Jump to content
DOSBODS  
  • Welcome to DOSBODS

     

    DOSBODS is free of any advertising.

    Ads are annoying, and - increasingly - advertising companies limit free speech online. DOSBODS Forums are completely free to use. Please create a free account to be able to access all the features of the DOSBODS community. It only takes 20 seconds!

     

IGNORED

Christmas crisis for homeowners as mortgages increase by thousands of pounds: Rates are predicted to keep rising regardless of any action by the Bank of England


Axeman123

Recommended Posts

https://www.telegraph.co.uk/personal-banking/mortgages/christmas-crisis-homeowners-mortgages-increase-thousands-pounds/

"Homeowners face paying thousands more on their mortgage as lenders race to hike prices in the run-up to Christmas. 

Rates keep rising as banks and building societies want to avoid having the cheapest mortgage on the high street so they are not swamped by borrowers."

Seems rather a change of mood music, and banks reportedly actively driving away custom is a new paradigm.

  • Informative 6
  • Love 1
Link to comment
Share on other sites

HousePriceMania
7 minutes ago, Axeman123 said:

https://www.telegraph.co.uk/personal-banking/mortgages/christmas-crisis-homeowners-mortgages-increase-thousands-pounds/

"Homeowners face paying thousands more on their mortgage as lenders race to hike prices in the run-up to Christmas. 

Rates keep rising as banks and building societies want to avoid having the cheapest mortgage on the high street so they are not swamped by borrowers."

Seems rather a change of mood music, and banks reportedly actively driving away custom is a new paradigm.

Total bullshit of course.

Anyone who wants to prop up the bubble prices will be paying more.

Meanwhile, the real news is the unelected bankers steal 5% of peoples taxed earned savings.

P.S. I'd wager the truth of this is actually the term funding scam has finished.

Link to comment
Share on other sites

51 minutes ago, HousePriceMania said:

I'd wager the truth of this is actually the term funding scam has finished.

Certainly seems relevant, it also shows that BoE can't hold down market interest rates simply by holding base rate down. The big bazooka of TFS etc is needed, and I suspect it has been decomissioned due to rising inflation.

Link to comment
Share on other sites

54 minutes ago, Axeman123 said:

Certainly seems relevant, it also shows that BoE can't hold down market interest rates simply by holding base rate down. The big bazooka of TFS etc is needed, and I suspect it has been decomissioned due to rising inflation.

What’s TFS?

Link to comment
Share on other sites

HousePriceMania
1 hour ago, Axeman123 said:

Certainly seems relevant, it also shows that BoE can't hold down market interest rates simply by holding base rate down. The big bazooka of TFS etc is needed, and I suspect it has been decomissioned due to rising inflation.

Perhaps, not reinstated...yet...might be the way to look at it. 

Savings rates were high and house prices teetering on the brink of collapse until Carney came up with this scam.

We are living in a banker paradise.  I blame Ed balls.

Link to comment
Share on other sites

6 minutes ago, One percent said:

Bear with the idiot for a second. What’s a term funding scam?  

https://ideas.repec.org/a/boe/qbullt/0243.html

Basically letting banks borrow money on the cheap so that they could lend it to the proles and make a healthy profit at the expense of the UK tax payer, who has to pay their interest on the National Debt....hence why with the current increase taxation it would be difficult for the government to justify/get away with its reinstatement @HousePriceMania...although after the last two years nothing would surprise me i.e. what the UK population 'suck up'!

  • Informative 2
Link to comment
Share on other sites

6 minutes ago, One percent said:

Bear with the idiot for a second. What’s a term funding scam?  

Term Funding Scheme = A now defunct Government scheme to incentivise bank lending, by giving access to borrowing at base rate.

https://www.bankofengland.co.uk/markets/market-notices/2020/term-funding-scheme-market-notice-mar-2020

"When interest rates are low, it is likely to be difficult for some banks and building societies to reduce deposit rates much further, which in turn could limit their ability to cut their lending rates" 

 

  • Informative 1
Link to comment
Share on other sites

5 minutes ago, MrXxxx said:

https://ideas.repec.org/a/boe/qbullt/0243.html

Basically letting banks borrow money on the cheap so that they could lend it to the proles and make a healthy profit at the expense of the UK tax payer, who has to pay their interest on the National Debt....hence why with the current increase taxation it would be difficult for the government to justify/get away with its reinstatement @HousePriceMania...although after the last two years nothing would surprise me i.e. what the UK population 'suck up'!

 

4 minutes ago, Axeman123 said:

Term Funding Scheme = A now defunct Government scheme to incentivise bank lending, by giving access to borrowing at base rate.

https://www.bankofengland.co.uk/markets/market-notices/2020/term-funding-scheme-market-notice-mar-2020

"When interest rates are low, it is likely to be difficult for some banks and building societies to reduce deposit rates much further, which in turn could limit their ability to cut their lending rates" 

 

And there was me thinking that lenders encouraged savers and then used the money deposited to fund lending.  How naïve can one be? O.o

  • Agree 1
  • Lol 4
Link to comment
Share on other sites

HousePriceMania
4 minutes ago, Axeman123 said:

Term Funding Scheme = A now defunct Government scheme to incentivise bank lending, by giving access to borrowing at base rate. 

 

defunct from about 3 weeks ago...now mortgage rates are climbing.

The bankers have been lending out magicked up cash to anyone who will borrow it to buy a house.

We have our very own US style sub-prime bubble now.

  • Agree 1
  • Informative 2
Link to comment
Share on other sites

1 minute ago, One percent said:

And there was me thinking that lenders encouraged savers and then used the money deposited to fund lending.  How naïve can one be? O.o

TFS was an evil thing, designed to sever that link and make banks have no incentive to compete for savings. Rising costs of government borrowing will hopefully be the end of all that though, no sane chancellor will commit to open-ended negative carry in that environment.

  • Agree 2
  • Informative 2
Link to comment
Share on other sites

HousePriceMania
16 minutes ago, One percent said:

Bear with the idiot for a second. What’s a term funding scam?  

Sorry, as others have said, the BoE have been handing money to banks at 0.1% IRs to lend to anyone who will take it.

It means they dont need savers money so can suppress savings rates and steal their savings via inflation. 

It also means they can artificially suppress mortgage rates as low as they dare go, hence the 0.8% mortgages we've seen for anyone with a 60% deposits to hand to a bank to buy a house that's 60 over priced.

It is THE driver of the housing bubble now and it all started with Mark Carney ( **** ).

The fat banker bastard that is now in charge at the boe wants to bring in -ve IRs and go this some more from what I understand.

Imaging a -1% mortgage and what that would do to house prices...the more you borrow ( to hand to someone else ) the more you get paid.

 

  • Informative 1
Link to comment
Share on other sites

HousePriceMania
1 minute ago, Axeman123 said:

TFS was an evil thing, designed to sever that link and make banks have no incentive to compete for savings. Rising costs of government borrowing will hopefully be the end of all that though, no sane chancellor will commit to open-ended negative carry in that environment.

We have an ex-GS banker chancellor who's father in law owns half of India, you think he gives a **** ?

Link to comment
Share on other sites

HousePriceMania
6 minutes ago, One percent said:

 

And there was me thinking that lenders encouraged savers and then used the money deposited to fund lending.  How naïve can one be? O.o

I asked the Nationwide twitter feed to confirm that they were using the TermFunding scam to finance their mortgages and they came back and said they only lent out the money deposited by savers.

When queried and shown that this was clealry untrue the twitter person backtracked quickly and apologized.  
 

They had no idea that their own organisation was not lending out savers money so what chance 99% of the public.

  • Informative 3
Link to comment
Share on other sites

Just now, HousePriceMania said:

We have an ex-GS banker chancellor who's father in law owns half of India, you think he gives a **** ?

I don't think he is a good man etc, but he has shown some aversion to BJs instinct to splash out. The energy suppliers going pop prompted a showdown between BJ and Sunak over whether to bailout for example, and no won. At the very least I think Sunak gets the big picture of rising gilt yields, inflation, etc. Maybe he just wants to save what is left of the spending firehose for his pet projects etc, but at least he seems aware.

  • Agree 1
  • Informative 1
Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

  • Recently Browsing   0 members

    • No registered users viewing this page.
×
×
  • Create New...