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The real price of a mortgage: 6.49%
penguine
Posts: 1,101 Forumite
www.guardian.co.uk/money/blog/2009/sep/14/mortgage-rates-affordability-house-prices
Forget interest rates at 0.5%. First time buyers are paying the highest rates in years - which is why talk of a housing market recovery is bunk
Only last week, Halifax was talking about affordability falling below its 25-year average. Really? Not when the true rate paid by buyers is this high. This recovery, such as it is, will hit the buffers of affordability constraints almost immediately.
So, we still have high house prices, high interest rates, high deposits, and no wholesale funding. Just what sort of base do the "optimists" think that this forms for a "recovery"? I'm still in the other camp of optimists - those who feel optimistic that prices will stagnate or fall for years to come.
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What I'm amazed at are the number of online brokers advertising stuff that doesn't really seem to exist (anymore?).0
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I think this is an extremely valid point in response to all those arguing the worst is over, & we've turned the corner.
It took us 10-12 years to get to the credit crunch, large foundations were laid. A 6 month blip, to my mind, doesn't accurately display an appropriate correction has taken place in my view.It's getting harder & harder to keep the government in the manner to which they have become accustomed.0 -
Hahahaha.
Who calls 6.49% "high interest rates"?0 -
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i got a 4.69% fixed for 5 years in Feb with the Halifax.
you can't complain after the event that mortgages aren't cheap anymore.
either you make a decision or you don't but don't complain if you haven't got a good rate if you failed to make that decision to buy.
next year the same people will be complaining that the mortgages aren't cheap again when the average rate is higher and over 7%.0 -
Graham_Devon wrote: »It's 5.99% above the base rate.
That's why it is a high rate.
it has very little to do with it.
if you are so sure that it's a high rate can you explain the correlation between the base rate and the mortgage rates?0 -
i got a 4.69% fixed for 5 years in Feb with the Halifax.
you can't complain after the event that mortgages aren't cheap anymore.
either you make a decision or you don't but don't complain if you haven't got a good rate if you failed to make that decision to buy.
next year the same people will be complaining that the mortgages aren't cheap again when the average rate is higher and over 7%.
Who complained?it has very little to do with it.
if you are so sure that it's a high rate can you explain the correlation between the base rate and the mortgage rates?
Oh come on Chucky. I'm not gonna be hooked into this one
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It's 5.99% above the base rate.
Unless you have some acceptable paper to discount, you're not going to be able to borrow at the Base Rate.'In nature, there are neither rewards nor punishments - there are Consequences.'0 -
Graham_Devon wrote: »Oh come on Chucky. I'm not gonna be hooked into this one
you obviously think it's a high rate. can you explain why it is a high rate?
the base rate has nothing to do with it.0 -
i got a 4.69% fixed for 5 years in Feb with the Halifax.
Were you a first time buyer?
The point of the article is that the low rates advertised aren't available to first time buyers, which is another factor keeping many of them out of the market. And until first time buyers return to the market in significant numbers, it ain't gonna recover.0
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