Interest Rates

[MK Shrimper]

Down again by .5%

Oh I love a Tracker mortgage :)

 

[Slipperduke]

What impeccable timing. When interest rates were high, I was 20k in debt, now they're non-existent and I'm in credit, saving for a wedding.

Bugger.

 

[MrB]

What impecable timing. I've just upped my mortgage to pay off the ex! Lovely!

0.85% tracker above base, I love you Mr Woolwich!

 

[steveo]

Down again by .5%

Oh I love a Tracker mortgage :)

Yes you tracker blokes are doing ok. For the rest of us its another pointless exercise I fear.

 

[MK Shrimper]

Yes you tracker blokes are doing ok. For the rest of us its another pointless exercise I fear.

Trouble is one day it'll go the other way.

 

[MrB]

Yep, I had a sustained period at a higher rate when everyone else was getting lower fixed rates. All swings and roundabouts.

Just got to try and take advantage while the going is good and get the total down before the rates surge upwards!

 

[blues_r_best]

Would it be best to get a 2 year fixed rate mortgage and hope that the rates are still low (2-3%) and then get a five year mortgage, or just get a five year straight off?

 

[steveo]

Trouble is one day it'll go the other way.

Yes I fear we will be paying for all these quick fixes sometime soon in the future. Reduction of VAT was a panic measure - who did that help? Printing more money probably wont help either.

 

[Firestorm]

http://news.bbc.co.uk/1/hi/business/7925620.stm

according to this they will not be printing more money ,

Quantitative easing is the process of increasing the amount of money in circulation in an attempt to revive the economy.

While the Bank will initially add £75bn, Chancellor Alistair Darling has given it permission to extend this to up to £150bn.


The idea is that if the amount of money in the system is boosted, commercial banks will find it easier to lend.

Quantitative easing is sometimes incorrectly referred to as printing money, but the Bank will not expand the supply of money by making new banknotes.

Instead, it will buy assets - such as government securities (gilts) and corporate bonds.

Similar measures were implemented in Japan at the beginning of the decade and are considered to have had limited success.

 

[steveo]

http://news.bbc.co.uk/1/hi/business/7925620.stm

Quantitative easing is the process of increasing the amount of money in circulation in an attempt to revive the economy.

While the Bank will initially add £75bn, Chancellor Alistair Darling has given it permission to extend this to up to £150bn.

The idea is that if the amount of money in the system is boosted, commercial banks will find it easier to lend.

Quantitative easing - basically the same thing though.

Not sure if the banks will start lending though as they are all scared to at the moment.

I was just talking to a bloke who Barclay's have offered a business loan to - at 12%!
Ridiculous.

 

[RobM]

Own up - who, in the 80's was paying (gulp!) 15% -yes fifteen % mortgage?

 

[The General]

Load of *****.

 

[Usual_Suspect]

Would it be best to get a 2 year fixed rate mortgage and hope that the rates are still low (2-3%) and then get a five year mortgage, or just get a five year straight off?

Swings and roundabouts Toddy, however don't forget that when you come to remortgage in 2 years you'll have to pay for a valuation, legal fees, mortgage fees etc which can easily add to a fair amount.

 

[A Century United]

Own up - who, in the 80's was paying (gulp!) 15% -yes fifteen % mortgage?

Yup. Just looked up our old Mortgage payments from then, when we had a £40k mortgage and we were paying out over £450 a month, which for the 80's was a fair chunk of disposable income. Now we have an £80k mortgage tracked at .75% above base, and are paying around £100.

 

[steveo]

Yup. Just looked up our old Mortgage payments from then, when we had a £40k mortgage and we were paying out over £450 a month, which for the 80's was a fair chunk of disposable income. Now we have an £80k mortgage tracked at .75% above base, and are paying around £100.

Going from memory only, my first mortgage of 30000 cost me £240 per month. God it was a struggle.

 

[MrB]

Swings and roundabouts Toddy, however don't forget that when you come to remortgage in 2 years you'll have to pay for a valuation, legal fees, mortgage fees etc which can easily add to a fair amount.

I can't believe how much it's just cost me to get the ex's name off the mortgage, fortunately I managed to persuade them to waive the £995 application fee and do it without revaluing. Nonetheless, it's pretty painful having to go through the whole solicitor conveyancing thing to basically stay in the house I live in.

Don't get married kids, it's just not worth it!

 

[Bob Cratchitt]

Don't get married kids, it's just not worth it!

Surely that should be don't get divorced? ;)

 

[MrB]

Surely that should be don't get divorced? ;)

The former prevents the latter having to occur :)

 

[Firestorm]

Yup. Just looked up our old Mortgage payments from then, when we had a £40k mortgage and we were paying out over £450 a month, which for the 80's was a fair chunk of disposable income. Now we have an £80k mortgage tracked at .75% above base, and are paying around £100.

my first morgage was in 82 on 13,500 i was paying back around 150 a month

On 4800 PA that was hard work !!

 

[Firestorm]

This site shows the base rates from 1975 onwards

http://www.bankofengland.co.uk/mfsd/iadb/Repo.asp

Between october 76 and October 77 it went from 15% to 5% and then up to 17.00 by Nov 79 !!!

Compare that to the inflation rates at the time too

http://www.whatsthecost.com/historic.cpi.aspx

1975 24.2% !!!