Nationwide 25 Year Fixed Rate Mortgage 5.49 %

pioneer

What impact is this going to have on the housing market? my initial reaction is drive it up !

Source BBC2 Teletext p237 27/3/2007

http://www.nationwide.co.uk/mediacentre/PressRelease_this.asp?ID=971

kingkano

why out of interest?? its not the most astounding rate to be fair (other fixes can be had as low as 4.95% or so). there is the security there for people who appreciate it, but british people are generally thought to NOT like long term fix rates, but rather appreciate the gamble in a shorter term fix adn to tart around after that.

These longer fixes are very much popular in other countries esp USA, whether it will catch on here now rates are on the up remains to be seen. It wouldnt be suitable for alot of people depending on the tie in and redemption penalties.

kingkano

Now I saw that its an interesting alternative. If I could get it on my current move up the ladder I probably would! lol. Im still not sure it will drive the market up personally....

pioneer

Knowing what your costs are, is not only enticing for Homeowners, but with a little creative accounting BTL' ers ie; remortgage own home then pile into suitable BTL; any yield over 6% gets you a free house if you have done your homework and if you are to believe some on here 13% up north is acheivable, thats 2 free houses.

kingkano

Don't BTL mortgages offer different rates tho?

Or do you mean 25year fix rate your own home mortgage? risky but might take off....

msfender

Does anyone have a theory about what this says about future interest rates?