http://www.timesonline.co.uk/tol/mo...article6492461.ece?token=null&offset=0&page=1
well seems like no point buying for 3 years or so.
End of the cheap fixed mortgage
- Thread starter mattheman
- Start date
http://www.timesonline.co.uk/tol/mo...article6492461.ece?token=null&offset=0&page=1
well seems like no point buying for 3 years or so.
Soldato
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Dang, i wish my fixed 5 year was 3.95! Its 5.7 iirc.
Not sure why - she went to several brokers and spoke to some places directly.
She did originally get accepted for an Abbey at about 0.5% lower but they declined it in the end because of 1 missed payment on a phone bill. That was about 2 days before the FT reported on Abbey using any excuse to turn down applications due to the backlog from C&G applications etc
She did originally get accepted for an Abbey at about 0.5% lower but they declined it in the end because of 1 missed payment on a phone bill. That was about 2 days before the FT reported on Abbey using any excuse to turn down applications due to the backlog from C&G applications etc
Soldato
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There are two reasons for this. Firstly, the drying up of the inter-bank market. It stops smaller/less well capitalised institutions from lending. Historically, you make no profit on Mortgaged lending, it is the cross-sales where the profit comes and as there is lending, less cross sales and higher prices.
More important than that at the moment, base rate is so low, there is only so low you can go with the savings rates before you lose them. cash deposit bonds are still around 3 - 4% in most banks and that is the money they lend out to the Mortgage borrowers so of course the cost is staying relatively high. Once things 'normalise' to 5% interest rates and fixed deposits are still between 2% & 6%, mortgage fixed rates will look better.
BTW, HSBC are offering fixes from 2.49% at the mo.
More important than that at the moment, base rate is so low, there is only so low you can go with the savings rates before you lose them. cash deposit bonds are still around 3 - 4% in most banks and that is the money they lend out to the Mortgage borrowers so of course the cost is staying relatively high. Once things 'normalise' to 5% interest rates and fixed deposits are still between 2% & 6%, mortgage fixed rates will look better.
BTW, HSBC are offering fixes from 2.49% at the mo.
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so you can get it fixed at 6% instead ??
Well my thinking was if its going to be around 6% (I can get a 4.99% if I am quick), it will only go up as time goes on?
Or am I looking at this wrong - would be nice to stay at 3.5% for a while but won't the bank rate start going up if there is a sniff of something going up on the housing market (prices up 1.2% or something in the last month)
I hope I am wrong and will stay at the low rate!
Prices are not going up, they are going down. Look at any graph of anything that shows a decline and there will be small peaks along the way. The general opinion is a 14%-30% drop for the rest of this year. This is the reason why banks are asking for a large deposit just now because the house that the loan will be secured on will be worth less than 95% of the loan in no time at all. With a large deposit this risk is reduced.
Associate
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- 16 Feb 2009
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4.69 fixed for the next five years
Borich
Borich
Then she was ripped off beyond all comprehension.
A quick Charcol returns results far better than that.
