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HSBC targets the FTB
Comments
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Not bad at all? The rates aren't exactly heart warming. 4.09% above the base rate? Get real, thats a s*** rate! The 2 year fix at 4.49%? Not great either. I assume the rates stated are for 90% LTV, would be interesting to see the 80% and 85% LTV rates.
I would have liked to pay 4.59% during the lifetime of my mortgage.
And as some would probably point out, paying 4.59% is going to be cheaper than renting in most cases.
Seems like some of you want your cake and eat it too.
If the banks offered lower rates, then savers would suffer more. Not only that, lower rates will simply fuel HPI which will increase the future requirement for continual low rates and higher amounts of lending. If you cast your mind back to just 4 years ago, you'll see where that may lead.30 Year Challenge : To be 30 years older. Equity : Don't know, don't care much. Savings : That's asking for ridicule.0 -
I would have liked to pay 4.59% during the lifetime of my mortgage.
And as some would probably point out, paying 4.59% is going to be cheaper than renting in most cases.
Seems like some of you want your cake and eat it too.
If the banks offered lower rates, then savers would suffer more. Not only that, lower rates will simply fuel HPI which will increase the future requirement for continual low rates and higher amounts of lending. If you cast your mind back to just 4 years ago, you'll see where that may lead.
Yes but what's going to happen when interest rates return to normal levels? If that was to be combined with a drop in prices so the home owner had less that 10% equity they might not be able to remortgage and will be trapped in a mortgage with an interest rate of almost 10%!0 -
thescouselander wrote: »Yes but what's going to happen when interest rates return to normal levels? If that was to be combined with a drop in prices so the home owner had less that 10% equity they might not be able to remortgage and will be trapped in a mortgage with an interest rate of almost 10%!
I suggest that when interest rates go back to "normal" levels, the economy may well be in slightly better shape. The banks will have got themselves mostly sorted out, and the margins that the banks charge will also go back to "normal".
And if you scenario does play out, then it's going to be tough for some mortgage holders. The is no law that says that the banks/government have to make it easy for everyone with a mortgage. Some you win, some you lose. Buying a property has never been, and can never be win-win 100% of the time, unless the market is rigged heavily. It's supposedly a free market, so you have to accept there will be good and bad times.30 Year Challenge : To be 30 years older. Equity : Don't know, don't care much. Savings : That's asking for ridicule.0 -
I suggest that when interest rates go back to "normal" levels, the economy may well be in slightly better shape. The banks will have got themselves mostly sorted out, and the margins that the banks charge will also go back to "normal".
And if you scenario does play out, then it's going to be tough for some mortgage holders. The is no law that says that the banks/government have to make it easy for everyone with a mortgage. Some you win, some you lose. Buying a property has never been, and can never be win-win 100% of the time, unless the market is rigged heavily. It's supposedly a free market, so you have to accept there will be good and bad times.
Maybe so but that doesn't change the fact the HSBC deal is pretty poor for the reasons I outlined. Any ftb with their head screwed on will avoid it.0 -
OptionARMAGEDDON wrote: »
On what original asking price? Quite good if you are offering on a 100k property, not so great if its an offer on a 500K one....
£127k asking £140k....0 -
vivatifosi wrote: »I think that there's a problem with the 2% above base. The base rate is artificially low at the moment and doesn't reflect the cost of borrowing money that banks incur,.
Yes I'm aware of that but the difference between the two isn't particularly great. LIBOR is a good proxy for actual bank lending costs, and LIBOR is still below 1%.
The current London Interbank Borrowing Rate is 0.96%.
At base plus 2% the bank margin on a mortgage issued today would be nearly 1.6%. Which is still 50% higher than the average bank margin in 2007.Why is it important?
The sterling three-month LIBOR rate influences the level at which lenders set some rates on loans, especially mortgages, to consumers and to businesses. It also impacts on the amount they will lend. It is the rate at which banks lend to each other and is therefore a measure of how much they trust each other and a measure of the credit crunch. There tends to be a lag from when LIBOR changes to when bank lending rates are altered.
Also, some new mortgage deals have been linked to LIBOR rather than bank rate or a lender's SVR. That's because it is more closely linked to a lenders' costs.
http://www.thisismoney.co.uk/money/markets/article-1645325/LIBOR-Latest-inter-bank-lending-rate-charts.html#ixzz1axm7g2P5“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
HAMISH_MCTAVISH wrote: »Approvals routinely granted for the average UK credit score, rather than a requirement for perfect credit.
No more than 2% above base.
Lending maximum limits of 4.5 times single or 3 times joint income, but with the average being less.
In other words, historically normal, sensible, prudent lending.
Certainly not the over loose and cheap lending of 2007, but certainly not the over tight and absurdly restricted lending of today.
Because the loose lending only happened in 2007 did it? :rotfl:0 -
thescouselander wrote: »Maybe so but that doesn't change the fact the HSBC deal is pretty poor for the reasons I outlined. Any ftb with their head screwed on will avoid it.
Fair enough. Like any "free market" product, there will be good deals, not so good deals, and bad deals. If HSBC are trying to attract customers with a bad deal, then they are probably not going to be very successful.30 Year Challenge : To be 30 years older. Equity : Don't know, don't care much. Savings : That's asking for ridicule.0
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