MSE News: Mortgage prices edging up – despite base rate staying at 0.5%

edited 30 November -1 at 1:00AM in Mortgages & Endowments
3 replies 1.8K views
Former_MSE_HelenFormer_MSE_Helen
2.4K Posts
edited 30 November -1 at 1:00AM in Mortgages & Endowments
The cost of a new mortgage is showing signs of edging up despite the Bank of England base rate remaining unchanged...
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Mortgage prices edging up – despite base rate staying at 0.5%

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  • kingstreetkingstreet Forumite
    36.9K Posts
    Tenth Anniversary 10,000 Posts Name Dropper Photogenic
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    I was ready to answer before I read the article.

    Swap rates and MMR would have been my reasons too...
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
  • brit1234brit1234 Forumite
    5.4K Posts
    Good now lets hope they start raising savings. Funding for Lending decimated savers two years ago. Mortgage borrowers already had 0.5% base rates and QE to bail them out, they didn't need FLS as well.
    :exclamatiScams - Shared Equity, Shared Ownership, Newbuy, Firstbuy and Help to Buy.

    Save our Savers
  • PincherPincher
    6.6K Posts
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    What I would like is a hedging instrument so that if BOE goes up, it pays out to match the increase in my BOE tracker mortgage.

    What was that thing that banks were selling to small businesses and causing them to go bankrupt? They sold it as loan protection, but it was actually a swap, so that it pays out if interest rate goes up, hence the protection, but the borrower has to pay out if interest rate went down, which BOE did, unexpectedly, so the borrowers went bankrupt. Now it's a one way bet, so I suppose nobody would be dumb enough to write these contracts. Where's Lehmann Brothers when you really need an idiot?

    I missed out on the BOE+1.0% Lifetime Trackers Woolwich was selling around 2007. I think Woolwich got bought up by Barclays. Can the same idiots please bring out a Tracker Mortgage Protection Swap product, please. If they haven't been executed at dawn, that is.
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