Mortgage Rate Rises
- Thread starter glenimp617
- Start date
The way things are ... I'd guess we'd see 0.5% drop at best over a 2 year horizon.
However geo-politics has a funny way of causing predictions to be wrong.
Associate
- Joined
- 21 Aug 2010
- Posts
- 754
I locked mine in relatively early on as long a fixed period as I could. Cant see the kind of rates we had a few years ago any time soon.
100k at 1.98%
50k at 3.1%
100k at 1.98%
50k at 3.1%
Took 10 years off the term in order to up my monthly payments while the interest rate is still fixed. Aiming to overpay as much as allowed even if it means eating beans on toast. Documents came through and stated the current variable rate is 8.74%, don't much fancy being on that for long when my fix ends! Hopefully the fixes for 5 years won't be more than 5% in 2026/27.
Soldato
- Joined
- 27 Mar 2004
- Posts
- 4,648
- Location
- Telford
i did not feel a thing
Last edited:
I hear @dlockers is going to be publishing a budget food recipe book to compete with Jack Monroe in a few months.
Mortgage is set to complete 2nd Jan.
Going from a nice 2.21% interest rate with Halifax to 4.89% with Santander.
It did start out at 5.79% though (with a £999 product fee added to the loan) but luckily paid £200 so I could change to a different product with Santander. Looks like its set to complete at 4.89% with no product fee so that £200 was well worth it.
I have dropped the term from 20 years to 10 years with the idea being to max overpay and get rid of it in 5.
New mortgage is £1055/month, old was £834/month so it has gone up but i've been overpaying (and paying off a family loan) for 5 years.
If I stick to the £1055/month, by month 60 there will be 56k left on the balance. If I [manage to] overway at £1880/month (so +£825/month) then by month 60, the balance after compound interest will be £177. No ERC as thats £9900/year in overpayments and im allowed 10k/year...
After that, who knows. Probably rent this place out and buy somewhere bigger. I fear kids may scupper my overpayment plans somewhat in the future!
Going from a nice 2.21% interest rate with Halifax to 4.89% with Santander.
It did start out at 5.79% though (with a £999 product fee added to the loan) but luckily paid £200 so I could change to a different product with Santander. Looks like its set to complete at 4.89% with no product fee so that £200 was well worth it.
I have dropped the term from 20 years to 10 years with the idea being to max overpay and get rid of it in 5.
New mortgage is £1055/month, old was £834/month so it has gone up but i've been overpaying (and paying off a family loan) for 5 years.
If I stick to the £1055/month, by month 60 there will be 56k left on the balance. If I [manage to] overway at £1880/month (so +£825/month) then by month 60, the balance after compound interest will be £177. No ERC as thats £9900/year in overpayments and im allowed 10k/year...
After that, who knows. Probably rent this place out and buy somewhere bigger. I fear kids may scupper my overpayment plans somewhat in the future!
Last edited:
It's a sacrifice I am willing to make
It's scary to think about what the payment would be if I didn't change the term and overpay. If you can afford to overpay, it can save you £1000's. Am very thankful I am in a position to be able to overpay.Deleted User 298457
Deleted User 298457
What was your mortgage term? Either super long term or you have been savage at overpaying (and might hit ERCs)
About to buy the wife out of the house and have to raise capital. Our mortgage term is ending. £260k @ 0.99% about to go up to £340k @ 5% on my own. Having to extend term from 23 years to 29. Basically starting again. Going to be a painful few years financially but will get there.
Had plans to clear it in 15 or less but all out the window.
Hoping rates drop a bit before March when I have to actually pull the trigger. Won’t do it before or will have to pay ERCs.
Had plans to clear it in 15 or less but all out the window.
Hoping rates drop a bit before March when I have to actually pull the trigger. Won’t do it before or will have to pay ERCs.
All a guessing game but I do think we will follow closely with the US, this is their prediction
2024 - 4.6%
2025 - 3.6%
2026 - 2.9%
Fed signals end of rate hikes and projects cuts in 2024
The Federal Reserve signaled at its meeting on Wednesday that it is done raising its policy rate and is poised to reduce it by 75 basis points next year, with more cuts after that.
realeconomy.rsmus.com
Last edited:
Absolute charlatan.
This looks good to me. But wouldn't bother with thinking about 2026! That's so far awayAll a guessing game but I do think we will follow closely with the US, this is their prediction
2024 - 4.6%
2025 - 3.6%
2026 - 2.9%
Fed signals end of rate hikes and projects cuts in 2024
The Federal Reserve signaled at its meeting on Wednesday that it is done raising its policy rate and is poised to reduce it by 75 basis points next year, with more cuts after that.
Caporegime
- Joined
- 13 May 2003
- Posts
- 34,595
- Location
- Warwickshire
£460k outstanding, expecting £2.5k per month from 1st April 2024. Trying to overpay as much as possible but it'll be a long slog as I've really tried to push as much as possible to have a nice house.
All a guessing game but I do think we will follow closely with the US, this is their prediction
2024 - 4.6%
2025 - 3.6%
2026 - 2.9%
Fed signals end of rate hikes and projects cuts in 2024
The Federal Reserve signaled at its meeting on Wednesday that it is done raising its policy rate and is poised to reduce it by 75 basis points next year, with more cuts after that.
That would make for a greater cut than the November MPC meeting notes suggest.
https://www.bankofengland.co.uk/mon...on a,have increased across advanced economies.
All the details were stated.
25 years left if I paid at the standard repayment rate.
3 years left on my current deal. And yes I over pay the yearly 10% allowance.
Last edited:
Permabanned
- Joined
- 7 Aug 2017
- Posts
- 2,141
- Location
- by the tower the one up north ..
i'm sure it's not going to with the pressure on the dollar if they do they will get spanked ... they may get away with .25 but never a .75 .. no matter how many people are crying .. and with there long term mortgages they really have no need except for new buyersAll a guessing game but I do think we will follow closely with the US, this is their prediction
2024 - 4.6%
2025 - 3.6%
2026 - 2.9%
Fed signals end of rate hikes and projects cuts in 2024
The Federal Reserve signaled at its meeting on Wednesday that it is done raising its policy rate and is poised to reduce it by 75 basis points next year, with more cuts after that.