Mortgage rates rise for second time in days

Zammo

http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2008/04/26/nfinance126.xml

The country's largest mortgage lender has put up its borrowing rates for the second time in eight days, with some deals rising by more than half a percentage point.

Halifax, which is responsible for two out of every 10 mortgages, has changed all of its fixed rate and tracker rate mortgages to new customers, with a two-year fixed rate deal, for instance, climbing from 6.12 per cent to 6.49 per cent.

Some rates have increased by 0.6 percentage points, adding £900 on to the annual repayment charges of a £150,000 loan.

Its move comes a day after Cheltenham & Gloucester upped its rates also by up to 0.6 percentage points.

Mortgage experts said the move highlighted how the Bank of England's pumping of £50 billion into the financial system this week had failed to stop mortgage market rot.

Anyone else starting to get a feeling of deja vu?

I'm getting tired of all these nasty negative articles about the housing market. I'm off to Assetz to cheer myself up. House prices have risen 250% in the last 10 years don't you know.

LillyJ

Zammo wrote: »

http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2008/04/26/nfinance126.xml



Anyone else starting to get a feeling of deja vu?

I'm getting tired of all these nasty negative articles about the housing market. I'm off to Assetz to cheer myself up. House prices have risen 250% in the last 10 years don't you know.

What are you going to do when half the country get evicted, prices fall by 60%, Zammo rides in with his financial expertise and wisdom........and can't get a mortgage.

Or are you now expecting 90% drops so you can buy outright with your 10% deposit?

$$$_12

LillyJ wrote: »

What are you going to do when half the country get evicted, prices fall by 60%, Zammo rides in with his financial expertise and wisdom........and can't get a mortgage.

Or are you now expecting 90% drops so you can buy outright with your 10% deposit?

Already have a 70% deposit - and I'm expecting that to increase both by saving and due to house price drops. Be nice if it paid for the house outright and the addition of solar water heating/renewable electricity source.

90% drops would be a dream scenario - I don't think it's likely to happen though. There's no reason to dive into the market on account of the mortgage market getting tighter though (quite the reverse in fact).

Zammo

LillyJ wrote: »

What are you going to do when half the country get evicted, prices fall by 60%, Zammo rides in with his financial expertise and wisdom........and can't get a mortgage.

Or are you now expecting 90% drops so you can buy outright with your 10% deposit?

If prices fall 60% I'll be able to buy a really nice place outright. Even if they only fall 30% with the size of my deposit I'm not going to have any trouble finding a mortagae.

Not all of us have spent the last ten years mewing, buying 4x4's and racking up huge debts on credit cards. Some of us saw this coming and started getting prepared.

:money:

LillyJ

$$$ wrote: »

Already have a 70% deposit - and I'm expecting that to increase both by saving and due to house price drops. Be nice if it paid for the house outright and the addition of solar water heating/renewable electricity source.

90% drops would be a dream scenario - I don't think it's likely to happen though. There's no reason to dive into the market on account of the mortgage market getting tighter though (quite the reverse in fact).

Good for you, I wish I had that kind of deposit but I don't!
I don't think many people are in that position though and so Zammo hailing this as a great thing for FTBs is a bit counterproductive, as houses might get cheaper, but they won't be able to get a mortgage, or if they do they will be paying a fortune for it.

LillyJ

Zammo wrote: »

If prices fall 60% I'll be able to buy a really nice place outright. Even if they only fall 30% with the size of my deposit I'm not going to have any trouble finding a mortagae.

Not all of us have spent the last ten years mewing, buying 4x4's and racking up huge debts on credit cards. Some of us saw this coming and started getting prepared.

:money:

No, not all of us have. Although if you could predict 300% price increases followed by a 30% crash 10 years ago, surely the sensible person would have bought then and then thrown every penny at the mortgage that they possibly could? Unfortunately not many people had a crystal ball.

I was 13 years old ten years ago, so my savings aren't quite as big as yours.

Anyway I thought you wanted this for the greater good of all FTB, not many of whom currently have a 40% deposit. SO really it is a selfish agenda

Zammo

LillyJ wrote: »

I don't think many people are in that position though and so Zammo hailing this as a great thing for FTBs is a bit counterproductive, as houses might get cheaper, but they won't be able to get a mortgage, or if they do they will be paying a fortune for it.

I'd prefer a smaller mortgage at high IRs with the prospect of them coming down rather than a supersized mortgage at low IR's with the prospect of them going up.

LillyJ

Zammo wrote: »

I'd prefer a smaller mortgage at high IRs with the prospect of them coming down rather than a supersized mortgage at low IR's with the prospect of them going up.

That's fine, but what about all the other FTBs who only have a 10% deposit? You seem to always say that this crash is good for everyone, but it won't be good for people who can't get mortgages to take advantage of cheaper housing.

meanmachine_2

There's one very good reason why mortgage rates have gone up and will stay high relative to a few years ago - Northern Rock.

I know I sound like an obsessive, but with this aggressive player out of the running, banks can literally afford to charge customers more.

And that's that. The govt can bung as much cash at banks as they like, but with NR out of the equation, that's the end of very cheap deals.

We've just got to live with it. And property prices must change to reflect that.

Stevenic

Zammo wrote: »

Some of us saw this coming and started getting prepared.

You couldn't gaze into your crystal ball and tell us tonight's Lottery numbers could you?

meanmachine_2

Stevenic wrote: »

You couldn't gaze into your crystal ball and tell us tonight's Lottery numbers could you?

Well put it this way, if the lotto numbers for the last 10 years had gone like this: 1,2,3,4,5...? for every single draw, much like the housing market has been quite obviously heading for collapse, even an idiot would be able to predict what comes next.