The next phase of the house price crash.

chucky

Thrugelmir wrote: »

The large tranche of £6 billion including fees is costing Lloyds 1.85% above Libor. So with a 2.5% margin would mean LlloydsHBOS are relending this at 5%.

This isn't new money. Its merely refinancing existing debt for liquidity or in simple terms "cash".

I see no relevance to this being a bear or bull issue. Its basic commercial reality.

By cheap money I am refering to mortgage deals with a margin below 2% above BOE base. Something which property investors seem to be banking on, in order for HPI to resume.

so there is money to borrow at 5%... that is not a bad mortgage rate when FTBs with 10% deposits are paying 6%. how can that be expensive?

it has a lot more to do with the bear nonsense spouted on this forum.

the first post on this thread claims there is no money to be borrowed, now there is money to be borrowed. some people really need to get their stories right.

however 5% is expensive - what is the average mortgage rate over the last 5, 10, 15 or even 20 years?

you choose - and you'll find that 5% is a good rate.

Graham_Devon

Usual ignorance of the base rate chucky?

chucky

Graham_Devon wrote: »

Usual ignorance of the base rate chucky?

i'd love you to explain Graham. if you can of course.

before you do - think about the current relationship between the BOE rate and current mortgage rates.

and before you answer - there isn't one or it's very, very small, just like there isn't one between me and you

carolt

Really, chucky? - is there no relationship now between base rates and mortgage rates?

All those people on trackers would be really, really surprised to hear that.

chucky

carolt wrote: »

Really, chucky? - is there no relationship now between base rates and mortgage rates?

All those people on trackers would be really, really surprised to hear that.

do keep up - i know it's not easy following me around the forum but do keep up.

Thrugelmir wrote: »

The large tranche of £6 billion including fees is costing Lloyds 1.85% above Libor. So with a 2.5% margin would mean LlloydsHBOS are relending this at 5%.

Harry_Powell

carolt wrote: »

Really, chucky? - is there no relationship now between base rates and mortgage rates?

All those people on trackers would be really, really surprised to hear that.

Try getting a tracker now with such low rates. Indeed try getting a mortgage now with rates anywhere close to the current BoE rates (without having to pay huge arragement fees).

When the time comes for you to buy your first home and arrange a mortgage on it, I'm sure you'll be shocked by the rates available to you. I know I was!

bobbyj_2

Dan: wrote: »

It is only a small majority on his forum and HPC.co.uk that expect/hope prices to fall 50% - in the real world such a statement is pure comedy.

Why's that then given they've risen astronomically to get where they are today. Similar to comments used by dumb investors on the stockmarket when they buy a share that has dropped from 100p to 50p... " well it was 100p once and so it will get there again ". Total bollox if you ask me ;-)
I'm in the 50% camp thanks.