HSBC raise fixed rates....

WTF?_2

... by 0.3%

http://www.thisismoney.co.uk/mortgages/article.html?in_article_id=452721&in_page_id=8

First-time buyers suffered a fresh blow today when a major High Street lender raised its mortgage rates.

HSBC said that it had been forced to increase its fixed rate for first-time buyers by 0.3% to 6.27%. Other major lenders are expected to follow suit within days as a direct result of the turmoil in the City money markets.
In a move that will penalise those trying to get on to the housing ladder, HSBC's new higher rate only applies to borrowers with a deposit of less than 25%.

So not all bad news, if you have a really good deposit you don't face the increase.

Looks like HSBC reckon the market has quite a bit further to fall.

pickles110564

[quote=!!!!!!?;14481279
So not all bad news, if you have a really good deposit you don't face the increase.

Looks like HSBC reckon the market has quite a bit further to fall.[/quote]

No sh1te sherlock.
They should not be lending to anyone that can not put 50% down, that way we would not be in the mess we are in now.

dudleyboy

First-time buyers suffered a fresh blow today

Blimey, I thought for a moment there that house prices had crept back up again!

0.3%? Who cares??!!

Find me any FTBer at the moment who wants to take out a mortgage and I'll point out an idiot.

WTF?_2

dudleyboy wrote: »

Blimey, I thought for a moment there that house prices had crept back up again!

0.3%? Who cares??!!

Find me any FTBer at the moment who wants to take out a mortgage and I'll point out an idiot.

I think there still are some around. The appetite for debt which has become embedded in our culture over the last decade is far from gone and plenty are still convincing themselves that we are just going through a bit of a blip. Remember that there's a generation of 20-somethings who have never known a recession or indeed anything other than a 'NICE' economy.

Anyway, eventually the BoE will start slashing interest rates to stimulate the economy (right now they're being held back by strong inflation) so a year down the line from here things could look very interesting for those wanting to buy with a mortgage - low prices and really good rates. Lock into a long term fix at that time (if they are available) and you could be on to a winner.

FungusFighter

pickles110564 wrote: »

No sh1te sherlock.
They should not be lending to anyone that can not put 50% down, that way we would not be in the mess we are in now.

So hands up everyone who bought property in the last 2 years with 50% or more deposit - did you?

hethmar

Im a bit saddened by the glee people seem to be showing about the current crisis. The fact is it wont just affect the bankers, the financiers and the high flyers. If houses dont sell (and who is going to sell at a large loss) then the market stagnates - think of all the industries, all the millions who rely on the healthy housing market to be employed.

It will do no one any good. First time buyers will still not be able to buy because of the mortgage famine; retirees wont be able to downsize and release equity which would have gone into the economy.

So be careful what you wish - it may come true and be a nightmare for each and every one of us.

Lets hope the governments can propose a soft landing option for us all.

MrMonkey

hethmar wrote: »

Im a bit saddened by the glee people seem to be showing about the current crisis. The fact is it wont just affect the bankers, the financiers and the high flyers. If houses dont sell (and who is going to sell at a large loss) then the market stagnates - think of all the industries, all the millions who rely on the healthy housing market to be employed.

It will do no one any good. First time buyers will still not be able to buy because of the mortgage famine; retirees wont be able to downsize and release equity which would have gone into the economy.

So be careful what you wish - it may come true and be a nightmare for each and every one of us.

Lets hope the governments can propose a soft landing option for us all.

A healthy market has to be sustainable, which this currently is not. For a sustainable market, prices need to fall. A slow fall, or flat market, would be preferable. However, like a piece of elastic the long stretch of prices from affordability mean that a faster reversion to the norm is likely.

I don't want a recession. I want a stable economy. At this stage a short painful recession may be the best solution, as opposed to a long period of recession. as Japan saw for over a decade.

WTF?_2

MrMonkey wrote: »

A healthy market has to be sustainable, which this currently is not. For a sustainable market, prices need to fall. A slow fall, or flat market, would be preferable. However, like a piece of elastic the long stretch of prices from affordability mean that a faster reversion to the norm is likely.

I don't want a recession. I want a stable economy. At this stage a short painful recession may be the best solution, as opposed to a long period of recession. as Japan saw for over a decade.

Even a whole year after Northern Rock and with prices about 10% off the peak in that time and falling fast, some here are still in the 'denial' stage and even discussing what is going on in front of our faces constitutes gloating/ doom-mongering/ negativity to them. :rolleyes2

hethmar

Its not the "discussing" !!!!!! its the gloating that seems so dreadful. I lost £5k when NR went down last year, so I am well aware of the situation - but people seem fixated on glee at the house price crash and not taking in the bigger picture.

WTF?_2

hethmar wrote: »

Its not the "discussing" !!!!!! its the gloating that seems so dreadful. I lost £5k when NR went down last year, so I am well aware of the situation - but people seem fixated on glee at the house price crash and not taking in the bigger picture.

Other than Zammo, who is gloating?

Remember, people who were sensible with their cash and built up savings instead of debt have a lot more to lose from any banking crisis so it's not in their interests to gloat about the turmoil currently unfolding.

FungusFighter

!!!!!!? wrote: »

Even a whole year after Northern Rock and with prices about 10% off the peak in that time and falling fast, some here are still in the 'denial' stage and even discussing what is going on in front of our faces constitutes gloating/ doom-mongering/ negativity to them. :rolleyes2

I think you have to ask yourself what motivates those in denial and I think overwhelmingly it has to be fear. Fear and stupidity or maybe fear makes you stupid.

The signs have been there for over a year and anyone with a computer could have had access to all the information required to realise exactly where the housing bubble was heading but some, the majority, chose to believe that prices would go up and up forever and acted accordingly. They would be the ones wailing now that some bank or bs forced them to borrow ridiculous multiples that they will spend their lives trying to repay. Or they attempt to bury their fear by arguing blind that the market will recover and they'll all buy loads more property like nothing ever happened. Yeah, right. Maybe they just think that if they say it enough times it will make it true.

These people cannot be saved as they won't save themselves - arguing with them will not make one jot of difference.