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Mortgages


lfc84

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Many people in the UK are currently having difficulties getting an offer at all (e.g. see BBC news: First Direct). Anyone know if these 'credit crunch response' policies are creeping onto the island?

 

There was in interesting programme on Beeb 2 last night about how the sub prime problems in the US seeped in the UK financial markets....most of it was a bit technical for my simple brain but it was fascinating all the same. Particularly the bonusses that some of these hedge fund guys were getting...whilst remaining UK non-dom for tax purposes.

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There was in interesting programme on Beeb 2 last night about how the sub prime problems in the US seeped in the UK financial markets....most of it was a bit technical for my simple brain but it was fascinating all the same. Particularly the bonusses that some of these hedge fund guys were getting...whilst remaining UK non-dom for tax purposes.

Super Rich: The Greed Game BBC iPlayer (available next 6 days).

As the credit crunch bites and a global economic crisis threatens, Robert Peston reveals how the super-rich have made their fortunes, and the rest of us are picking up the bill.

(Available for 6 more days)

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There was in interesting programme on Beeb 2 last night about how the sub prime problems in the US seeped in the UK financial markets....most of it was a bit technical for my simple brain but it was fascinating all the same. Particularly the bonusses that some of these hedge fund guys were getting...whilst remaining UK non-dom for tax purposes.

Super Rich: The Greed Game BBC iPlayer (available next 6 days).

As the credit crunch bites and a global economic crisis threatens, Robert Peston reveals how the super-rich have made their fortunes, and the rest of us are picking up the bill.

(Available for 6 more days)

 

Thats the one - its well worth a watch. The amazing thing for me is that for the hedge fund managers there was no downside, as they were playing with someone elses (i.e. the Banks) money.

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I saw that program - excellent stuff.

 

The Uk has its own subprime mess - buy to let - and I think we've just arrived at the tipping point. A group of buy to letters have just brought a case against a firm of estate agents and against the developers of some buy to let flats in Leeds, where several thousand flats stand empty and prices are falling. One of them was complaining that the rent didn't hadn't covered the mortgage payments for some time. Fairly naive. It shows that people have been more than happy to ignore common sense during the massive bull market.

 

What worries me is that the IOM bank has chosen now to release its 100% mortgage - arguably the cause of the whole situation in England and the US. Are house prices here too high?

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Yes I found it strange that the 100% appeared at a time when it was clear there was a crisison the way

 

Regarding

Thats the one - its well worth a watch. The amazing thing for me is that for the hedge fund managers there was no downside, as they were playing with someone elses (i.e. the Banks) money.

An interesting article at http://news.bbc.co.uk/2/hi/business/7326063.stm

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What worries me is that the IOM bank has chosen now to release its 100% mortgage - arguably the cause of the whole situation in England and the US. Are house prices here too high?

Didn't their last manager retire last week?

 

Hmmmmm.... telling?

 

 

I'm trying to guess whether the crunch will affect us. Word on the street is that Labour's closing of the double tax loophole (which I don't fully understand) has resulted in one big firm making a few redundancies this week.

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The credit crunch has already affected us. Existing mortgages on trackers will have benefited in the decrease in interest rates. Unfortunately also as a consequence, new lending is more difficult to obtain and interest rates on new offerings have not fallen in line with the decrease in the base rate.

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Unless you manage a hedge fund - then there's no downside!

 

Heh, my arse. Those guys are on performance rated pay.

 

The credit crunch has already affected us. Existing mortgages on trackers will have benefited in the decrease in interest rates. Unfortunately also as a consequence, new lending is more difficult to obtain and interest rates on new offerings have not fallen in line with the decrease in the base rate.

 

Which could be positive, the lenders did need to stop giving money away.

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The credit crunch has already affected us. Existing mortgages on trackers will have benefited in the decrease in interest rates. Unfortunately also as a consequence, new lending is more difficult to obtain and interest rates on new offerings have not fallen in line with the decrease in the base rate.

 

What base rate reductions are people benefitting from. Do you read? The BoE base rate has been stuck at 5.25% since February. It went down from 5.5%. That's 0.25% so rates have not gone down hugely so holders of tracker mortgages have gained virtually bugger all. The last time it was set at 5.25% was January 2006 so its gone up and then down a bit.

 

BoE base rates

 

You seem to think that just because the USA are slashing rates to stupid levels that everyone else is benefitting. Its not true.

 

Also some banks are ramping up tracker deals - one has moved its rate from 1% over base rate to 1.44% over base. Again what benefit are customers getting? Your tracking but at a higher percentage over base if your a new customer or come off one deal onto another.

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