Friday, June 6, 2008

Rates can now only go one way…….up & up!

Bradford & Bingley raises rates

''...The Bradford & Bingley has become the latest lender to raise its mortgage rates for new borrowers. Its rates for many new deals will rise by between 0.05% and 0.55% from Friday....''

Posted by hpwatcher @ 10:50 AM (1614 views)
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15 thoughts on “Rates can now only go one way…….up & up!

  • In other words, they don’t want any new business.

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  • In other words, they don’t want any new business.

    😉 Yes, what they mean is that they are already in danger of going to the wall, and don’t really need any more help in that.

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  • Waht about the savers, that alien breed of losers ?

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  • Ilejustwait says:

    banks and building societies do want more buisness, but savers only, its a shame they never passed on there mega high profits they made over the years to the savers by giveing them a better interest rate return, but they didnt !!!, TO LATE NOW TO BE NICE TO THE SAVERS, just being used as per normal, why dont you ask for the bonuses back you gave to the managers that destroyed the financial market and cripled the future for the young,

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  • planning4acrash says:

    My freedom of information request has been accepted, I just received e-mail confirmation from the BOE and HM Treasury. I will keep you informed.

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  • planning4acrash, what info are you after?

    Sorry if I’ve missed an earlier thread.

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  • dohousescrashinthewoods says:

    Savers are sitting it out whilst the government tries to inflate away their wealth to save its own backside.
    Then again, if this is deflation, savers will be quids in.

    Prices are rising, incomes are falling, reposessions/lending/HPC are all hitting records as we leave the starting gate.
    Either this is going to be an incredibly quick crash (in which case we might already be reaching the peak) or it’s indicating it’s going to be very deep indeed, which is presumably why lenders are fleeing the market.

    I suspect both – a quick and deep crash. However, I can see the recovery taking a couple of decades because it’s been easy to get into debt, but it’s a long and arduous process to work it off (how long does it take to down 6 pints, and how long does the hangover last?)

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  • Then again, if this is deflation, savers will be quids in.

    Amen to that….but the problem is the increased money supply, BUT there could be a contraction as the creation of credit goes into reverse and decline.

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  • doom&gloom says:

    @p4c – is that the Freedom of Information Request asking whether B&B were bailed out with taxpayers’ money? Will be very interesting to see what they come back with….

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  • Bradford & Bingley – ALL MORTGAGES withdrawn & replaced. 06 Jun 2008

    NEW FIXED RATE MORTGAGES with no extended tie-in: 6.49% to 31.8.10, max 75%, fee £999; 6.69% to 31.8.10, max 75%, fee £499; 6.89% to 31.8.10, max 75%, no fee; 6.39% to 31.8.11, max 75%, fee £999; 6.59% to 31.8.11, max 75%, fee £499; 6.79% to 31.8.11, max 75%, no fee; 6.59% to 31.8.13, max 75%, fee £999 (different income multiples apply); 6.29% to 31.8.18, max 75%, fee £999; 6.49% to 31.8.18, max 75%, fee £499; 6.69% to 31.8.18, max 75%, no fee; 6.69% to 31.8.18, max 75%, fee £999 (different income multiples apply). NEW FIXED RATE MORTGAGES for remortgages only & with no extended tie-in: 6.79% to 31.8.10, max 75%, fee £999; 6.99% to 31.8.10, max 75%, fee £499; 7.19% to 31.8.10, max 75%, no fee; 6.59% to 31.8.11, max 75%, fee £999; 6.79% to 31.8.11, max 75%, fee £499; 6.99% to 31.8.11, max 75%, no fee; 6.39% to 31.8.18, max 75%, fee £999; 6.59% to 31.8.18, max 75%, fee £499; 6.79% to 31.8.18, max 75%, no fee, all with incentives of free legal fees & free valuation. NEW FIXED RATE MORTGAGES for first time buyers only & with no extended tie-in: 6.69% to 31.8.11, max 95%, fee £999; 7.09% to 31.8.11, max 95%, no fee; 6.89% to 31.8.18, max 95%, fee £999; 7.09% to 31.8.18, max 95%, no fee. NEW FIXED RATE MORTGAGES for self-certification only & with no extended tie-in: 6.99% to 31.8.11, max 70%, fee 1% of advance; 7.09% to 31.8.11, max 75%, fee 1% of advance. NEW DISCOUNTED VARIABLE RATE MORTGAGES with no extended tie-in: 6.09% for 2 years (1.05% discount), max 75%, fee £999; 6.29% for 2 years (0.85% discount), max 75%, fee £499; 6.49% for 2 years (0.65% discount), max 75%, no fee. NEW DISCOUNTED VARIABLE RATE MORTGAGES for remortgages only & with no extended tie-in: 6.39% for 2 years (0.75% discount), max 75%, fee £999; 6.59% for 2 years (0.55% discount), max 75%, fee £499; 6.79% for 2 years (0.35% discount), max 75%, no fee, all with incentives of free legal fees & free valuation. NEW DISCOUNTED VARIABLE RATE MORTGAGES with no penalty payable: 6.49% for term (0.65% discount), max 75%, fee £999; 6.59% for term (0.55% discount), max 75%, fee £499; 6.69% for term (0.45% discount), max 75%, no fee. NEW DISCOUNTED VARIABLE RATE MORTGAGES for remortgages only & with no penalty payable: 6.59% for term (0.55% discount), max 75%, fee £999; 6.69% for term (0.45% discount), max 75%, fee £499; 6.79% for term (0.35% discount), max 75%, no fee, all with incentives of free legal fees & free valuation. All w.e.f. 6.6.08.

    Moneyfacts Analysis
    In its latest product shake-up, with the exception of the fixed rates for self-certification, Bradford & Bingley has increased its rates across the board by between 0.10% and 0.20%, effectively moving itself further away from the market leaders. The lowest 2 year discounted variable rate is now priced at 6.09% which, on the surface, appears to be a reasonable rate, however, with a fee of £999 and a maximum loan-to-value of 75% it may well find its appeal rather limited.

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  • Savers rates do seem to be increasing as well (except the Rock). I stuck £30k in a new Abbey 1 year fixed bond a couple of weeks ago at 6.55%, which seemed like a good deal. They have just brought out another at 7.01% and I am miffed.
    Are they desperate for deposits or do they too anticipate a hike in base rates?

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  • letthemfall says:

    p.doff
    Long rates seem to be on a steady rise at present, so savings bonds up, as are fixed mortgage rates.

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  • Doomwatch,

    B&B 1 year fixed rate bonds have appeared in the best buy tables at 7%, so yes, savings rates have gone up as well.

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  • all looks sensible to me – Carrot and stick per NR – what else can they do? Jack I’m surprised it took em this long arent you?

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  • @14. techieman – I’ll be surprised in the long term if they stay open to new business – if economic conditions deteriorate as we expect, B&B will exhibit even more of the hallmarks associated with NR.

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