MSE News: Mortgages tumble below 2%... if you've got the deposit

Former_MSE_Helen

"Tesco Bank has today launched a two-year fix at 1.99% while First Direct has launched a five-year fix at 2.99% ..."

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Mortgages tumble below 2%... if you've got the deposit

Consumerist

With a 40% deposit and nearly £1,000 fee, this is hardly designed to attract first-time buyers. It will, however, help the rich get richer.

SamDude

Consumerist wrote: »

With a 40% deposit and nearly £1,000 fee, this is hardly designed to attract first-time buyers. It will, however, help the rich get richer.

So if you're not poor or a first-time buyer, that makes you 'rich getting richer'??

In a way, I suppose you're right. Anything that saves you money, makes you richer.

somethingcorporate

Consumerist wrote: »

With a 40% deposit and nearly £1,000 fee, this is hardly designed to attract first-time buyers. It will, however, help the rich get richer.

It's offering the best rates to those with the lowest risk.

It's been this way since time began for mortgages and loans so hardly a new ploy.

Great rates, wish I was not stuck on a long term fix at 4%+!

Consumerist

somethingcorporate wrote: »

It's offering the best rates to those with the lowest risk. It's been this way since time began for mortgages and loans so hardly a new ploy.

But with the government taking the risk in this case, the offer is designed to help the rich get richer and the bank get fatter. I fail to see how it helps first-time buyers unless they are rich enough to stump up the deposit and find an additional £1,000.

No-one, of course, expected the banks to behave any differently - except our public-school government.

mrginge

I wasn't aware that every mortage product on the market had to be aimed at first time buyers.

somethingcorporate

Where does it say it is for FTB? I think you will find the most sensible FTBs are saving like mad to get decent deposits so they can access the best rates.

Stumping up a deposit doesn't make you rich, just sensible and disciplined with money. These are two vastly different things which I am guessing you do not appreciate.

Consumerist

somethingcorporate wrote: »

Stumping up a deposit doesn't make you rich, just sensible and disciplined with money. These are two vastly different things which I am guessing you do not appreciate.

But you have to be relatively rich to even save anything these days but I don't need to guess that you really don't appreciate that.

Oh how the well off do cluck. Bless.

SG27

somethingcorporate wrote: »

Where does it say it is for FTB? I think you will find the most sensible FTBs are saving like mad to get decent deposits so they can access the best rates.

Stumping up a deposit doesn't make you rich, just sensible and disciplined with money. These are two vastly different things which I am guessing you do not appreciate.

I agree just read the saving for a deposit thread.

Johnmcl7

This may be a stupid question but I'm going to ask it anyway as it's something I've wondered about, how much do the fees affect how good the deal is? As in, how low does the percentage have to go to be worth spending more on the fees as the article mentions thousands in fees.

I am a first time buyer and I've saved up a large deposit as any time I've been researching mortgages it seemed the way to go to get the best rates and ultimately save a fairly significant chunk of money in the long run, it does mean cutting back on my outgoings rather than being rich (unfortunately!). I can't quite get my head round paying a largish fee for just a couple of years fixed rate.

John

mrBlue

Yep, You've got it! Six months ago, savings account interest rates were 3.2% or 3.3% for the best deals. Today, they're 2.8% if you're lucky. The truth is that the banks are creaming it, the Bank of England is doing its best to destroy the pensions and savings of the people who fund it, and the government is totally inept and incapable of understanding the effects of its own actions. What a country to live in!

Yet again, it is time for a co-ordinated mass withdrawal of money from savings accounts from one of the big banks. The number of £50K+ accounts is such that a co-ordinated withdrawal of £30Kat 2pm on a Friday afternoon into £20 notes could bring down any one of the banks in the UK, and cause overnight money market rates to spike to 10%. Time to teach these idiots a lesson.:j