Finally some good news (1 Viewer)

Captain Dart

Well-Known Member
Well good for me as I own no debt, interest rates are going up, the BoE have been warning everyone. Carney expects rate rise in 'near term'
 

Marty

Well-Known Member
I have savings and a mortgage coming to the end of a fixed term, not sure if I welcome this news or not.
 

torchomatic

Well-Known Member
I have a mortgage and still not working so not good for me. The only good thing is we might not see interviews with whinging baby boomers on the tele complaining that their 300K in the bank isn't earning any interest.
 

xcraigx

Well-Known Member
Has he not been saying this on and off for a couple of years or more? I'm on a tracker deal so have been loving it the past 8 years or so but I have started keeping an eye out for a fixed rate deal just in case the inevitable happens. Hopefully it won't be for the next 16 years though...
 

Otis

Well-Known Member
I gambled and jumped ahead, signing up for a five year fixed rate mortgage. Not going to hit us now until 2022, fingers crossed.
 

SkyBlueScottie

Well-Known Member
Has he not been saying this on and off for a couple of years or more? I'm on a tracker deal so have been loving it the past 8 years or so but I have started keeping an eye out for a fixed rate deal just in case the inevitable happens. Hopefully it won't be for the next 16 years though...
Since 2014... and each time the £ has seen a jump in value... The impact is lessening on each occasion though.
 

skybluesam66

Well-Known Member
i guess my 0.44% mortgage will slowly increase

I remember the good old days of 12% interest rates, and the first fix i ever did was 7.69%
Proper interest rates like those would make things interesting
 

skybluegod

Well-Known Member
Probably neither good nor bad news for me. Have yet to buy my house, so when I do, while the interest rate might be higher, house prices will also probably fall a bit. So life as usual for me.
 

Sky_Blue_Daz

Well-Known Member
Mortgage is fixed for the next 18 months thankfully
 

covmark

Well-Known Member
Yeah I took out a 5 year fixed last April so got 3 1/2 years left. Glad now I took the 5 year and not the 2 year.

Sent from my SM-G930F using Tapatalk
 

Kingokings204

Well-Known Member
If it does goes up which is not certain it won't be by much maybe back to 0.5% or so. Hardly a massive increase and much to worry about in my opinion.
 

olderskyblue

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No, but Grendel may have to let one or two servants go.

I think he might hire a couple more if the rates rise....
 

olderskyblue

Well-Known Member
Was just thinking in terms of the rise in his £1.75m mansion mortgage.

Payments would surely go up to about 30 grand a month.

Mortgage? he probably bought it with cash...
 

Grendel

Well-Known Member
Was just thinking in terms of the rise in his £1.75m mansion mortgage.

Payments would surely go up to about 30 grand a month.

I have a small mortgage - can't say I know the rate - i would pay off it rates rise much.

Could do with an interest rate rise as I've settled my pension and could live on 3% comfortably.
 

olderskyblue

Well-Known Member
I have a small mortgage - can't say I know the rate - i would pay off it rates rise much.

Could do with an interest rate rise as I've settled my pension and could live on 3% comfortably.

Oh for the days when it was 15% eh? ;)
 

Sick Boy

Well-Known Member
Lucky enough to only owe a few hundred quid on a 0% credit card. We pay a grand for a 1 bed flat so no need chance soon of a mortgage!
 

hill83

Well-Known Member
Signed for my first house on that - fun baby boomer times.

How much was the house though? And how much did you have to borrow X your salary?
It's all relative.

Edit: Genuine questions by the way, I'm not getting into an argument about mortgage rates.
 
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mrtrench

Well-Known Member
Had better fix mine asap

Fixed rates are calculated using the market's expectations of where rates will go in the future, which is only loosely connected to the current BoE rate. I happened to have fixed for 2 years with Barclays 2 months ago. Just checked and their rate has already gone up 0.1% since then.
 

Grendel

Well-Known Member
How much was the house though? And how much did you have to borrow X your salary?
It's all relative.

Edit: Genuine questions by the way, I'm not getting into an argument about mortgage rates.

I think it was around £35,000 and on a salary of around £13,000? It was expensive around £400 a month
 

Grendel

Well-Known Member
In the end people complaining about unaffordable housing miss the point that obviously there is a link with interest rates and house prices as it influenced demand against supply.

It obviously will not but if rates escalated to 15% many houses would become repossessed and market forces would drive prices down.

The converse has happened for years. Below 5% was always historically low and prices escalated as monthly fees became much cheaper.
 

Grendel

Well-Known Member
Decent whack a month on that salary.

Well yes it was. I was on my own at the time and I don't know what the tax structure was but obviously there was little to spend at all.

Rates did of course then start to fall. So in that sense it was a good time to buy as the mortgage payments declined and house value rose.

In truth I think cripplingly high rates and virtually zero rates are both unhelpful.
 

NorthernWisdom

Well-Known Member
It obviously will not but if rates escalated to 15% many houses would become repossessed and market forces would drive prices down.
It would. The brave man would sell now and rent for a year or two... with the potential for that to go horribly wrong.

But the point is that the 3.5* salary multiplier makes housing unobtainable to many... whether they end up paying more in rent than their mortgage would be, or not.

In many ways, higher interest rates and lower prices would make home ownership a lot more attainable for many.

In truth I think cripplingly high rates and virtually zero rates are both unhelpful.
Whilst actually agreeing with this!
 

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