Eurozone crisis may effect mortgages

Graham_Devon

Mortgage rates could start to rise again as a result of the turmoil in the eurozone, brokers are warning.

Some lenders, including Woolwich, Halifax and Santander, have pushed up their tracker rates for new borrowers.

This increase follows a rise in the rate at which banks lend to each other - Libor - which has been inching higher amid worries over the eurozone crisis.

The increase in Libor indicates that banks are less confident about lending to each other.

"It is a diluted version of what happened after the Lehman crisis," said David Hollingworth, from mortgage brokers London and Country.
"We could be seeing a significant reversal in rates. Over the summer mortgage lenders were competing harder with each other. Now that is changing."

If prices going up are good for those wanting to buy, surely mortgages going up is the icing on the cake?

http://www.bbc.co.uk/news/business-15677498

FTBFun

Mortgage broker says mortgage rates could rise, so it might be a good idea to speak to - I don't know - a mortgage broker perhaps?

God I love press releases dressed up as news stories. Do journalists ever do any actual work?

Graham_Devon

FTBFun wrote: »

Mortgage broker says mortgage rates could rise, so it might be a good idea to speak to - I don't know - a mortgage broker perhaps?

God I love press releases dressed up as news stories. Do journalists ever do any actual work?

I love flippant and rather silly comments following a news article.

You do realise it's not just brokers saying it? Lenders ARE actually increasing their rates?

shortchanged_2

This could spell trouble for many people.

nicko33

Graham_Devon wrote: »

If prices going up are good for those wanting to buy, surely mortgages going up is the icing on the cake?

Graham_Devon wrote: »

I love flippant and rather silly comments following a news article.

We can tell....

wotsthat

Graham_Devon wrote: »

You do realise it's not just brokers saying it? Lenders ARE actually increasing their rates?

Well a little anecdotal for you just because I have some real numbers..

In early April Nationwide offered me a 3 year fix with a £99 fee for 5.89% (I walked away). Today, on identical terms, the rate is 4.24%.

Santander in the same period for a 3 year fix with £495 fee have gone from 3.79% to 3.69% with no fee.

Before you ask yes I do think my example of one is truly representative of the whole mortgage market.

joguest

Good news for those wanting prices to come down.

There's a nice LIBOR chart here: http://www.thisismoney.co.uk/money/markets/article-1645325/LIBOR-Latest-inter-bank-lending-rate-charts.html

joguest

A friend of mine just pulled out of a house purchase (50% LTV, 400k) as the bank upped their original interest rate offer. He's decided to wait until prices are down 10% (he thinks this will happen as a result of the eurozone crisis). This is someone that was previously quite bullish.

Pimperne1

joguest wrote: »

A friend of mine just pulled out of a house purchase (50% LTV, 400k) as the bank upped their original interest rate offer. He's decided to wait until prices are down 10% (he thinks this will happen as a result of the eurozone crisis). This is someone that was previously quite bullish.

Well if I thought prices would be 10% down any time soon I wouldn't be buying full stop.

joguest

Pimperne1 wrote: »

Well if I thought prices would be 10% down any time soon I wouldn't be buying full stop.

Er, he isn't buying - he's decided to rent instead as a result of the changed situation from when he first started looking to buy.

FTBFun

Graham_Devon wrote: »

I love flippant and rather silly comments following a news article.

Sorry, I didn't realise you fancied a serious debate. The picture of a man in a fishermans costume threw me a bit there.