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interest rates
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"For anyone that was on a fixed deal that came or is comming to an end. Will you be fixing again or opting for a tracker?"
You mean a choice of being slowly dragged over broken glass for five years, or walking over hot coals for two, then jumping into a box of unknowable possibilities?
Decisions, decisions. We don't know yet  |
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"For anyone that was on a fixed deal that came or is comming to an end. Will you be fixing again or opting for a tracker?"
On a serious note, intereet rates for the past 15 years have been insanely low by historical standards. So there's a good argument for fixing. |
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"On a serious note, intereet rates for the past 15 years have been insanely low by historical standards. So there's a good argument for fixing."
Indeed. Most folks I have spoken to agree that hay has been made whilst the sun shined on low interest rates for over a decade.
.
They now agree it's time to cut back on unnecessary spending, be it cars, home moves, luxury holidays, even tech toys.
.
Hoard / Save and spend another year (or perhaps 5!). Delayed gratification will do no harm. At best, companies will have to lower their prices across the board, which will stimulate little "blips". |
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We will be fixing again.
It’s surprising how many people whine about the interest rates and how they will struggle to pay the mortgage or have to sell up. Did these people not know the interest rate can move up as well as down?
No sympathy for the people whining, you took a chance on something and it didn’t come off, that’s life, do what you need to do to fix the problem and move on. |
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I have empathy for those who took a step onto the property ladder due to low interest rates. The low rates were an anomaly, and financial advisors should have stressed that.
What we have now is pretty much the norm, which really is not helpful for those who maxed out. If you can downsize or move to a cheaper location, I see this as a better option than losing your home. For those who maxed out for the cheapest available property, I'd review every aspect of your finances, to see where you can cut outgoings. Compare insurances, utilities, food shops (Aldi ??), shop around. If you're a designer brand buyer - just don't.
Martin Lewis, watch his programmes or get his weekly mse email. Be proactive. |
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Yes nobody has a crystal ball and this thread isn't intended to be a daily mail boomer vs melinal fight.
My prediction and a lot of leading economist's is that interest rates will stay at 5.25 for most of 2024 then begin to drop. The rise in interest rates have already affected small businesses and starting to affect larger corporate businesses. Not to mention many MP and chums that have buy to let houses and commercial properties.
Low interest rates benefit the rich. The rich have people to invest their money wisely they aren't sitting with a high street super saver account hoping for a great return.
The lowest deal my current lender will give me in 5.05 but its fixed for 5 years. Yes I can afford it but don't want to be stuck that long. A 2 year fixed is 5.75!
I wanted a tracker but they only offer them to new customers. I have a case with an ombudsman but that might take a while.
I am considering going interest free for 6 months and see what things are like then.
Don't see it going above 5.25 if inflation keeps going down. That is a big IF! |
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"I have empathy for those who took a step onto the property ladder due to low interest rates. The low rates were an anomaly, and financial advisors should have stressed that.
What we have now is pretty much the norm, which really is not helpful for those who maxed out. If you can downsize or move to a cheaper location, I see this as a better option than losing your home. For those who maxed out for the cheapest available property, I'd review every aspect of your finances, to see where you can cut outgoings. Compare insurances, utilities, food shops (Aldi ??), shop around. If you're a designer brand buyer - just don't.
Martin Lewis, watch his programmes or get his weekly mse email. Be proactive."
most wouldn't have had a true FA. Probably just a mortgage advisor.
Irrc there were rules at one point to ensure affordability of interest rates increases. But they may have been a rapped because it cools the housing market and the law makers get complacent about the risks.
I feel for those exposed to this as I suspect many have seen mortgages almost double, plus cost of living, and are already at the bone. The obsession with houses and the "safety" of the property market has let people down. And those that feel the pain most, as always, are down the bottom of the food chain. |
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"I have empathy for those who took a step onto the property ladder due to low interest rates. The low rates were an anomaly, and financial advisors should have stressed that.
What we have now is pretty much the norm, which really is not helpful for those who maxed out. If you can downsize or move to a cheaper location, I see this as a better option than losing your home. For those who maxed out for the cheapest available property, I'd review every aspect of your finances, to see where you can cut outgoings. Compare insurances, utilities, food shops (Aldi ??), shop around. If you're a designer brand buyer - just don't.
Martin Lewis, watch his programmes or get his weekly mse email. Be proactive."
Well yes the older generation spout on about how they payed 15% back in whatever year etc etc really is irrelevant, different times, different economy. The younger generation didn't ask for high house prices and low interest rates they simply played the hand they were dealt.
Some people were reckless and so we're lenders as they were throwing money at people. When I bought my 2nd house it was 100k I asked to put down a 15k deposit at borrow 85. He offered me 130k and told me to treat myself to a nice car! Errr no
I had a friend that sold his first house and made 70k profit. He took out a 100% mortgage on a 200k house and blew the 70k. He regretted it 6 months later! |
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"I have empathy for those who took a step onto the property ladder due to low interest rates. The low rates were an anomaly, and financial advisors should have stressed that.
What we have now is pretty much the norm, which really is not helpful for those who maxed out. If you can downsize or move to a cheaper location, I see this as a better option than losing your home. For those who maxed out for the cheapest available property, I'd review every aspect of your finances, to see where you can cut outgoings. Compare insurances, utilities, food shops (Aldi ??), shop around. If you're a designer brand buyer - just don't.
Martin Lewis, watch his programmes or get his weekly mse email. Be proactive.most wouldn't have had a true FA. Probably just a mortgage advisor.
Irrc there were rules at one point to ensure affordability of interest rates increases. But they may have been a rapped because it cools the housing market and the law makers get complacent about the risks.
I feel for those exposed to this as I suspect many have seen mortgages almost double, plus cost of living, and are already at the bone. The obsession with houses and the "safety" of the property market has let people down. And those that feel the pain most, as always, are down the bottom of the food chain. "
There were strict rules decades ago. Used to be that you had to be with a bank for 2 years and saving so much per month to prove you could pay a mortgage. Also if a couple was getting a joint mortgage then the possibility of the women quitting work to have a baby was discussed. You coukd also only get a mortgage with who you banked with no shopping around and moving lenders.
That all changed in the 80s during thatchers term |
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"Yes nobody has a crystal ball and this thread isn't intended to be a daily mail boomer vs melinal fight.
My prediction and a lot of leading economist's is that interest rates will stay at 5.25 for most of 2024 then begin to drop. The rise in interest rates have already affected small businesses and starting to affect larger corporate businesses. Not to mention many MP and chums that have buy to let houses and commercial properties.
Low interest rates benefit the rich. The rich have people to invest their money wisely they aren't sitting with a high street super saver account hoping for a great return.
The lowest deal my current lender will give me in 5.05 but its fixed for 5 years. Yes I can afford it but don't want to be stuck that long. A 2 year fixed is 5.75!
I wanted a tracker but they only offer them to new customers. I have a case with an ombudsman but that might take a while.
I am considering going interest free for 6 months and see what things are like then.
Don't see it going above 5.25 if inflation keeps going down. That is a big IF! "
I'd be surprised if it doesn't go up further.
"timeline of key events and data relating to historical interest rates in the UK, 1979-2017" Google this if you're interested in in the data. |
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"Yes nobody has a crystal ball and this thread isn't intended to be a daily mail boomer vs melinal fight.
My prediction and a lot of leading economist's is that interest rates will stay at 5.25 for most of 2024 then begin to drop. The rise in interest rates have already affected small businesses and starting to affect larger corporate businesses. Not to mention many MP and chums that have buy to let houses and commercial properties.
Low interest rates benefit the rich. The rich have people to invest their money wisely they aren't sitting with a high street super saver account hoping for a great return.
The lowest deal my current lender will give me in 5.05 but its fixed for 5 years. Yes I can afford it but don't want to be stuck that long. A 2 year fixed is 5.75!
I wanted a tracker but they only offer them to new customers. I have a case with an ombudsman but that might take a while.
I am considering going interest free for 6 months and see what things are like then.
Don't see it going above 5.25 if inflation keeps going down. That is a big IF!
I'd be surprised if it doesn't go up further.
"timeline of key events and data relating to historical interest rates in the UK, 1979-2017" Google this if you're interested in in the data."
Already reseached that but that is a very minority predication. Hmmmmm I am just thinking of going with my lenders 5.05. Its less that £200 a month than what i'm paying and at least I wouldn't have to worry for 5 years!
I would just be kicking myself if interest rates dropped! |
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"Yes nobody has a crystal ball and this thread isn't intended to be a daily mail boomer vs melinal fight.
My prediction and a lot of leading economist's is that interest rates will stay at 5.25 for most of 2024 then begin to drop. The rise in interest rates have already affected small businesses and starting to affect larger corporate businesses. Not to mention many MP and chums that have buy to let houses and commercial properties.
Low interest rates benefit the rich. The rich have people to invest their money wisely they aren't sitting with a high street super saver account hoping for a great return.
The lowest deal my current lender will give me in 5.05 but its fixed for 5 years. Yes I can afford it but don't want to be stuck that long. A 2 year fixed is 5.75!
I wanted a tracker but they only offer them to new customers. I have a case with an ombudsman but that might take a while.
I am considering going interest free for 6 months and see what things are like then.
Don't see it going above 5.25 if inflation keeps going down. That is a big IF!
I'd be surprised if it doesn't go up further.
"timeline of key events and data relating to historical interest rates in the UK, 1979-2017" Google this if you're interested in in the data.
Already reseached that but that is a very minority predication. Hmmmmm I am just thinking of going with my lenders 5.05. Its less that £200 a month than what i'm paying and at least I wouldn't have to worry for 5 years!
I would just be kicking myself if interest rates dropped!"
Put 12 or 18 months mortgage payments in a high interest savings account in one go, then after 12 months you will only have a small shortfall to offset the mortgage interest. |
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By (user no longer on site) 21 weeks ago
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I always found the key thing with any mortgage was to overpay it whenever you can.
Many people don’t realise that for the first 20 years of a 25 year mortgage all you are paying is interest.
So appreciate many people don’t have the luxury of overpaying but in the very early days I just tried to pay an extra £25 and as my jobs got better I paid more. If I got a bonus I just paid it straight onto the mortgage account.
Managed to pay it off probably ten years early and it was just through overpaying it when I could. |
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"I always found the key thing with any mortgage was to overpay it whenever you can.
Many people don’t realise that for the first 20 years of a 25 year mortgage all you are paying is interest.
So appreciate many people don’t have the luxury of overpaying but in the very early days I just tried to pay an extra £25 and as my jobs got better I paid more. If I got a bonus I just paid it straight onto the mortgage account.
Managed to pay it off probably ten years early and it was just through overpaying it when I could."
I cut mine by eight years due to my mortgage being 0.5% above the base rate variable, at a time it kept decreasing but paying the same or more. |
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"On a serious note, intereet rates for the past 15 years have been insanely low by historical standards. So there's a good argument for fixing.
Indeed. Most folks I have spoken to agree that hay has been made whilst the sun shined on low interest rates for over a decade.
.
They now agree it's time to cut back on unnecessary spending, be it cars, home moves, luxury holidays, even tech toys.
.
Hoard / Save and spend another year (or perhaps 5!). Delayed gratification will do no harm. At best, companies will have to lower their prices across the board, which will stimulate little "blips"."
And this also helps to stop consummer waste as we all need to watch the spending. We won't be buying so much disposable stuff. So we start to become more green as a consequence. |
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"We won't be buying so much disposable stuff. So we start to become more green as a consequence."
I was reading an article in Huck about a photographer called Cat Vinton.
(https://www.huckmag.com/article/documenting-nomads-around-the-world)
I was looking through the photos and it dawned on me...these nomads with their incredibly precarious lives, have less than 1% of what we have and take for granted in our developed nations. And yet for all that, they survive, have children, seem happy and manage.
It does make one wonder, about everything to be fair.
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By (user no longer on site) 21 weeks ago
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"We won't be buying so much disposable stuff. So we start to become more green as a consequence.
I was reading an article in Huck about a photographer called Cat Vinton.
(https://www.huckmag.com/article/documenting-nomads-around-the-world)
I was looking through the photos and it dawned on me...these nomads with their incredibly precarious lives, have less than 1% of what we have and take for granted in our developed nations. And yet for all that, they survive, have children, seem happy and manage.
It does make one wonder, about everything to be fair.
"
What’s stopping you? |
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"We won't be buying so much disposable stuff. So we start to become more green as a consequence.
I was reading an article in Huck about a photographer called Cat Vinton.
(https://www.huckmag.com/article/documenting-nomads-around-the-world)
I was looking through the photos and it dawned on me...these nomads with their incredibly precarious lives, have less than 1% of what we have and take for granted in our developed nations. And yet for all that, they survive, have children, seem happy and manage.
It does make one wonder, about everything to be fair.
"
It's relative |
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Far reaching consequences
Home repossessions have increased
Mortgage arrears have increased by reported 40%
Mortgaged buy to let’s, owners paying reported 40% more in interest
38% rise in section 21 evictions, reported 250k buy to let’s sold off
Shortage of affordable rented accommodation
Rise in homelessness contributed to by all of above |
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I am shared ownership so been told by my lender that I need a letter from the housing association to aprrove the interest only mortgage for six months. Contacted the HA and they said that wouldn't be a problem but want £75 for the letter and what to run through the financial checks again!
I don't see interest rates falling in 6 months and there is a chance they could rise. guess I'm going to go with the 5 year fixed at 5.05% and try to avoid the news for 5 years.
hmmm never thought I'd be having such a debate on fab swingers!
thanks for your input |
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"I am shared ownership so been told by my lender that I need a letter from the housing association to aprrove the interest only mortgage for six months. Contacted the HA and they said that wouldn't be a problem but want £75 for the letter and what to run through the financial checks again!
I don't see interest rates falling in 6 months and there is a chance they could rise. guess I'm going to go with the 5 year fixed at 5.05% and try to avoid the news for 5 years.
hmmm never thought I'd be having such a debate on fab swingers!
thanks for your input"
I did a quick Google search for expected base rate in 2025 - crikey there's about 5% difference between highest and lowest. In other words no-one has a damn clue. I think you're wise even if you end up paying more, cos it gives you financial stability for five years. |
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"I am shared ownership so been told by my lender that I need a letter from the housing association to aprrove the interest only mortgage for six months. Contacted the HA and they said that wouldn't be a problem but want £75 for the letter and what to run through the financial checks again!
I don't see interest rates falling in 6 months and there is a chance they could rise. guess I'm going to go with the 5 year fixed at 5.05% and try to avoid the news for 5 years.
hmmm never thought I'd be having such a debate on fab swingers!
thanks for your input
I did a quick Google search for expected base rate in 2025 - crikey there's about 5% difference between highest and lowest. In other words no-one has a damn clue. I think you're wise even if you end up paying more, cos it gives you financial stability for five years."
yeah I'm only prolonging taking the same deal for 6 months. My problem is that I can't switch lenders! My mortgage is a joint mortgage but I am now separated. While I can pay it ok as I rent out one of my rooms lenders don't take that as income and on paper I wouldn't pass the checks.
I should have switched lenders years ago but covid happened and so they suspended new customers until????? so I stuck with my current lender and interest rates went up
Hindsight eh?
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"I am shared ownership so been told by my lender that I need a letter from the housing association to aprrove the interest only mortgage for six months. Contacted the HA and they said that wouldn't be a problem but want £75 for the letter and what to run through the financial checks again!
I don't see interest rates falling in 6 months and there is a chance they could rise. guess I'm going to go with the 5 year fixed at 5.05% and try to avoid the news for 5 years.
hmmm never thought I'd be having such a debate on fab swingers!
thanks for your input"
5.05 is not a bad deal atm
1 year swap rate 4.9%
2 year 4.6%
5 year 3.6%
Swap rates are what lenders use to price retail mortgages, so they anticipate rates falling. |
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"I always found the key thing with any mortgage was to overpay it whenever you can.
Many people don’t realise that for the first 20 years of a 25 year mortgage all you are paying is interest.
"
If you have self discipline, then investing the difference into an ISA is often a much better idea.
You're effectively borrowing money at 5% to earn 10% on it. (Yes, both of those percentages can vary wildly, but the principle holds true over the long term)
What many people did was to reinvest that equity into a second rental property (15-20 years ago - much harder nowadays). |
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Just an update, my procrastination paid off. Didn't go for the 5 year fixed in the end. Spoke to an independent mortgage advisor who advised against it and if I could afford it go for a 2 year fixed.
After the inflation drop the 2 year fixed went from 5.75 to 5.60. The guy I spoke to expects interest rates to be 5.25 for all of 2024 then may drop.
So I went for the 2 year fixed. |
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"For anyone that was on a fixed deal that came or is comming to an end. Will you be fixing again or opting for a tracker?"
It depends on economic decisions. The moment there's some money printing inflation will follow and interest rates after.
I'll put myself on a tracker then if QE take place I'll lock in a FR |
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"Just an update, my procrastination paid off. Didn't go for the 5 year fixed in the end. Spoke to an independent mortgage advisor who advised against it and if I could afford it go for a 2 year fixed.
After the inflation drop the 2 year fixed went from 5.75 to 5.60. The guy I spoke to expects interest rates to be 5.25 for all of 2024 then may drop.
So I went for the 2 year fixed. "
I will be absolutely shocked if they stay at 5.25 for all of 2024. That would be some mighty economic mismanagement. |
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"Just an update, my procrastination paid off. Didn't go for the 5 year fixed in the end. Spoke to an independent mortgage advisor who advised against it and if I could afford it go for a 2 year fixed.
After the inflation drop the 2 year fixed went from 5.75 to 5.60. The guy I spoke to expects interest rates to be 5.25 for all of 2024 then may drop.
So I went for the 2 year fixed.
I will be absolutely shocked if they stay at 5.25 for all of 2024. That would be some mighty economic mismanagement."
Sorry do you expect them to rise or fall? |
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"Just an update, my procrastination paid off. Didn't go for the 5 year fixed in the end. Spoke to an independent mortgage advisor who advised against it and if I could afford it go for a 2 year fixed.
After the inflation drop the 2 year fixed went from 5.75 to 5.60. The guy I spoke to expects interest rates to be 5.25 for all of 2024 then may drop.
So I went for the 2 year fixed.
I will be absolutely shocked if they stay at 5.25 for all of 2024. That would be some mighty economic mismanagement.
Sorry do you expect them to rise or fall?"
They will rise even if solely. |
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"Just an update, my procrastination paid off. Didn't go for the 5 year fixed in the end. Spoke to an independent mortgage advisor who advised against it and if I could afford it go for a 2 year fixed.
After the inflation drop the 2 year fixed went from 5.75 to 5.60. The guy I spoke to expects interest rates to be 5.25 for all of 2024 then may drop.
So I went for the 2 year fixed.
I will be absolutely shocked if they stay at 5.25 for all of 2024. That would be some mighty economic mismanagement.
Sorry do you expect them to rise or fall?
They will rise even if solely."
You may be right, nobody knows for sure. Either way I'll worry about it in 2 years time |
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"Just an update, my procrastination paid off. Didn't go for the 5 year fixed in the end. Spoke to an independent mortgage advisor who advised against it and if I could afford it go for a 2 year fixed.
After the inflation drop the 2 year fixed went from 5.75 to 5.60. The guy I spoke to expects interest rates to be 5.25 for all of 2024 then may drop.
So I went for the 2 year fixed. "
The markets have priced for rates falling. Look at the swap and gilt yields. |
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Not that it's relevant now but the ombudsman got back to me on my case against the lender.
Obviously legally your lender doesn't have to offer you the same deal as new customers but doesn't have to over you any deal. For example if you were a new customer and took out a 2 year fixed and it ran out you could just be moved on to their variable rate with no other offers. |
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"Just an update, my procrastination paid off. Didn't go for the 5 year fixed in the end. Spoke to an independent mortgage advisor who advised against it and if I could afford it go for a 2 year fixed.
After the inflation drop the 2 year fixed went from 5.75 to 5.60. The guy I spoke to expects interest rates to be 5.25 for all of 2024 then may drop.
So I went for the 2 year fixed.
I will be absolutely shocked if they stay at 5.25 for all of 2024. That would be some mighty economic mismanagement.
Sorry do you expect them to rise or fall?"
They should fall and sharply. Anything else that 3% next year is economic mismanagement |
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"Just an update, my procrastination paid off. Didn't go for the 5 year fixed in the end. Spoke to an independent mortgage advisor who advised against it and if I could afford it go for a 2 year fixed.
After the inflation drop the 2 year fixed went from 5.75 to 5.60. The guy I spoke to expects interest rates to be 5.25 for all of 2024 then may drop.
So I went for the 2 year fixed.
I will be absolutely shocked if they stay at 5.25 for all of 2024. That would be some mighty economic mismanagement.
Sorry do you expect them to rise or fall?
They will rise even if solely."
The market is already pricing in lower rates.
If the BofE were to raise them. Andrew Bailey would re asser himself as somehow worse than Mark Carney |
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