Nationwide imposes sharp rise in fixed rates.

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Following on from my thread the other day, Nationwide have now increased it's fixed rates, Ray Boulger was on the radio, even he now expects other lenders to do the same. The rate increases will add £6,450 to a £150,000 mortgage over a 5 year period

The high street lender is increasing rates on all its fixed-rate mortgage deals from Friday. The rise would add £6,450 to the cost of a £150,000 loan over five years.
The rate rises come despite Bank of England policy-makers heightening speculation that interest rates will remain at the historic low of just 0.5 per cent until next year. Kate Barker, a member of the bank's Monetary Policy Committee, saying: "Our present view is that we think rates could stay low for quite some time."

http://www.telegraph.co.uk/finance/personalfinance/borrowing/mortgages/5497426/Nationwide-increased-mortgage-rates-others-to-follow.html

Dan:_4

quick! Quick! Quick!

buy now or it will cost more in the long term

Treadmill

Double bad news considering that the £150,000 in your example buys you 2.2% less property than it did last month

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Dan: wrote: »

quick! Quick! Quick!

buy now or it will cost more in the long term

Too late, I've missed the boat , oh well, never mind that one looks like it might sink anyway, lets wait to see if the next one is anymore seaworthy.;)

StevieJ

ad9898 wrote: »

Too late, I've missed the boat , oh well, never mind that one looks like it might sink anyway, lets wait to see if the next one is anymore seaworthy.;)

I am sure if we did some sort of search for that phrase (you know the one I mean ) and who had used it the most, It woudn't surprise me if your ID popped up

ad9898_3

Treadmill wrote: »

Double bad news considering that the £150,000 in your example buys you 2.2% less property than it did last month

If only it were true, however looking at the facts using Property Bee around me, I'm only seeing falls, and properties new on the market are 15-20% down off peak, then you have another 10% to come off which is the average selling price compared to asking price. Statistics, don't ye just love 'em.

andygb

Treadmill wrote: »

Double bad news considering that the £150,000 in your example buys you 2.2% less property than it did last month

I suppose it all depends which planet you are on. I live on the planet "Reality", and I can tell you for a fact that houses in the £150,000 in my area have fallen in price, and continue to fall. This is backed up by the Land Registry figures. In my road alone, there has not been a completed house sale since October 2007, although there are still a few signs around saying "Sold subject to contract" - wishful thinking I would say.

Treadmill

Rollerball wrote: »

It'll hardly make much difference if you're going to get a mortgage for 25 years. These increases in interest rates are tiny compared with what has yet to come

Can I borrow your crystal ball ?

Dan:_4

andygb wrote: »

I suppose it all depends which planet you are on. I live on the planet "Reality", and I can tell you for a fact that houses in the £150,000 in my area have fallen in price, and continue to fall. This is backed up by the Land Registry figures. In my road alone, there has not been a completed house sale since October 2007, although there are still a few signs around saying "Sold subject to contract" - wishful thinking I would say.

The LR figures lag 3 months, so you can expect to see positive figures for June, July and August.

Thrugelmir

ad9898 wrote: »

Following on from my thread the other day, Nationwide have now increased it's fixed rates, Ray Boulger was on the radio, even he now expects other lenders to do the same. The rate increases will add £6,450 to a £150,000 mortgage over a 5 year period

http://www.telegraph.co.uk/finance/personalfinance/borrowing/mortgages/5497426/Nationwide-increased-mortgage-rates-others-to-follow.html

Reflects the increased cost of borrowing money for a 5 year fix.

The Nationwide won't borrow at short term variable rates and lend at fixed rate long. Would give them an enormous exposure to a rising base rate.

Dan:_4

Rollerball wrote: »

It'll hardly make much difference if you're going to get a mortgage for 25 years. These increases in interest rates are tiny compared with what has yet to come

Fix for as long as you can then???