Mr Mosquito Posted June 9, 2013 Report Share Posted June 9, 2013 ........this is excellent news, now house prices can rise to swallow up the saving. Link to comment Share on other sites More sharing options...
Barrs Court Red Posted June 9, 2013 Report Share Posted June 9, 2013 Great news. Its my mortgage renewal this week. Link to comment Share on other sites More sharing options...
Talk Of The Town Posted June 9, 2013 Report Share Posted June 9, 2013 Great news. Its my mortgage renewal this week. I came out of my term 7 months ago. I've left it on the variable rate of 2.5. It came down by £160 a month. The report I just read said it COULD drop to 1.5 over the next few months. It's to do with more lenders coming onto the market. Link to comment Share on other sites More sharing options...
marshy Posted June 9, 2013 Report Share Posted June 9, 2013 It's to do with QE. Keep printing money and you're going to keep rates low and drive them lower. This, along with the wretched 'Help to Buy' scheme, indicates how far the government is prepared to go to prop up house prices before the next election, stimulate the 'feel-good' factor and hopefully buy a few more votes. Not so good of course if you're a young person hoping to make a first-time purchase. Which would you prefer? 'Help to buy' at a higher price or a cheaper bloody house? Link to comment Share on other sites More sharing options...
TRL Posted June 9, 2013 Report Share Posted June 9, 2013 Mine has been tracking at .49 above base rate since 2008 so .99% is what I have been paying for years. I'm a Lucky bugger, I got it 2 months before interest rates plummeted, then the pulled the offer for new customers. Happy days! Link to comment Share on other sites More sharing options...
Mr Mosquito Posted June 9, 2013 Author Report Share Posted June 9, 2013 It's to do with QE. Keep printing money and you're going to keep rates low and drive them lower. This, along with the wretched 'Help to Buy' scheme, indicates how far the government is prepared to go to prop up house prices before the next election, stimulate the 'feel-good' factor and hopefully buy a few more votes. Not so good of course if you're a young person hoping to make a first-time purchase. Which would you prefer? 'Help to buy' at a higher price or a cheaper bloody house? ....somewhere along the line we might get hyper inflation due to all the money being printed. Although, the intention seems to be to just cause the inflation in the housing market to create a 'feel good' factor just as you state. As in 1920s Weimar Germany this money printing could unleash the horror of hyper-inflation. Modern Zimbabwe prints too much money and has the highest inflation rate in the world, an amazing 230,000,000% I believe. Link to comment Share on other sites More sharing options...
And Its Smith Posted June 9, 2013 Report Share Posted June 9, 2013 ....somewhere along the line we might get hyper inflation due to all the money being printed. Although, the intention seems to be to just cause the inflation in the housing market to create a 'feel good' factor just as you state. As in 1920s Weimar Germany this money printing could unleash the horror of hyper-inflation. Modern Zimbabwe prints too much money and has the highest inflation rate in the world, an amazing 230,000,000% I believe. 2.49% YOY Link to comment Share on other sites More sharing options...
screech Posted June 9, 2013 Report Share Posted June 9, 2013 I took a 25 year fixed about 6 months before the crash @5.8%. Traditionally speaking It should have been a very good deal at that, oh well. Link to comment Share on other sites More sharing options...
Mr Mosquito Posted June 9, 2013 Author Report Share Posted June 9, 2013 I took a 25 year fixed about 6 months before the crash @5.8%. Traditionally speaking It should have been a very good deal at that, oh well. Would it be worth buying out of that mortgage and taking a lower fixed rate? Link to comment Share on other sites More sharing options...
TRL Posted June 9, 2013 Report Share Posted June 9, 2013 I took a 25 year fixed about 6 months before the crash @5.8%. Traditionally speaking It should have been a very good deal at that, oh well. Probably end up a good deal over tge length of the mortgage, although I keep hearing these low interest rates could be here until 2018! What made you do a fixed rate for 25 years? I bet the early payment or breaking of terms is huge! Not sure I could put myself in that position, so many things change over the life of a mortgage. Link to comment Share on other sites More sharing options...
Barrs Court Red Posted June 9, 2013 Report Share Posted June 9, 2013 Im tempted to gt a variable rate next week. Maybe a 3 year one, then hope rates are low still in 2016 and bang on a fixed deal in preparation for there rise. Link to comment Share on other sites More sharing options...
Talk Of The Town Posted June 9, 2013 Report Share Posted June 9, 2013 Im tempted to gt a variable rate next week. Maybe a 3 year one, then hope rates are low still in 2016 and bang on a fixed deal in preparation for there rise. Just let your mortgage go onto the 2.5 variable rate. No need to go into a fixed term. If rates start to creep up fix yourself into a deal. Link to comment Share on other sites More sharing options...
screech Posted June 9, 2013 Report Share Posted June 9, 2013 Would it be worth buying out of that mortgage and taking a lower fixed rate? It's about £4k to buy out within the first 10 years. So not worth it. Link to comment Share on other sites More sharing options...
screech Posted June 9, 2013 Report Share Posted June 9, 2013 Probably end up a good deal over tge length of the mortgage, although I keep hearing these low interest rates could be here until 2018! What made you do a fixed rate for 25 years? I bet the early payment or breaking of terms is huge! Not sure I could put myself in that position, so many things change over the life of a mortgage. Well, my theory was that over 25 years I would be possibly paying that anyway, interest rates were always hovering around 5-6% and I thought it's peace of mind every month knowing what you are paying. It was a gamble that could have paid off, at the moment I am clearly losing out, but you never know. Few would have predicted 15% interest rates in the past. Link to comment Share on other sites More sharing options...
Aizoon Posted June 9, 2013 Report Share Posted June 9, 2013 ........this is excellent news, now house prices can rise to swallow up the saving. Cynical, but right on the ball. (Can I say that on the non-football page?) Link to comment Share on other sites More sharing options...
TRL Posted June 9, 2013 Report Share Posted June 9, 2013 Well, my theory was that over 25 years I would be possibly paying that anyway, interest rates were always hovering around 5-6% and I thought it's peace of mind every month knowing what you are paying. It was a gamble that could have paid off, at the moment I am clearly losing out, but you never know. Few would have predicted 15% interest rates in the past. You are probably right, long term it isn't a bad rate. I don't know how lucky I got. I really lucked out with my rate, and I have no fee to pay to get out of it now. Aye I remember the 15% rates, you will be well in if that ever happens again. That said it didn't last that long. I guess you needed to have the means to pay it for that period. I have a offset tracker. My monthly payments are down to about 400. I'm putting 600 a month into the offset account. The Mortgage instead of 25 years should be done in about 9..... As long as the interest rates stay low. If they don't then I have more than enough in the offset to pay into the mortgage account. At the moment I have the added bonus of 60k in the offset account effectively taking 60k off the interest payments of the mortgage Link to comment Share on other sites More sharing options...
screech Posted June 9, 2013 Report Share Posted June 9, 2013 You are probably right, long term it isn't a bad rate. I don't know how lucky I got. I really lucked out with my rate, and I have no fee to pay to get out of it now. Aye I remember the 15% rates, you will be well in if that ever happens again. That said it didn't last that long. I guess you needed to have the means to pay it for that period. I have a offset tracker. My monthly payments are down to about 400. I'm putting 600 a month into the offset account. The Mortgage instead of 25 years should be done in about 9..... As long as the interest rates stay low. If they don't then I have more than enough in the offset to pay into the mortgage account. At the moment I have the added bonus of 60k in the offset account effectively taking 60k off the interest payments of the mortgage Yeah, I'm paying about £800 a month currently, this would be closer to £500 a month I would guess at todays rates. Same thing happened when I went to buy my house, I bought at the wrong time too, two years earlier my current house would have been £35 - £40k less. What can you do though, most of the younger generation wont even have a chance to buy somewhere, so it's not all bad I suppose. Link to comment Share on other sites More sharing options...
Mr Mosquito Posted June 9, 2013 Author Report Share Posted June 9, 2013 Yeah, I'm paying about £800 a month currently, this would be closer to £500 a month I would guess at todays rates. Same thing happened when I went to buy my house, I bought at the wrong time too, two years earlier my current house would have been £35 - £40k less. What can you do though, most of the younger generation wont even have a chance to buy somewhere, so it's not all bad I suppose. Sorry to read that. Personally, I think house prices and rental prices are way too high and from an economic perspective this totally - and very negatively - distorts the UK economy. Link to comment Share on other sites More sharing options...
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