whoa nelly! Swap rates soaring - mortgages about to get even dearer

meanmachine_2

I see swap rates are hitting all time highs for the year

That'll mean even more expensive mortgages than now.

If you're remortgaging onto a fix, best pull your finger out.

http://www.swap-rates.com/UKSwap_extended.html

Generali

meanmachine wrote: »

I see swap rates are hitting all time highs for the year

That'll mean even more expensive mortgages than now.

If you're remortgaging onto a fix, best pull your finger out.

http://www.swap-rates.com/UKSwap_extended.html

As you imply, interest rate swap rates only impact on the price of fixed rate mortgages, they don't have any effect on variable rate mortgage prices.

They are a way of a bank swapping a fixed rate asset into a floating rate one. It means that they can protect themselves against the possibility of interest rates rising once they have sold a fixed rate product.

RenovationMan

Given the new threads on here right now about increasing swap rates and the knock on increase in mortgages, I found this thread from 2008 which had the same dire warnings.

I wonder if anyone followed meanmachine's advice and fixed just before rates fell to historic levels?

Just goes to show that everyone should DYOR and really, really shouldn't believe what you read on internet VI forums.

HAMISH_MCTAVISH

Good find.

michaels

First Direct have just launched their lowest offset tracker for a long time - something does not add up?

purch

whoa nelly!

The "catchphrase" of of Keith Jackson, veteran ABC Sports College Football commentator.

lvader

meanmachine wrote: »

I see swap rates are hitting all time highs for the year

That'll mean even more expensive mortgages than now.

If you're remortgaging onto a fix, best pull your finger out.

http://www.swap-rates.com/UKSwap_extended.html

That isn't what the chart shows.

Thrugelmir

michaels wrote: »

First Direct have just launchedthere lowest offset tracker for a long time - something does not add up?

HSBC is awash with cash as a group. So lending on quality mortgages at provides a good return.

purch

25th May 2008 is the date of the OP

Ronaldo_Mconaldo

Whatever happened to Mean Machine then? I wonder if this armchair expert changed their user name and regularly posts hysterical advice for all to panic over under a new name.

michaels

That's interesting to hear, the doom and gloom merchants would seem to suggest that Basle 3 makes any mortgage lending crippling expensive in terms of capital.

Doe sanyone else think regualtors are always fighting yesterday's battles - for example currently they are looking at domestic property when the banks having been burned are being incredibly 'prudent' in that area - surely it is the next crisis they should be worrying about no the last one?

Thrugelmir wrote: »

HSBC is awash with cash as a group. So lending on quality mortgages at provides a good return.