First Direct pull 5 year Fixed Rates

Loughton_Monkey

It's simply a sign of how the banks are thinking at the moment. Not prepared to fix at 5 years - at low rates anyway. I don't read anything more into it over and above what we already know - that a base rate hike is starting to look sooner rather than later.

If I had a spare tranche of savings, looking to 'fix', then I think I would be hanging fire for the moment.

Generali

The_White_Horse wrote: »

wonder what that means? that rates are gonna go up?

Fixed rate mortgages are hedged against interest rates rising by using something called an interest rate swap. If swap rates have risen, the insurance becomes more expensive so the fixed rate has to go up. Swap rates from floating to fixed interest usually rise because Mr Market thinks interest rates will rise.

In other words, yes.

Thrugelmir

Batchy wrote: »

does it matter... loads of other mortgage companies.

Loads? The top 6 account for 92% of all new lending.

Thrugelmir

Really2 wrote: »

That does not say they are pulling all 5 years and not replacing them. It says they are pulling the rates and replacing them with more expensive ones.
The site now has 75% and 85% products.

The trend is what's important. Market rates are edging upwards. The BOE in reality has no need to raise rates immediately as the market is naturally re-adjusting. Back in 2009 the BOE foresaw a hole in bank wholesale funding that we're slowly beginning to see the impact of.

Generali

Thrugelmir wrote: »

Loads? The top 6 account for 92% of all new lending.

Weren't all the economic problems caused by greedy banks being too big to fail?

Big thanks to Mr Brown and the other 19 political leaders of the G20 for resolving the problem by making the banks bigger. What could possibly go wrong...?

Batchy

Thrugelmir wrote: »

Loads? The top 6 account for 92% of all new lending.

so there are 5 others... you only need one mortgage company... stop panicing... and many many other small ones, they may take a massive market share but it doesnt necessarily indicate they are the best choice by any means!!!

There are only 4 major supermarkets

Tesco
Asda
Morrisons
Sainsburys

Does that mean they are the best place to buy apples from, or meat from or anything from... NO, but yes they aree useful at times. As for quality, forget about it.

Competition is a great thing, and if its not healthy then you go to elsewhere, substitute, or just dont bother at all.

Wookster

Thrugelmir wrote: »

The trend is what's important. Market rates are edging upwards. The BOE in reality has no need to raise rates immediately as the market is naturally re-adjusting. Back in 2009 the BOE foresaw a hole in bank wholesale funding that we're slowly beginning to see the impact of.

The banks win again. They charge higher rates and savers still get screwed. Its never been a better time to be a banker.

Thrugelmir

Wookster wrote: »

The banks win again. They charge higher rates and savers still get screwed. Its never been a better time to be a banker.

Banks are charging higher rates as the cost to them is increasing.

As the fixed term swaps that spanned the financial crisis draw to a close. That money needs to be refinanced.

The global banking system collectively wrote off £5,000 trillion in assets value from their balance sheets. You don't rebuild this size of sum in a few months.

If you look hard enough ( on MSE in fact) there are plenty of good savings rates.

ILW

Wookster wrote: »

The banks win again. They charge higher rates and savers still get screwed. Its never been a better time to be a banker.

I have to say that savings rates do seem to be creeping up, still below inflation for instant access though.

Really2

It is also being blamed on increased demand.

I presume if this translated in to net mortgage lending increasing we will be in a boom again.;):)