Nationwide ups its mortgage rates

mystic_trev

Nationwide will also releasing its latest house price figures for March on Friday, with analysts expecting house prices to continue to slow.

http://news.bbc.co.uk/1/hi/business/7317334.stm

Things really are getting very tight. I see LIBOR rates have climbed back up to 6%

Generali

It's interesting that nobody seems to want to be top of the best buy tables any more - according to Some Bloke on the radio this morning, as deals get pulled by lenders, little building societies suddenly find they have market beating offers and their volumes go up 20 fold until they also pull the deal off the market.

Not a good time to be living on a credit card (not that there's ever a good time to live off a credit card but you know what I mean I hope).

Guy_Montag

Just goes to show that the BoE are no longer in charge of setting rates - even if they drop them by 50bp in April that won't be enough to compensate for this move.

Generali

The problems will really begin when business overdrafts are called in.

WTF?_2

Guy_Montag wrote: »

Just goes to show that the BoE are no longer in charge of setting rates - even if they drop them by 50bp in April that won't be enough to compensate for this move.

I reckon this move is a cynical attempt to circumvent the benefits of the rate drops for borrowers. I recall that certain banks and financial institutions (not sure if Nationwide was one) did exactly the same thing before the last rate cut. It looks much better for them if they raise rates now, before 'lowering' them in line with the Central Bank in a month or so rather than not passing on the cuts when they happen.


For banks, the name of the game now is borrowing cheaply from the Central Bank and lending that money at an expensive a rate as possible to the general public and businesses.


People who call for 'lower interest rates' just don't seem to understand that rates aren't lowered to help the public, they are lowered to help the banks. But it's the public who will be hit hardest by the resulting inflation springing from the huge increases in money supply - including those trying to make ends meet on a mortgage.

Generali

!!!!!!? wrote: »

I reckon this move is a cynical attempt to circumvent the benefits of the rate drops for borrowers. I recall that certain banks and financial institutions (not sure if Nationwide was one) did exactly the same thing before the last rate cut. It looks much better for them if they raise rates now, before 'lowering' them in line with the Central Bank in a month or so rather than not passing on the cuts when they happen.


For banks, the name of the game now is borrowing cheaply from the Central Bank and lending that money at an expensive a rate as possible to the general public and businesses.


People who call for 'lower interest rates' just don't seem to understand that rates aren't lowered to help the public, they are lowered to help the banks. But it's the public who will be hit hardest by the resulting inflation springing from the huge increases in money supply - including those trying to make ends meet on a mortgage.

The price of money as with everything else is about supply and demand.

If the cost of borrowing is rising for consumers and businesses that implies that either demand has risen (seems unlikely) or supply has dropped (plausable given the credit crunch).

Spamreported

libor may be high but the fund secured can raise a hell of a lot more. something like every £1 deposited in a bank will generate £100 credit.

lightspeed

Hi

Just been looking at Nationwides website at their mortgage products and was wondering if these rises have already been introduced???

I realise that in the BBC article its says "from Friday" but compared to other lenders their rates seem higher. Was just wondering if anyone had checked these rates recently

Thanks in advance

PasturesNew

It's about time savings rates went up.
My income's dropped in the last 6 months!

merlinthehappypig

There is clearly a huge problem with mortgages and it's much worse than is being reported if you are anything other than 'normal'.

I had to take medical retirement 5 years ago at the age of 40. We have no debts, perfect credit history, low outgoings etc and are putting in an 85% deposit and are really struggling to get anyone to give us a 15% mortgage without going self cert.

Many high street lenders simply won't touch me now as I am 'retired' or, if they do, won't take most of my income into account because it's not 'guaranteed'. The flexibility to consider individual cases from even a few weeks back has completely gone.

We checked with Nationwide a couple of months ago and could borrow £110000 on their best rates. We checked again on Tuesday and the maximum is now £64000.

Suits me, we'll keep renting I guess, but I'm amazed that anyone is able to buy anything at present.

Turns out the house we agreed a price on a few days back is another non-starter. The house the seller wants has an agricultural tie, but she is 'confident of getting it removed'. I've told her to come back to us when she manages to do this, which will be never.

merlinthehappypig

I'll add a bit more as I had to answer the phone and posted before I'd finished.

The mortgage we applied for about 6 weeks ago for the other house purchase that went pear-shaped was originally an application fee of £1000 and a 2 year tracker at 0.84% over base rate. By the time we had the offer (about three weeks) it had changed to an application fee of £3000 and 0.64% over base rate. Last week the same mortgage changed to the same fee, £3000, but was now 1.29% over base rate.