LIBOR still dropping...

Jacka87

So nationwide have cut there rates for existing customers yet rbs have put there fixed rates up by 0.5% for the second time in the last Month!

Surely the fixed rates need to be staying steady now that the 5yr swaps have had a little drop, even if they have rose again since, would this not be them on the plato?

Any crystal balls cos my re-mortgaging and the fixed rates rising are becoming annoying!

crispy2_2

Jacka87 wrote: »

So nationwide have cut there rates for existing customers yet rbs have put there fixed rates up by 0.5% for the second time in the last Month!

Surely the fixed rates need to be staying steady now that the 5yr swaps have had a little drop, even if they have rose again since, would this not be them on the plato?

Yeah, it's really mysterious isn't it. I am speculating that it takes a good month for a mortgage company to get a new rate out to retail customers - they have to find a counterparty to put up a pot of money at the current swap rate, they have to arrange the contracts around that, get all the legal work done, print advertising, get the rate entered on their system. Presumably some mortgage providers are more efficient than others - so lets assume anywhere from 3-6 weeks.

Swap rates peaked about a month ago, so I'd expect these peak mortgage rates to be coming out on the market right now.

But do any industry insiders know the real story here?

crispy2_2

5 YEAR RATES 13th July
Swap 3.45
Gilt 2.78

Another few steps down for 5 year rates, now back to 4th June levels. The peak of 3.83 was 11th June.

udydudy

crispy2 wrote: »

5 YEAR RATES 13th July
Swap 3.45
Gilt 2.78

Another few steps down for 5 year rates, now back to 4th June levels. The peak of 3.83 was 11th June.

can you pls let us knwo which site u get ur information from.
ca

crispy2_2

udydudy wrote: »

can you pls let us knwo which site u get ur information from

Libor numbers are from inspector monkfish on this thread
Swaps and Gilts are from ft.com (research data archive)
The graph is mine from a spreadsheet I maintain

inspector_monkfish

crispy2 wrote: »

Yeah, it's really mysterious isn't it. I am speculating that it takes a good month for a mortgage company to get a new rate out to retail customers - they have to find a counterparty to put up a pot of money at the current swap rate, they have to arrange the contracts around that, get all the legal work done, print advertising, get the rate entered on their system. Presumably some mortgage providers are more efficient than others - so lets assume anywhere from 3-6 weeks.

Swap rates peaked about a month ago, so I'd expect these peak mortgage rates to be coming out on the market right now.

But do any industry insiders know the real story here?

bizarre isn't it

i would speculate that RBS may find things a little more difficult to cover, possibly paying a slight premium compared to others in the market, given their current problems, hence their slightly higher fixed mortgage prices.

Jacka87

I would agree that RNS position was maybe the reason but when I was first looking for mortgages they where very competitive! They have now however put there 5yr fixes up twice in around a Month and put there 10yr up the same time as the first 5yr rise only to pull it completly when the 2nd 5yr rose.

On top of that the mortgage advisor they have is assuring me that the next rate change will be up again!!! When I mentioned the fact that some of the lenders have dropped there rate as the 5yr swaps are down after there peak her response was, "ell I dont know where we are buying our money from" only to follow it up by "we are only £30 a month more than them for you so why mot come with us anyway?" & to top it off they have increased there fees from £299 to £799!

I am not amused with RBS at the moment but I am now determined to hang onto my tracker for a little while n hope that the 5yr swap eventually gets passed on by a few more banks!

inspector_monkfish

jacka87 wrote: »

i would agree that rns position was maybe the reason but when i was first looking for mortgages they where very competitive! They have now however put there 5yr fixes up twice in around a month and put there 10yr up the same time as the first 5yr rise only to pull it completly when the 2nd 5yr rose.

On top of that the mortgage advisor they have is assuring me that the next rate change will be up again!!! When i mentioned the fact that some of the lenders have dropped there rate as the 5yr swaps are down after there peak her response was, "ell i dont know where we are buying our money from" only to follow it up by "we are only £30 a month more than them for you so why mot come with us anyway?" & to top it off they have increased there fees from £299 to £799!

I am not amused with rbs at the moment but i am now determined to hang onto my tracker for a little while n hope that the 5yr swap eventually gets passed on by a few more banks!

.....rbs

Jacka87

yep I meant rbs, I have noticed a few others in my post, I have now worked for an unreasonable amount of consecutive days with my fri-sun hours worked totalling 45hrs! As a result, today is not a good day!

inspector_monkfish

LIBORs 14th July

3mth 1.00563 (down 1 1/2pts)
6mth 1.22625 (down 2pts)
12mth 1.53250 (down 1 1/2pts)