Nationwide Slashes Higher LTV Rates...

stueyhants

Oh well, I've done my bit by transferring my 30k ISA out of nationwide so that should reduce a bit of their ability to lend. Every little helps.

purch

Theres probably 10 people that read this debate board

There are plenty of people who post, but don't read :eek:

Jonbvn

stueyhants wrote: »

Oh well, I've done my bit by transferring my 30k ISA out of nationwide so that should reduce a bit of their ability to lend. Every little helps.

Was it out of the goodness of your heart, or perhaps because they pay rubbish rates?:rolleyes:

stueyhants

Jonbvn wrote: »

Was it out of the goodness of your heart, or perhaps because they pay rubbish rates?:rolleyes:

Because they pay poor rates !

Dan:_4

stueyhants wrote: »

Oh well, I've done my bit by transferring my 30k ISA out of nationwide so that should reduce a bit of their ability to lend. Every little helps.

Why don't you want Nationwide to have the ability to lend?

stueyhants

Dan: wrote: »

Why don't you want Nationwide to have the ability to lend?

Because I want prices to fall, simples. Selfish view, but no more so than the bulls who want them to rise.

HAMISH_MCTAVISH

stueyhants wrote: »

Because I want prices to fall, simples. Selfish view, but no more so than the bulls who want them to rise.

Fair enough, I can respect that.

Good to see a bit of honesty from the bear side for a change.

But a few questions......

Given that prices did fall, by a larger amount than the last crash, why didn't you take advantage then when they were 20% below peak?

Now that prices have risen back to just 7% below peak on the FT/Acadametrics index, are you planning on waiting until prices rise past previous peak before buying?

Why don't you support lower bank margins, as Nationwide is doing, given that one of the biggest problem faced by FTB's today is the fact that they are paying a far bigger spread above base than borrowers were 3 years ago? In fact, at an average of 2% more, it's enough to eliminate the gains of a 10% fall in just the first 5 years of the mortgage.

HammersFan

carolt wrote: »

Bit irrelevant as they're only on max 3 year fixes.

And anyone who thinks taking out a 25 year loan on the basis that rates are going to stay at those rates beyond 3 years needs their heads examined.

When long-term fixed rates are at attractive levels, then this thread is worth posting.

As opposed to merely being a dull attempt to ramp the market for Hamish's own mysterious ends - again.

Carol, there are fixes around of 4.5 ish for 5 years at the moment. That is low by long-term averages. Of course you can argue that it's way over BoE, but that is a good deal I reckon. £450 interest pcm for every 120k borrowed puts it in the cheaper than renting bracket.

From your logic there will always be a reason not to buy in any market.

stueyhants

HAMISH_MCTAVISH wrote: »

Fair enough, I can respect that.

Good to see a bit of honesty from the bear side for a change.

But a few questions......

Given that prices did fall, by a larger amount than the last crash, why didn't you take advantage then when they were 20% below peak?

Partly I wasn't in a position to buy, a lot of my deposit was in fixed term bonds and my personal situation was different. Since then I've been gifted a 6 figure deposit so I'm looking at a different part of the market and there is just nothing (not even overpriced houses) that I'm interested in, hopefully that will change as the year progresses.

Now that prices have risen back to just 7% below peak on the FT/Acadametrics index, are you planning on waiting until prices rise past previous peak before buying?

Your assuming prices keep rising, you might be right but I think there is a good chance in the short term your wrong. Longer term I do accept prices will keep going up. I'm living rent free in my parents 2nd home backing on to a amazing landscape so I'm not in any hurry as any future price rises are tempered by what I'm saving each month.

Why don't you support lower bank margins, as Nationwide is doing, given that one of the biggest problem faced by FTB's today is the fact that they are paying a far bigger spread above base than borrowers were 3 years ago? In fact, at an average of 2% more, it's enough to eliminate the gains of a 10% fall in just the first 5 years of the mortgage.

Because the margins are probably preventing prices rising even faster at the present time. Plus I would rather pay the bank more in profit/margin than a homeowner in increased house prices. At least the banks peform a service to justify their bill. Most homeowners have done nothing to deserve/justify rises in house prices over the years.

Answers above

StevieJ

HAMISH_MCTAVISH wrote: »

:rotfl:




Actually, I am one of the most frequent posters of links on this board.

But then again, my stats are real, versus your little fictional effort above.

You do have some good info and links Hamish :T someone on the other thread suggested it was because you work for a mortgage bank