Re-mortgage now or wait?
Discussion
I've been able to basque in the glory of almost zero interest rates on my mortgage since I started it in 2007, having a 0.23% above BoE base rate. As rates plummeted to almost zero % following the 2008 recession, my mortgage payments plummeted too, and so this continued until today with the rate now being above 5%.
I have 4 yrs left on my £50k mortgage, when it will be paid off in full. Not sure if there is any real gain in taking a fixed rate for the next four years. Even if rates remain as they are, over the life of the mortgage I've had amazing good luck.
I have 4 yrs left on my £50k mortgage, when it will be paid off in full. Not sure if there is any real gain in taking a fixed rate for the next four years. Even if rates remain as they are, over the life of the mortgage I've had amazing good luck.
The Gauge said:
I've been able to basque in the glory of almost zero interest rates on my mortgage since I started it in 2007, having a 0.23% above BoE base rate. As rates plummeted to almost zero % following the 2008 recession, my mortgage payments plummeted too, and so this continued until today with the rate now being above 5%.
I have 4 yrs left on my £50k mortgage, when it will be paid off in full. Not sure if there is any real gain in taking a fixed rate for the next four years. Even if rates remain as they are, over the life of the mortgage I've had amazing good luck.
Congrats!I have 4 yrs left on my £50k mortgage, when it will be paid off in full. Not sure if there is any real gain in taking a fixed rate for the next four years. Even if rates remain as they are, over the life of the mortgage I've had amazing good luck.
I've just had to send an illustration to a guy coming off a 1.08% interest only £281k mortgage at £252pm.........and will now be close to £1,100pm..........
DonkeyApple said:
The risk during this upward cycle is that we are more of a consumer society than ever before and trying to get people to actually not go shopping is close to impossible.
But personally, I don't think the BoE now controls that they way they once did. I think it's the FCA that controls how much people can buy when they go shopping.
Whilst unemployment is at record lows this is to be expected - the last gasps of a failing economy built on debt and low interest rates. When people cannot afford to spend as they did, unemployment will rise and there will be more choice for those employers who continue to stay in business and fewer pay rises. As a country we really are in a bit of a mess, getting further into debt with no plan to recover, just higher taxes, more poverty and higher unemployment.But personally, I don't think the BoE now controls that they way they once did. I think it's the FCA that controls how much people can buy when they go shopping.
We’re back in the 1970s!
NowWatchThisDrive said:
Yeah, the "need to accept they're poorer" bit struck me as rather Bailey-esque in phrasing and tone 
I would have stuck the osram into those who hold us back in the country. Everytime you protest against a new turbine or a new road rail restaurant new buildings etc you are making the country poorer and bills higher.NowWatchThisDrive said:
Yeah, the "need to accept they're poorer" bit struck me as rather Bailey-esque in phrasing and tone
Mind you, whatever you say the media will twist it to get their audience as enraged as possible so you might as just blunt as you like. It's can't think of a way he could had pointed out the obvious more sensitively. He should have just gone in with a boot to the face. DonkeyApple said:
Mind you, I wouldn't have phrased his last sound bite the way he did. I wouldn't have said that people need to get used to being less wealthy but instead said that people need to wake up to the reality that they were never as wealthy as they thought and how all that cheap borrowing made them think they were. 
People's attitude towards money and debt is very different today than not very long ago. Nearly everyone has a Land Rover product or two, and the spending habits of a WAG. We are still in post-Covid party mood. The country is full of overnight millionaires - what could possibly go wrong Phooey said:
People's attitude towards money and debt is very different today than not very long ago. Nearly everyone has a Land Rover product or two, and the spending habits of a WAG. We are still in post-Covid party mood. The country is full of overnight millionaires - what could possibly go wrong
'But Clive, do you now understand that you're not a special princess but a middle aged account manager from Burnley who hasn't been paying into his pension and is skint?'DonkeyApple said:
'But Clive, do you now understand that you're not a special princess but a middle aged account manager from Burnley who hasn't been paying into his pension and is skint?'
But seriously though - when you have a good few years of almost-free money on tick and you see your assets (house, cars, stocks, Cockapoos etc) increasing in value on a weekly basis you are only going to manufacture a wealth timebomb. A lot of us really do need to stop partying
Phooey said:
But seriously though - when you have a good few years of almost-free money on tick and you see your assets (house, cars, stocks, Cockapoos etc) increasing in value on a weekly basis you are only going to manufacture a wealth timebomb. A lot of us really do need to stop partying
DonkeyApple said:
True. At the same time the boom in global wealth has genuinely made the party real for millions. There is probably a good argument that the massive party has been completely manufactured by those who stood to gain from it, and who will leave everyone else in the s
t now the party has stopped
EFAt now the party has stoppedDonkeyApple said:
Adults decide how much they drink at parties though. Sympathy can only ever be spared for the servers and cleaners, never for the guests.
I’ve made some very stupid financial decisions in life but one I don’t regret is having no debt worth talking about. I’ve a mortgage but I could pay it off tomorrow.I’ve some doubts that the house of cards is ready to fall just yet but if it does being unleveraged is about the best a pleb like me can do.
If my house was worth nothing tomorrow it wouldn’t overly bother me as long as it wasn’t just my house
.cheesejunkie said:
Pixelpeep Electric said:
cheesejunkie said:
I’ve a mortgage but I could pay it off tomorrow.
So why don't you? t hit the fan I can pay it today. The st hasn’t hit the fan.Pixelpeep Electric said:
But if you have the money just sitting there (ie, not invested) it doesn't make financial sense to pay interest on the outstanding loan when you don't need to?
Correct but it’s now so small that the interest is tiny and having the flexibility is preferable. TBH passing the wife test matters too. It took some convincing to start overpaying in the first place, if I raided the joint account to pay off the mortgage in one go I’d have some explaining to do.
cheesejunkie said:
Pixelpeep Electric said:
But if you have the money just sitting there (ie, not invested) it doesn't make financial sense to pay interest on the outstanding loan when you don't need to?
Correct but it’s now so small that the interest is tiny and having the flexibility is preferable. TBH passing the wife test matters too. It took some convincing to start overpaying in the first place, if I raided the joint account to pay off the mortgage in one go I’d have some explaining to do.
also re the wife - a familiar story.... I bought a 400hp polestar new and less than a month later i wanted to spend another £1000 on the performance software upgrade... decided against floating the idea so soon
cheesejunkie said:
Pixelpeep Electric said:
But if you have the money just sitting there (ie, not invested) it doesn't make financial sense to pay interest on the outstanding loan when you don't need to?
Correct but it’s now so small that the interest is tiny and having the flexibility is preferable. TBH passing the wife test matters too. It took some convincing to start overpaying in the first place, if I raided the joint account to pay off the mortgage in one go I’d have some explaining to do.
Pixelpeep Electric said:
cheesejunkie said:
Pixelpeep Electric said:
But if you have the money just sitting there (ie, not invested) it doesn't make financial sense to pay interest on the outstanding loan when you don't need to?
Correct but it’s now so small that the interest is tiny and having the flexibility is preferable. TBH passing the wife test matters too. It took some convincing to start overpaying in the first place, if I raided the joint account to pay off the mortgage in one go I’d have some explaining to do.
also re the wife - a familiar story.... I bought a 400hp polestar new and less than a month later i wanted to spend another £1000 on the performance software upgrade... decided against floating the idea so soon
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