Mortgage Rate Rises

[unwashed potato!]

17 years left at £230k balance and 3.94% is £1548 per month.

At your previous renewal, 19 years left at £260k balance and 4.8%, your repayments were £1741.

You sure you've got the interest rate right?

HSBC have updated their app, still rubbish, but it shows the interest rate which is showing 5.16 percent.

This doesn't add up

 

[Pants]

For Lloyds mortgages that MSE lists as requiring a current account with them, if it's a joint mortgage, can just one of us open a current account now to get access to them? Or do both applicants need one / does it have to have been open for a period of time?

Just one and mine was opened about 5 minutes prior

 

[tonys]

Had a letter from the mortgage people and it's gone down another whopping £2.00.

 

[aaronyuri]

Had a letter from the mortgage people and it's gone down another whopping £2.00.

If you're so disappointed with that £2, feel free to send it to me.

 

[tonys]

If you're so disappointed with that £2, feel free to send it to me.

I can't do that, that will go to the save the wealthy boomer pot to get me a bottle of Southern Comfort

 

[The1nonly1]

This is all example figures. If I have an outstanding balance of £100,000, paying £600 per month on a rate of 2% with 7 years left (84 months). Would my balance at the end of the 7 years be, £100,000 - (600*84) = £49,600? Or do I need to calculate the interest on the remaining balance?

 

[Hagar]

This is all example figures. If I have an outstanding balance of £100,000, paying £600 per month on a rate of 2% with 7 years left (84 months). Would my balance at the end of the 7 years be, £100,000 - (600*84) = £49,600? Or do I need to calculate the interest on the remaining balance?

Interst is calculated daily but roughly you owe less each month so more of the payment comes off the principal and less to pay the bank. It works out you will owe less than your £50k ish.

 

[relicalpha]

Just one and mine was opened about 5 minutes prior

Thanks, looks like I can get 3.88% 5 years with them as lower LTV. Still painful... but doesn't seem too bad currently.

 

[jaybee]

Bank of England set to meet again this Thursday. Rates expected to be held at 4.25%.

 

[Hagar]

Bank of England set to meet again this Thursday. Rates expected to be held at 4.25%.

What with the warlike tribes having a go, inflation dropping may be a struggle.

 

[tonys]

Bank of England set to meet again this Thursday. Rates expected to be held at 4.25%.

I expect they will keep it at this rate for another couple of month's. Dropping too much too quickly will undo any good that's already happening.

 

[aaronyuri]

Rates have actually gone up a touch in the past few weeks. The economy is still too volatile for BoE to drop now, IMO.

 

[jaybee]

Renewing in 2 weeks now. Probably going to end up sticking with the current deal of got set to renew on a 2 year fix @ 4.04% with 70% LTV.

 

[Hedge]

I reckon the banks know if they can ride it out for one more year everyone still hanging onto their 5yr cheap fixes will need to renew and they can cash in.

 

[Hagar]

I reckon the banks know if they can ride it out for one more year everyone still hanging onto their 5yr cheap fixes will need to renew and they can cash in.

The bank rate is about where it should be. Providing savers with a tiny return against inflation and providing borrowers with a fair lending rate.
Dropping the rate before it is necessary tends to be inflationary and leads to boom and bust economics not growth. Inflation should be below 2.5% before rates are lowered.

 

[BUDFORCE]

The bank rate is about where it should be. Providing savers with a tiny return against inflation and providing borrowers with a fair lending rate.
Dropping the rate before it is necessary tends to be inflationary and leads to boom and bust economics not growth. Inflation should be below 2.5% before rates are lowered.

I meant to reply to this earlier but yes definitely.

If they drop it much further now it'll be a disaster.

 

[413x]

Can the rates drop in mid 2027. Only for a few months please. That would be great.

 

[smokedog]

I bet the house on them lowering rates and went on a 2 yr tracker last week

 

[dav3evans]

I've ended up fixing for 2 years. Not looking to gamble on the tracker but felt like the flexibility of a shorter fix was the better choice. Goodbye 1.69%, it's been... Nice.

 

[grudas]

I fixed for 5 years, the world is a mess and while the 4.39% is not great, I'll take it for simple "stability" in my outgoings. It's a stressful thing and I've got bigger things to stress about.

it's a shame as I was hoping it'd drop over years but obviously the world is against me