Mortgage Rate Rises

bigmike20vt said:
too many people (probably not on here) seem to think if inflation falls then prices will fall too ... where as it does not necessarily mean that at all. all it will mean is that the value of our money will decrease.at a slower rate.... prices could still stay high , or even keep on increasing even if inflation halves.

I hope I am wrong but I fear we will never see 2020 prices ever again for most things. we are poorer than we used to be and for most of us I think that is something we will have to live with.
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With prices how they are, workout wage increases best we can hope for is more stagnation
 
Kill_Phil said:
Hope you're right! Can't see how inflation can fall unless the basic/essentials do at the same time as this is the main driver at the moment
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No, if the price of all goods measured went up 5% annually then inflation would fall by about 5% from current levels. The point I'm making is that basic/essential goods are rising in price less quickly than they used to be. An inflation rate of 10% is unlikely to be sustained in the long term because it requires prices to keep soaring. If prices simply remain high then inflation should fall.
A surprisingly common mistake people make is thinking that prices need to fall for inflation to fall, or conversely that "falling inflation" means prices are going down. Inflation is a rate of change - think of it like an accelerator on a car, even if you press the accelerator down less hard, you can still be gaining speed.
 
HangTime said:
No, if the price of all goods measured went up 5% annually then inflation would fall by about 5% from current levels. The point I'm making is that basic/essential goods are rising in price less quickly than they used to be. An inflation rate of 10% is unlikely to be sustained in the long term because it requires prices to keep soaring. If prices simply remain high then inflation should fall.
A surprisingly common mistake people make is thinking that prices need to fall for inflation to fall, or conversely that "falling inflation" means prices are going down. Inflation is a rate of change - think of it like an accelerator on a car, even if you press the accelerator down less hard, you can still be gaining speed.
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Its suicidal if we raise prices of essentials.

Many can't afford the current prices as it is now..
 
Given newspaper comments on the Ukraine/ Russia / situation today and we're In it.for long term.

How is this going to effect us mortgage wise ?
 
Six years ago when we moved house I told the mortgage advisor I'd take the 10 year fixed deal. Rates were at historical lows and whilst I could have saved a few quid on a 2 or 5 year fixed there was the potential for the rates to increase by a lot more. The 10 years also meant it will be paid off when the 10 years is up.

I'd always advise to fix for as long as you think is practical and a rate you can afford. They would have lent us another £100k, glad I didn't do that.
 
Troezar said:
Six years ago when we moved house I told the mortgage advisor I'd take the 10 year fixed deal. Rates were at historical lows and whilst I could have saved a few quid on a 2 or 5 year fixed there was the potential for the rates to increase by a lot more. The 10 years also meant it will be paid off when the 10 years is up.

I'd always advise to fix for as long as you think is practical and a rate you can afford. They would have lent us another £100k, glad I didn't do that.
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Ahhh yeah but if works both ways. My 5 year fix at 2% on a bit of mortgage now ends in March next year (RIP). If I'd only fixed for 3....then when I bought again I'd have fixed for 5. That would have saved me a forecast 27k over 3 years in extra interest (or one free car).
 
dLockers said:
Ahhh yeah but if works both ways. My 5 year fix at 2% on a bit of mortgage now ends in March next year (RIP). If I'd only fixed for 3....then when I bought again I'd have fixed for 5. That would have saved me a forecast 27k over 3 years in extra interest (or one free car).
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Yeah if I had fixed for 2 I'd have saved 2k in erc fees.

Shouldn't regret things can't predict.

I mean look at BoE. Even it's predictions a month ago are a good chunk out!
 
dLockers said:
Ahhh yeah but if works both ways. My 5 year fix at 2% on a bit of mortgage now ends in March next year (RIP). If I'd only fixed for 3....then when I bought again I'd have fixed for 5. That would have saved me a forecast 27k over 3 years in extra interest (or one free car).
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Or if you'd fixed for 10 years you would still be on a low rate ;) All depends on your circumstances, I fixed for the entire term of the mortgage so a guaranteed rate and then it's gone.
 
Troezar said:
Or if you'd fixed for 10 years you would still be on a low rate ;) All depends on your circumstances, I fixed for the entire term of the mortgage so a guaranteed rate and then it's gone.
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But you've fixed at a higher rate than everyone else enjoyed and you've ended at a point of even higher rates?

Edit: 10 years till term is cheating :D
 
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Have 150k on fixed rate ending in October and another 100k ending in January. Will be paying off the October, then putting the January on a 5 year term, with maybe a 2 year base rate tracker, what do people think, with the term only being 5 years.. just get a 5 year fixed and have the certainty until its paid off?
 
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smeemi said:
Have 150k on fixed rate ending in October and another 100k ending in January. Will be paying off the October, then putting the January on a 5 year term, with maybe a 2 year base rate tracker, what do people think, with the term only being 5 years.. just get a 5 year fixed and have the certainty until its paid off?
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Mortgages are for idiots tbh. How did you get in this mess?
 
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