Mortgage Rate Rises

Just switched this morning with existing lender

Was on 5 year fixed 2.14%

Renewed a 5 year fix at 4.69% with no fees

Couldn't hold out any longer after todays increases
 
413x said:
But rate rises target only a slightly better off demographic.
Rate rise hit rent and FTBs most.
And vat can be tailored to not be added to food/energy. I but be piled onto new cars, home improvements etc etc
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You can do that yes, however that only works if the government is in a surplus and paying its debt off.
Mrwong said:
Increasing taxes would in this instance cause a temporary rise in CPI .
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That is correct yes, CPI is not inflation, Its the measure of the effects of inflation.
 
delta0 said:
Consider whether it’s worth holding that until your initial term is ending and you can overpay as much as you want.
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Yes, very true. But I have money burning a hole in my pocket and would rather lay some down on the mortgage. Only two years left on the five year fix now though. So probably best to wait.
 
IvanDobskey said:
Yes, very true. But I have money burning a hole in my pocket and would rather lay some down on the mortgage. Only two years left on the five year fix now though. So probably best to wait.
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If you can get a savings account with a higher interest rate than your mortgage interest rate you'll be better off leaving the money there until such time it swings the other way. This is what I'm doing at the moment. Mortgage is 1.79% for another 2.5 years so I've stopped overpaying and money that money over to my ISA, I'll pay off a lump sum in 2.5 years when I renew.
 
IvanDobskey said:
Anyone have any idea what penalty is incurred by overpaying more than the 10% limit on a fixed rate mortgage?
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What is the context of this? Surely you don't want to be overpaying on any existing fixed term mortgage that you already had before these rate hikes? Or are you talking about overpaying on a new ones you have just taken out?
 
Jono8 said:
What is the context of this? Surely you don't want to be overpaying on any existing fixed term mortgage that you already had before these rate hikes? Or are you talking about overpaying on a new ones you have just taken out?
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It's 1.82% so probably a silly idea to overpay any more :p

I've hit the max 10% in all three years so far with two left to go.
 
IvanDobskey said:
It's 1.82% so probably a silly idea to overpay any more :p

I've hit the max 10% in all three years so far with two left to go.
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Yea, like others have said save your overpayment now to get interest and pay off the lump sum when you get a new product.

Though how does that work if you set up a new fixed deal, say 6 months early, which starts when the old one finishes. When do you get the chance to make the overpayment?
 
Freakbro said:
Yea, like others have said save your overpayment now to get interest and pay off the lump sum when you get a new product.

Though how does that work if you set up a new fixed deal, say 6 months early, which starts when the old one finishes. When do you get the chance to make the overpayment?
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Probably will just go with the SVR in two years time. Only 47k left to pay and would like to get it paid off within another couple of years after.
 
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