HSBC calls end of crash, increases 90% mortgage funding

nearlynew

Check out these idiots .............

http://property.timesonline.co.uk/tol/life_and_style/property/buying_and_selling/article6850340.ece

brit1234

nearlynew wrote: »

Check out these idiots .............

http://property.timesonline.co.uk/tol/life_and_style/property/buying_and_selling/article6850340.ece

Why do people complain when surveyors warn them it is over valued, it makes no sense why they want to self harm.

Again the article shows that Peter Bolton King trying to ramp prices up again

inspector_monkfish

HAMISH_MCTAVISH wrote: »

Not dissimilar to the rates available in mid/late 2007.

Vastly bigger bank margin though, and quite possibly a big enough margin to open the floodgates. At which point competition will return and margins will shrink.

Slowly slowly catchy monkey....;)

i should imagine you could probably have got get even lower mortgage rates back then, even though the base rate was around 5.75%

Really2

nearlynew wrote: »

Never mind the house price.
How much can you borrow?

3.5X Salary at HSBC and First Direct.

Really2

inspector_monkfish wrote: »

I should imagine you could probably have got get even lower mortgage rates back then, even though the base rate was around 5.75%

But Base rate is not connected to fixed rate mortgages is it? (I thought it was more related to swap rates and fixed savings rates)

It is the same as it was months ago you can only get the better deals the bigger the deposit you have.

The major point is the 90% LTV that was simply not available at all. Can't see it producing loads of new sales as HSBC are strict on lending.

But I dare say it will test some peoples resolve with smaller deposits.

inspector_monkfish

Really2 wrote: »

But Base rate is not connected to fixed rate mortgages is it? (I thought it was more related to swap rates and fixed savings rates)

It is the same as it was months ago you can only get the better deals the bigger the deposit you have.

The major point is the 90% LTV that was simply not available at all. Can't see it producing loads of new sales as HSBC are strict on lending.

But I dare say it will test some peoples resolve with smaller deposits.

it is always connected in some kind of way, just with less or more weight to it.

back then, i believe it was more connected. today, not so much (conveniently for the lenders ), and there is now more weight on the swaps side of things

Graham_Devon

Britain's biggest bank claims the housing crash is over and has promised to lend an extra £500 million to people applying for 90per cent home loans.

The pledge from HSBC is expected to end a two-year log-jam on this type of high loan to value mortgage.

So a 2 year log jam of this type of mortgages is sorted with £500m of funding?

So thats around 3000 mortgages at 150-160k per home.

2 year log jam of buyers = just 3000 mortgages? On average, 125 FTB's a month?

Pretty eye watering demand there.

The decision is seen as evidence that the UK's biggest mortgage lender is confident that house prices will not fall any further.

Seen by who?!

chucky

inspector_monkfish wrote: »

with rates of 5.99% (2yrs) and 6.49% (5yrs)
whilst the base rate sits at 0.50%

wow, aren't they generous !!

inspector_monkfish wrote: »

it is always connected in some kind of way, just with less or more weight to it.

back then, i believe it was more connected. today, not so much (conveniently for the lenders ), and there is now more weight on the swaps side of things

that rate is good - as you well know it has very little to do with the Base Rate...

if people think it's too high wait till they are 7.5% and 8%.

lemonjelly

C'mon people, it's a daily mail article. Therefore it is automatically a pile of turd.

the_ash_and_the_oak

chucky wrote: »

that rate is good - as you well know it has very little to do with the Base Rate...

if people think it's too high wait till they are 7.5% and 8%.

there's a point here. though I don't think that 6.5% is high per se (or 8 either) - its only high in a context