Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • Former MSE Helen
    • By Former MSE Helen 21st Jun 12, 9:32 AM
    • 2,324Posts
    • 971Thanks
    Former MSE Helen
    MSE News: Rate drop fuels cheap mortgage hope
    • #1
    • 21st Jun 12, 9:32 AM
    MSE News: Rate drop fuels cheap mortgage hope 21st Jun 12 at 9:32 AM
    "Hopes of cheaper mortgage deals were fuelled this week after lenders' borrowing rates tumbled to an all-time low ..."

Page 1
    • HAMISH_MCTAVISH
    • By HAMISH_MCTAVISH 21st Jun 12, 11:15 AM
    • 26,123 Posts
    • 59,660 Thanks
    HAMISH_MCTAVISH
    • #2
    • 21st Jun 12, 11:15 AM
    • #2
    • 21st Jun 12, 11:15 AM
    Banks continue to make near record margins on mortgage lending above their funding costs, issuing only a third of the mortgages they did in previous years but at three times the profit margin.

    Unsurprising, given that the top 5 banks in the UK control around 90% of the market now, so can engage in cartel-like pricing behaviour.

    This rip-off will continue until proper competition returns to the markets.
    • buzi
    • By buzi 21st Jun 12, 11:33 AM
    • 139 Posts
    • 70 Thanks
    buzi
    • #3
    • 21st Jun 12, 11:33 AM
    • #3
    • 21st Jun 12, 11:33 AM
    thanks helen - i was thinking of moving from halifax svr to 2 year fix but rate isnt great so maybe they will bring down rate?
  • The J
    • #4
    • 21st Jun 12, 11:38 AM
    • #4
    • 21st Jun 12, 11:38 AM
    thanks helen - i was thinking of moving from halifax svr to 2 year fix but rate isnt great so maybe they will bring down rate?
    Originally posted by buzi
    I'm afraid you are confusing a bank with a charity. I can't see them bringing down the SVR. On the flip side, if you wait they may improve the fixed deals.
    The J is a Financial Advisor-This site doesn't check anyone's status and as such any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Always seek professional advice.
    • buzi
    • By buzi 21st Jun 12, 11:43 AM
    • 139 Posts
    • 70 Thanks
    buzi
    • #5
    • 21st Jun 12, 11:43 AM
    • #5
    • 21st Jun 12, 11:43 AM
    yes thats what i was saying that they might bring down the fixed rate
    • betmunch
    • By betmunch 21st Jun 12, 1:51 PM
    • 3,078 Posts
    • 1,889 Thanks
    betmunch
    • #6
    • 21st Jun 12, 1:51 PM
    • #6
    • 21st Jun 12, 1:51 PM
    They might put it up though, just because new deals seem to be coming down with other lenders doesnt mean that customer retention deal with you current lend will go down.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • buzi
    • By buzi 21st Jun 12, 2:25 PM
    • 139 Posts
    • 70 Thanks
    buzi
    • #7
    • 21st Jun 12, 2:25 PM
    • #7
    • 21st Jun 12, 2:25 PM
    and if they dont then sounds like the cartel-like pricing mentioned in #2 - crooks in suits!!
    • VT82
    • By VT82 21st Jun 12, 4:46 PM
    • 1,039 Posts
    • 878 Thanks
    VT82
    • #8
    • 21st Jun 12, 4:46 PM
    • #8
    • 21st Jun 12, 4:46 PM
    I understand money market rates and swap rates (I work for a financial institution and understand our mortgage pricing model), but have never heard of 'wholesale mortgage rates' like it says in the article. Is this just a made up term, a word for something else that I would actually have heard of, or is this a gap in my knowledge?
    • Thrugelmir
    • By Thrugelmir 21st Jun 12, 6:18 PM
    • 63,443 Posts
    • 56,263 Thanks
    Thrugelmir
    • #9
    • 21st Jun 12, 6:18 PM
    • #9
    • 21st Jun 12, 6:18 PM
    'wholesale mortgage rates'
    Originally posted by VT82
    I'm a Corporation with £10 million pounds to deposit for a year. What rate of interest will you offer me?
    Last edited by Thrugelmir; 21-06-2012 at 10:00 PM.
    “The stock market is a device for transferring money from the impatient to the patient.” – Warren Buffett
    • brit1234
    • By brit1234 21st Jun 12, 7:33 PM
    • 5,191 Posts
    • 11,968 Thanks
    brit1234
    Despite all this Bank of England flooding in I expect mortgage rates to shoot up. The money was to counter the Euro crisis pushing LIBOR rates up, however the rating agencies are about to downgrade our banks ratings making it more expensive to borrow.

    I expect short term falls followed by moderate rises to far larger rises when the markets look at the UK after the Euro crisis.
    Scams - Shared Equity, Shared Ownership, Newbuy, Firstbuy and Help to Buy.

    Save our Savers
    • HAMISH_MCTAVISH
    • By HAMISH_MCTAVISH 21st Jun 12, 9:59 PM
    • 26,123 Posts
    • 59,660 Thanks
    HAMISH_MCTAVISH
    I expect short term falls followed by moderate rises to far larger rises when the markets look at the UK after the Euro crisis.
    Originally posted by brit1234
    So then based on your posting history accuracy, there's precisely zero chance of it playing out that way.
    • Thrugelmir
    • By Thrugelmir 21st Jun 12, 10:01 PM
    • 63,443 Posts
    • 56,263 Thanks
    Thrugelmir
    however the rating agencies are about to downgrade our banks ratings making it more expensive to borrow.
    Originally posted by brit1234
    Banks are only partly through the deleveraging \ recapitalisation exercise.
    “The stock market is a device for transferring money from the impatient to the patient.” – Warren Buffett
    • VT82
    • By VT82 22nd Jun 12, 11:13 AM
    • 1,039 Posts
    • 878 Thanks
    VT82
    I'm a Corporation with £10 million pounds to deposit for a year. What rate of interest will you offer me?
    Originally posted by Thrugelmir
    Never heard a one year (or three month, or five year) deposit called a wholesale mortgage before.
  • ILW
    Will the agency downgrades put upward pressure on rates?
    • buzi
    • By buzi 22nd Jun 12, 11:31 AM
    • 139 Posts
    • 70 Thanks
    buzi
    apparently not due to the billions being pumped in by BOE!!

    ps where is all the billions coming from thought the barrel was empty
    • Thrugelmir
    • By Thrugelmir 22nd Jun 12, 6:28 PM
    • 63,443 Posts
    • 56,263 Thanks
    Thrugelmir
    ps where is all the billions coming from thought the barrel was empty
    Originally posted by buzi
    Merely moving the problem down the road.
    “The stock market is a device for transferring money from the impatient to the patient.” – Warren Buffett
  • nollag2006
    Despite all this Bank of England flooding in I expect mortgage rates to shoot up.
    Originally posted by brit1234
    You also expected house prices to fall 50% by Christmas 2009, and then again by June 9th of this month. You also proudly piled into gold last Autumn, just before the price plunged.


    Let's be honest, you don't really understand economics, do you?
    • bigadaj
    • By bigadaj 23rd Jun 12, 9:25 AM
    • 10,828 Posts
    • 7,162 Thanks
    bigadaj
    You also expected house prices to fall 50% by Christmas 2009, and then again by June 9th of this month. You also proudly piled into gold last Autumn, just before the price plunged.


    Let's be honest, you don't really understand economics, do you?
    Originally posted by nollag2006
    To be fair property prices are artificially high, the only reason they haven't dropped is that we are into serious negative interest rate territory with qe. Cant defend him on the gold though, silly move.
  • nollag2006
    If you are in need of a good laugh, have a look at some of her predictions on the Debate house prices board.

    This one from 2008, is my personal favourite, where brit postulates with huge certainty about a 50% price crash by June 2012:
    http://forums.moneysavingexpert.com/showthread.php?t=962875

    How wrong can one person be?

    • Thrugelmir
    • By Thrugelmir 23rd Jun 12, 4:09 PM
    • 63,443 Posts
    • 56,263 Thanks
    Thrugelmir

    How wrong can one person be?

    Originally posted by nollag2006

    "The event isn't over until the fat lady sings"...........
    “The stock market is a device for transferring money from the impatient to the patient.” – Warren Buffett
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

2,116Posts Today

8,270Users online

Martin's Twitter
  • RT @thismorning: As a ban on rip-off bank fees is announced, @MartinSLewis explains if you can reclaim, and how to cut your overdraft costs?

  • RT @justinbones: Just looking at how the bad weather may be impacting business and the economy. Thankfully someone has already looked at th?

  • RT @bbc5live: .@MartinSLewis joins @EmmaBarnett from midday to answer your money saving questions. ???? 08085 909 693 ???? 85058 Or post your q?

  • Follow Martin