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  • FIRST POST
    • Former MSE Helen
    • By Former MSE Helen 9th Jun 11, 9:57 AM
    • 2,324Posts
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    Former MSE Helen
    MSE News: Lenders slash mortgage rates
    • #1
    • 9th Jun 11, 9:57 AM
    MSE News: Lenders slash mortgage rates 9th Jun 11 at 9:57 AM
    This is the discussion thread for the following MSE News Story:

    "A flurry of lenders have slashed interest on their fixed rate mortgages including Halifax, Nationwide and Lloyds TSB ..."

    Read the full story:
    Lenders slash mortgage rates


Page 1
    • nzseries1
    • By nzseries1 9th Jun 11, 10:18 AM
    • 2,144 Posts
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    nzseries1
    • #2
    • 9th Jun 11, 10:18 AM
    • #2
    • 9th Jun 11, 10:18 AM
    If you don't mind me saying so - is 4.5% down to 4.41% really considered a "slash"?

    I would consider a drop of 0.09 percentage points to be more of a "nibble" or a "slight laceration", rather than a "slash".
    Last edited by nzseries1; 09-06-2011 at 10:52 AM. Reason: it's not technically a 0.09% drop.
    You're spelling is effecting me so much. Im trying not to be phased by it but your all making me loose my mind on mass!! My head is loosing it's hair. I'm going to take myself off the electoral role like I should of done ages ago and move to the Caribean. I already brought my plane ticket, all be it a refundable 1.
    • dunstonh
    • By dunstonh 9th Jun 11, 10:24 AM
    • 98,252 Posts
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    dunstonh
    • #3
    • 9th Jun 11, 10:24 AM
    • #3
    • 9th Jun 11, 10:24 AM
    That's what happens in the media. Things don't increase or decrease. They plunge or plummet or soar.

    4.5% to 4.41% is an amount that doesnt even deserve a dedicated thread.

    Its also interesting to note different opinions. For example in the article it says:
    David Hollingworth, of mortgage brokers London & Country, says: "The expectations for interest rate rises have diminished, so the funding costs for lenders have dropped back, and they are passing that on."

    Yet Barclays Global Investors have said that interest rises now look more likely in the next month or two.
    Last edited by dunstonh; 09-06-2011 at 10:27 AM.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
    • JimmyTheWig
    • By JimmyTheWig 9th Jun 11, 11:07 AM
    • 11,848 Posts
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    JimmyTheWig
    • #4
    • 9th Jun 11, 11:07 AM
    • #4
    • 9th Jun 11, 11:07 AM
    It's a 2% drop in what you're paying. Worth having on what is most people's biggest monthly expense. Maybe not a slash, though.

    But presumably many lenders haven't changed their rates. Which means some have slashed theirs to produce this average drop?
    • marshallka
    • By marshallka 9th Jun 11, 12:57 PM
    • 14,494 Posts
    • 20,661 Thanks
    marshallka
    • #5
    • 9th Jun 11, 12:57 PM
    • #5
    • 9th Jun 11, 12:57 PM
    YBS has a 5 year fix now for 3.99%. Not bad..... I think?
    • suisidevw
    • By suisidevw 9th Jun 11, 1:14 PM
    • 2,351 Posts
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    suisidevw
    • #6
    • 9th Jun 11, 1:14 PM
    • #6
    • 9th Jun 11, 1:14 PM
    Agree, the YBS 5 yr 3.99 is a better all round deal than hte article suggests with the 495 fee......

    Good for me nonetheless, will make the application for this tonight!
    • Conrad
    • By Conrad 9th Jun 11, 1:42 PM
    • 31,494 Posts
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    Conrad
    • #7
    • 9th Jun 11, 1:42 PM
    • #7
    • 9th Jun 11, 1:42 PM
    Abbey have introduced a 75% tracker at 2.89% with 995 fee. My theory on Abbey is that the Santander group will sheer thier UK cleint Bank in a year or two in order to offset the big losses and toxic balances on the Spannish side of thier operation. They are going all out to grow market share, but mark my words they will extract a price later on.
    • suisidevw
    • By suisidevw 9th Jun 11, 2:14 PM
    • 2,351 Posts
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    suisidevw
    • #8
    • 9th Jun 11, 2:14 PM
    • #8
    • 9th Jun 11, 2:14 PM
    So what will this mean in 'real terms' Conrad?

    Thanks,
    • JimmyTheWig
    • By JimmyTheWig 9th Jun 11, 3:08 PM
    • 11,848 Posts
    • 11,390 Thanks
    JimmyTheWig
    • #9
    • 9th Jun 11, 3:08 PM
    • #9
    • 9th Jun 11, 3:08 PM
    Not sure what you mean by "sheer", Conrad.
    Presumably people on fixed rates and trackers (like the one you mention) won't be affected by any changes as the rates are not set by Santander.
    • tifo
    • By tifo 9th Jun 11, 3:24 PM
    • 1,186 Posts
    • 262 Thanks
    tifo
    So what will this mean in 'real terms' Conrad?

    Thanks,
    Originally posted by suisidevw
    Probably means they will go for repossession much more than they do now, much like sub primers did in the last few years. They haven't been as aggressive as some other banks.

    As long as they offer me around 25,000 to leave them, i'll leave!!
    • Thrugelmir
    • By Thrugelmir 9th Jun 11, 7:21 PM
    • 63,091 Posts
    • 56,011 Thanks
    Thrugelmir
    Abbey have introduced a 75% tracker at 2.89% with 995 fee.
    Originally posted by Conrad
    So not attractive to those wishing to remortgage with smaller capital balances.

    Lenders pitch these deals to attract customers with larger balances, i.e. more profitable.
    "'The mistakes we make as investors is when the market's going up, we think it's going to go up forever. When the market goes down, we think it's going to go down forever. Neither of those things actually happen. Doesn't do anything forever. It's by the moment.'" - John Bogle
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