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lumoruk Avatar
banned8y, 9m agoPosted 8 years, 9 months ago
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lumoruk Avatar
banned8y, 9m agoPosted 8 years, 9 months ago
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#1
A lot of people will be having a lot of trouble refinancing their mortgages....

24k or so different products available to borrowers in July of last year - now down to approx 6k with most lenders basically withdrawing their fixed rate products

I just noticed the timing mentioned in your post lumoruk. To be honest the market should have recovered by then - 2nd / 3rd quarter 2009 is when most experts are expecting the economy to get back into its stride
#2
Don't panic yet.
Check your original offer of mortgage and see what it says happens when you come out of your deal. Some offers may say e.g. "and 276 monthly payments at .75% above the bank of England base rate". That in fact is a 'good deal' nowdays so you could do nothing and accept that but also ask them what deals they can offer you and compare.:thumbsup:
#3
Cheap mortgages based on a false economy are what caused the crisis in the first place. I think you can definitely kiss goodbye to these for some considerable time. Most banks and institutions are not even taking on new customers. If you can't afford the normal rate for the mortgage you have, then yes you are going to feel the pinch.
#4
will the bank of england drop its rates from 5.25%
#5
yes they will - they are currently stuggling with the balancing act (i.e. struggling economy vs inflation) but even though their main focus should be on inflation, I think both the ECB and the BoE will be cutting rates this year (25-50 basis points over the course of the year)
#6
collo;1818921
will the bank of england drop its rates from 5.25%

Forsaken;1818947
yes they will - they are currently stuggling with the balancing act (i.e. struggling economy vs inflation) but even though their main focus should be on inflation, I think both the ECB and the BoE will be cutting rates this year (25-50 basis points over the course of the year)

I actually agree and disagree with you Forsaken. If the BoE drops it's rates it will encourage inflation. I think that it's possible they will cut rates by 25 points, but only towards the latter part of the year. That said, if the economy really starts to struggle, we might see a rate cut around June/July, but I don't think it's likely with inflation sitting at around (reportedy) 3% - although the Government still think it's at 1.75%!!!
#7
I completely agree Papa - it will encourage inflation and we may be staring at stagflation which is why the committee opted to leave rates where they are at the last meeting. The Fed has done all it can (other than print more paper) to stimulate the world economy so my guess is the onus/pressure is now going to be on the BoE / ECB hence the possibility we see 50bp by year end but otherwise youre spot on - I would have said a 25 bp cut by BoE most likely in the latter part of the year with no cut on ECBs front but unfortunately / fortunately depending on your angle I think the central banks main focus will turn from controlling inflation (which is their main mandate) to avoiding a downright worldwide recession.
#8
ive secured mine with first direct as im a customer with them and got it for 5.29% for 5 years as all the banks are puttin their mortgage rates up
banned#9
Whats a mortgage?:-D

Well I suppose I wished I could be that smug - but in truth I converted mine from an endowment to "smart mortgage" and effectively have a zero balance. Problem is, the endowment is still meant to finance the final payment....and the £64K (plus of course the £30K bonus) just isnt there - so will need to shell out the extra £35K shortfall. Not too happy about that - or the fact these products were so widespeadly sold with the sales people only caring about their personal gain in commisions.

I did go through the FSA mis-selling thingy as well - which is why I have zero faith in what they stand for. There is no way I was put back to square one in the calculations they used - even though they claimed it did.
#10
As anticipated - 25bps cut today. Good possibility (40-60) of another cut next month or if the BoE decides to wait an extra month for more data - very strong possibility of the cut taking place in June
1 Like #11
collo
will the bank of england drop its rates from 5.25%


Just did today 5%:-D

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