Mortgage rates 1%

[Aiminghigh123]

Ok just done a remortgage check and I can get a rate of 1.04% fixed for 5 years!!!!
2 years fixed 0.94%

Can the rates get any lower!!!

[Terminator X]

I am paying 0.5% over base and have been since 2006 though.

Your rate hopefully demonstrates that rates will stay low for some time yet!

We have of course outed ourselves here; all good PH'ers have no mortgage at all having paid it off in cash when they were entrepreneurs at school.

TX.

[swatches]

Terminator X said:

I am paying 0.5% over base and have been since 2006 though.

Your rate hopefully demonstrates that rates will stay low for some time yet!

We have of course outed ourselves here; all good PH'ers have no mortgage at all having paid it off in cash when they were entrepreneurs at school.

TX.

The new pistonheads meta will be to max a mortgage to leverage more money into high risk investments.
At ~1% it would be rude not to.

I've just moved from a lifetime tracker to a 5 year fix. Would have liked to have kept a lifetime tracker but looks like they have all but disappeared.

[MarcelM6]

Likewise on base +0.5% for life of mortgage. Not tempted to max it out - never play with the roof over my head.

Have been wondering what happens if interest rates go -ve? i.e. at -1% my mortgage rate would be -0.5%. Does the bank then pay the capital for me?

[CharlesElliott]

Your mortgage almost certainly has a clause on a minimum interest rate and / or base rate in the calculation.

[DoubleSix]

swatches said:

The new pistonheads meta will be to max a mortgage to leverage more money into high risk investments.
At ~1% it would be rude not to.

I've just moved from a lifetime tracker to a 5 year fix. Would have liked to have kept a lifetime tracker but looks like they have all but disappeared.

Pistonheads meta? Seriously…

Increasing leverage while borrowing costs are low is just common sense to many. Taking on debt has been the play of the last decade and not much has changed in that regard.

[anxious_ant]

Aiminghigh123 said:

Ok just done a remortgage check and I can get a rate of 1.04% fixed for 5 years!!!!
2 years fixed 0.94%

Can the rates get any lower!!!

Wow, that is great deal! Mine is 2 years fixed @ 1.29% with Santander and I thought that is really good.

[L_G]

anxious_ant said:

Aiminghigh123 said:

Ok just done a remortgage check and I can get a rate of 1.04% fixed for 5 years!!!!
2 years fixed 0.94%

Can the rates get any lower!!!

Wow, that is great deal! Mine is 2 years fixed @ 1.29% with Santander and I thought that is really good.

I suspect the arrangement fees will not be for the feint hearted

[anxious_ant]

L_G said:

anxious_ant said:

Aiminghigh123 said:

Ok just done a remortgage check and I can get a rate of 1.04% fixed for 5 years!!!!
2 years fixed 0.94%

Can the rates get any lower!!!

Wow, that is great deal! Mine is 2 years fixed @ 1.29% with Santander and I thought that is really good.

I suspect the arrangement fees will not be for the feint hearted

That's fair enough. I forgot what mine was to be honest. I've renewed with Santander twice now as they offer very competitive rates. I was with Halifax before and paying close to 3%.

Regardless, I am really hoping the interest rates stays low for the coming years, who knows I might even pay my mortgage off early!

[Sarnie]

CharlesElliott said:

Your mortgage almost certainly has a clause on a minimum interest rate and / or base rate in the calculation.

Yep, it's called the floor rate......

[MarcelM6]

Will have to dig out the (very old) paperwork from 2002.

[okgo]

anxious_ant said:

Wow, that is great deal! Mine is 2 years fixed @ 1.29% with Santander and I thought that is really good.

Looks like you need to be sub 60% LTV to get a sub 1% rate on a fix.

Nationwide doing 0.91% as the lowest I can see, 1500 quid set up fee though.

[anonymous-user]

Makes me wonder if we are going to see negative interest rates in the near future. I really cannot see these rates being offered if the banks had an inkling that rates were going to rise.

[ARHarh]

Being one of those who bought my house for cash (just because I'm old). I just wish I had rates like this when i was paying off mortgages. I don't think they will put up rates for a long time yet. Far too many people who if their interest payments double would end up homeless pretty quickly. After all 1% to 2% is not a lot in the history of interest rates, but it would mean a big change in monthly payments right now.

[okgo]

ARHarh said:

Being one of those who bought my house for cash (just because I'm old). I just wish I had rates like this when i was paying off mortgages. I don't think they will put up rates for a long time yet. Far too many people who if their interest payments double would end up homeless pretty quickly. After all 1% to 2% is not a lot in the history of interest rates, but it would mean a big change in monthly payments right now.

Houses have increased in price to compensate for it though

[ARHarh]

okgo said:

ARHarh said:

Being one of those who bought my house for cash (just because I'm old). I just wish I had rates like this when i was paying off mortgages. I don't think they will put up rates for a long time yet. Far too many people who if their interest payments double would end up homeless pretty quickly. After all 1% to 2% is not a lot in the history of interest rates, but it would mean a big change in monthly payments right now.

Houses have increased in price to compensate for it though

Equally so if the interest rate is 7% over 25 years (which was quite normal) you would pay back nearly twice what you would pay back a 1.5 %

[Matt p]

Pulled the trigger on a 2yr fix @1.24% with Nationwide at the start of the month. As others have said above, it looks like low rates are here to stay for some time now.

[LeadFarmer]

For people my age (nearly 50) who have seen rates above 5% then anything around 1% - 1.5% has to be regarded as a good rate, regardless of if rates drop further.

In 2007, just before the recession I took out a 0.23% above base tracker for life of mortgage. My rate soon started dropping from 5% to the current rate, causing my mortgage payments to drop from £800/month to £500. I left my payments at £700 to overpay it, and reduce the term. Getting that mortgage was perhaps the best financial deal I've ever had.

[bristolbaron]

Every time I’ve played the renewals game I’ve gambled and lost
Currently 2 yrs into a 5 yr fix at 1.8ish, I thought there was NO chance rates would get lower.

[PBDirector]

bristolbaron said:

Every time I’ve played the renewals game I’ve gambled and lost
Currently 2 yrs into a 5 yr fix at 1.8ish, I thought there was NO chance rates would get lower.

Snap!