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yeh
Mortgage Rate Rises
- Thread starter glenimp617
- Start date
yeh
Soldato
£150 is completely wrong.Numbers doesn't sound right. On sky news yesterday evening they were talking to finance experts about mortgage increases and I think the gist was that with the rate increases you'd be looking at about an extra £100 a month per 250k of borrowing. So on 340k, he should only be looking at an extra £150 a month, not a £1000
250k 1.5% 25 years - £1,000 pcm
250k 5.5% 25 years - £1,535 pcm
as an example.
Soldato
doesn't sound right.. going from our current 1.99 to 5% for e.g. would add an extra 650ish to our mortgage/month.Numbers doesn't sound right. On sky news yesterday evening they were talking to finance experts about mortgage increases and I think the gist was that with the rate increases you'd be looking at about an extra £100 a month per 250k of borrowing. So on 340k, he should only be looking at an extra £150 a month, not a £1000
Associate
Interest rate @3% is still only 50% of the rate before the 2008 crash, still another 2% to come.?
Caporegime
Me being there for 10 years is what's handy, if I was only a year in and got the cut, I'd be much more screwed.
Also, it won't be going insolvent ($60mill net profit for Q3), if I get cut, it would be because they are trimming down and moving most of the workload to the office in the states.
"Most people" can't afford to lose their mortgage payments, which is exactly what I'm saying. Advice floats around all the time saying to invest it instead, and overpaying your mortgage is just for piece of mind.
I think we agree.
I also think however, that most messages I've read on financial advice on social media, have made it as cut and dry as "don't overpay your mortgage. Put it in savings", which I think we both agree, is not suitable for most people, and that's my gripe. Not a gripe with you, a gripe with the messaging.
The standard argument to this is of course "you shouldn't take advice from social media", but I think we probably might also agree that people do, and that's what makes it dangerous.
Soldato
The inflation forecast is interesting. Suggests we’ll see the base rate falling again, quite possible it will be significantly lower by the end of next year.
show me a BOE inflation target that has been accurate in the last 20 years.
Associate
Numbers doesn't sound right. On sky news yesterday evening they were talking to finance experts about mortgage increases and I think the gist was that with the rate increases you'd be looking at about an extra £100 a month per 250k of borrowing. So on 340k, he should only be looking at an extra £150 a month, not a £1000
Edit: Apols should have refreshed, people have already pointed out the extra £x per 1% payrise is much higher than discussed
Based on my numbers alone it's more like £150 change in repayment per 1% increase, will hurt massively going from 1.34% to 6%
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Caporegime
Fixed our rate @ 5.39 for 12 months, just before the Reserve Bank announced a fresh rise. Will be interesting to see how rates change over that time.
Interest only mortgageNumbers doesn't sound right. On sky news yesterday evening they were talking to finance experts about mortgage increases and I think the gist was that with the rate increases you'd be looking at about an extra £100 a month per 250k of borrowing. So on 340k, he should only be looking at an extra £150 a month, not a £1000
340k over 10 years at 1% is £280 a month
Same thing at 5% is £1400
So the house is likely well over 500k and as much as a million and the owner has equity.
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Spoke to my current lender today ( virgin money mortgages) I can't do an early repay.yet without paying about 5k.. my 2?5 % fix term ends june 2023 so can't really apply for a deal until 120 days before.
What's it looking like for march 2023? I don't want to lock in and then they start falling ? Or is likely to not fall.
Probably atm it's around 5.45% best I can get
What's it looking like for march 2023? I don't want to lock in and then they start falling ? Or is likely to not fall.
Probably atm it's around 5.45% best I can get
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I'd ride this one out until the end.
If the tentative forecasts are correct rates should be stable and maybe even coming down then.
Trackers may be best option.
You're too late for the good rates as they have long gone. But you might be late enough to at least have better options than right now.
I guess the only thing to be wary of is house price falls if you're very high LTV. And job security type stuff
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I would hedge bets and start applying for a remortgage from a different lender around beginning of December and get an offer to lock in whatever the current rates are, timed to expire in 6 months just as your fixed term is due to end. Then nearer the time you can see what rates are like and either keep the Dec offer or ditch it and make a new application.
The inflation forecast is interesting. Suggests we’ll see the base rate falling again, quite possible it will be significantly lower by the end of next year.
There’s no such thing as inflation falling “too steeply”. Oh no! Things are getting cheaper!!
Soldato
Mine ending in May 23 , I’m gonna sit on my hands for now .