Comments on: Rate Cuts in America, but UK worries over Inflation http://www.mortgageguideuk.co.uk/blog/mortgages/rate-cuts-in-america-but-uk-worries-over-inflation/ Simplifying Finance, Housing and debt Fri, 10 Feb 2012 11:38:14 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Steve http://www.mortgageguideuk.co.uk/blog/mortgages/rate-cuts-in-america-but-uk-worries-over-inflation/comment-page-1/#comment-1187 Steve Wed, 19 Mar 2008 16:00:02 +0000 http://www.mortgageguideuk.co.uk/blog/mortgages/rate-cuts-in-america-but-uk-worries-over-inflation/#comment-1187 Some types of mortgages are getting harder to come by in the UK with a few lenders leaving the market. Lenders are also much stricter than they were 6 months ago. 3 month LIBOR rates are rising too which means that interbank lending is increasing. Last time I checked they were; UK Base rate 5.25%, UK 3 month LIBOR 5.96% and UK 10 year swap was 4.98% What does this mean? There is still cash in available in the system but lenders who would lend at 100% loan to value will now only consider lending at 85% loan to value. The point about a value of a property or anything else for that matter is that the real value is only determined when someone buys it. If UK properties do start falling in the price that buyers are willing to pay (or they can't borrow what they need). Then we could all be in for an interesting ride. As it stands we are still attracting clients and in greater numbers. I share the view of the previous commentator, the MPC need to keep abreast of what' s really going on. Inflation can be measured in so many different ways so lets hope they keep their ear to the ground. Some types of mortgages are getting harder to come by in the UK with a few lenders leaving the market. Lenders are also much stricter than they were 6 months ago.

3 month LIBOR rates are rising too which means that interbank lending is increasing. Last time I checked they were; UK Base rate 5.25%, UK 3 month LIBOR 5.96% and UK 10 year swap was 4.98%

What does this mean?

There is still cash in available in the system but lenders who would lend at 100% loan to value will now only consider lending at 85% loan to value.

The point about a value of a property or anything else for that matter is that the real value is only determined when someone buys it.

If UK properties do start falling in the price that buyers are willing to pay (or they can’t borrow what they need). Then we could all be in for an interesting ride.

As it stands we are still attracting clients and in greater numbers.

I share the view of the previous commentator, the MPC need to keep abreast of what’ s really going on. Inflation can be measured in so many different ways so lets hope they keep their ear to the ground.

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