Am I panicking to early? NR

bexman

Hi guys

We have a mortgage with the dreaded NR, originally I took it out on a derilict apartment and took advantage of the 120% to restore it to its full glory.

I sold that place and recouped the 20% on it, we know live in a 3 bed house worth approx £170,000 but in an area where a lot of properties are for sale and not moving.

We have a Northern Rock mortgage fixed until February 2010, I took a 5 year fixed rate initially. Am I panicking too early? Im anxious that its going to go through the roof (excuse the pun) but people keep telling me that Ive got plenty of time to go.

I think the rate is 6.5% so on payments of £950 can anybody give me an indication of how much more I would pay on the current flexible northern rock rate?

Thanks in advance.

RichOneday_2

bexman wrote: »

Hi guys

We have a mortgage with the dreaded NR, originally I took it out on a derilict apartment and took advantage of the 120% to restore it to its full glory.

I sold that place and recouped the 20% on it, we know live in a 3 bed house worth approx £170,000 but in an area where a lot of properties are for sale and not moving.

We have a Northern Rock mortgage fixed until February 2010, I took a 5 year fixed rate initially. Am I panicking too early? Im anxious that its going to go through the roof (excuse the pun) but people keep telling me that Ive got plenty of time to go.

I think the rate is 6.5% so on payments of £950 can anybody give me an indication of how much more I would pay on the current flexible northern rock rate?

Thanks in advance.

There's guesswork involved but you should allow for mortgage rates maybe touching 8.5% around 2010. Forget Base Rates, LIBOR (what banks lend to each other at) is the key determinant of mortgage rates at the moment. So if you look at a scenario of 1/3 rd more than now it probably wont be too far from reality.

bexman

Thanks, may need to start saving now then I guess.

Dan:_4

Ignore that post from RichOneday. Know one knows what rates will be in 2010.

Rabiddog_2

Just a slight criticism, but there is one post by bexman followed by a post by richoneday , which quotes the whole of the immediately preceding post? Am I the only one who fails to see the reason for this? It does tend to make some threads hard to read...please can we stop this egregious quoting of posts?

Wutang_2

RichOneday wrote: »

There's guesswork involved but you should allow for mortgage rates maybe touching 8.5% around 2010. Forget Base Rates, LIBOR (what banks lend to each other at) is the key determinant of mortgage rates at the moment. So if you look at a scenario of 1/3 rd more than now it probably wont be too far from reality.

"guesswork" which "wont be too far from reality"...???

RichOneday_2

Dan: wrote: »

Ignore that post from RichOneday. Know one knows what rates will be in 2010.

Are you seriously suggesting that rates in 2010 are a completely random event?

If you're going to tell someone to ignore a post come up with a valid reason.

happybroker

RichOneday, if you are going to suggest to some one who is obviously worried about their situation that rates will be "around 8.5%" in 2010 and "1/3rd more than now" (what ever that means) please back this up with the statistical information (nee "guesswork") that you have used for this not to be "a completely random" statement.

bexman, how much do you owe at the moment? Feb 2010 is a long way away and much can happen in that time (just look at the last 12 months!) but there is no harm in you starting to better your situation now if you can so consider overpayments if possible and or/ saving.

bexman

bexman, how much do you owe at the moment? Feb 2010 is a long way away and much can happen in that time (just look at the last 12 months!) but there is no harm in you starting to better your situation now if you can so consider overpayments if possible and or/ saving.

I reckon its got to in the region of 158k, every few months we get a statement but obvioulsy we dont seem to be making a dent in the debt at the moment.