LIBOR still dropping...

dunamis

There has been a bit of mild panic about good fixed rates drying up over the last week or two and I can't really see why.

It looks to me like the LIBOR is still dropping day by day, the economy is nowhere near recovery and we're probably not really seeing the full effects of the quantitative easing yet. Other than banks trying to push the idea of the best fixed rates disappearing...grab them quick, is there really any hard data to justify this idea?

RG

michael1983l

I beg to differ, as a person who is currently going through a purchase now I can honestly say that the market seems to be recovering.

diable

michael1983l wrote: »

I beg to differ, as a person who is currently going through a purchase now I can honestly say that the market seems to be recovering.

Can you let us know why you think so? Might be of help.

will-in-estoril

Swap rates are down since last week.

The end of the cheap fixed rates is probably not nigh!

foreversummer

I agree with dunamis totally. There is alot of panic on this site, and although fixed rates might rise slightly in the very short term, there will be extremely goods rates available when libor gets back to a more normal level, when the housing market really begins to pick up again and when banks really begin to compete for business.

If you have equity issues and are coming off a deal at present (or sitting on a SVR) it might be time to consider a fixed rate. But if you miss this boat, or have a lot of equity in your property, you really do not need to panic.

I saw a lot of people panic last year when mortgage rates where rising on a daily basis, even though it was quite clear that the country would enter recession. These are the same people who are gutted now that they didn't take a tracker.

Base rate is 0.5%. We are in recession. There are no real tangible 'green shoots' (I hate that overused phrase). Rates will go up eventually, of course they will. But knee-jerk reaction to every snippet of information of which we have so much of these days will not help.

Draw breath and consider carefully. Do not be panicked.

Foreversummer

Stantheman

Reassuring words foreversummer. I hope your right. Doesnt stop me worrying though!:o

michael1983l

diable wrote: »

Can you let us know why you think so? Might be of help.

Mortgage approvals have shot up by 20%, the Estate agents association have reported a boom in interest and have this backed by the fact the mortgages are being given. I myself am looking in the lower end of the market and every house I have seen has been snapped up in under 2 weeks disregarding the overpriced chancers.

First time buyers are able to get on the market thanks to the schemes available, which is boosting the ecconomy as this is what we were missing.

Its a knock on effect, people buy houses estate agents make money and hire people. Solicitors and other legal people also the same. Builders get cash through home improvments. Homestores get lots of buisness all creating cash flow which spills onto other markets, thus creating more jobs and less unemployment.

I am no expert but I am almost sure we have seen the worst of it.

beecher

michael1983l wrote: »

Mortgage approvals have shot up by 20%,

That does sound good until you realise that there were 38,000 approvals in Feb 09, compared to last February when there were 71,400. And the figure of 71,400 was itself the lowest February figure since 1993! Lending at the moment is only aobut a third of the level of Feb 2007

I am as sure as it is possible to be that we haven't seen the worst of it!

Gazza1964

Please don't take this as a personal attack Michael1983l but I am almost sure that its the tip of the iceberg.

Every week a company somewhere in my area closes down - and I dont mean small start up businesses but larger established firms that I have known off for many years.

I admit to being a pessimist at heart ;-( but I honestly believe most people do not realise just how bad things are going to get and the notion that to get out of debt then you should spend more money, which seems to me is the general political opinion, is absurd. It may ease the pain but we are going to have to pay for it eventually.

But I am no expert either - just some over-opinionated guy on a forum.

AngelaUK

The market seems to have picked up round here (Essex) at the lower end, I have hopefully sold and have just lost a few places I wanted to FTB's.

dannykos

swap rates have been up and down this last week or so - which, for me means that the banks have about as much idea as we do as to the future...

All I do know is - that the margins that banks used to lend on are never going to be as low as previously. All these people saying that there should be deals at 2-2.5% over base IMO are way off, as with increased regulation, and less overall risk in the markets - margins will be nearer 3-3.5%, more like we're seeing. I think the rate market has all but bottomed out.