Soldato
If the economy keeps contracting, it may encourage the BoE to cut rates quicker to stimulate spending.
Mortgage Rate Rises
- Thread starter glenimp617
- Start date
If the economy keeps contracting, it may encourage the BoE to cut rates quicker to stimulate spending.
You can reserve a rate 6 months out, so about that/1st Jan.
The 2 year will cost a bit more than the 5 year monthly-wise; as they have priced in a rate reduction. It's up to you whether you want to gamble. Product fees may be added as well, so you need to "save" whatever the value of an additional product fee is, if you do 2 years and then have to go again (vs just once for a 5 year).
Yeah. I guess I get my spreadsheet out and do some calcs. We may also borrow 10K for home improvement stuff. I need to build a new shed/cabin/out building like you and some other OCUKers are doing! I assume that's as simple as just adding 10K to what you calculate as the outstanding balance will be come renewal time? I need to check LTV ratios as well actually as to where we will fall. Going from 1.89% to 4% is going to hurt us.
Yeah I am 4.6% and it has effectively added 12 years to my mortgage. Gotta play the long game though; I am already priced out of the area I live in, so glad I locked in when I did.Yeah. I guess I get my spreadsheet out and do some calcs. We may also borrow 10K for home improvement stuff. I need to build a new shed/cabin/out building like you and some other OCUKers are doing! I assume that's as simple as just adding 10K to what you calculate as the outstanding balance will be come renewal time? I need to check LTV ratios as well actually as to where we will fall. Going from 1.89% to 4% is going to hurt us.
For "small" sums like 10k, see if you can do it on 0% credit cards. At 4% you'll still quids in but obvs 0% even better.
I thought you couldn't put mortgages on CC nowadays?
Unless you mean just paying it off on a CC?
He said take 10k to pay for a summer house/shed. I said try and do that on CC's instead of extending mortgage, if possible.
Even just getting a 0pc purchase card in advance and spending your daily stuff on there can work out saving a fair few k pretty quickly. Especially before Christmas.
Petrol, food, presents, holidays, gfx cards etc etc can all build up to 5k+ pretty quick.
Yeah stoozing ftw.
And purchase cards often have insane 0 percent periods. Like 24-36 months. Oddly.. Often 27 months.
Yeah, I've put c30k in spending on my 0% this year and put the money into savings/s+s
Basically free money lol
I get the concept of stoozing, but how do you get the money into savings? Like what did you buy? You can't send yourself money from the CC into your savings can you? It has to be an actual "purchase"?
Don
I assume you buy it on the 0% credit card, and transfer the same amount you would have spent into your savings account.
Come the end of the 27 months or whatever you pay the full amount off the credit card using the money from your savings account, but the money made is whatever interest you've earned on those savings (that otherwise would have gone out at the end of the month on the CC)
Oh ok I might be confused then. I thought stoozing was when you literally extracted the money from the 0% purchase card, I assume by way of "buying" something from yourself, like sending a paypal gift of say £3000, then you with draw that straight to your high interest savings account.
Seems you are saying stoozing is just literally using a 0% card with high credit limit for everything for X number of months, placing all your usual spending that would normally occur onto that, putting your actual earnings into savings. Same effect I guess. Surely you can't do that with direct debits though like mortgage payments and stuff as I didn't think you could use a CC for that?
Seems you are saying stoozing is just literally using a 0% card with high credit limit for everything for X number of months, placing all your usual spending that would normally occur onto that, putting your actual earnings into savings. Same effect I guess. Surely you can't do that with direct debits though like mortgage payments and stuff as I didn't think you could use a CC for that?
Stoozing is basically moving debt around on 0pc CC's and using the money to earn interest
Edit
As rates are fairly high you can easily get 4-5 pc on a 20k balance which isn't insignificant
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Be careful though, remember you'll still have to make the minimum payment each month, so it's not exactly the full amount of the purchase that you can put in to savings.
We did similar on a new kitchen. Lumped £15k on a 0% card for 18 months, paying the minimum off each month and leaving the savings we had built up for the kitchen where they are. We'll assess where we can shift the balance to when that cc deal ends or pay it off, which ever will work out better.