Interest rate doubled (increased by the least it realistically could have)

Rotty said:
:( reckon that will add over a quid a month to my mortgage ;)
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"A pound!? I **** a pound!" /Peter Kay :p

I don't know why but all this talk of people's mortgages going up by X pounds just makes me think of that line about weight watchers:p
 
Surely the inflation currently in the economy is caused by Brexit and the £ falling, I just don't see how increasing interest rates by 0.25% is going to solve that, I don't see sterling recovering any time soon!

Rifte said:
interest rate levels can never again get to the giddy:p heights of 5 to 6 percent.
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What about the rate of 15% at the beginning of the 1990s ;)
 
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5 year mortgage just got fixed in as of a few weeks ago, excellent. I agree that rates won't (or at least shouldn't) get any higher than 3-4% in the next decade or so, as - although I'm not one to advocate pushing for growth for the sake of it - given the levels of private debt currently (especially in mortgages with house prices as they are, myself included!), this would have disastrous effects. I don't disagree that you shouldn't take on a mortgage with a 30 year term on the assumption that borrowing rates will stay at 2% forever - I specifically didn't borrow to the max because of this for my recent purchase - but the fact is that thousands of people defaulting on their mortgages isn't good for anyone.
 
will be interesting to see what finance does with its margins, during higher rates margins were much much tighter, base +.25 in a lot of cases, as rates went down they essentially robbed us all with wider and wider margins
 
Skipton have announced they're going to honour the full 0.25% rise in their lifetime ISA. So that's a full extra £10 in my pocket. Woohoo.
 
I've got approx 2/5ths of my mortgage on a 5-year fix (1.99%) as of about 2 months ago, so that bit's unaffected.

The other ~3/5ths is on a lifetime 0.89% above base tracker, so still much lower than if I'd scooped it into the fix but an increase of, I'm guessing, about £17/month.

Edit: had my 2/5ths and 3/5ths the wrong way round.
 
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There'll be some great deals on nearly new Mercedes A Class, C Class and CLAs knocking around soon.

Just as Vauxhall have said they are shutting down the Ellesmere Port plant because nobody is buying the Astra anymore. It's because people can buy a Merc or Audi on cheap credit. Everyone wants to large it up.

I've bought a house recently and so I've got a long time to be paying mortgages so I don't want to see massive spikes in interest rates but I'm in a position where I can absorb any rate rises in future and I always over pay anyway.

I think we are going to see gradual rises of 0.25% every year or so until it stabilizes at around 5% where we were at pre-crash. Never say never but I think it's highly unlikely we will get to 10% for a very long time.
 
Anyone else managed to lock down their mortgage to fixed rate? I normally lock mine down 2 years at a time, but I was given a 10-year deal last year, so I'm locked at £270 a month (which is really cheap) until 2026! Then in 2026, I'll just have 5 years left on the mortgage then I'll own outright.
 
It's quite alarming how many people are now worried they can't afford their mortgage off the back of a 0.25% rise. How shortsighted and naive you must be to have taken a mortgage out at 0.25% thinking it would last :o

As for me, I'm going to try and remortgage a few months early, luckily I got my mortgage when the rate was at 0.5% anyway so if I can get locked in now on another 2-5 year deal, I shouldn't be paying too much more
 
Steedie said:
It's quite alarming how many people are now worried they can't afford their mortgage off the back of a 0.25% rise. How shortsighted and naive you must be to have taken a mortgage out at 0.25% thinking it would last :o

As for me, I'm going to try and remortgage a few months early, luckily I got my mortgage when the rate was at 0.5% anyway so if I can get locked in now on another 2-5 year deal, I shouldn't be paying too much more
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That's the power of cheap credit and consumerism. You get made to feel that if you don't have these items that you are failing at life. The only way to happiness is through consumption.
 
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