@HamishD.: This really is the $1m question! We must be near the very bottom but then we have said that for a while and certainly no-one expected to see 5 year rates go below 2.5% or 10 year rates go below the 3% level. This year is however going to push things potentially lower as competition for business amongst lenders is fierce and interest rates are certainly going nowhere fast, especially as inflation is so low. Where lenders decide to stop will be the real question but it would not surprise me if we see some even lower rates out, certainly in the first pasrt of the year
@HamishD.: For me the issue is that low rates will only go so far in getting more business for lenders and really they should be looking at changing some of their more restrictive policies to help more people borrow and get onto the property market. Looking at interest only, older borrowers, self-employed and contractors as an example will help to move the market along. In the meantime however, for anyone looking to buy or remortgage, these rates are the opportunity of a generation!
@andrew_oxlade: Interesting take that mortgages are now so cheap that gamblers can borrow and then invest and still make a return....given that BTL mortgages for 10 years can now be had for just over 4.5% there is every sign that if you feel you can do that now then over the next year or two it's going to get even more tempting.
@andrew_oxlade: This is very interesting and to be honest some clients have been doing this for a while, especially traditional "cash buyers". If they can borrow at such a low rate, why tie up all their cash in a property purchase? Much better to take say a cheap 50% mortgage and utilise the rest of their cash by investing elsewhere and taking a greater return. Hedge Fund managers have been doing this for a while, they would rather put their money into their funds than tie it up in a property. I suspect we will see more of this, especially when you can get a 2 year rate below 1.5% !
@Zia: This is a very good question and I may have to sit firmly on the fence on as this is not an area we advise on. There are some very good, well known banks who offer Sharia Mortgages and there is no reason to believe they are any less safe than any bank, (whether that means anything these days!) As with any financial product it pays to do some research before obtaining a mortgage on the institution you are getting it from.
A quieter week this week with a heavy mortgage bent, thanks Monty.
Thanks Ed - all the best and see you all next week :-)
@HamishD.: This really is the $1m question! We must be near the very bottom but then we have said that for a while and certainly no-one expected to see 5 year rates go below 2.5% or 10 year rates go below the 3% level. This year is however going to push things potentially lower as competition for business amongst lenders is fierce and interest rates are certainly going nowhere fast, especially as inflation is so low. Where lenders decide to stop will be the real question but it would not surprise me if we see some even lower rates out, certainly in the first pasrt of the year
Only for gamblers but fascinating take... With 10-year mortgages under 3%, shouldn't I borrow – and invest? fw.to/EywZ9iCby andrew_oxlade via twitter 1/15/2015 11:41:43 AM
@andrew_oxlade: Interesting take that mortgages are now so cheap that gamblers can borrow and then invest and still make a return....given that BTL mortgages for 10 years can now be had for just over 4.5% there is every sign that if you feel you can do that now then over the next year or two it's going to get even more tempting.
As a secular Muslim I've begun to look at Sharia loans. What do you think of the institutions that are doing this, are they as safe as "normal" banks?
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