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News at Ten reporting how lots of people on variable and tracker mortgages expect to be in deep doodah if/when interest rates rise.
Jeezus wept - did these people expect it to stay like this forever?
I have loads of debt, but always manageable - to put yourself at maximum stretch with record low interest rates is total madness.
i personally cannot wait for interest rates to rise. i was used to a nice 6% on the savings, at the moment only 3% feels a bit rubbish!
Yep - with savings and no debt, BRING IT ON!!!!
was that BBC or scary tastic ITV
Ditto, we don't have a mortgage and we've now shed all our savings, probably not wise but we were earning nothing on it so new toys it was. Might be encouraged to start saving again soon if they go up 🙂
What is this debt you speak of?
Mortgage? Aye, there is one of them, but the tenant pays that for us, and I could pay it without a tenant.
Now, how do I get these savings fangled things...?
Has Cameron been adding 'smug' to the water supply?
Hmmm. I got a tracker at the point that the Fed had slammed rates down but the BoE hadn't. Got the full benefit of the rate reduction, which was nice. Didn't bargain on the arse dropping out of the market so spectacularly that re-mortgaging would be impossible though. So all good fun. And I no longer live in the bloody house, but still cover 50% of the mortage so the ex and I aren't crystallizing a loss just yet. 🙂
Well I have two tracker mortgages and I am quite happy thank you very much. One at base rate plus 0.75%, the other at plus 0.89%. They have saved a fortune over the last two years. Its no surprise the financial guys are trying to utilise the current threat of increased interest rates to scaremonger folks so they can flog a "safer" deal
Savings - what are they?
Just signed up to a 3.95% deal for 5 years. It's costing me £1 per month more than what I've been paying at rock bottom, so if rates rise I hope to be ok in the medium term.
0.49% above base here, for the remainder of my mortgage. If Wife gets a Uni place, & we lose her salary, I'll be worried. Have a property abroad so if it went totally tits up, & I lost my job etc, could probably pay most of the mortgage off.
Grumble... you're all smug gits.. 4.something % Standard Variable Rate here 😯
not enough equity to remortgage so stuck with it until either a) the house prices pick up, b) the mortgage market starts doing 90% mortgages again, c) we pay off enough to bring down our LTV to a more reasonable amount.
Thats why I have been overpaying by 3 times the minimum repayment on the current mortgage. When it does go up it should make no to differnece to my monthly out goings.
Could be worse. Muggins here took out a 5 year fixed rate at 5.something % three and a half years ago 🙁
0.49% above base here
Ditto. It's especially nice, cos it just kicked in this month after the previous 5 years on 5.19%
Of course, this means we're currently being bombarded with calls from HSBC trying to get us to switch to a "safer" mortgage.
Thats why I have been overpaying by 3 times the minimum repayment on the current mortgage.
We were overpaying an extra 300 a month for a while, but my wife is on maternity leave so money is tight.
Paying 3 times the amount would be impossible though, even with both our salaries, our mortgage is £1400 a month as it is.
Could be worse. Muggins here took out a 5 year fixed rate at 5.something % three and a half years ago
I did a similar thing about 3 years ago, but for a 10 year fixed term (when the base rate was 4.5%). Annoying, but you can't get too bitter about it. My rationale at the time was that I couldn't really afford it if the base rate went up, so at least I knew I'd always be able to afford the mortgage until it got down to an easily managable level after the fixed term. You make these calls based on what you know at the time I guess.
Slowly chipping away at it, so in 7 years time or so, I should have plenty of options, no matter what the base rate is at the time. I pretty risk averse, so that suits me really. Any base rate rise is good for me at the moment, as I do have some savings.
Absolutely. On our old house we had a tracker, only ever went up in the 3 years we were there, hence taking a fixed rate. No sleep lost, just one of those things.
oh we are on .2% above BOE base rate which helps I guess
No mortgage 😀
No debt 😆
.....
And still no money 😥
All I want to do is buy toys...
all the people that laughed at my fixed rate 6% - i piss in your shoes
I was gutted to miss out on a 4.something rate a few years back, and ended up taking the tracker at BOE + 0.19. So I was rather happy when rates started to fall. Got a way to go before we hit the 4.69% it was when I took that out so happy at the mo.
all the people that laughed at my fixed rate 6% - i piss in your shoes
Still going to take quite a while to get the base rate to rise above 3.5% which would put my mortgage on level with yours though (I hope!). That said, with my luck lately it'll jump to 7% overnight and I'll be screwed.