Finally some good news

Discussion in 'Off Topic Chat' started by Captain Dart, Sep 29, 2017.

  1. Captain Dart

    Captain Dart Well-Known Member

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    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'
     
  2. Marty

    Marty Well-Known Member

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    I have savings and a mortgage coming to the end of a fixed term, not sure if I welcome this news or not.
     
  3. torchomatic

    torchomatic Well-Known Member

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    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.
     
  4. Nick

    Nick Administrator

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    Had better fix mine asap
     
  5. xcraigx

    xcraigx Active Member

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    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...
     
  6. Otis

    Otis Well-Known Member

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

    SkyBlueScottie Well-Known Member

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    Since 2014... and each time the £ has seen a jump in value... The impact is lessening on each occasion though.
     
  8. SkyBlueScottie

    SkyBlueScottie Well-Known Member

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    Not sure it counts as good news really, as the low rates have kept the economy spluttering along, probably prolonged the agony for some... Jeez its like supporting us!
     
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  9. skybluesam66

    skybluesam66 Well-Known Member

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    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
     
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  10. skybluegod

    skybluegod Well-Known Member

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    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.
     
  11. Sky_Blue_Daz

    Sky_Blue_Daz Well-Known Member

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    Mortgage is fixed for the next 18 months thankfully
     
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  12. covmark

    covmark Well-Known Member

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    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
     
  13. Terry Gibson's perm

    Terry Gibson's perm Well-Known Member

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    Fixed till March 2019 but do wish we had fixed longer.
     
  14. Otis

    Otis Well-Known Member

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    We very nearly did the same. Choice of two years, three years, or five years and we nearly plumped for three, but I said 'let's go for five and secure it.' It was only a few pounds difference per month.

    By the time the five years are up we will only owe about another £350,000. :)
     
  15. Kingokings204

    Kingokings204 Well-Known Member

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    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.
     
  16. Otis

    Otis Well-Known Member

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

    olderskyblue Well-Known Member

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

    Otis Well-Known Member

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    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.
     
  19. olderskyblue

    olderskyblue Well-Known Member

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    Mortgage? he probably bought it with cash...
     
  20. Grendel

    Grendel Well-Known Member

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    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.
     
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  21. hill83

    hill83 Well-Known Member

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    Same
     
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  22. olderskyblue

    olderskyblue Well-Known Member

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    Oh for the days when it was 15% eh? ;)
     
  23. Sick Boy

    Sick Boy Well-Known Member

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    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!
     
  24. Grendel

    Grendel Well-Known Member

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    Signed for my first house on that - fun baby boomer times.
     
  25. hill83

    hill83 Well-Known Member

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    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.
     
    Last edited: Sep 29, 2017
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  26. mrtrench

    mrtrench Well-Known Member

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    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.
     
  27. Grendel

    Grendel Well-Known Member

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    I think it was around £35,000 and on a salary of around £13,000? It was expensive around £400 a month
     
  28. hill83

    hill83 Well-Known Member

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    Decent whack a month on that salary.
     
  29. Grendel

    Grendel Well-Known Member

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    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.
     
  30. Grendel

    Grendel Well-Known Member

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    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.
     
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  31. NorthernWisdom

    NorthernWisdom Well-Known Member

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    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.

    Whilst actually agreeing with this!
     
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  32. clint van damme

    clint van damme Well-Known Member

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    We had an endowment!
     
  33. Grendel

    Grendel Well-Known Member

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    I did I cashed in to pay school fees in the end
     
  34. Otis

    Otis Well-Known Member

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    You've left school now though right?
     
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  35. clint van damme

    clint van damme Well-Known Member

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    you mean you never held on till the end for the huge cash surplus?!

    We had to literally start again.
     

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