NR's 90% LTV is about to be unleashed.....

Dan:_4

mbga9pgf wrote: »

Perhaps they know interest rates will be in double digits again in 5 years being government owned and all?

Yes perhaps, I doubt it, but perhaps.

b0rker

mbga9pgf wrote: »

Perhaps they know interest rates will be in double digits again in 5 years being government owned and all?

I would have thought that they would be more likely to be thinking that their SVR will be very low for the foreseeable future. Scare a few people off their SVR at about 4% after the most recent cut (assuming NR pass it on). Then 6% is quite attractive to them as a lender. Certainly it is better for them to get as many mortgages on theri books off of 4% on the SVR and on 6% on a fixed.

sabretoothtigger

I wouldnt mind a 25 year fix at 6%
I think americans are getting remortgage deals like this and its going to bankrupt someone if rates ever rise.


The higher the ltv the less nice the interest, that was always true in the past. I presume it would be possible to switch later if you got more equity

chucky

mbga9pgf wrote: »

Perhaps they know interest rates will be in double digits again in 5 years being government owned and all?

i doubt that very much

it would be political suicide for any government to allow rates to gover 8% or 9%.
they will try and find other means to keep rates lower than that.

pizzagirl

chucky wrote: »

i doubt that very much

it would be political suicide for any government to allow rates to gover 8% or 9%.
they will try and find other means to keep rates lower than that.

They were 15% not that long ago. What governments wish and what they can actually do are two entirely different matters

mewbie_2

Well if anyone had said .5% base rates a year ago they would have been regarded as bonkers. So why 10% is so ridiculous in say three / four years time I don't know. We have gone from 5.75% July 07 to .5% March 09. Less than two years.

The funny thing about the end of recession is, that maybe we'll get the high inflation and higher taxation - which are needed to pay the piper - without fully getting the recovery. After all, for our imported goods to go through the ceiling price wise we only need the world to recover, sod little old Britain.

Don't high rates come as compulsory once you get a bail out from the IMF? What rate are the Icelanders currently paying? I'll stop now.. sorry.

Dan:_4

pizzagirl wrote: »

They were 15% not that long ago. What governments wish and what they can actually do are two entirely different matters

Not long ago? It was early 1990.....and even then it was only at 15% for a few months before coming back down rapidly

Thrugelmir

ad9898 wrote: »

My guess is a 5 years fix at 6% on a 90% LTV would be a little optimistic, but hey we will see I guess. It's the taxpayers money so if it wasn't for the EU, Brown would be telling them to lend at 0%, just to get some votes.

The NR would issue 5 year fixed rate bonds to savers at 3% to 3.5% to fund the mortgages issued. The amount of money deposited would determine the amount lent. Good old fashioned profitable banking!

chucky

Dan: wrote: »

Not long ago? It was early 1990.....and even then it was only at 15% for a few months before coming back down rapidly

lol - don't let the real facts get in the way of the blinkers

sabretoothtigger

10% would be more normal then 0.5% is right now.

government to allow rates

Governments obey markets or they default