Nationwide rate cut?

confused31_2

Locoblade wrote: »

Look on First Direct's own website and you'll see that Sky's information is wrong, as there is no mortgage they offer at 5.49% with a £399 fee for anyone! The closest to that is FD's SVR mortgage at 5.50% with £299 fee, but considering your source appears to have those facts wrong, are you sure they've got the 90% LTV correct as either?

Either way, it still doesn't change that your complaint is that 5% or 10% customers can't access the best deals, yet you're using First Direct as a good example despite them not offering their best rates to those without at least 20% equity. FD's SVR is only competitive because they are in a financial position to offer good rates at the moment, but they still offer their best deals for those with more equity, and if you're on the SVR there's no guarantee that they won't put that up on a whim if and when their current strong status changes.

I'm ducking out of this one now though if you don't mind, with all due respect we seem to be contesting small details but you don't appear to be seeing the overall situation by acknowledging anything that others are saying. You're of the opinion that banks (and Nationwide in particular) should be knocking 0.5% off ALL their rates including new mortgage offer, which is where we're coming from because no bank has done that, and no bank will do that given the current banking climate, it's nothing to do with greed. :beer:

I only state what i see go onto sky text and call them

if first direct are offering better deals than all the other banks for people with 10% deoposits people will just go to them and the other banks wont get any business.

its like petrol if one petrol station sells fuel 10p a litre less than the one next to it, people will go to the one cheaper.

First direct might be in a better position and they should stay there now as they should take all the business for anyone who wants to buy a house with a 10% deposit.

If these other banks dont follow they simply wont get any new business from FTB and they are the poeple who start the chain of events to get the housing market going again.

It like when i used to work on the market and someone would undercut you, you would just undercut them or do the same price otherwise you just wouldnt sell.

its like a shop buying something for 10p and selling it for 20p, its okay if every other shop is is selling it at 20p but if theres one shop selling it for 15p people will just buy it from there.

Then in theory the other shop will not sell and it will go under due to lack of business.

confused

scotchio

So we have ascertained that the BoE rate cut has made little difference to the consumer on their mortgages and it is all down to the LIBOR rate.
This rate is now starting to fall, only in very small amounts but it's also apparent that banks don't want to lend to each other and are hording cash.
I wonder at what point the LIBOR rate needs to drop to before the mortgage lenders drop their rates?

IMHO they'll leave it until the Government puts the squeeze on them to do it, thus making as much money from the public as they can and leaving the rate cut to the last minute :mad:

Locoblade

Just my opinion, but I suspect you'll need to see a sustained LIBOR rate drop and for it to be consistently low for a while with no further big banking problem before they'll drop mortgage rates significantly. We saw them drop a little about 2 months ago when offers started dropping by a few tenths, but then Lehman Bros went to the wall and those offers quickly dried up and went back up again.

Locoblade

confused31 wrote: »

...its like a shop buying something for 10p and selling it for 20p, its okay if every other shop is is selling it at 20p but if theres one shop selling it for 15p people will just buy it from there.

Then in theory the other shop will not sell and it will go under due to lack of business.

Ah, but what if one shop can't buy the product at 10p because of its financial situation / buying power, and what if it can only cover the cost and it's overheads by selling it at 20p? In that scenario there's no point in selling it at 15p because you're losing money doing it, so you might as well either not sell it at all, or sell it at a profitable price and accept you won't sell very many.

Just because your local convenience store sells baked beans at 50p but Sainsburys sells them at 40p, does that mean the convenience store is trying to rip you off that additional 10p? No, because Sainsburys can buy the beans at a lower price than the local store, and have smaller overheads per sale because of their vast shop size.

The same is happening here, First Direct are very competitive at the moment presumably because they're financially secure and can barter for the best deals on money lending and/or have their own money to invest into mortgages, therefore they can offer a lower rate and stay profitable. That doesn't mean the others are ripping people off by offering higher rates, it just means they can't compete and be profitable.

Obviously that will mean FD will get a fair amount of business and the others less so, but I doubt very much the others will be willing to make a loss / take unacceptable risks simply to match FD in order to reignite the housing market.

confused31_2

Locoblade wrote: »

Ah, but what if one shop can't buy the product at 10p because of its financial situation / buying power, and what if it can only cover the cost and it's overheads by selling it at 20p? In that scenario there's no point in selling it at 15p because you're losing money doing it, so you might as well either not sell it at all, or sell it at a profitable price and accept you won't sell very many.

if the both buying at the same rates libor rates what you keep on going on about why cant one do the same deals as the other one?

With the example above i would prefer to make 5p profit than make nothing at all irelleavent of the overheads there can not be much difference with overheads at banks.

Locoblade wrote: »

Just because your local convenience store sells baked beans at 50p but Sainsburys sells them at 40p, does that mean the convenience store is trying to rip you off that additional 10p? No, because Sainsburys can buy the beans at a lower price than the local store, and have smaller overheads per sale because of their vast shop size.

Oh and if this was the case i know where i would be buying my beans from, where would you buy your from??

First direct are a large bank but what bank was mentioned earlier that was a local village bank??? I think there all quite big, do you???

confused

alphason

BMR rate will be cut on 1st November by 0.30%.

BMR is now 6.19%.

Savings rates are under review but rates have not changed YET.

From Nationwide media centre.

lisyloo

I only state what i see go onto sky text and call them

Don't believe everything from journalists.
I believe you need an 80% LTV for First Direct.

I think there all quite big, do you???

There are massive differences in size and safety between the banks.

First Direct is part of the HSBC group which has a lower risk approach to lending than the likes of Northern Crock or B&B.

It's not only size but there are marked differences in the lending approach (and therefore safety) of the banks.

When it comes to savings then you can go international and there's an even more wide range.