The real price of a mortgage: 6.49%

mewbie_2

Heyman wrote: »

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?

It makes it a rip off.

Graham_Devon

Heyman wrote: »

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?

If we are all being expected to pay for the flour, or yeast, or whatever makes bread, AND we have bailed the bread maker out and now the breadmaker is hoarding our bailout and not making as much bread, yes.

IveSeenTheLight

Graham_Devon wrote: »

If we are all being expected to pay for the flour, or yeast, or whatever makes bread, AND we have bailed the bread maker out and now the breadmaker is hoarding our bailout and not making as much bread, yes.

I don't believe HSBC were bailed out and they are offering one of the competative rates that you are looking into

purch

This is one of those almost 'surreal' threads we get on this forum.

It is started by a "Bear" in an attempt to show how the 'real' mortgage rate of 6 1/2% will cause prices to fall.

And it ends up with the "Bears" complaining that mortgage rates are 6 1/2%

It's a funny old world these guys live in.

Graham_Devon

purch wrote: »

This is one of those almost 'surreal' threads we get on this forum.

It is started by a "Bear" in an attempt to show how the 'real' mortgage rate of 6 1/2% will cause prices to fall.

And it ends up with the "Bears" complaining that mortgage rates are 6 1/2%

It's a funny old world these guys live in.

Mr "I'm not a bull, oh no not me" Purch.

Who's complained? Only I asked chucky the same question, though he declined to answer.

purch

I was wrong.

Totally 'Surreal'

andykn

Graham_Devon wrote: »

It's 5.99% above the base rate.

That's why it is a high rate.

That doesn't make it a high mortgage rate, especially not in context.

Heyman_2

Graham_Devon wrote: »

If we are all being expected to pay for the flour, or yeast, or whatever makes bread, AND we have bailed the bread maker out and now the breadmaker is hoarding our bailout and not making as much bread, yes.

Yes ok, you're right - those rotten banks should be making it easier given that we've bailed them out. Get those interest rates back down low and ease the lending criteria because that's what we all want isn't it

Graham_Devon

Heyman wrote: »

Yes ok, you're right

I've cut out the irrelavant guff!

Heyman_2

Graham_Devon wrote: »

I've cut out the irrelavant guff!

If only you could do the same with your own posts :rolleyes: