Negative Interest

[clio007]

So it looks like house prices are set to rocket

[Matt p]

rossub said:

I just took out a tracker until April ‘23... yayyy

Although no doubt there is a clause about 0% being the floor for the base rate.

Currently in this conundrum at the moment. Had a rathe lengthy call with Nationwide this morning. The advisor was really pushing the two year tracker. Upon looking into further the tracker floor is 0% and has been since June 2009. Current LTV is 60% and tracker is base +1.19.

[rossub]

Matt p said:

rossub said:

I just took out a tracker until April ‘23... yayyy

Although no doubt there is a clause about 0% being the floor for the base rate.

Currently in this conundrum at the moment. Had a rathe lengthy call with Nationwide this morning. The advisor was really pushing the two year tracker. Upon looking into further the tracker floor is 0% and has been since June 2009. Current LTV is 60% and tracker is base +1.19.

Yeah I checked the terms, but the tracker rate can actually go to as low as 0% as a minimum. Unlikely rates would go low enough within 2 years for that to happen on mine though. It’s 1.65% + base (no fee).

[carreauchompeur]

rossub said:

Matt p said:

rossub said:

I just took out a tracker until April ‘23... yayyy

Although no doubt there is a clause about 0% being the floor for the base rate.

Currently in this conundrum at the moment. Had a rathe lengthy call with Nationwide this morning. The advisor was really pushing the two year tracker. Upon looking into further the tracker floor is 0% and has been since June 2009. Current LTV is 60% and tracker is base +1.19.

Yeah I checked the terms, but the tracker rate can actually go to as low as 0% as a minimum. Unlikely rates would go low enough within 2 years for that to happen on mine though. It’s 1.65% + base (no fee).

There must still be some people on unicorn trackers who are already in negative interest?

[BoRED S2upid]

Simpo Two said:

rockin said:

"In Denmark, borrowers have been offered mortgages with negative interest rates. Mortgage customers with Jyske Bank were lent money at a rate of -0.5%, which meant the sum they owed fell each month by more than the sum they had repaid. There is no reason why UK lenders could not follow suit."

I think my head just melted...

That's nuts, it means free houses.

R4 bod this morning said that as banks can't drop rates on deposits any more, they could put rates up on loans to maintain profits.

For now. Won’t it just result in people spending the free money elsewhere? Loading up on debt on the never never. I doubt it will happen here and if it did the loan would have large set up fees attached.

[gangzoom]

So what do people reckon is going to happen with rates?

We need to extract about 150-200k from our currently house for a big rebuild project to start sometimes next 6 months. I've spoken to our lender based on income and current LTV its not an issue getting the money.

But I don't want to end up paying 1.5% APR (current best rates for 5 years fixed) if 0% APR might be coming?

Equally all the fake money invented recently has to be paid back eventually, which surely means increasing inflation and higher interest rates.

Am quite comfortably borrowing £150k at 1.5% not so much so at 4%. The vast majority of the additional debt will be cleared within 5 years so its only the initial fixed rate I care about.

So anyone got a crystal ball and can predict the future.

Edited by gangzoom on Friday 26th February 05:51

[The Moose]

gangzoom said:

So what do people reckon is going to happen with rates?

We need to extract about 150-200k from our currently house for a big rebuild project to start sometimes next 6 months. I've spoken to our lender based on income and current LTV its not an issue getting the money.

But I don't want to end up paying 1.5% APR (current best rates for 5 years fixed) if 0% APR might be coming?

Equally all the fake money invented recently has to be paid back eventually, which surely means increasing inflation and higher interest rates.

Am quite comfortably borrowing £150k at 1.5% not so much so at 4%. The vast majority of the additional debt will be cleared within 5 years so its only the initial fixed rate I care about.

So anyone got a crystal ball and can predict the future.

Edited by gangzoom on Friday 26th February 05:51

You’re talking about potentially £3k/year as the worst case scenario. I wouldn’t worry too much and get it done!

[gangzoom]

The Moose said:

You’re talking about potentially £3k/year as the worst case scenario. I wouldn’t worry too much and get it done!

Well put .

[Simpo Two]

gangzoom said:

We need to extract about 150-200k from our currently house for a big rebuild project to start sometimes next 6 months. I've spoken to our lender based on income and current LTV its not an issue getting the money.

But I don't want to end up paying 1.5% APR (current best rates for 5 years fixed) if 0% APR might be coming?

If so I'll get Sebastian Ferranti's old place. Probably £30M but with nothing to repay who cares!

[Lim]

Simpo Two said:

If so I'll get Sebastian Ferranti's old place. Probably £30M but with nothing to repay who cares!

Yes would be good if the banks would pass a bit more of the rate saving down to the plebs, but unlikely to happen.