Mortgage Rate Rises
- Thread starter glenimp617
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Soldato
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Deleted - better in energy thread.
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Man of Honour
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You need to change your news sources to something with less bias. The UK is leading Europe with local renewables:
That does nothing to reduce our costs, quite the opposite. I can’t wait for the inevitable mortgage pain at the end of the year.
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Soldato
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not according to this
Renewables growth cut Spain’s electricity bills by 24.2% over the past two years – pv magazine International https://share.google/DNobsANC04RzxwpXE
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This is false
Solar saved Europe €3bn in March. Which country is leading the race?
A new analysis found that Europe’s solar capabilities could save the continent €67.5 billion by the end of the year if gas prices remain high.
www.euronews.com
ehhh, nuclear would massively increase energy prices. Nuclear has the highest levelised cost of energy. Britain needs to go all in renewables
Soldato
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Flip side is if you are all renewable, you lack any predictable form of energy generation and therefore need much more storage = mega expensive.
It's always going to be mix I think
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Just bought our first home. Got the Mortgage approved before the Iran war kicked off. Was on the fence about doing fixed term vs linked. in the end decided I’d go with fixed term for 5 years. In hindsight that was a good choice for the current period anyway.
Associate
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Congratulations!
Soldato
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I remember when I bought my house. it was so exciting. congrats!
ps. maybe because I am risk adverse however imo if something as big as a home is even a slight stretch on the finances you make the right call getting fixed.
yes over the 5 years maybe it will cost you a few quid more but for me at least the peace of mind knowing you don't have to worry about interest rises would make it worth it.
ps. maybe because I am risk adverse however imo if something as big as a home is even a slight stretch on the finances you make the right call getting fixed.
yes over the 5 years maybe it will cost you a few quid more but for me at least the peace of mind knowing you don't have to worry about interest rises would make it worth it.
Fixed costs are good in a world of rising prices (and hopefully rising incomes).
Soldato
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I always do the same, its a fixed cost that i know will not fluctuate.
Associate
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My current 5 year fixed at 1.42% expires in September. I'm starting to look now to remortgage and its quite scary. Luckily I don't have much left to pay it off, otherwise I would be eating bread and water for next 5 years.
Coming out of a fixed 1.32% in sept, just had a consultation and the cheapest fixed for 2 years was 4.94%
Cheapest tracker 4.76%
We've had it good for the part 5 years!
Not sure whether to lock into the fixed or tracker now and hope rates come down a bit by sept to lock into a new fixed deal.
I've never been on a tracker but there are no set up or exit fees so we could leave to go onto a fixed at any point, just not sure if it's worth it at the current rates or if there are any hidden expensives to consider.
Cheapest tracker 4.76%
We've had it good for the part 5 years!
Not sure whether to lock into the fixed or tracker now and hope rates come down a bit by sept to lock into a new fixed deal.
I've never been on a tracker but there are no set up or exit fees so we could leave to go onto a fixed at any point, just not sure if it's worth it at the current rates or if there are any hidden expensives to consider.
I mean it's the gamble you take. Personally we took out a mortgage that even on one of our incomes and a doubling of the rate we could still afford.
We could have spent 4x as much but then we'd be struggling now.
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For such little difference between the two, I'd just go with the fix. Who knows how long Trump's war will go on for or who he'll **** off next, no doubt stoking inflation and interest rates again in the process.
I managed to fix again for a decent rate, just before Iran started. Personally, if I was coming out of a fix now I would gamble and go onto variable. Maybe lock in a fixed rate which can be cancelled as I expect interest rates will ease toward the end of the year.
This is what I'm almost certain I'll be doing in September but a lot can change in 3 months. I can get a 4.24% tracker and I'm aware of how much each potential 0.25% increase will cost. The perverse thing is that with each base rate increase the fixed deal that you can get at that particular time will almost always be worse than the tracker (base rate + 0.49% versus base rate + 0.91%).
Fixed rates are only increasing at the moment because of the uncertainty in the middle east.
Fixed rates tend to follow the mortgage swap rates rather than the BoE base rate and if the 5 year swap rates are lower than the base rate, that's what the fixed rates will offer (or at least a balance). They are usually "forecasts" of the base rate, anyway.
The BoE has said they expect to raise the base rate later this year, as such the fixed rates on offer reflect this increase. If the war in the ME ended tomorrow and inflation came back down again (and with it the base rate), fixed rates would be lower than the current base rate.
Unfortunately too many people do the complete opposite and get themselves in to all sorts of messes.