Mortgage rates going up

Thrugelmir

ILW wrote: »

Think this points out how little BoE have control anymore.

Why?

Seems as if the BOE is a few years ahead of the ECB with its policies.

2010

wotsthat wrote: »

I hold shares in a couple of banks. I'd be pretty upset if the directors were spending time hand wringing about a cuddly old fart who has a nice little nest egg (not too big mind) that they built up during their hard-working lifetime.

You seem to forget that it`s mainly the savers who provide the money for the mortgages.
And yes banks and building society bosses do worry about saving rates.
That was one of the main factors that RBS/Halifax took into consideration for the increase of it`s SVR.

black_taxi_2

one of the reasons halifax gave 2010 is that they dont have enough savers--and you wonder why

Thrugelmir

black_taxi wrote: »

one of the reasons halifax gave 2010 is that they dont have enough savers--and you wonder why

Like NR and B&B they were highly dependent on mortgage securitisation and wholesale money markets for their deposits.

The aggressive lending strategy between 2002-07 in the end became unsupportable. That's the reason why LloydsHBOS received Treasury funding of some £185 billion. While refinancing and shrinkage of the mortgage book has taken place.

JanCee

DervProf wrote: »

I would have thought that savings rates are related to mortgage rates.

If a bank is bringing in more money from borrowers, it can afford to pay savers more.

There is absolutely no guarantee that this will happen. The banks are more interested in looking after their own margins than your "pensioner with a nest egg" scenario.

Graham_Devon

JanCee wrote: »

There is absolutely no guarantee that this will happen. The banks are more interested in looking after their own margins than your "pensioner with a nest egg" scenario.

Theres no guarantee no. But it appears to be happening at the moment. Some (restrictive) accounts coming to the market with slightly higher rates recently.

Halifax themselves are now offering a new 4% fixed savings account.

ess0two

Providing the savings aint touched for 3 yrs minimum.

SecondLegDownIsTheBigOne

danielanthony wrote: »

I bought two years ago with a 90% LTV, just remortgaged at 75% LTV as house prices around here have gone up 15% (had surveyor round to value for bank so price not just made up).

Got it fixed now for three years at 3.19%, costing £850 per month instead of £1100 per month for the equivalent rental.

Stupid to have bought my house? Stupid to not have in my opinion.

Because I bought my first house 14 years ago, I'll never have to pay that much per month for my mortgage. Is that because I'm a smart and savvy homeownerist genius?

Graham_Devon

ess0two wrote: »

Providing the savings aint touched for 3 yrs minimum.

Thats why I stated restricted, funnily enough!

pop_gun

Has the tide turned in the battle of the savers vs the speculators?