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Prepare for ‘major mortgage repricing’ in coming weeks

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    Prepare for ‘major mortgage repricing’ in coming weeks

    Taken from Mortgage Solutions:

    Mortgage rates are set to undergo a significant change in pricing in the next two or three weeks, after the Bank of England hinted that interest rates could soon rise, industry insiders have warned.

    A recent surge in swap rates, which affects the cost of mortgage funding for lenders, is expected to start filtering through to mortgage costs.

    A lender this week told Mortgage Solutions that providers usually have enough funding to hang on for two or three weeks before they are forced to move – or accept lower margins.

    It is now a case of each provider waiting to see who makes the first move.

    In the past week, there have already been signs that lenders are opting to quietly pull some of their most competitive deals from the market.

    Halifax, Nationwide, the Post Office and Tesco Bank are among the lenders that have repriced.

    Mark Harris, chief executive of mortgage broker SPF Private Clients, said: “With the Bank of England hinting at another interest rate rise sooner than the markets previously thought, perhaps as early as May, Swap rates have risen and pressure will be on lenders to edge up the pricing of fixed-rate mortgages accordingly.”

    Charlotte Nelson from Moneyfacts.co.uk, added: “The talk of multiple base rate rises this year has started to become more than just gossip, with swap rates starting to rise again.

    “The two-year swap rate increased by 0.15% in just one month, which is particularly significant, as this was an early sign of the base rate rise that occurred last November.”

    However, not all rates have increased.

    Barclays has snipped select rates, while Nationwide has also launched a competitive buy-to-let deal.

    #2
    Credit Crunch II™

    Comment


      #3
      Quick before it's too late!

      Borrow to the hilt on cheap credit and buy the sh1thole of your dreams

      Comment


        #4
        It's a dilemma if you're looking to buy somewhere soon-ish and will need a mortgage. Buy while the rate is low but house prices high or hope as the rates rise that the prices drop.

        I think I worked out that it was better to pay more rate (up to historical average of ~5%) for lower price than vice versa, providing the price drop is significant enough (over 30%).

        Where's the house price crash?

        Oh it's already happened if you price houses in other things than sterling, such as gold. I want to get paid in bitcoins.
        Maybe tomorrow, I'll want to settle down. Until tomorrow, I'll just keep moving on.

        Comment


          #5
          Originally posted by DimPrawn View Post
          Credit Crunch II™
          More likely the Zombie Apocalypse...

          His heart is in the right place - shame we can't say the same about his brain...

          Comment


            #6
            Originally posted by Martin@AS Financial View Post
            Taken from Mortgage Solutions:

            Mortgage rates are set to undergo a significant change in pricing in the next two or three weeks, after the Bank of England hinted that interest rates could soon rise, industry insiders have warned.

            A recent surge in swap rates, which affects the cost of mortgage funding for lenders, is expected to start filtering through to mortgage costs.

            A lender this week told Mortgage Solutions that providers usually have enough funding to hang on for two or three weeks before they are forced to move – or accept lower margins.

            It is now a case of each provider waiting to see who makes the first move.

            In the past week, there have already been signs that lenders are opting to quietly pull some of their most competitive deals from the market.

            Halifax, Nationwide, the Post Office and Tesco Bank are among the lenders that have repriced.

            Mark Harris, chief executive of mortgage broker SPF Private Clients, said: “With the Bank of England hinting at another interest rate rise sooner than the markets previously thought, perhaps as early as May, Swap rates have risen and pressure will be on lenders to edge up the pricing of fixed-rate mortgages accordingly.”

            Charlotte Nelson from Moneyfacts.co.uk, added: “The talk of multiple base rate rises this year has started to become more than just gossip, with swap rates starting to rise again.

            “The two-year swap rate increased by 0.15% in just one month, which is particularly significant, as this was an early sign of the base rate rise that occurred last November.”

            However, not all rates have increased.

            Barclays has snipped select rates, while Nationwide has also launched a competitive buy-to-let deal.
            I already told them this weeks ago hopefully these that needed to remortgage did so , the rest are as thick as mince and probably on Wonga loans so would not be able to remortgage anyway.
            Warning unicorn meat may give you hallucinations

            Comment

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