Interest Rates

[SpokeyDokey]

Wasn't there a prediction, in the second half of last week, of a 20% drop in house prices.

I missed that. Thanks.

 

[SpokeyDokey]

Potential issues in NI - did this happen in the rest of the UK?

BBC News - Mortgages timebomb for Northern Ireland homeowners, says expert
https://www.bbc.co.uk/news/uk-northern-ireland-63059111

 

[Alex321]

Potential issues in NI - did this happen in the rest of the UK?

BBC News - Mortgages timebomb for Northern Ireland homeowners, says expert
https://www.bbc.co.uk/news/uk-northern-ireland-63059111

I believe it is the case across the UK. Not sure why they have specifically mentioned Northern Ireland, unless that was just because it was a BBC Ulster programme.

 

[SpokeyDokey]

Average 2 year fixes now c6%:

BBC News - Mortgage rates rise sharply as squeeze tightens
https://www.bbc.co.uk/news/business-63119047

 

[jowwy]

Average 2 year fixes now c6%:

BBC News - Mortgage rates rise sharply as squeeze tightens
https://www.bbc.co.uk/news/business-63119047

I was offered a 2yr at 4.1%, 5yr 4.0% and a 10yr at 3.73% last friday from halifax…….i‘m wondering if some of these figures being thrown around in the press are true

 

[Bonefish Blues]

I was offered a 2yr at 4.1%, 5yr 4.0% and a 10yr at 3.73% last friday from halifax…….i‘m wondering if some of these figures being thrown around in the press are true

People with higher LTV are being gouged, I expect...

 

[jowwy]

People with higher LTV are being gouged, I expect...

That could well be true…….or maybe new lenders are not getting a fair deal

 

[Bonefish Blues]

That could well be true…….or maybe new lenders are not getting a fair deal

Risk dear boy, risk - it's always those who can least afford to pay who have to pay the most!

Not saying it's right, but it's just the way it is.

 

[jowwy]

Risk dear boy, risk - it's always those who can least afford to pay who have to pay the most!

Not saying it's right, but it's just the way it is.

Who is saying they cant pay…..thats a bit of a general statement really

 

[Bonefish Blues]

Who is saying they cant pay…..thats a bit of a general statement really

Simple logic really - more highly geared, typically younger, lower earning power and so on as compared to old farts like me with lower LTV, who get the better rates. it's why they pay more - because a more risky loan.

 

[jowwy]

Simple logic really - more highly geared, typically younger, lower earning power and so on as compared to old farts like me with lower LTV, who get the better rates. it's why they pay more - because a more risky loan.

Again, i think thats too generic a statement, to say every new lender is in that position and therefore more risk to the bank….

 

[FishFright]

Again, i think thats too generic a statement, to say everyone new lender is in that position and therefore more risk to the bank….

He's correct though because that's how interest rates are scaled. New lenders are always paying more precisely because they are new.

 

[Bonefish Blues]

Again, i think thats too generic a statement, to say every new lender is in that position and therefore more risk to the bank….

You will notice my use of 'typically' (well you didn't, so let me point it out). That means not everybody is in that position.

Yours, explaining the nuances of language 😊

 

[jowwy]

He's correct though because that's how interest rates are scaled. New lenders are always paying more precisely because they are new.

Correct new lenders pay more, but not because they are more highley geared or lower earners…….

 

[Bonefish Blues]

Correct new lenders pay more, but not because they are more highley geared or lower earners…….

The higher geared the higher the risk - that's simple actuarial truth jowwy.