Fixed rate mortgages set for imminent increase.

skap7309

Pobby wrote: »

Surely some of the finance houses are expecting rates to rise. One advert I saw this weekend is giving a fixed rate 2 year savings bond at over 4% interest.

Yes i have also started to see a few big name banks offering surprisingly high returns in this current climate - something not seen for around 6-8 months.

Pobby

skap7309 wrote: »

Yes i have also started to see a few big name banks offering surprisingly high returns in this current climate - something not seen for around 6-8 months.

So this beggers the question " what do they know? " that we are not being told. I think the current rate is no more than a band aid that will help many indebted people and despite inflation, well that has to take a back seat for the time being. But hang on, high street savings rates are in the main useless. mortgages, in the main, are well over a couple of percent above base and I won`t go into credit card rates. Methinks some rapid repairing to the poor banking balance sheets.

Heyman_2

The distinction that needs to be made here (again) is that there is a huge difference between the best thing for CASH buyers and the best thing for FTBs with a deposit (i.e. 25% or 10% or whatever).

ad9898, if I remember correctly, you're going to be a cash buyer and it makes sense for you to wait for the bottom of the market.

For those who have deposits, I'm not sure there is ever a 'good' time to buy. If they wait another year for prices to come down, interest rates may have gone on the rise again and they may lose the opportunity to fix at a relatively low rate.

Batchy

Heyman, to fix at a lower rate, means your buying in a falling market

Its means its expensive to get out of

Early repayment charges, and falling values.

I think if you have SOLID foundations and a good prospect of fixed income for many years to come, yes it could be a reasonable time to buy.

Otherwise... NOT, too much instability at the moment to make a decision that effects the next 5 years of your life.

It could be a good way to lose the deposit you have already saved very quickly!

StevieJ

skap7309 wrote: »

Simple - wait for house prices to fall even further. Which of course they are guaranteed to do.

Are you providing the guarantee :beer:

StevieJ

Pobby wrote: »

So this beggers the question " what do they know? " that we are not being told.

I doubt they know anything that is not in the public domain if you know what you are looking at .

skap7309

StevieJ wrote: »

Are you providing the guarantee :beer:

Ill bet my house on it :D

ad9898_3

Heyman wrote: »

The distinction that needs to be made here (again) is that there is a huge difference between the best thing for CASH buyers and the best thing for FTBs with a deposit (i.e. 25% or 10% or whatever).

ad9898, if I remember correctly, you're going to be a cash buyer and it makes sense for you to wait for the bottom of the market.

For those who have deposits, I'm not sure there is ever a 'good' time to buy. If they wait another year for prices to come down, interest rates may have gone on the rise again and they may lose the opportunity to fix at a relatively low rate.

That's probably a fair point, certainly as far as my situation goes, although I still think the balance is in waiting for further falls, plus whilst saving a bigger deposit, you are likely to get a much better rate than going for a 90% LTV, which given the market is surely a pretty big gamble, especially if people take up these 2 year fixes, they could be in NE in 2 years and stranded on, or at the mercy of an SVR.

System

Britannia have just released some very appealing 90% LTV products
http://www.britannia.co.uk/home/_site/channels/mortgage/products/medium-term-fixed-rates.html

ad9898_3

Joeskeppi wrote: »

Britannia have just released some very appealing 90% LTV products
http://www.britannia.co.uk/home/_site/channels/mortgage/products/medium-term-fixed-rates.html

They're not bad, but not really earth shattering either, it would be interesting to see how many people would be eligible for those rates, and how much of it gets them some headlines.

It would still chill me to the bone to be taking out a 90% loan at this time when prices are still falling and the economic news grim, but I suppose you spends ye money and takes ye chances, good luck to anyone who takes one up.