Thursday, January 6, 2011
…and lo did the forsaken FTBs rejoice!
First-time buyers offered help in housing market
Comedy piece from yesterday's Guardian. Mmm, 90% LTV, 2-year fixed @ 5.79%? Lemme at it. Enter Jack from stage left to rip this, ahem, advertisement to shreds.
Posted by sibley's b'stard child @ 09:30 AM (1102 views)
3 thoughts on “…and lo did the forsaken FTBs rejoice!”
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jack c says:
Sib’s – I have noticed a few lenders (lets not get carried away) increasing LTV’s in recent days – Woolwich being one that is actually not mentioned by the Guardian, whilst the Halifax deal is only available direct and not via brokers. Rather than “rip this, ahem, advertisement to shreds” I’ll leave it to the people in the comments section who have already spotted the major flaws. The only thing I would add is that the major lenders will use such deals to actually try and pull customers into the branches and then cross sell other products ie optimistic FTB enters branch only to find the inhouse “adviser” is more interested in transferring their current a/c, savings a/c, credit card balance, re-finance personal loan etc.
sibley's b'stard child says:
Cheers for the insight Jack. As an aside, I wasn’t being facetious; in fact the blog (and indeed the forum as a whole) is an veritable hot-bed of financial professionals which can cut through the cr*p disseminated via the media.
I, on the other hand, can offer pithy one-liners.
And stationery.
Mark Wadsworth says:
“a first-time buyer taking out a £130,000 mortgage with a 10% deposit at 5.79% would face monthly repayments of £820.98. But the same buyer with a 25% deposit would be able to choose a mortgage with a rate as low as 2.99% with Saffron Building Society, which would reduce monthly repayments by over £200 to £615.80.”
That works out at a marginal interest rate on the top slice of the mortgage (90% minus 75%) of 19.79%.