Interest rates going up soon...

[Welshbeef]

jimPH said:

I had everyone telling me to go fixed when I took out a mortgage, since day 1 I've been variable and it's now down to 1.49% thanks to the last reduction.

Even if it goes up it won't be as much as what the fixed rate would have been.

Not a chance I'll be fixing anytime soon

But let's say you could fix fee free for 5 years @1.49% why wouldn't you?

Note I've not been fixed ever but now rates simply are not going to get lower or if they do it's a minuscule difference in pcm effective interest charge.

[turbobloke]

Welshbeef said:

jimPH said:

I had everyone telling me to go fixed when I took out a mortgage, since day 1 I've been variable and it's now down to 1.49% thanks to the last reduction.

Even if it goes up it won't be as much as what the fixed rate would have been.

Not a chance I'll be fixing anytime soon

But let's say you could fix fee free for 5 years @1.49% why wouldn't you?

You wouldn't if you considered the chances of your mortgage interest rate reaching and then exceeding 1.49% within 5 years were low enough for your personal level of risk tolerance to cope.

[Murph7355]

turbobloke said:

He's on the slide towards the date he's announced he's leaving on, less than two years now. His pronouncements before and after the vote suggest he's already demob happy. The BoE needs somebody with reputation and personal ambition at stake well beyond brexit. He's yesterday's man and he got it wrong yesterday. Remember these headlines?

George Osborne and Mark Carney admit they were wrong, Brexit predictions misjudged

Carney under fire as Bank admits Brexit vote didn't destroy economy ... he got his predictions wrong again

We got it wrong on Brexit - BoE admits it was too pessimistic

Bank of England admits 'Michael Fish' moment with dire Brexit predictions

Bank of England governor FINALLY admits that Brexit is NOT the biggest risk to UK

He needs to spend more time with his family.

At least he admitted he was wrong....GO/DC will never do that.

Though on the flip side despite smiting he was wrong his tune doesn't seem to have changed that markedly at times.

[oyster]

turbobloke said:

He's on the slide towards the date he's announced he's leaving on, less than two years now. His pronouncements before and after the vote suggest he's already demob happy. The BoE needs somebody with reputation and personal ambition at stake well beyond brexit. He's yesterday's man and he got it wrong yesterday. Remember these headlines?

George Osborne and Mark Carney admit they were wrong, Brexit predictions misjudged

Carney under fire as Bank admits Brexit vote didn't destroy economy ... he got his predictions wrong again

We got it wrong on Brexit - BoE admits it was too pessimistic

Bank of England admits 'Michael Fish' moment with dire Brexit predictions

Bank of England governor FINALLY admits that Brexit is NOT the biggest risk to UK


He needs to spend more time with his family.

You're focussing far too much on Brexit.

I remember earlier Carney gaffes. Forward Guidance for one - introduced as the next big thing in central banking from Canada. Forward Guidance said we'd consider rate rises when/if the unemployment rate drops below 7% (think it was 7.8% at the time). Well the rate dropped through 7%, 6%, 5% now to 4.3% - no rate rise!

[turbobloke]

oyster said:

You're focussing far too much on Brexit.

I remember earlier Carney gaffes. Forward Guidance for one - introduced as the next big thing in central banking from Canada. Forward Guidance said we'd consider rate rises when/if the unemployment rate drops below 7% (think it was 7.8% at the time). Well the rate dropped through 7%, 6%, 5% now to 4.3% - no rate rise!

He's had his moments for sure.

Osborne's man, yesterday's man, and as indicated he was wrong yesterday / not much better today,

[turbobloke]

Murph7355 said:

At least he admitted he was wrong....GO/DC will never do that.

Though on the flip side despite smiting he was wrong his tune doesn't seem to have changed that markedly at times.

Carney is almost a fully-fledged politician, a lot rubbed off from Osborne including CMD's fleas. When he finally makes the grade - as a politician - that sort of behaviour will stop. It's too late with too many gaffes to make the grade at the BoE.

[Jag_NE]

turbobloke said:

You wouldn't if you considered the chances of your mortgage interest rate reaching and then exceeding 1.49% within 5 years were low enough for your personal level of risk tolerance to cope.

that's my view too. if your circumstances change it may prove highly beneficial to extend the term or move to interest only. I'm overpaying to an extent and making some hay while the sun shines but a redundancy would cause me a short-medium term problem if i lumped into a 5 year fixed on a high repayment. The other option is to lower the monthly regular payment and accrue monthly making regular overpayments to achieve the same effect. Most cant avoid splurging what is "spare" each month however.

[crankedup]

Interest rates rising soon, whoopie doo!!!! maybe I won't be loosing money on my meagre instant access cash.

[jimPH]

turbobloke said:

Welshbeef said:

jimPH said:

I had everyone telling me to go fixed when I took out a mortgage, since day 1 I've been variable and it's now down to 1.49% thanks to the last reduction.

Even if it goes up it won't be as much as what the fixed rate would have been.

Not a chance I'll be fixing anytime soon

But let's say you could fix fee free for 5 years @1.49% why wouldn't you?

You wouldn't if you considered the chances of your mortgage interest rate reaching and then exceeding 1.49% within 5 years were low enough for your personal level of risk tolerance to cope.

Because I have no fees and no ERC. I can over pay and change anytime I like and have the option to switch and fix if I choose. I'm over paying well over the 10% normally allowed.

If I had fixed from the start I would still be paying 2.69%, I've halved my interest exposure.

[Cotty]

jimPH said:

If I had fixed from the start I would still be paying 2.69%, I've halved my interest exposure.

When I took out my mortgage 20 years ago I fixed the rate at 8.9% as it was the lowest it had been for 30 years. Mind you it doesn't see so bad when the house was only £60,000

[Don]

I have always gone for "Tracker" discounted rates...right up until I noted that the "floor" clause was keeping the interest rate I was paying well above where it had bottomed out.

Switched to the Building Society's standard mortgage rate at that point and saved money!

Due to my wife's stellar career and the fact that I have always tended to be in work we are now mortgage free some full eight years early.

I recommend it. For the first time ever I really have no debts, and money in the bank - upon which I earn sweet fk all interest, annoyingly.

For us now if Interest Rates rise it will be a good thing. I still have a great deal of empathy for those still paying mortgages, though. One day these low interest rates will rise: but I have less than no idea when.

[youngsyr]

jimPH said:

turbobloke said:

Welshbeef said:

jimPH said:

I had everyone telling me to go fixed when I took out a mortgage, since day 1 I've been variable and it's now down to 1.49% thanks to the last reduction.

Even if it goes up it won't be as much as what the fixed rate would have been.

Not a chance I'll be fixing anytime soon

But let's say you could fix fee free for 5 years @1.49% why wouldn't you?

You wouldn't if you considered the chances of your mortgage interest rate reaching and then exceeding 1.49% within 5 years were low enough for your personal level of risk tolerance to cope.

Because I have no fees and no ERC. I can over pay and change anytime I like and have the option to switch and fix if I choose. I'm over paying well over the 10% normally allowed.

If I had fixed from the start I would still be paying 2.69%, I've halved my interest exposure.

Santander are currently offering a 5 year fix at 1.79% with no fees and 60% LTV for new customers. Might be of interest to lock in your low rate?

[youngsyr]

Don said:

I have always gone for "Tracker" discounted rates...right up until I noted that the "floor" clause was keeping the interest rate I was paying well above where it had bottomed out.

Switched to the Building Society's standard mortgage rate at that point and saved money!

Due to my wife's stellar career and the fact that I have always tended to be in work we are now mortgage free some full eight years early.

I recommend it. For the first time ever I really have no debts, and money in the bank - upon which I earn sweet fk all interest, annoyingly.

Have you considered taking on a bit more risk with your savings to earn a better return?

I'm not an IFA and don't know your situation, so seek professional advice, but it seems like you're not far off of 55 and your wife is likely a higher rate taxpayer, so paying extra into your wife's pension (and getting instant tax relief at her marginal tax rate) could earn you a decent return, albeit locked away until your wife is 55.

For example, if she paid in £1,000 of her net salary into her pension and she's a 40% taxpayer, the investment would automatically be uplifted to £1,400 via tax relief. That's an instant 40% return on investment without any movement in the underlying investment. As above, it would be locked away until your wife is 55 though and there may be some tax to pay on withdrawal.

Don said:

For us now if Interest Rates rise it will be a good thing. I still have a great deal of empathy for those still paying mortgages, though. One day these low interest rates will rise: but I have less than no idea when.

Who does? This thread was started in 2014 when rate rises were widely predicted as "imminent"!

[turbobloke]

youngsyr said:

Don said:

I have always gone for "Tracker" discounted rates...right up until I noted that the "floor" clause was keeping the interest rate I was paying well above where it had bottomed out.

Switched to the Building Society's standard mortgage rate at that point and saved money!

Due to my wife's stellar career and the fact that I have always tended to be in work we are now mortgage free some full eight years early.

I recommend it. For the first time ever I really have no debts, and money in the bank - upon which I earn sweet fk all interest, annoyingly.

Have you considered taking on a bit more risk with your savings to earn a better return?

I'm not an IFA and don't know your situation, so seek professional advice, but it seems like you're not far off of 55 and your wife is likely a higher rate taxpayer, so paying extra into your wife's pension (and getting instant tax relief at her marginal tax rate) could earn you a decent return, albeit locked away until your wife is 55.

For example, if she paid in £1,000 of her net salary into her pension and she's a 40% taxpayer, the investment would automatically be uplifted to £1,400 via tax relief. That's an instant 40% return on investment without any movement in the underlying investment. As above, it would be locked away until your wife is 55 though and there may be some tax to pay on withdrawal.

Don said:

For us now if Interest Rates rise it will be a good thing. I still have a great deal of empathy for those still paying mortgages, though. One day these low interest rates will rise: but I have less than no idea when.

Who does? This thread was started in 2014 when rate rises were widely predicted as "imminent"!

Date of future interest rate rise - an unknown.

Date of possible future divorce - an unknown.

Life goes on with neither known but both are worth a thought...

[jimPH]

youngsyr said:

jimPH said:

turbobloke said:

Welshbeef said:

jimPH said:

I had everyone telling me to go fixed when I took out a mortgage, since day 1 I've been variable and it's now down to 1.49% thanks to the last reduction.

Even if it goes up it won't be as much as what the fixed rate would have been.

Not a chance I'll be fixing anytime soon

But let's say you could fix fee free for 5 years @1.49% why wouldn't you?

You wouldn't if you considered the chances of your mortgage interest rate reaching and then exceeding 1.49% within 5 years were low enough for your personal level of risk tolerance to cope.

Because I have no fees and no ERC. I can over pay and change anytime I like and have the option to switch and fix if I choose. I'm over paying well over the 10% normally allowed.

If I had fixed from the start I would still be paying 2.69%, I've halved my interest exposure.

Santander are currently offering a 5 year fix at 1.79% with no fees and 60% LTV for new customers. Might be of interest to lock in your low rate?

Are you sure?

My LTV is 37.5%, I'm also a select customer with Santander and i see the rate you mention. However, the fee is £999 and the ERC is 5% + pay back the legal fees. I'm currently over paying £100/wk.

Their tracker is 1.09%, no ERC and the same fee.

The fee might still make it more expensive, but I could do that, even though I have a year to go on my deal, I can change at any time with no penalty, because I don't have an ERC and that is the best bit.

I see an interest rate rise as pretty low risk in the current climate.

[youngsyr]

jimPH said:

youngsyr said:

jimPH said:

turbobloke said:

Welshbeef said:

jimPH said:

I had everyone telling me to go fixed when I took out a mortgage, since day 1 I've been variable and it's now down to 1.49% thanks to the last reduction.

Even if it goes up it won't be as much as what the fixed rate would have been.

Not a chance I'll be fixing anytime soon

But let's say you could fix fee free for 5 years @1.49% why wouldn't you?

You wouldn't if you considered the chances of your mortgage interest rate reaching and then exceeding 1.49% within 5 years were low enough for your personal level of risk tolerance to cope.

Because I have no fees and no ERC. I can over pay and change anytime I like and have the option to switch and fix if I choose. I'm over paying well over the 10% normally allowed.

If I had fixed from the start I would still be paying 2.69%, I've halved my interest exposure.

Santander are currently offering a 5 year fix at 1.79% with no fees and 60% LTV for new customers. Might be of interest to lock in your low rate?

Are you sure?

My LTV is 37.5%, I'm also a select customer with Santander and i see the rate you mention. However, the fee is £999 and the ERC is 5% + pay back the legal fees. I'm currently over paying £100/wk.

Their tracker is 1.09%, no ERC and the same fee.

The fee might still make it more expensive, but I could do that, even though I have a year to go on my deal, I can change at any time with no penalty, because I don't have an ERC and that is the best bit.

I see an interest rate rise as pretty low risk in the current climate.

Yep, widely discussed here:

https://www.hotukdeals.com/deals/5-year-fixed-rate...

The key point is that you must be a new customer to Santander though.

[youngsyr]

turbobloke said:

youngsyr said:

Don said:

I have always gone for "Tracker" discounted rates...right up until I noted that the "floor" clause was keeping the interest rate I was paying well above where it had bottomed out.

Switched to the Building Society's standard mortgage rate at that point and saved money!

Due to my wife's stellar career and the fact that I have always tended to be in work we are now mortgage free some full eight years early.

I recommend it. For the first time ever I really have no debts, and money in the bank - upon which I earn sweet fk all interest, annoyingly.

Have you considered taking on a bit more risk with your savings to earn a better return?

I'm not an IFA and don't know your situation, so seek professional advice, but it seems like you're not far off of 55 and your wife is likely a higher rate taxpayer, so paying extra into your wife's pension (and getting instant tax relief at her marginal tax rate) could earn you a decent return, albeit locked away until your wife is 55.

For example, if she paid in £1,000 of her net salary into her pension and she's a 40% taxpayer, the investment would automatically be uplifted to £1,400 via tax relief. That's an instant 40% return on investment without any movement in the underlying investment. As above, it would be locked away until your wife is 55 though and there may be some tax to pay on withdrawal.

Don said:

For us now if Interest Rates rise it will be a good thing. I still have a great deal of empathy for those still paying mortgages, though. One day these low interest rates will rise: but I have less than no idea when.

Who does? This thread was started in 2014 when rate rises were widely predicted as "imminent"!

Date of future interest rate rise - an unknown.

Date of possible future divorce - an unknown.

Life goes on with neither known but both are worth a thought...

In all seriousness the divorce issue isn't relevant, is it?

From what I understand, even if they do divorce between now and withdrawing the money from the pension, the husband is still entitled to whatever % of the marital assets exist at the date of the divorce, including pensions.

So, the strategy remains the same whether it's 'til death do us part or cutting up his suits: maximise the returns on the marital assets, who technically owns them is irrelevant, as they're joint assets in the eyes of the law regardless.

[turbobloke]

youngsyr said:

turbobloke said:

youngsyr said:

Don said:

I have always gone for "Tracker" discounted rates...right up until I noted that the "floor" clause was keeping the interest rate I was paying well above where it had bottomed out.

Switched to the Building Society's standard mortgage rate at that point and saved money!

Due to my wife's stellar career and the fact that I have always tended to be in work we are now mortgage free some full eight years early.

I recommend it. For the first time ever I really have no debts, and money in the bank - upon which I earn sweet fk all interest, annoyingly.

Have you considered taking on a bit more risk with your savings to earn a better return?

I'm not an IFA and don't know your situation, so seek professional advice, but it seems like you're not far off of 55 and your wife is likely a higher rate taxpayer, so paying extra into your wife's pension (and getting instant tax relief at her marginal tax rate) could earn you a decent return, albeit locked away until your wife is 55.

For example, if she paid in £1,000 of her net salary into her pension and she's a 40% taxpayer, the investment would automatically be uplifted to £1,400 via tax relief. That's an instant 40% return on investment without any movement in the underlying investment. As above, it would be locked away until your wife is 55 though and there may be some tax to pay on withdrawal.

Don said:

For us now if Interest Rates rise it will be a good thing. I still have a great deal of empathy for those still paying mortgages, though. One day these low interest rates will rise: but I have less than no idea when.

Who does? This thread was started in 2014 when rate rises were widely predicted as "imminent"!

Date of future interest rate rise - an unknown.

Date of possible future divorce - an unknown.

Life goes on with neither known but both are worth a thought...

In all seriousness the divorce issue isn't relevant, is it?

From what I understand, even if they do divorce between now and withdrawing the money from the pension, the husband is still entitled to whatever % of the marital assets exist at the date of the divorce, including pensions.

So, the strategy remains the same whether it's 'til death do us part or cutting up his suits: maximise the returns on the marital assets, who technically owns them is irrelevant, as they're joint assets in the eyes of the law regardless.

It depends - on how the hypothetical divorce is conducted, and what it involves in terms of joint marital wealth.

Lots of assets can make a fight more likely and more acrimonious, no guarantees of course but there tends to be little sweat, including legal sweat, over buttons.

Two lawyers may end up with sizeable deposits for their next new Porsche and the house to park it outside.

[youngsyr]

youngsyr said:

jimPH said:

youngsyr said:

jimPH said:

turbobloke said:

Welshbeef said:

jimPH said:

I had everyone telling me to go fixed when I took out a mortgage, since day 1 I've been variable and it's now down to 1.49% thanks to the last reduction.

Even if it goes up it won't be as much as what the fixed rate would have been.

Not a chance I'll be fixing anytime soon

But let's say you could fix fee free for 5 years @1.49% why wouldn't you?

You wouldn't if you considered the chances of your mortgage interest rate reaching and then exceeding 1.49% within 5 years were low enough for your personal level of risk tolerance to cope.

Because I have no fees and no ERC. I can over pay and change anytime I like and have the option to switch and fix if I choose. I'm over paying well over the 10% normally allowed.

If I had fixed from the start I would still be paying 2.69%, I've halved my interest exposure.

Santander are currently offering a 5 year fix at 1.79% with no fees and 60% LTV for new customers. Might be of interest to lock in your low rate?

Are you sure?

My LTV is 37.5%, I'm also a select customer with Santander and i see the rate you mention. However, the fee is £999 and the ERC is 5% + pay back the legal fees. I'm currently over paying £100/wk.

Their tracker is 1.09%, no ERC and the same fee.

The fee might still make it more expensive, but I could do that, even though I have a year to go on my deal, I can change at any time with no penalty, because I don't have an ERC and that is the best bit.

I see an interest rate rise as pretty low risk in the current climate.

Yep, widely discussed here:

https://www.hotukdeals.com/deals/5-year-fixed-rate...

The key point is that you must be a new customer to Santander though.

This might be of interest too - higher fee (£999), but lower rate (1.59%) and higher LTV (65%)available:

http://www.monbs.com/5-year-fixed-rate-remortgage-...

[anonymous-user]

Don said:

I have always gone for "Tracker" discounted rates...right up until I noted that the "floor" clause was keeping the interest rate I was paying well above where it had bottomed out.

Switched to the Building Society's standard mortgage rate at that point and saved money!

Due to my wife's stellar career and the fact that I have always tended to be in work we are now mortgage free some full eight years early.

I recommend it. For the first time ever I really have no debts, and money in the bank - upon which I earn sweet fk all interest, annoyingly.

For us now if Interest Rates rise it will be a good thing. I still have a great deal of empathy for those still paying mortgages, though. One day these low interest rates will rise: but I have less than no idea when.

I took out a tracker in around 2008 with IF. BOE + .59% for the life of the mortgage. No floor.
I guess i'm costing them money.
No point in paying it off now (savings so could clear it) unless they will cut a deal & knock something off!
Do such lenders offer a reduction, for early settlement ?