Bank interest rates

Given that the bank of england cut its rate to the lowest ever and the high street banks were told to pass this on.......
and given that in fact on many mortgages they have either filed to do this OR indeed increased rates

Is it not time now for the chancellor to tell the banks ...DO IT...or I will nationalise you all, instantly and without compensation except to pension funds

Victorismyhero wrote:Given that the bank of england cut its rate to the lowest ever and the high street banks were told to pass this on.......
and given that in fact on many mortgages they have either filed to do this OR indeed increased rates

Is it not time now for the chancellor to tell the banks ...DO IT...or I will nationalise you all, instantly and without compensation except to pension funds

Mortgage rates and what we call the "Fed rate" can sometimes move inversely. Mortgage rates have a risk factor built into them. The B of E lowering rates doesn't make a mortgage safer. In fact, in these times, the uncertainty of the market makes loaning any money to anyone a bit of a risk.

The three factors in developing an interest rate are inflation (non existent right now), profit (necessary for bank to stay in business) and risk. Right now, risk is a very real factor.

Here in the US, the Fed rate is as low as it's ever been. Mortgage rates are very low, but a tiny bit higher than what they were 3 weeks ago, because this thing has banks spooked.

My daughter, the mortgage banker, not the unemployed one, has one bank that is no longer doing loans. They are taking a time out because loaning money is just so risky right now, at least at the rates other banks are doing it.

the point is they were TOLD to pass the decrease on......

Victorismyhero wrote:the point is they were TOLD to pass the decrease on......

Well, that's not really how things work. Central banks try to loosely manage the economy. One way they do it is by lowering rates they charge banks when banks need to borrow. They dont, and shouldn't have any authority control rates in a free market. It will dry up lending. Banks will just sit on cash in lieu of losing it. No one will loan a dollar in exchange for 99 cents next week.

Perfect example of how profit subverts humanism.

We are currently thinking of refinancing at the moment. Probably within the next two months. Want to get all our figures tightened up plus prioritizing what needs to be done to the house vs what I want is a dilemma.

Cass wrote:We are currently thinking of refinancing at the moment. Probably within the next two months. Want to get all our figures tightened up plus prioritizing what needs to be done to the house vs what I want is a dilemma.

Don't wait unless you know you have plenty of equity. If values drop, and you get below 80% loan to value, you won't get a good rate. You really don't need to do much to the house unless things are actually broken. Fix them, but don't try to update it to gain value. You will be spending more on updates, than it goes up in value.

Not to get nosy, nor do a care about your score, but credit score minimums are rising for loans. My kid has one where the folks may not be able to refi because their score is no longer high enough, but it was two weeks ago.

If you can get mid 3's or less, jump all over it and don't wait. This market could be a mess in a few months.

Maddog wrote:

Cass wrote:We are currently thinking of refinancing at the moment. Probably within the next two months. Want to get all our figures tightened up plus prioritizing what needs to be done to the house vs what I want is a dilemma.

Don't wait unless you know you have plenty of equity. If values drop, and you get below 80% loan to value, you won't get a good rate. You really don't need to do much to the house unless things are actually broken. Fix them, but don't try to update it to gain value. You will be spending more on updates, than it goes up in value.

Not to get nosy, nor do a care about your score, but credit score minimums are rising for loans. My kid has one where the folks may not be able to refi because their score is no longer high enough, but it was two weeks ago.

If you can get mid 3's or less, jump all over it and don't wait. This market could be a mess in a few months.

About 65K equity. Painting inside and out, fixing irrigation system, flooring in spare bedroom and office and getting kitchen and both bathroom cabinets repainted and hardware put on, getting chips in kitchen tile filled. Pulling out 15K should cover it.

Credit score is very good but Mr. C wants excellent for some reason. And I agree with what you say which is why we should move now. When we bought we were at 5 1/2. I’d be very happy with mid 3.

Cass wrote:

Maddog wrote:

Don't wait unless you know you have plenty of equity. If values drop, and you get below 80% loan to value, you won't get a good rate. You really don't need to do much to the house unless things are actually broken. Fix them, but don't try to update it to gain value. You will be spending more on updates, than it goes up in value.

Not to get nosy, nor do a care about your score, but credit score minimums are rising for loans. My kid has one where the folks may not be able to refi because their score is no longer high enough, but it was two weeks ago.

If you can get mid 3's or less, jump all over it and don't wait. This market could be a mess in a few months.

About 65K equity. Painting inside and out, fixing irrigation system, flooring in spare bedroom and office and getting kitchen and both bathroom cabinets repainted and hardware put on, getting chips in kitchen tile filled. Pulling out 15K should cover it.

Credit score is very good but Mr. C wants excellent for some reason. And I agree with what you say which is why we should move now. When we bought we were at 5 1/2. I’d be very happy with mid 3.

Yes do it quick.

Dont have any projects half done either. Finish them or dont start them.

Maddog wrote:

Cass wrote:

About 65K equity. Painting inside and out, fixing irrigation system, flooring in spare bedroom and office and getting kitchen and both bathroom cabinets repainted and hardware put on, getting chips in kitchen tile filled. Pulling out 15K should cover it.

Credit score is very good but Mr. C wants excellent for some reason. And I agree with what you say which is why we should move now. When we bought we were at 5 1/2. I’d be very happy with mid 3.

Yes do it quick.

Dont have any projects half done either. Finish them or dont start them.  

Going to hire people to do it. That way my stress levels will remain relatively medium. Besides local companies are hurting for business right now so I’m sure we will get good quotes and they get business.

Thanks for listening. Off to the shops now for me and mum.

Cass wrote:

Maddog wrote:

Yes do it quick.

Dont have any projects half done either. Finish them or dont start them.  

Going to hire people to do it. That way my stress levels will remain relatively medium. Besides local companies are hurting for business right now so I’m sure we will get good quotes and they get business.

Thanks for listening. Off to the shops now for me and mum.

No worries.

I've showed up to houses where they tore apart kitchens and wanted to borrow money to finish the project.

Mortgage companies dont loan money on homes with tore up kitchens. Folks get stuck between a rock and a hard place.

And most of them weren't told this when they applied for the loan.