BOE 3rd November Rate Announcement
Discussion
ked the economy.
My rate is due to end next October, currently it's 1.9% and I'll have about £65k left. My provider's current rates are over 5.5% SVR and even more for a fix, I'm guessing they'll be about that or more this time next year.
Last week I got myself a £25k bank loan at 3.9% and have stuck this away for 6 months earning almost the same in interest as what it's costing me. I'm lucky enough ( tight enough) that I've managed to save enough to pay off the rest of the mortgage if I put this £25k in.
So if mortgage rates are below this next October I'll renew and just pay off the loan. If they're more I'll clear the mortgage and my only debt will be the remainder of the £25k.
I think I've done a good thing, worst case it's cost me a couple of hundred quid. But I have a bit of peace of mind now knowing I don't have to secure another mortgage unless I want to.
Last week I got myself a £25k bank loan at 3.9% and have stuck this away for 6 months earning almost the same in interest as what it's costing me. I'm lucky enough ( tight enough) that I've managed to save enough to pay off the rest of the mortgage if I put this £25k in.
So if mortgage rates are below this next October I'll renew and just pay off the loan. If they're more I'll clear the mortgage and my only debt will be the remainder of the £25k.
I think I've done a good thing, worst case it's cost me a couple of hundred quid. But I have a bit of peace of mind now knowing I don't have to secure another mortgage unless I want to.
mdavids said:
My rate is due to end next October, currently it's 1.9% and I'll have about £65k left. My provider's current rates are over 5.5% SVR and even more for a fix, I'm guessing they'll be about that or more this time next year.
Last week I got myself a £25k bank loan at 3.9% and have stuck this away for 6 months earning almost the same in interest as what it's costing me. I'm lucky enough ( tight enough) that I've managed to save enough to pay off the rest of the mortgage if I put this £25k in.
So if mortgage rates are below this next October I'll renew and just pay off the loan. If they're more I'll clear the mortgage and my only debt will be the remainder of the £25k.
I think I've done a good thing, worst case it's cost me a couple of hundred quid. But I have a bit of peace of mind now knowing I don't have to secure another mortgage unless I want to.
Good forward planning, well done.Last week I got myself a £25k bank loan at 3.9% and have stuck this away for 6 months earning almost the same in interest as what it's costing me. I'm lucky enough ( tight enough) that I've managed to save enough to pay off the rest of the mortgage if I put this £25k in.
So if mortgage rates are below this next October I'll renew and just pay off the loan. If they're more I'll clear the mortgage and my only debt will be the remainder of the £25k.
I think I've done a good thing, worst case it's cost me a couple of hundred quid. But I have a bit of peace of mind now knowing I don't have to secure another mortgage unless I want to.
mdavids said:
My rate is due to end next October, currently it's 1.9% and I'll have about £65k left. My provider's current rates are over 5.5% SVR and even more for a fix, I'm guessing they'll be about that or more this time next year.
Last week I got myself a £25k bank loan at 3.9% and have stuck this away for 6 months earning almost the same in interest as what it's costing me. I'm lucky enough ( tight enough) that I've managed to save enough to pay off the rest of the mortgage if I put this £25k in.
So if mortgage rates are below this next October I'll renew and just pay off the loan. If they're more I'll clear the mortgage and my only debt will be the remainder of the £25k.
I think I've done a good thing, worst case it's cost me a couple of hundred quid. But I have a bit of peace of mind now knowing I don't have to secure another mortgage unless I want to.
I’m doing the same, just sold my house and would have had no mortgage when I move had I sold earlier in the year but will be about 30k short when we move to the new one with my partner. We are going 50/50 on a big place with no mortgage (or so I thought) but I will be 30k short in the total maths so will settle my mortgage now and then either get a 30k loan which I can pay off in 2 years or take a short term mortgage with no redemption penalty. Last week I got myself a £25k bank loan at 3.9% and have stuck this away for 6 months earning almost the same in interest as what it's costing me. I'm lucky enough ( tight enough) that I've managed to save enough to pay off the rest of the mortgage if I put this £25k in.
So if mortgage rates are below this next October I'll renew and just pay off the loan. If they're more I'll clear the mortgage and my only debt will be the remainder of the £25k.
I think I've done a good thing, worst case it's cost me a couple of hundred quid. But I have a bit of peace of mind now knowing I don't have to secure another mortgage unless I want to.
Jurgen Schmidt said:
Hard to see what effect it'll have, it's not like consumers are out there splashing their cash - inflation is being caused by systemic factors
Agreed, in reality it is only punishing those people who's fixed rates happen to be coming to an end, 100,000 per month according to the BBC.I guess they assume that because people have less money to spend as it is all being eaten up by mortgage payments this will mean prices and inflation have to fall.
Interesting that this is likely to cause house prices to fall which is the one thing the Tory government have always tried to protect no matter what.
Personally I think we are in for a big recession now, the big job lay offs will be happening in the new year.
interstellar said:
mdavids said:
My rate is due to end next October, currently it's 1.9% and I'll have about £65k left. My provider's current rates are over 5.5% SVR and even more for a fix, I'm guessing they'll be about that or more this time next year.
Last week I got myself a £25k bank loan at 3.9% and have stuck this away for 6 months earning almost the same in interest as what it's costing me. I'm lucky enough ( tight enough) that I've managed to save enough to pay off the rest of the mortgage if I put this £25k in.
So if mortgage rates are below this next October I'll renew and just pay off the loan. If they're more I'll clear the mortgage and my only debt will be the remainder of the £25k.
I think I've done a good thing, worst case it's cost me a couple of hundred quid. But I have a bit of peace of mind now knowing I don't have to secure another mortgage unless I want to.
I’m doing the same, just sold my house and would have had no mortgage when I move had I sold earlier in the year but will be about 30k short when we move to the new one with my partner. We are going 50/50 on a big place with no mortgage (or so I thought) but I will be 30k short in the total maths so will settle my mortgage now and then either get a 30k loan which I can pay off in 2 years or take a short term mortgage with no redemption penalty. Last week I got myself a £25k bank loan at 3.9% and have stuck this away for 6 months earning almost the same in interest as what it's costing me. I'm lucky enough ( tight enough) that I've managed to save enough to pay off the rest of the mortgage if I put this £25k in.
So if mortgage rates are below this next October I'll renew and just pay off the loan. If they're more I'll clear the mortgage and my only debt will be the remainder of the £25k.
I think I've done a good thing, worst case it's cost me a couple of hundred quid. But I have a bit of peace of mind now knowing I don't have to secure another mortgage unless I want to.
I haven't yet locked all the £25k away as I'm hoping I can get a better savings rate now the base has gone up again.
The worry for me is the recession we keep expecting, it just seems to keep getting pushed back and back. And generally we know from experience the further back it gets pushed the worse it will be when it does finally crash.
The biggest worry for me is while some consumers aren't spending, some are still spending like water, I don't know where the money's coming from because I'm sure as hell not seeing any of it. I got an email from Anglia car auctions this morning with guide prices on some fairly mundane classics that are still well over the value of the cars as the market has been for years now, I have a real feeling that people are dumping money in to classic cars as a safe place to put it, last time that happened was back at the start of the 90s and the market went through the floor leaving people holding deeply ordinary cars they had bought at extraordinary prices.
The biggest worry for me is while some consumers aren't spending, some are still spending like water, I don't know where the money's coming from because I'm sure as hell not seeing any of it. I got an email from Anglia car auctions this morning with guide prices on some fairly mundane classics that are still well over the value of the cars as the market has been for years now, I have a real feeling that people are dumping money in to classic cars as a safe place to put it, last time that happened was back at the start of the 90s and the market went through the floor leaving people holding deeply ordinary cars they had bought at extraordinary prices.
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