Interest rates direction

Jack_Johnson_the_acorn

Nationwide launches lowest 10 year fix on the market - 60% LTV with rates from 2.84% only £1k fee..... I've noticed some other banks have recently reduced the rates for their long term fixes.

Seems like the banks are predicting low rates for a long time to come. Good news for all I suppose.:beer:

House prices are significant to those getting on the ladder but for content home owners interest rates are where it's at.:T

chucknorris

My wife pointed these out to me yesterday evening, which is a good indication that opinion is that the base rate will be low for a while, things change of course, but it is a good omen.


Does this change your view on the future prospect of share prices, you have been quite bearish recently?

Thrugelmir

I wouldn't read too much into a single product launch. How much money is available?

60% LTV and a £1k fee will preclude many borrowers. Also fixing for 10 years requires a great deal of confidence in ones own personal circumstances.

System

That's insane. People will look back at this house buying generation with the same envy people look at boomers, "an average mortgage rate of 4% for their entire purchase? Burn them!"

Jack_Johnson_the_acorn

Thrugelmir wrote: »

I wouldn't read too much into a single product launch. How much money is available?

60% LTV and a £1k fee will preclude many borrowers. Also fixing for 10 years requires a great deal of confidence in ones own personal circumstances.

1k equates to £100 a year, surely most people with a mortgage can afford such a small fee.
Sadly I'm not privy to that info, is it in the public domain? there are a few others around the 2.9% -3.2%, that's some security though if one needs it.

Crashy_Time

Joeskeppi wrote: »

That's insane. People will look back at this house buying generation with the same envy people look at boomers, "an average mortgage rate of 4% for their entire purchase? Burn them!"

Got to be one of the silliest posts I have read in a long time.

Crashy_Time

Jack_Johnson_the_acorn wrote: »

Nationwide launches lowest 10 year fix on the market - 60% LTV with rates from 2.84% only £1k fee..... I've noticed some other banks have recently reduced the rates for their long term fixes.

Seems like the banks are predicting low rates for a long time to come. Good news for all I suppose.:beer:

House prices are significant to those getting on the ladder but for content home owners interest rates are where it's at.:T

The banks are struggling to shift their "product". That means there are less people around who want to buy your house Jack.

princeofpounds

Banks aren't predicting much at all. The capital markets are predicting and providing ten year funding more cheaply. Banks (simplistically) just slap a margin on and lend to individuals.

Jack_Johnson_the_acorn

princeofpounds wrote: »

Banks aren't predicting much at all. The capital markets are predicting and providing ten year funding more cheaply. Banks (simplistically) just slap a margin on and lend to individuals.

I was posting in the most simplistic of terms. It's still the banks that choose to offer the rates or not.

Jack_Johnson_the_acorn

Crashy_Time wrote: »

The banks are struggling to shift their "product". That means there are less people around who want to buy your house Jack.

So what's gonna happen to interest rates then.....if you want the market to crash you're going to need rates to rise exponentially and at some pace....

Good luck with that. :money:

Crashy_Time

Jack_Johnson_the_acorn wrote: »

So what's gonna happen to interest rates then.....if you want the market to crash you're going to need rates to rise exponentially and at some pace....

Good luck with that. :money:

No, rates don`t need to move much, Aberdeen market for example will crash on job/income losses alone.