Mortgage margins over swap rates
Discussion
In t'paper they have been going on about the size of the margin over swap rates for fixed rate mortgages.
personally i'd worked on the basis of that representing their expectation of rate rises. is this correct?
personally i am paying what equates to a 200bps margin on my 10 yr fix. i don;t think this is wildly out of kilter given expectations etc.
is this just another media having a go at banks situation?
personally i'd worked on the basis of that representing their expectation of rate rises. is this correct?
personally i am paying what equates to a 200bps margin on my 10 yr fix. i don;t think this is wildly out of kilter given expectations etc.
is this just another media having a go at banks situation?
briSk said:
In t'paper they have been going on about the size of the margin over swap rates for fixed rate mortgages.
personally i'd worked on the basis of that representing their expectation of rate rises. is this correct?
personally i am paying what equates to a 200bps margin on my 10 yr fix. i don;t think this is wildly out of kilter given expectations etc.
is this just another media having a go at banks situation?
I'm surprised that the Torygraph bothered to publish this nosh. Over the last decade we have the biggest bubble of all time, and banks weren't pricing risk correctly, both in the fact that different LTVs had the same rate, and that they were pricing very close to the funding they were getting (ignoring maturity mismatch (NRK)). We are now back in the real world, where rates for people with a good deposit are very good (IMO). Can't see the problem.personally i'd worked on the basis of that representing their expectation of rate rises. is this correct?
personally i am paying what equates to a 200bps margin on my 10 yr fix. i don;t think this is wildly out of kilter given expectations etc.
is this just another media having a go at banks situation?
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