Woolich Reprice Rates

[buytoilet]

What are we launching?

Fixed & Track Rates

• NEW! 3.99% fixed until 31.01.2010 then BBBR +1.99%, max 60% LTV, £995 fee, 1% ERC 3yrs

• NEW! 4.49% fixed until 31.01.2010 then BBBR+1.99%, max 70% LTV, £995 fee, 1% ERC 3yrs

• NEW! 4.49% fixed until 31.01.2010 then BBBR +1.99%, max 60% LTV, No fee, 1% ERC 3yrs

• NEW! 4.99% fixed until 31.01.2010 then BBBR+1.99% , max70% LTV, No fee, 1% ERC 3yrs

Offset Trackers

• NEW! BBBR+2.09%, max 60% LTV, £995 fee, 1% ERC 3yrs with 'Droplock' functionality

• NEW! BBBR+2.49%, max 70% LTV, £995 fee, 1% ERC 3yrs with 'Droplock' functionality

All fixed rates remain unchanged

This message is for communication purposes only. Please refer to revised rate sheets for full product details.

All lenders are now repricing deals after the bank base rate cut last week, but there is little about over 75% LTV and the best deals are sub 60%. So a lot of people still cant get the best rates as lenders dont want your crappy house as security IMO.

[Moo]

Makes sense. Keep the good borrowers afloat, sod everyone else until prices subside.

Silly question, but what on earth is "Droplock Functionality"? It sounds kinda "toilety" to me.

[buytoilet]

Makes sense. Keep the good borrowers afloat, sod everyone else until prices subside.

Silly question, but what on earth is "Droplock Functionality"? It sounds kinda "toilety" to me.

dont know maybe product has a collar say 2.5%

[jonb]

Makes sense. Keep the good borrowers afloat, sod everyone else until prices subside.

Silly question, but what on earth is "Droplock Functionality"? It sounds kinda "toilety" to me.

The ability to switch to a fixed rate?

[Red-Cardinal]

The ability to switch to a fixed rate?

Correct!

It allows mortgage holders to swap to a fixed rate without incurring the ERC on the variable/tracker deals...

[thedebtisreal]

As predicted on here. Lenders are being strong armed to pass on rate cuts. So they cut the LTVs instead. And drive house prices lower still.

[bobthe~]

Another thing to notice.

These aren't 2 year fixes, they are 1 year and 3 months (ish)!

And the ERCs go on for 3 years.

So you are paying a grand to fix for just over a year.

[interestrateripoff]

What does Droplock mean?

As expected LTV becomes the new control mechanism to deny lending, the cost of borrowing is fast becoming irrelevant it's now LTV.

[shindigger]

What does Droplock mean?

As expected LTV becomes the new control mechanism to deny lending, the cost of borrowing is fast becoming irrelevant it's now LTV.

RESUME CRASH SPEED KAPITAN.

Droplock has a similar meaning to Cluster******ed i think.

[PopGun]

No chance of First Time Buyers flooding the market should this LTV trend catch on!

[The Knimbies who say No]

All lenders are now repricing deals after the bank base rate cut last week, but there is little about over 75% LTV and the best deals are sub 60%. So a lot of people still cant get the best rates as lenders dont want your crappy house as security IMO.

yup, and why should they? In a rising market, repos are fine but not now.

Welcome to the next phase of the HPC- FTBs will likely be unable to buy a place with any of these deals. I see it as the Woolwich thinking that prices will fall another 30%, by limiting LTV to 70%.

Dont these deals look uncompetitive compared to what went before?

[19 year mortgage 8itch]

What does Droplock mean?

As expected LTV becomes the new control mechanism to deny lending, the cost of borrowing is fast becoming irrelevant it's now LTV.

Maybe?

The ability to switch to a fixed rate?

Are you sure?

Correct!

It allows mortgage holders to swap to a fixed rate without incurring the ERC on the variable/tracker deals...

The funny thing is (that people won't realise till its too late) is that as the value falls and LTV goes up there won't be any good deals left to fix on and they'll get stuck.

Paying a premium for a service that they won't be able to use

[Nicholas Cage]

What does Droplock mean?

[19 year mortgage 8itch]

What does Droplock mean?

:angry:

( )

[PotNoodle]

"The Droplock functionality makes a guaranteed profit for our company

and ensures the borrower can be re-possessed without prejudice."

"The CrinkleCut option also makes a guranteed profit for our company

and ensures the borrower can be re-possessed without prejudice."

"The Bottoms-Up attachment .........

"The *uckYou arrangement........

etc

etc

etc

[benno1uk]

Just looked at First Direct (who I am with) and their fixed rates have gone up to ABOVE the Standard Variable rate. (I.e. Fixed rate is 5.99%, SVR is 5.50%)

What does this mean???

http://firstdirect.com/mortgages/rates.shtml?WT.ac=OM0400

[19 year mortgage 8itch]

Just looked at First Direct (who I am with) and their fixed rates have gone up to ABOVE the Standard Variable rate. (I.e. Fixed rate is 5.99%, SVR is 5.50%)

What does this mean???

http://firstdirect.com/mortgages/rates.shtml?WT.ac=OM0400

Precisely the pickle I'm in with someone else.

Stay on SVR @ 5% or fix at 5.79%. Trouble is my LTV has already broken the limit for my existing offer so I'd not get a rate anywhere close to 5.79% if I let htis offer expire. The clock is ticking...

[benno1uk]

But surely it would be better to stick with the SVR or am I missing something (especially with interest rates seemingly coming down massively)?

[19 year mortgage 8itch]

But surely it would be better to stick with the SVR or am I missing something (especially with interest rates seemingly coming down massively)?

5 yrs is a long time to make that sort of guess.

[Bjørn]

"Droplock functionality" is just gibberish, nothing more.

It has no meaning in the English language and does not exist in any usage in any context.

Use of such non-existent jargon is a clear indicator of ********.

If the Woolwich is in such desparate trouble that they feel they have no alternative but to fall back on such complete ********, then they should not be touched with a bargepole and must not be trusted with money.

The name "Woolwich" has now become synonymous with ********. I wouldn't trust bullshitters like that to run a whelk stall.

Edited November 14, 2008 by Bjørn

[Valedarius]

http://www.whatmortgage.co.uk/article/Wool...ges-228530.html

"With our drop lock option, anyone taking a tracker with an early repayment charge will benefit from any base rate reductions, whilst having the flexibility to switch to a fixed rate to 'lock in' when the opportunity is right. We've also removed the minimum loan size on our lifetime tracker, increasing its appeal to a wider range of customers."

http://www.investorwords.com/1588/droplock_security.html

Droplock security

Definition

A floating-rate security which becomes fixed income if the rate to which it is pegged reaches a specified level.

http://www.investopedia.com/terms/d/droplock.asp

What does it Mean?

An arrangement whereby the interest rate on a floating rate note or preferred stock becomes fixed if it falls to a specified level.

Investopedia Says...

If a country had a floating exchange rate and a currency that suddenly dropped, the drop lock would fix the exchange rate once it hit a certain level.

[Dubbya]

"This message is for communication purposes only"

[patprimer74]

Silly question, but what on earth is "Droplock Functionality"?

It's a thing you get from B&Q to screw to the inside of your front door if you're going to have a party.

p

[Lone_Twin]

As predicted on here. Lenders are being strong armed to pass on rate cuts. So they cut the LTVs instead. And drive house prices lower still.

60% ltv has got to exclude almost every ftb. Until the bottom rung of the ladder is replaced the market will remain frozen, it can only be replaced by either falling prices or massive wage inflation.

St

[gallivant]

Droplock - never heard of it - I'm going to complain to the FSA about this.

I've already had a few drinks and now I'm getting confrontational. I may forget to complain in the morning as I plan to drink more before I get taxed to death for doing so - can somebody else do it for me.

Thanks awfully.