Wednesday, May 7, 2014

The Bubble: it’s not over till it’s over!

Leeds building society offering 0% mortgages

"Credit card-style introductory offers for Help to Buy mortgages offered by lender in tie-up with Barratt builders". A thread is already going on the discussion pages

Posted by alan @ 12:29 PM (2684 views)
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13 thoughts on “The Bubble: it’s not over till it’s over!

  • Ha ha!

    “A 10-year deal offers borrowers three months at 0% before moving them to a rate of 5.16%, or six months at 0% and then 5.34%; the five-year deal offers three months at 0% and then 4.13%, or six months at 0% and then 4.4%; and the two-year version offers three months at 0% and then 2.88%.

    During the first months of the mortgage customers will still have to pay off the capital, and the interest they do not pay at the beginning will be added into the later payments.

    From the comments section:

    DrRic55: I am of a far more optimistic view about the economy than the average CiF poster, and yet…this has all the signs of a desperate grab for the lower sections of the market. Generally the last thing that happens before a crash.

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  • ok, this is the first news in years I consider optimistic. my crash-o-meter climbed up a little above near zero. guys selling mortgages are certainly insiders checking data, unlike me, and if they are getting desperate, I am glad

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  • I wonder what response you’d get from Barratt if you asked them to knock the asking price down instead.

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  • I seen a rightmove listing today with:

    “N.B
    PERSONAL INTEREST: We confirm the seller of this property is an employee of Avery Estate Agents.”

    Looks like estate agents are also calling the top.

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  • three months at 0% before moving them to a rate of 5.16%

    wow – pretty high interest rates.

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  • hpwatcher – that’s a reasonable rate for a 10 year fix, having said that if you speak to one of my mortgage specialist colleagues he will inform you that it might take them 5 years to process the thing (lol)

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  • You can get a Barclays 10 year fixed at 3.89%

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  • khards said…You can get a Barclays 10 year fixed at 3.89% – theoretically via their Woolwich brand – if they were the only lender on planet earth I would look elsewhere !

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  • @jack c – Why is that? Difficult application process?

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  • khards – brokers need to book the funds and staying up until midnight and applying 1 minute into a new day is all part of the routine. It maybe different for those customers that go to Barclays branches but most Brokers avoid them like the plague !

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  • This was the obvious result of MERS. If less people can take out lending, the cost of lending will fall for them. Indeed, with deflation taking Europe due to a combination of new technology and overbearing EU regulations and also the dampening effect of the single currency, we could yet see negative rates, either through actual negative rates or, Cyprus style hair-cuts and incentives to borrow like this.

    Reply
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  • This was the obvious result of MERS. If less people can take out lending, the cost of lending will fall for them. Indeed, with deflation taking Europe due to a combination of new technology and overbearing EU regulations and also the dampening effect of the single currency, we could yet see negative rates, either through actual negative rates or, Cyprus style hair-cuts and incentives to borrow like this.

    Reply
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  • a guy I know was just turned down for a 140k mortgage, he earns 37k a year and has no real outgoings apart from his rent and upkeep, they said he would not be able to afford mortgage at 6% if rates went up and turned him down.

    so this means property prices now must come down for people to sell based on new mortgage rules

    property crash on its way

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