiting for 5% rates to come in the UK again.

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Guest KingCharles1st

I wonder how long it would take the "industry" to ramp up the infrastructure again once they feel safe enough to try?

When one considers just how much financial business was knowingly channeled through dubious lines of supply to fly by night dealers, will they ever have the courage to take that financial risk again. Quite frankly, that is another reason why it will be "different next time.."

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Yup if you've got a 25% deposit

Sorry to say, but thats about £37,500 by my reckoning on your average FTB pad.

You may as well asy your average FTBer for 37,500 MONKEY GLANDS.

Bank of mum and dad would normally be the lender of first resort - but .....

"surely you'd be better off moving in with us for a few months love, at least while they are still going DOWN!"

It's common knowledge now

HOUSE PRICES DO NOT ALWAYS GO UP!!

EDIT - BTW banks - dont ask your average BTLer for 37,500 monnkey glands - they probably keep them in jars preserved in aspic - for consumption raw.

Sick F*cks the lot of 'em

Edited by sbn

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  • 395 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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