Wednesday, June 25, 2008

Rates rise to more normal levels

Lenders send two-year fixed loan rates soaring past 7% for first time in a decade

''...The average rate on a two-year fixed loan has jumped above seven per cent for the first time in more than a decade, it was revealed today. The devastating research, from the financial information firm Moneyfacts, highlights the nightmare facing homeowners who need to remortgage this year. Lenders are charging crippling rates of interest, piling pressure onto cash-strapped families already struggling with record household bills...''

Posted by hpwatcher @ 05:31 AM (690 views)
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4 thoughts on “Rates rise to more normal levels

  • mark wadsworth says:

    Jumping H F***! Are we supposed to feel sorry for people who didn’t factor in a potential 2% or 3% increase in interest rates and budget accordingly?

    Being a total wimp, when I bought a house in 1998 on a ten-year fixed rate of 6.85%. Sure, I spent the next ten years kicking myself, but that’s the price of insurance! Also, I paid off the mortgage just in time to sell-to-rent.

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  • crash bandicoot says:

    “an average £155,000 loan”

    Just look at that phrase and you can see what’s wrong. I thought that 5.5% was the threshold that would lead to forced sales. The self cert/5x salary/MEW crew must be starting to feel the pinch now, it must only be a matter of time now.

    There has already been a repo on my street. The house went up for sale before Christmas at £169k it really got no viewings until the price finally reached £150k. It then had a sold board up for months but apparently it was repo’d. I can’t see how because they “only” paid £132k for it and should have cleared the debt easily. Anyway it’s back on with another agent now and people are crawling all over it. I tried to see what they were asking but it’s not on rightmove or the EA’s own website. Must be priced to sell!

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  • Crash Bandicot

    Ask the Agent and have a crawl over it yourself.

    It would be interesting to hear the full ‘word on the street’ story from you.

    BTLers still have some equity to expand the portfolios, I doubt they will have for long.

    What in your opion would the said house rent for ?

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  • crash bandicoot says:

    str 2007, I am sadly a bit lazy and also self concious about doing such a thing. My neighbour however has no such reservations, once I catch up with her I’ll no doubt know the full SP.

    I looked into STR last year and at that time similar houses were £650 pcm. I just looked on Rightmove and there are now similar (small 3 bed semis) on for £550-£625. So much for rising rents increasing the yields! If it is back on for £150k then it’s far cheaper than anything else in the area. There is a very similar house just round the corner up for £167k so no wonder they’re keeping it quiet if it is as low as I suspect.

    Incedentally my brother bought a repo house in 1995. It failed to sell at auction so the estate agents did much the same thing there. Low price – no chain – bish bash bosh get some cash back and move on to the next one.

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