The real price of a mortgage: 6.49%

chucky

purch wrote: »

Graham.

Do you understand how the events over the past 18 months have affected the credit markets, and how that has impacted on the Mortgage market ??

Instead of getting into silly arguments, and throwing your toys out of the pram every time your lack of even the most basic knowledge is exposed, maybe you should pay a little more attention.

Then you might understand why the Base Rate is 1/2 % and the Mortgage Rate is 6 1/2 %.

what this man said X10!! :T:T:T

mewbie_2

chucky wrote: »

what this man said X10!! :T:T:T

what he said divided by 100.

Johnny_Doe

£995 setup fee! ouch, whats the true interest rate over 5 yrs factoring this in?

purch

Only trying to help the poor lad understand what's going on.

Problem is, anytime anyone disagrees with Gra he throws a huge tizzy fit and starts accusing them of being a Bull.

Which is my case, in complete Bull*h*t !!!!!

Graham_Devon

purch wrote: »

Graham.

Do you understand how the events over the past 18 months have affected the credit markets, and how that has impacted on the Mortgage market ??

Instead of getting into silly arguments, and throwing your toys out of the pram every time your lack of even the most basic knowledge is exposed, maybe you should pay a little more attention.

Then you might understand why the Base Rate is 1/2 % and the Mortgage Rate is 6 1/2 %.

Purch. Do you not understand the basic premise of the point?

All this hoohah about the markets is only impressive to you bulls. Yes, I understand what's going on. Though I probably don't understand as far as you do Squire.

However, that does not detract from the point that the mortgage rates are expensive set against the base rates. No amount of stuff you say will. No amount of telling me I don't understand about the interwanks etc will change the fact it's expensive, given the base rate, QE, etc etc.

Bulls are forever blabbing on about the rates two decades ago. Next time, I will be sure to say "do you not understand blah de blah you silly little man".

zappahey

Apropos of not very much, this thread inspired me to check out what I could get over here in Belgium.

If I was looking to borrow here, I would pay 3.15% SVR, 4.05% 5-yr fix and 4.45% 10 yr fix.

It's almost enough to make you buy a house.

purch

Problem is, anytime anyone disagrees with Gra he throws a huge tizzy fit and starts accusing them of being a Bull

Only took 2 minutes to prove my point :j

IveSeenTheLight

Graham_Devon wrote: »

Are things going to get more and more anal when the bulls are having a hard time of proving a point?

Look, base rate, 0.5%, mortgage rate, 6.49%.

I spy with my little eye, something beginning with "pretty big difference".

I also see lots of bluff and bluster trying to demonstrate this is not expensive and take the point away from the fact that, historically, based on the fundamentals, this is expensive.

I really couldnt give two hoots about all this other nonsense. It's a big difference. End of.

Graham, you've changed your tune in the space of a couple of hours.
These are the same mortgage product you said were good

Graham_Devon wrote: »

Just wanted to say thanks for these, I'm actually going ot look into them myself.

Graham_Devon wrote: »

I'm looking at it as a damn good deal tbh.

Over 10 years, whats the probability of base rates hitting 5%? Pretty high I would personally guess. Even in 3-5 years, it's a pretty high probability. 5.89% for the mortgage seems quite good.

It's all a gamble, but this is a gamble I'd personally be willing to take, and it's added a new dimension for me.

Graham_Devon

purch wrote: »

Only took 2 minutes to prove my point :j

:j:j:j:j

:beer:

Heyman_2

Graham_Devon wrote: »

Purch. Do you not understand the basic premise of the point?

However, that does not detract from the point that the mortgage rates are expensive set against the base rates. No amount of stuff you say will. No amount of telling me I don't understand about the interwanks etc will change the fact it's expensive, given the base rate, QE, etc etc.

Bulls are forever blabbing on about the rates two decades ago. Next time, I will be sure to say "do you not understand blah de blah you silly little man".

Graham, all you're talking about is bank margins - yes the banks are currently making a killing on deals but that doesn't determine whether or not the rate is expensive.

If a loaf of bread was 45p and it cost 38p to make, but some time later it's still 45p and it costs 10p to make, that doesn't make the bread 'expensive' does it?