Mortgage Rate Rises

200sols said:
You can get 4.3% on a 2 year fix, likely to go higher though.
Click to expand...

This is the problem atm, I have some spare cash to lock away but am waiting as we all know rates are going to rise.

It's like the opposite of stagflation, where everyone delays purchases as they know prices will drop!
 
Last edited:
Yeah, I'm holding on until later this year before committing if things keep going like this.

That way I'll have the cash available when my fix ends to give myself full flexibility then, god knows where we'll be so options are better IMO.
 
Freakbro said:
This is the problem atm, I have some spare cash to lock away but am waiting as we all know rates are going to rise.

It's like the opposite of stagflation, where everyone delays purchases as they know prices will drop!
Click to expand...
I've locked in on 3/6/9 month fixes and will move into longer bonds if they get attractive enough. I just do it all through my HL savings account which accepts debit card payments, easier than opening lots of accounts and transferring cash with stupid daily limits on what you can send without paying a fee.
 
Quite a few politicians and commentators are making a big fuss today over this claim from an audience member on Question Time but is seems rather "sus".


I mean what lender is currently offering 10.5% - is this like some special niche lender for people with bad credit or no deposit or something?

The way it's been put across seems to have been interpreted by some as though this is reflective of a hike in rates but applying a bit of common sense and if we assume it is true then it's more likely she's been dealing with a mortgage broker.

My assumption - she went to a mortgage broker, they were trying to get her a mortgage at 4.5%, she got rejected by that lender... mortgage broker then suggests she might struggle to get a mortgage because of [whatever situation caused the rejection] but if she really really wants a mortgage then there are some specialist [Wonga of the mortgage world] type lenders who'll still do it for a hefty rate.

This has then been presented without the rather important details and then taken at face value. I don't doubt people are facing rising rates when looking for mortgages but this example seems like pure hype and is more a reflection of the woman and her circumstances than any wider issue.

Unless someone can point to a regular high street lender offering 10.5% mortgages?
 
Last edited:
dowie said:
Quite a few politicians and commentators are making a big fuss today over this claim from an audience member on Question Time but is seems rather "sus".


I mean what lender is currently offering 10.5% - is this like some special niche lender for people with bad credit or no deposit or something?

The way it's been put across seems to have been interpreted by some as though this is reflective of a hike in rates but applying a bit of common sense and if we assume it is true then it's more likely she's been dealing with a mortgage broker.

My assumption - she went to a mortgage broker, they were trying to get her a mortgage at 4.5%, she got rejected by that lender... mortgage broker then suggests she might struggle to get a mortgage because of [whatever situation caused the rejection] but if she really really wants a mortgage then there are some specialist [Wonga of the mortgage world] type lenders who'll still do it for a hefty rate.

This has then been presented without the rather important details and then taken at face value. I don't doubt people are facing rising rates when looking for mortgages but this example seems like pure hype and is more a reflection of the woman and her circumstances than any wider issue.

Unless someone can point to a regular high street lender offering 10.5% mortgages?
Click to expand...

I thought the same when I saw this, we've not got to anything like 10% for a competitive mortgage rate (yet!)...
 
Surveyor said:
There is no interest payable on a Sharia (Islamic) mortgage.
Click to expand...

Well, there is but they've basically just renamed it, instead of interest and capital repayment you pay "rent" and capital repayment.

The bank still needs to price this stuff up and adjust the "rent" in line with interest rates etc.

It's like sex before marriage being haram but Iran offers temporary marriages so you can have sex with a temporary wife who you've paid money to and totally isn't the same thing as a prostitute.

Of course, fooling Allah like this is totally legit and he won't see through any of it.
 
dowie said:
Well, there is but they've basically just renamed it, instead of interest and capital repayment you pay "rent" and capital repayment.

The bank still needs to price this stuff up and adjust the "rent" in line with interest rates etc.

It's like sex before marriage being haram but Iran offers temporary marriages so you can have sex with a temporary wife who you've paid money to and totally isn't the same thing as a prostitute.

Of course, fooling Allah like this is totally legit and he won't see through any of it.
Click to expand...
There are three main types of Islamic mortgages, of which you've described one. Strictly speaking they aren't even mortgages, they're no-interest home purchase plans. Rabia (in the clip you've linked) wouldn't be talking about interest rates if she was obtaining an Islamic mortgage.
 
Surveyor said:
There are three main types of Islamic mortgages, of which you've described one. Strictly speaking they aren't even mortgages, they're no-interest home purchase plans. Rabia (in the clip you've linked) wouldn't be talking about interest rates if she was obtaining an Islamic mortgage.
Click to expand...

True and I don't think she is, I've posted the obvious answer to what she's talking about above. All Islamic mortgages, whether paying an inflated price etc.. will have some disguised interest-related component even if baked into some inflated price they'll sell the property back at and any mainstream banks offering them are going to have to risk manage them in similar ways + adjust accordingly when rates rise - it's mostly just a cope, that's all I was commenting on there, I don't think the woman on QT is referring to one, I think she's been rejected for a regular mortgage and some broker has told her she could still get a mortgage but with some specialist high-risk lender at a silly rate.
 
Last edited:
dowie said:
True and I don't think she is, I've posted the obvious answer to what she's talking about above. All Islamic mortgages, whether paying an inflated price etc.. will have some disguised interest-related component even if baked into some inflated price they'll sell the property back at and any mainstream banks offering them are going to have to risk manage them in similar ways + adjust accordingly when rates rise - it's mostly just a cope, that's all I was commenting on there, I don't think the woman on QT is referring to one, I think she's been rejected for a regular mortgage and some broker has told her she could still get a mortgage but with some specialist high-risk lender at a silly rate.
Click to expand...

It's the same thing when they offer you an "interest-free" business loan on a 6 month term that has a 6% processing fee and is totally not the same thing as a loan with 12% interest.
 
You must log in or register to reply here.
Back
Top Bottom