Tuesday, Aug 15, 2006

Last orders for cheap credit

MSN: Why now is the right time to remortgage

Recent BoE figures show that we withdrew 12.51 billion from the value of our homes in the first three months of this year. With the recent 0.25% IR rise, this article asks if this the beginning of the end of easy credit? And if so, why remortgaging now should become an increasingly attractive proposition.

Posted by uncle chris @ 11:03 PM (484 views)
Add Comment
Report Article

1 Comment

1. inbreda said...

OK - get this...

In ONLY the first 3 month of this year we withdrew 12.51billion from the value of our homes.

This seems a bit high to me, but if true 'our' monthly INTEREST ONLY payments are 52,125,000. That's PER MONTH! at an IR of just 5%.

Which means that the extra monthly cost of a 0.25bp increase is a whopping 2,606,000

In fact given that banks generally make a 150bps profit on secured lending, it's an extra 15 million squid they get just from 3 months worth of MEWing.

We're all going to die.

Wednesday, August 16, 2006 12:45PM Report Comment

Add comment

  • If you do not have an admin password leave the password field blank.
  • If you would like to request a password allowing you to add comments and blog news articles without needing each one approved manually, send an e-mail to the webmaster.
  • Your email address is required so we can verify that the comment is genuine. It will not be posted anywhere on the site, will be stored confidentially by us and never given out to any third party.
  • Please note that any viewpoints published here as comments are user's views and not the views of HousePriceCrash.co.uk.
  • Please adhere to the Guidelines
Admin Password
Email Address

Main Blog | Archive | Add Article | Blog Policies