No different to the stories of rates hitting 8% etc if you ask me, a world where rates go ultra low again is also a world which is ravaged by a deep recession and people will come out of that worse.
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Mortgage Rate Rises
- Thread starter glenimp617
- Start date
Soldato
its all click-baity news headlines.. until it happens, it's all just that..
like the 40% house price crashes etc, all predictions, many based on personal "hopes" of what will happen.
people without houses hope it'll crash complete
people with houses and fresh mortgages hope it doesn't etc..
like the 40% house price crashes etc, all predictions, many based on personal "hopes" of what will happen.
people without houses hope it'll crash complete
people with houses and fresh mortgages hope it doesn't etc..
Soldato
- Joined
- 23 May 2006
- Posts
- 7,714
indeed it's extreme after extreme. surely a steady rate of around 3-4% is what is needed long term, get inflation under control and that way loans are affordable but at the same time people with savings are not seeing Thier life savings slowly fizzle down .
yes I know some will say don't save your money , invest it, but there is a risk associated with that .
Caporegime
I think I'm going to hold out as long as possible
Fix ends December this year.
I think I'd be somewhat happy to fix at 3.5% if they get down that low by December
Fix ends December this year.
I think I'd be somewhat happy to fix at 3.5% if they get down that low by December
Soldato
How long would you fix for if they hit 3.5%? Would you consider letting it run on the SVR for a few months to a year until they're at a level you'd be comfortable fixing at?
I'm not asking for advice, I'm just curious as my fix ends in November.
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Soldato
5 years imo
Caporegime
Honestly at 3.5% I'd fix for as long as I could.
At least that's what I'm thinking for me.
SVR would depend on what the situation is at the time, as it could be hundreds more per month.
4% isn't high, hence the rates we've had over the last decade are described as "ultra low"
Inflation largely a result of all that quant-easing so they could just tax the rich to get some of back, but they wouldn't dare so we're stuck with higher rates for the foreseeable.
Btw when I say rich I don't mean people on high incomes paying income tax, I mean the people who's 10s-100s of millions earn them millions a year at capital gains rates (assuming they're not using accountants to avoid that as well)
Heres hoping that don't go up much further when the recession officially starts
Citation needed re the claim this inflation was caused largely by QE.
Quantitative easing
Quantitative easing (QE) is one of the tools we use to meet our 2% inflation target. QE lowers long-term borrowing costs to support spending in the economy and hit the inflation target.
www.bankofengland.co.uk
Has QE increased inequality in the UK?
One of the consequences of QE is it increases the value of assets such as shares. That increases the wealth of the people who own them. This is one of the ways in which QE helps stimulate the economy.
Our research on the distributional effect of QEOpens in a new window shows that older people, who tend to own more financial assets than younger people, gained the most from increased wealth.
I know what QE is, you said it has largely caused this inflation so back it up?Quantitative easing
Quantitative easing (QE) is one of the tools we use to meet our 2% inflation target. QE lowers long-term borrowing costs to support spending in the economy and hit the inflation target.
Has QE increased inequality in the UK?
One of the consequences of QE is it increases the value of assets such as shares. That increases the wealth of the people who own them. This is one of the ways in which QE helps stimulate the economy.
Our research on the distributional effect of QEOpens in a new window shows that older people, who tend to own more financial assets than younger people, gained the most from increased wealth.
Associate
My fixed ends in July. I just received my letter from Nationwide which states if I do nothing I'll be moved onto their variable SMR mortgage currently at 7.49%.
If I fix for two years I'll get it for around 3.94% so I think fixing for a short period is the right thing to do. I could fix for 5 years at a slightly lower rate but I'm willing to take a gamble and hope in two years interest rates will be high 2's low 3's.
Man of Honour
Exact same situation, I've just "locked in" a 4.64% 2 year fix with Halifax (have to stick with them, one sub-account needing renewal with the other 3.5 years out, plus circumstances have changed) and am hoping this comes down somewhat by the time we're coming close to needing to sign on the dotted line. If I recall you're in a similar situation from posts in this thread. Might be in for a fun situation if rates are "imminently" coming down come SVR time, do you wait a month... Two? Then you're in to sunk cost and you just know the rates will plummet the moment you agree
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If you know what it is and how it impacts what back up are you looking for? Goes without saying the rampant qe over the last few years caused inflation
I'm speaking with l&c at the moment , Barclays had dropped their rates. I am looking at a remortgage completion date of beginning of July .Exact same situation, I've just "locked in" a 4.64% 2 year fix with Halifax (have to stick with them, one sub-account needing renewal with the other 3.5 years out, plus circumstances have changed) and am hoping this comes down somewhat by the time we're coming close to needing to sign on the dotted line. If I recall you're in a similar situation from posts in this thread. Might be in for a fun situation if rates are "imminently" coming down come SVR time, do you wait a month... Two? Then you're in to sunk cost and you just know the rates will plummet the moment you agree
Applied on 4.15% fix 5 years lender now doing product on 3.95% , how "down to the line" can you take it ? Ie if Barclays drop rate again in may or June can I jump on that ? Solicitors are not going to take a redemption statement until June or mid June from my current lender
No it doesn't, I'll just assume.you have no basis for your claim.