The real price of a mortgage: 6.49%

Thrugelmir

sabretoothtigger wrote: »

I think the BOE sets the overnight rate maybe but a mortgage is closer to the yield on a ten year gilt which is freely traded and set by the free market except when the BOE buys them back like it is now.

Im not 100% sure thats correct though. Libor is more relevant then the base rate I should think so best to follow that if anything
http://en.wikipedia.org/wiki/LIBOR

http://en.wikipedia.org/wiki/Federal_funds_rate

^TNX is the usa 10 year gilt yield, many newspapers will state the uk equal I think and its probably a similar figure of around 4%


http://www.thisismoney.co.uk/libor 3month rate




http://www.bloomberg.com/apps/news?pid=20601085&sid=ag0dlZjkyhrw

Mortgage rates are determined by the cost of the money borrowed ( or lent), to a bank. A mortgage book is a whole jigsaw of rates. So the banks will need to recover losses on low rate trackers from new borrowers for example.

LIBOR is set by the banks themselves. In simple terms. Its the rate at which they will lend to each other overnight. Banks need to maintain liquidity of around 15% of assets on a daily basis.

mewbie_2

b0rker wrote: »

I have blocked him.

There are some very smart and interesting bears on this site

Do you mean put him on ignore? You can't actually stop him posting can you?

I wonder if I fit into smart and interesting, I do hope so.

purch

I wonder if I fit into smart and interesting

He was referring to what you're wearing..........nothing else !!!!

purch

You can't actually stop him posting can you?

.....if only :j

mewbie_2

purch wrote: »

He was referring to what you're wearing..........nothing else !!!!

Then sadly mistaken. Scruffy and downbeat is more my thing. But what else do you expect from an ugly bear?