Warning! Fixed rate deals about to be withdrawn

meanmachine_2

Just to let everyone know, with swap rates soaring, a lot of the current fixed rate deals are on borrowed time.

Northern Rock have put a withdrawal notice on their deals. Anyone know any other lenders doing the same?

As I've been warning people, fixes are about to get 0.3-0.5% dearer, I predict.

dwight-van-man

Probably, but just to annoy brokers and the public, most lenders will reprice but only by 0.1-0.2%, then do it all again in two weeks time....

MarkyMarkD

I'm sure that all the borrowers who get their applications in during the intervening period will thank you, d-v-m, for your helpful suggestion that they put their rates up sooner and by a larger amount. :S

sarkin

Yeah I had a barrage of emails from lenders yesterday all pulling rates on Friday

dwight-van-man

MarkyMarkD wrote: »

I'm sure that all the borrowers who get their applications in during the intervening period will thank you, d-v-m, for your helpful suggestion that they put their rates up sooner and by a larger amount. :S

Actually, I'd go further than that. If lenders really want to adopt TCF in it's purest form, they should get rid of fixes altogether and offer only SVR to ensure that every customer is treated equally

dwsjarcmcd

How can it be 'TCF in it's purest form to 1. Eliminate most of the competition (and for that matter the need for brokers) 2. Put about 1.25% on everyone's mortgage and 3. Put many people in financial difficulty

The joy of theory!

David

dwight-van-man

dwsjarcmcd wrote: »

How can it be 'TCF in it's purest form to 1. Eliminate most of the competition (and for that matter the need for brokers) 2. Put about 1.25% on everyone's mortgage and 3. Put many people in financial difficulty

The joy of theory!

David

just for the record, I was taking the p1ss - and i do think we will see most of the lenders who are currently repricing, do the same in two weeks time (or less), followed by further increases to arrangement/product fees since no lender wants to actually price at a level which reflects the rate of buying in funds.

I utterly and emphatically refute MarkyMarks allegation that I want lenders to reprice higher and sooner - as a BDM, two spikes in business generated by successive rate hikes are far better for my stats than one - especially with the end of the quarter looming!!

MarkyMarkD

Then why did you imply that it was wrong for lenders to reprice up by 0.1%-0.2% twice in two weeks, rather than increasing by (say) 0.3%-0.5% all at once as meanmachine suggested?

dwight-van-man

I didn't - general feedback from the brokers and clients I deal with, the mortgage trade press and this website suggests that frequent repricing causes confusion and makes life difficult for brokers trying to tie up deals and clients trying to compare products - hence annoying, but I never made any judgement as to whether it was right or wrong

MarkyMarkD

You can only compare deals at a point in time, so the frequency of changes doesn't really make that much difference. Surely if you are an adviser, you just need to find the right deal on the day you advise the customer, and tell them they need to decide asap or they suffer the risk of losing the deal?

If people choose to faff about, they will lose deals irrespective of frequency of changes.

homer_j_3

I see your point MMD but Dwight is right - its not a perfect world and even with your warnings that decisions have to be made asap to secure deals. It is often perceived that you are trying to pressure sell and push them into something that some people want time to think about.

The last month has been very active for lenders and fixed rates and it can often create additional work for brokers and clients when you do a lot of research the day before your client is due and then on "double checking the deal" the same day of the app - your deal has been pulled, you spend more time trying to resource.

That said some lenders are pretty good at warning brokers that rates are altering - NR being one of them.