Mortgage Rate Rises
- Thread starter glenimp617
- Start date
Remember any expected rate cuts are already priced in to the rates banks quote you.
Yes, locking in a rate 6 months before renewal is no regret. You can always change it closer to the time if rates go down.
All we can be sure is the rate drops will be slow.
The news (well commentary by journalists) is always so stupid. A lot of reactions seem to make out that this is somehow going to make a massive difference in mortgages and borrowing costs etc... talking about how people will be "relieved" etc..
No doubt a slight drop has been priced in for a while. I imagine everything is largely going to stay the same for a while yet, especially as it was a narrow vote and indications are that any more drops will be slow to come.
No doubt a slight drop has been priced in for a while. I imagine everything is largely going to stay the same for a while yet, especially as it was a narrow vote and indications are that any more drops will be slow to come.
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I don't know, so throwing this out to everyone, but wouldn't some form of tracker be best in a falling rate market?
Especially if, as everyone is saying, with fixed rates they have already priced in potential future changes.
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I’m leaning toward 5, but it’s a tough decision. Coming from about 1% currently.
Soldato
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Depends how much of a premium that tracker mortgage comes at.
There used to be discount tracker mortgages, which were presented like x-0.5% or something. Do those not exist any more?
You'd probably be fine but not without risk. Always a chance inflation could spike again. Then again 2 years isn't much security either.
Same as me. I'll probably lock in a rate nice and early as well, just to protect from any major world event or anything that causes rates to rise. But it will probably be a slow downward trend between now and next summer.
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Made a £15,000 overpayment yesterday to get my mortgage back to what it was. 
Made a £15,000 overpayment yesterday to get my mortgage back to what it was.
I've thought about doing something like this as our mortgage is up next June, but unless I can magic £30k out of nowhere though I can't get it even close to our current payment
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I've thought about doing something like this as our mortgage is up next June, but unless I can magic £30k out of nowhere though I can't get it even close to our current payment
With HSBC (who my mortgage is with) you can do it once a year for up to 10% of the property value I believe.
Congratulations! Time to properly put your feet up and relax now.
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well done mate
other than a new bathroom, my money is going into savings to get mine off......think with a bit of discipline I'll be mortgage free at 50 which is 4 years away.....will be a weight off the mind which is the main thing for me. Maybe it will stretch out to 5 years with holidays and unexpected bills.
Not that long away really. Just in time for a midlife crisis
I looked at my mortgage the other day one account has 173 payments left, the other has 238.
However, we’ve been overpaying the second account, currently paying 2.37 times that accounts normal monthly payment as it has a slightly higher rate.
Next year we will start hitting the fee free over payment limit at the current rate so I’ll need to spread them across the 2 accounts a bit.
In total we’re paying 1.7x more than we need to so it will get chopped down very quickly. I’m not sure how quickly, I need to do a spreadsheet as the online calculators don’t really work if you have multiple accounts running to different timescales.
However, we’ve been overpaying the second account, currently paying 2.37 times that accounts normal monthly payment as it has a slightly higher rate.
Next year we will start hitting the fee free over payment limit at the current rate so I’ll need to spread them across the 2 accounts a bit.
In total we’re paying 1.7x more than we need to so it will get chopped down very quickly. I’m not sure how quickly, I need to do a spreadsheet as the online calculators don’t really work if you have multiple accounts running to different timescales.
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I don't feel quite so bad when I look at my current balance nowAnyone got a spare £600k I could use to pay mine off?