interest rates

k1984

First time buyer - when will interest rates go down????? we have a 15% deposit however only want to use 10% as a deposit and 5% for furniture etc.

I cant believe that nearly every bank is charging 6-7% fixed for 2 years for a 10% deposit when the BoE base rate is only 0.5%. and that only goes down by very little for a 15% deposit. is it any wonder why first time buyers dont want to buy...

I know there are PLENTY of people on here who will disagree however i think its a joke. We're both in extremely secure jobs.

CLAPTON

the lenders simply think that house prices will probably drop by 10% so putting you in negative equity.
anyway it's unlikely they will actually value the property at the asking price

k1984

CLAPTON wrote: »

the lenders simply think that house prices will probably drop by 10%

When by? The house prices down by my area are now levelling out. Is this another way of the banks just charging over the odds...

Lindy_Loo_3

I feel for you k1984

We too have scraped together a 15% deposit but house prices in our area have hardly been touched by the "credit crunch" - we feel like we're still outpriced even in this market!

Our only way is to save, save, save to try and get a better interst rate but that's still a long way to go . . .

suisidevw

Just dropped a 15% deposit on a house. Went with Natwest @ 5.29% with £799 fee. Very helpful and quick