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'
Finally some good news (1 Viewer)
- Thread starter Captain Dart
- Start date
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.
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...
SkyBlueScottie
Well-Known Member
Since 2014... and each time the £ has seen a jump in value... The impact is lessening on each occasion though.
SkyBlueScottie
Well-Known Member
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!
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
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
Terry Gibson's perm
Well-Known Member
Fixed till March 2019 but do wish we had fixed longer.
Otis
Well-Known Member
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.
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.
Otis
Well-Known Member
No, but Grendel may have to let one or two servants go.
olderskyblue
Well-Known Member
I think he might hire a couple more if the rates rise....
Otis
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.
olderskyblue
Well-Known Member
Mortgage? he probably bought it with cash...
Grendel
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.
hill83
Well-Known Member
Same
olderskyblue
Well-Known Member
Grendel
Well-Known Member
Oh for the days when it was 15% eh?
Signed for my first house on that - fun baby boomer times.
hill83
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.
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mrtrench
Well-Known Member
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
I think it was around £35,000 and on a salary of around £13,000? It was expensive around £400 a month
hill83
Well-Known Member
Decent whack a month on that salary.
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.
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
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.
D
Deleted member 5849
Guest
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!
clint van damme
Well-Known Member
We had an endowment!
Grendel
Well-Known Member
I did I cashed in to pay school fees in the end
Otis
Well-Known Member
You've left school now though right?
clint van damme
Well-Known Member
you mean you never held on till the end for the huge cash surplus?!
We had to literally start again.