why are mortgages so cheap

[jonah35]

skipton have a 10 year fixed and so on but why are mortgages say 2% now

i know gilt yields etc yada yada but surely banks want to make a good margin and not commit themselves to lending money at 2% for a decade

why aren't mortgages more money so the banks can recapitalise - say 6% plus?

[fido]

jonah35 said:

skipton have a 10 year fixed and so on but why are mortgages say 2% now

i know gilt yields etc yada yada but surely banks want to make a good margin and not commit themselves to lending money at 2% for a decade

UK swap rates have fallen to around 1.75% for 10yr maturity - mortgage rates are a spread over this LIBOR rate.

jonah35 said:

why aren't mortgages more money so the banks can recapitalise - say 6% plus?

Market forces, despite what Vince Cable might tell you.

[Timmy35]

Also just to add I think you'll find that if you have a poor credit record, or lack a f**king great deposit, mortgage rates are infact more like 6% when you get the quote from the computer rather than the shop window.

[Ozzie Osmond]

jonah35 said:

skipton have a 10 year fixed and so on but why are mortgages say 2% now

Don't understand. Are you saying 2% fixed for 10 years? That would surprise me.

[trickywoo]

Its 5.2%

http://www.skipton.co.uk/mortgages/fixed_rate_mort...

But really BoEBR + 4.45%.

No mystery in that.

[louiebaby]

Googling Skipton 10 year fixed shows rates at 5.85%.

Which is pretty high. Or seems it. At the moment.

[don4l]

Ozzie Osmond said:

jonah35 said:

skipton have a 10 year fixed and so on but why are mortgages say 2% now

Don't understand. Are you saying 2% fixed for 10 years? That would surprise me.

I think that he has phrased the question badly. The Skipton 10 year fixed rate is 5.85%.

Don
--

[louiebaby]

trickywoo said:

Its 5.2%

http://www.skipton.co.uk/mortgages/fixed_rate_mort...

The fixed part is at 5.85%.

The early repayment charges are quite high as well. I'd say that generally looks like a pretty stty deal.

[anonymous-user]

Timmy35 said:

Also just to add I think you'll find that if you have a poor credit record, or lack a f**king great deposit, mortgage rates are infact more like 6% when you get the quote from the computer rather than the shop window.

Just got a mortgage for the first time, not great credit history due to some idiocy in years gone by but do have 20% deposit

Fixed Rate 4.7% for 2 years

Only one lender would give us a mortgage depsite our credit not being THAT bad and we aren't even borrowing the maximum we could technically go for

[Hudson]

Me and the O/H would love to mortgage our own place, but not being able to pull £12000+ out of my rectum we're forced to rent.

[ringram]

I liked it better in 2001 when I had a 0.5% discount to base rate mortgage with no redemption penalties.
Still Im not sure why people want to buy a depreciating asset.

[turbobloke]

ringram said:

Still Im not sure why people want to buy a depreciating asset.

To live in over a longer rather than shorter period of time during which, incidentally rather than as a purpose, the asset may well appreciate?

[Tiggsy]

ringram said:

I liked it better in 2001 when I had a 0.5% discount to base rate mortgage with no redemption penalties.
Still Im not sure why people want to buy a depreciating asset.

You've confused "can deperciate" with "depricating asset"

A car (99% of them) is a depreciating asset a house (99% of them) is not (unless some land pops up out of the sea anytime soon)

[cal72]

Hudson said:

Me and the O/H would love to mortgage our own place, but not being able to pull £12000+ out of my rectum we're forced to rent.

+1. and as it stands it is even harder to build up savings.
Only had one pay rise in nearly ten tears and that has been quickly swallowed up with all the rises in food,fuel etc.

[Matt p]

Timmy35 said:

Also just to add I think you'll find that if you have a poor credit record, or lack a f**king great deposit, mortgage rates are infact more like 6% when you get the quote from the computer rather than the shop window.

This!....£18k 10% deposit on a two bed place in Leighton buzzard.

Rates are 6.8% fixed for two years @ Santander who I bank with.

[SeeFive]

Tiggsy said:

ringram said:

I liked it better in 2001 when I had a 0.5% discount to base rate mortgage with no redemption penalties.
Still Im not sure why people want to buy a depreciating asset.

You've confused "can deperciate" with "depricating asset"

A car (99% of them) is a depreciating asset a house (99% of them) is not (unless some land pops up out of the sea anytime soon)

And, it doesn't depreciate as much as rent. As soon as you hand rent over, you've lost it.

At least with a house purchase, at the end of the term it is worth something, and maybe more than you paid.

Add to that in my area, a mortgage on a first time buyer property will cost less per month than rent, and you have an entirely different rate of depreciation. Tuck the rest away in an investment.

My kids starting out prefer to pay their own mortgage than someone else's, so they are saving their deposits whilst their outgoings are low living with us, and buying.

[pmanson]

Matt p said:

Timmy35 said:

Also just to add I think you'll find that if you have a poor credit record, or lack a f**king great deposit, mortgage rates are infact more like 6% when you get the quote from the computer rather than the shop window.

This!....£18k 10% deposit on a two bed place in Leighton buzzard.

Rates are 6.8% fixed for two years @ Santander who I bank with.

Our two bed in LB is on the market for pretty much what we paid for it 4 years ago.

[andy-xr]

I'm selling mine, or trying to at the moment. It's just under 3 figures and is going to be a first time buyers place, which is what I was 5 years ago. It's on the market at an aggressive price, basically for the same price as I paid for it, and I can't get anyone round it. Neither can any of my neighbours with houses that they're selling at a similar price. A 10% drop in price doesnt account to much in an overall figure, but it'd be beyond the point of where it's worth selling

To a first time buyer, the requirement for an average of 15% deposit is making them wait out for better times. Sister works at an agency in the north west, they don't have a problem selling anything £250k and over, infact they're going in a couple of cases before the boards go up

[pmanson]

andy-xr said:

I'm selling mine, or trying to at the moment. It's just under 3 figures and is going to be a first time buyers place, which is what I was 5 years ago. It's on the market at an aggressive price, basically for the same price as I paid for it, and I can't get anyone round it. Neither can any of my neighbours with houses that they're selling at a similar price. A 10% drop in price doesnt account to much in an overall figure, but it'd be beyond the point of where it's worth selling

To a first time buyer, the requirement for an average of 15% deposit is making them wait out for better times. Sister works at an agency in the north west, they don't have a problem selling anything £250k and over, infact they're going in a couple of cases before the boards go up

We've had no problem getting people around (even with what I consider to be a crap rightmove advert (agents are in the process of sorting that out)) but only one offer so far and that was £5k below our OIEO asking price...

[sharpfocus]

don4l said:

Ozzie Osmond said:

jonah35 said:

skipton have a 10 year fixed and so on but why aren't mortgages say 2% now

Don't understand. Are you saying 2% fixed for 10 years? That would surprise me.

I think that he has phrased the question badly. The Skipton 10 year fixed rate is 5.85%.

Don
--

I think he's left out something crucial. Try it now.