Thoughts on upcoming mortgage deals.

illuminate

The govt. have made a number of announcements over the preceding weeks about the massive anount of money they are/intend to invest in the banking sector in an attempt to re-invigorate the housing market.

Does anybody have any idea or opinions as to when this might start filtering down to the market itself and become visible in the form of affordable and but sensible mortgage deals ?

huntersc

I'm not sure the aim of the investment is to reinvigorate the housing sector per say, that's likely to be a byproduct of greater liquidity and decreasing LIBOR. Reduced rates, half point cuts, BOE loans, none of these came with any kind of requirement from the banks.

If the Govt really wanted to restart the housing market it could, rather easily but that's not a major concern right now.

As for when mortgage deals become more affordable and sensible, I personally believe they are currently both of these things. A 5% interest rate is not so bad, nor is the requirement of a 10%-15% deposit.

If you're asking when will lending rates reflect interest rate cuts, well, probably at some point into next year. If I were a betting man I would say June, July 09.

ManAtHome

The govt are charging up to 12% interest on the dosh being "given" to the banks so maybe 12.5% mortgage rates would be sensible..?

confused31_2

ManAtHome wrote: »

The govt are charging up to 12% interest on the dosh being "given" to the banks so maybe 12.5% mortgage rates would be sensible..?

your sure its not up to 55% so then 55.5% would be sensible??

You say up to the government could be charging 3% then, so maybe the rates could be 3.5%.

would be nice
confused

huntersc

confused31 wrote: »

your sure its not up to 55% so then 55.5% would be sensible??

You say up to the government could be charging 3% then, so maybe the rates could be 3.5%.

would be nice
confused

I had a 3.5% mortgage in...let me think...2003 I think it was. Yes, 2003. Got it in October from Natwest I think, maybe Abbey. Those were the days

ManAtHome

confused31 wrote: »

your sure its not up to 55% so then 55.5% would be sensible??

You say up to the government could be charging 3% then, so maybe the rates could be 3.5%.

would be nice
confused

Not surprised you're confused - plenty of news reports about the "bail-out" (and whinges/opt-outs from the banks).

Where did I suggest 55% - twonk
Where did anyone suggest 3% - twonk.

Do some research and thinking before posting.

illuminate

OK... so inbetween the petty bickering what you are saying is basically that its a fairly healthy lending situation at the mo, with no drastic improvements likely within the coming months..... Cheers.

poppysarah

Healthy lending must involve

- a good personal track record with savings increasing over time
- no other debts left
- sound job prospects - perhaps references from work to show they're a good worker, always on time etc
- borrowing an amount that is easily affordable even if rates rise massively


Sadly that means houses are too overpriced. I say sadly because there've been a lot of people who've felt obliged to get onto the ladder only to find it's more of a scaffold.