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  • FIRST POST
    • drewhyndman
    • By drewhyndman 5th Dec 17, 11:02 AM
    • 1Posts
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    drewhyndman
    Worried about variable rate mortgages
    • #1
    • 5th Dec 17, 11:02 AM
    Worried about variable rate mortgages 5th Dec 17 at 11:02 AM
    I'm a freelance journalist so my income isn't exactly stable, the only way I see myself owning a home anytime soon is by taking a variable rate mortgage. But I've spoken to enough people who lived through 2008/09 and lost their homes as their variable rates rocketed.

    Does anyone else have one and how do you manage it? Are you worried that what happened 10 years about might happen?
Page 1
    • ViolaLass
    • By ViolaLass 5th Dec 17, 11:09 AM
    • 5,130 Posts
    • 7,132 Thanks
    ViolaLass
    • #2
    • 5th Dec 17, 11:09 AM
    • #2
    • 5th Dec 17, 11:09 AM
    Why can't you get a fixed rate mortgage? If a lender agrees to give you a mortgage, they're bound to have fixed rates available.
    • getmore4less
    • By getmore4less 5th Dec 17, 11:12 AM
    • 30,732 Posts
    • 18,365 Thanks
    getmore4less
    • #3
    • 5th Dec 17, 11:12 AM
    • #3
    • 5th Dec 17, 11:12 AM
    Never had a fix, trackers and offset,

    Fix they only protect for a very short window and in most cases the trackers ended up cheaper anyway.

    we are in a slightly different time fixes can trail the rising edge on rates so may win for a few years but not by a lot.
    • Neutrinno
    • By Neutrinno 5th Dec 17, 11:14 AM
    • 151 Posts
    • 69 Thanks
    Neutrinno
    • #4
    • 5th Dec 17, 11:14 AM
    • #4
    • 5th Dec 17, 11:14 AM
    the only way I see myself owning a home anytime soon is by taking a variable rate mortgage.
    Originally posted by drewhyndman
    Why? If a lender will lend, they will typically have fixed rates available.

    What makes you think variable is the only option?
    I am a Mortgage Broker.

    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • Linton
    • By Linton 5th Dec 17, 2:23 PM
    • 8,605 Posts
    • 8,569 Thanks
    Linton
    • #5
    • 5th Dec 17, 2:23 PM
    • #5
    • 5th Dec 17, 2:23 PM
    Did mortgage interest rates rise significantly in 2008/9? The BoE interest rate was pretty constant from 1993 to 2009 when it dropped to around its current amount. In the late 1970s/early 1980s mortgage rates went up to around 15%! See here.
    • ViolaLass
    • By ViolaLass 5th Dec 17, 2:57 PM
    • 5,130 Posts
    • 7,132 Thanks
    ViolaLass
    • #6
    • 5th Dec 17, 2:57 PM
    • #6
    • 5th Dec 17, 2:57 PM
    Might the OP be talking about secured loans (no mortgages). Northern Rock, maybe?
    • AnotherJoe
    • By AnotherJoe 5th Dec 17, 4:56 PM
    • 7,670 Posts
    • 8,278 Thanks
    AnotherJoe
    • #7
    • 5th Dec 17, 4:56 PM
    • #7
    • 5th Dec 17, 4:56 PM
    I'm a freelance journalist so my income isn't exactly stable, the only way I see myself owning a home anytime soon is by taking a variable rate mortgage. But I've spoken to enough people who lived through 2008/09 and lost their homes as their variable rates rocketed.

    Does anyone else have one and how do you manage it? Are you worried that what happened 10 years about might happen?
    Originally posted by drewhyndman
    Rates didn’t “rocket” they fell, indeed I’d say plummeted, more than halving during 2008.
    People lost houses because they lost jobs.

    I can almost resist the temptation to hope that as a journalist you check your facts better than this.
    Last edited by AnotherJoe; 05-12-2017 at 4:59 PM.
    • sammyjammy
    • By sammyjammy 5th Dec 17, 7:15 PM
    • 4,237 Posts
    • 4,583 Thanks
    sammyjammy
    • #8
    • 5th Dec 17, 7:15 PM
    • #8
    • 5th Dec 17, 7:15 PM
    I'm a freelance journalist so my income isn't exactly stable, the only way I see myself owning a home anytime soon is by taking a variable rate mortgage. But I've spoken to enough people who lived through 2008/09 and lost their homes as their variable rates rocketed.

    Does anyone else have one and how do you manage it? Are you worried that what happened 10 years about might happen?
    Originally posted by drewhyndman
    Really? I don't know anyone that lost their house for that reason. You do know that the financial crash actually caused interest rates to reduce? I think you need to do some homework to understand mortgages.

    As has been said if you are hung up on a fixed rate then there is no reason why you can't have one assuming someone will lend you the money in the first place.
    "You've been reading SOS when it's just your clock reading 5:05 "
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