Caporegime
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- 7 Apr 2008
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- Lorville - Hurston
I took a 5 year fixed. Hoping things calm down in 5 years?
Mortgage Rate Rises
- Thread starter glenimp617
- Start date
I wouldn't count on it, history shows rates usually settle for a decade or so. I'd be overpaying whatever you can on your fix annually and get the debt reduced substantially if you going to enter a much higher interest rate at the end of your fix.
I have a 10% overpayment allowed annually and I plan to try and max that each year during my fixed period.
That’s a great suggestion, will be difficult for many given the current living costs across the board though.
Yup, won't be an option for many I assume.
Depends what interest rates the BoE rise too. If it's not enough for what the markets expect then the £ can still fall farther, which will import more inflation balancing out any drop in inflation due to the fall in demand from everyone being skint.
That was what I was thinking they were at historic lows, what was the chance of them going up then dropping back down.
I’ll see what happens hopefully we still have jobs at that point, after that I’ll only have 7 years left.
Caporegime
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Unfortunately I need to spend the next couple of years renovating the property..
Maybe in my final 2 years I can overpay
Soldato
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Thankfully I've been in a position where I can hit the 10% overpayments. Managed to pay an extra 22k in the last two years. Will help a lot when the fixed period ends.
Just look at this seems insane and both scary.
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Caporegime
- Joined
- 7 Apr 2008
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- Lorville - Hurston
Yea defo. I may be able to do that in the last 2 to 3 years of my mortgage but as I said, need to do some renovation.
Do you think the demand for renovation work will be less now with many changing there minds due to budget reasons and will renovations costs also sky rocket?
Soldato
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I think the demand could drop for sure. Not everyone is going to have the money or the will to spend on anything that isn't 100% necessary.
I'd like the cost of solar panels to drop. Definitely would be tempted there.
I was thinking the same. I think that is my next investment.
That will really depend on the location and who you get to do the work.
Every theory is possible really. Costs go up so people don't renovate. People that do renovate have no money so will do the work for much less because nobody is paying for any work to be done!
Or, as you say, they increase prices to cover the work they're not getting from other jobs. There's always going to be someone out there that can pay the prices I guess.
It's possible that a lot of solar panel installs will be cancelled now the Gov has capped energy for 2 years. They've gone up since the beginning of the year but not to massive prices like they were expected to do. (yet)
Soldato
- Joined
- 20 Apr 2008
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- West Midlands
I've been looking at buying my first property and already the mortgage I was looking at has jumped £130pm from 2 months ago.
I have a feeling I need to sit tight for another 12 months and continue to save.
I have a feeling I need to sit tight for another 12 months and continue to save.
Soldato
- Joined
- 2 Feb 2010
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- Crowmarsh
Problem is, house prices are still going up, unbelievably.
Although surely that trend can't continue in the current climate..