Straight down to business this week and short-term Swaps have risen a touch whilst 3 year and especially 5 year money has dropped nicely. There is still not much going on with LIBOR which has stayed stable.
Three-month LIBOR is still at 1.08%.
1-year money is up 0.03% at 0.995%
2-year money is up 0.01% at 1.25%
3-year money is down 0.02% at 1.29%
5-year money is down 0.06% at 1.555%
A few things have come up in the past week or so that have not necessarily helped those looking to get a mortgage.
First of all Lloyds Banking Group have followed the lead of Santander and changed their interest only criteria which means that many more buyers will have to look at a repayment mortgage. As mentioned last week however this is not the end of the world and, especially because of the low rates still available, when a repayment mortgage is compared to the cost of renting in most cases it still works out the more attractive option.
There I was pondering what to write this week and all of a sudden we seem to have been inundated with some stat-tastic facts and figures from the Office of National Statistics and the good ol’ CML, as well as a controversial policy change from a major lender.
But first the headlines, Swaps have risen slightly, apart from 1 year money, whilst LIBOR has remained steady.
Three-month LIBOR is still at 1.08%.
1-year money is down 0.01% at 0.965%
2-year money is up 0.01% at 1.24%
3-year money is up 0.04% at 1.31%
5-year money is up 0.09% at 1.615%
I have been reading with interest the announcement from Facebook of their impending floatation and the figures that have subsequently been released. Not bad making a profit of $1 billion in its 8th year of existence.
Following on from one of my main themes, one of Mark Zuckerbergs’ quotes struck a particular chord, “a more open world will also encourage businesses to engage with their customers directly and authentically.”
In our own financial world, Swaps have fallen again this week whilst LIBOR has eased off a touch which will hopefully mean that lenders will indulge in some rate cutting with no notice next week! I know, wishful thinking.
This week we find ourselves in the shadow of, rather unsurprisingly, GDP figures that show the economy has shrunk by 0.2% in the last quarter and, predictably, another debacle over the Greek issue.
Whilst we may be heading for our first double-dip recession since 1975, there are enough voices out there who believe it will be shallow and short, (which is how my wife describes me!)
Andrew Montlake, Director and Spokesperson for Coreco, gives his honest and forthright views on the mortgage market, economy and all things property related. Monty was voted "Mortgage Personality of the year 2008" and is the current holder of the British Mortgage Awards "Best Press Spokesperson" title. Expect expert analysis, delivered in a down to earth style with a side helping of exuberance.
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