MSE and future mortgage rates

baby_boomer

Mortgage rates are going up because banks won't lend to each other and are more reliant on retail funds from you and me. MSE regularly publicises the best rates from foreign banks, even if they don't lend to homeowners in the UK. Perhaps MSE is adding to our collective credit crunch problems and increasing our collective mortgage rates over the next year.

Discuss.

JonnyBravo

baby_boomer wrote: »

Mortgage rates are going up because banks won't lend to each other and are more reliant on retail funds from you and me. MSE regularly publicises the best rates from foreign banks, even if they don't lend to homeowners in the UK. Perhaps MSE is adding to our collective credit crunch problems and increasing our collective mortgage rates over the next year.

Discuss.

Whilst this is a "large" site, don't kid yourself on it's level of influence.
I wouldn't mind betting less than 1% of people taking out a mortgage have ever heard of this site, much less visited it and acted upon any of it's advice.

baby_boomer

I was actually talking about MSE's influence on savers - who have the ability to influence the UK mortgage market detrimentally.

And since 1m people received MSE e-mails back in 2007 you have lost your bet by a country mile.

Nevertheless your wider point is worthy of consideration.

JonnyBravo

baby_boomer wrote: »

I was actually talking about MSE's influence on savers - who have the ability to influence the UK mortgage market detrimentally.

And since 1m people received MSE e-mails back in 2007 you have lost your bet by a country mile.

Nevertheless your wider point is worthy of consideration.

ah... ok I see what you mean.

Problem is, even on a site like this, lethargy of the public shouldn't be underestimated.

Have you followed every money saving tip on here?

I know I haven't.
It took me 20 years to change bank. Only after I'd been lurking here for months did I do it.

Still haven't changed electric and gas past the first time I did it 5 years ago. Can't be bothered.

If this really had so much influence banks would all offer the same rate as those offering less would have all their deposits withdrawn.

This site obviously did lead the charge on bank charges, but this was then taken up by other papers, TV programmes etc.



All in all, yes it has an affect, but I think you overstated it a little.



ps just checked the stats.... he's upto 1.9m emails a week now. Wonder how many are read? I only rarely read mine. Perhaps I'm typical.... perhaps I'm not.

Kaz2904

How would it be contributing to the credit crunch problems? I don't understand really.
Surely it would be lessening the problem as it is helping people to cut their debt and get lower interest rates?
Or am I just being a doughnut again?

baby_boomer

Kaz2904 wrote: »

How would it be contributing to the credit crunch problems?

UK savings go abroad

UK mortgage instutions have even less to lend.

UK mortgage instututions pull mortgage deals in order to shore up their balance sheets so there's not a Northern Rock style run on their savings.

UK homeowers have to pay more for their mortgages.

jamesd

baby_boomer, you have a good point. FTBs and those climbing the property ladder should look to switch to non-UK banks to help the correction in UK property prices so that their buys wiil be at better prices.

Rafter

UK Savers have always been less 'loyal' to their own banks. This isn't a new effect.

Long before the Icelandic banks there was ING (Netherlands) and those with longer memories might remember BCCI where a lot of UK savers lost their money (different regulations and protection back then though.

UK homeowners have probably been paying too little for their mortgages for the last few years: The Bank of England were ignoring house prices when setting interest rates; money was flooding into the UK from overseas into mortgage bonds which turned out to be worth less than everyone thought and UK savers weren't saving enough to fund all the mortgages being issued.

The system will rebalance itself and MSE has a role in that to ensure that banks don't get away with tipping the balance too far the other way.

I don't think MSE is responsible for putting up the cost of mortgages though, more the greed of investment banks, property speculators and others who thought that the money supply was unlimited and that the only way that house prices could move was up!

R.