#winning!
Mortgage Rate Rises
- Thread starter glenimp617
- Start date
Must have been a 10 year?
Our 5 is 1.93 and ends in 2027.
Associate
5 year. Accepted it about a week before BOE started raising rates.
Wow. Easy to forget how quickly rates rose!
Yes it is, go back and look at the rate increases when the payments went up every month not every so many years.
Associate
Has anyone heard of UK Mortgage providers/Banks allowing bi-weekly mortgage payments?
I read an article recently that this payment method reduces your term on the mortgage significantly as the accrued interest is limited on a 2 week basis.
If anyone has managed to do this, then intrigued to hear.
I read an article recently that this payment method reduces your term on the mortgage significantly as the accrued interest is limited on a 2 week basis.
If anyone has managed to do this, then intrigued to hear.
Nobody obviously knows, but my guess is that rates will start to come down very slowly over the next year, then perhaps settle in around 3.5 - 4% for possibly a long time. I just can't see rates being kept as high as they are, certainly not over a 5 year fix period.
Link to article. Without the math explained, makes no sense why this would be cheaper.
52 weeks in a year, biweekly = 26 payments. 12 months in a year = 12 payments. Scaled up, paying biweekly means you pay a full month extra off per year hence shortened term and interest paid.
not quite true anymore, maybe in the 70's but not in the modern era, you dinosaur
interest is now calculated on a daily basis
the only reason why you'd "pay less interest" is that you'd be making 26 payments, which is equivalent to 13 months payment rather than 12, hence shortening the loan term
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Soldato
not quite true anymore, maybe in the 70's but not in the modern era, you dinosaur
interest is now calculated on a daily basis
the only reason why you'd "pay less interest" is that you'd be making 26 payments, which is equivalent to 13 months payment rather than 12, hence shortening the loan term
Yup basically.
I remember working on the background mortgage calculator for Family Building society, and depending on product not all of them were daily, saying that this was.....about 9 years ago.
I reckon you'd be right in saying daily with about 99% of current mortgages though.
haha fair enough, when i was trawling through mortgages for my home a couple years ago i never came across a mortgage that didn't have a daily interest calculation
Soldato
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Even with the fast rate rise in the last few years, prices of the properties haven't exactly come down much and are still selling.
Once rates finally come down a bit in the next 12 month I can probably see property prices increasing. Which is frustrating because who has actually seen the benefit of this apparent house price reduction..?
Once rates finally come down a bit in the next 12 month I can probably see property prices increasing. Which is frustrating because who has actually seen the benefit of this apparent house price reduction..?
They've not gone up either, though.
Soldato
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I'd argue in my area they are.
Houses are still going 10k over asking around here with the "best and final" rubbish.
Houses are still going 10k over asking around here with the "best and final" rubbish.
The only way they will come down is if they don't get the figure they're after, but people are still willing to pay over the odds to get what they want.
Not gone up by as much then, shall I say. My 1.5bed 600sqft cottage did 75k in <3 years. The house I am in was up £120k in 14 months in worse condition (vs. my neighbor).
the lack of price growth in comparison to inflation (and especially wage growth) is essentially a price drop