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Debate House Prices


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BoE cuts rates to 3.0%!!!

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Comments

  • Lotus-eater
    Lotus-eater Posts: 10,789 Forumite
    10,000 Posts Combo Breaker
    Right! I'm paying off the remaining mortgage now, whats the point having bloody savings!
    Freedom is not worth having if it does not include the freedom to make mistakes.
  • purch
    purch Posts: 9,865 Forumite
    Are annuity rates not based on base rates?

    No

    They are based on 30 year Gilt Yields.

    It will be a shock to me if Gilt Yields don't rise dramatically over the coming months
    'In nature, there are neither rewards nor punishments - there are Consequences.'
  • Really2
    Really2 Posts: 12,397 Forumite
    10,000 Posts Combo Breaker
    Lotus-eater wrote: »
    Right! I'm paying off the remaining mortgage now, whats the point having bloody savings!

    When you have a debt virtualy non.
    keep a 3-6 month buffer for worst case and pille the rest off your mortgage.
  • WTF?_2
    WTF?_2 Posts: 4,592 Forumite
    mr.broderick wrote: »
    Thought i'd done everything by the book.
    Bought a house in 2007 at less than 2004 value and got a nice wad of cash paid cashback aswell, bought in to a tangible asset as the storm approached.
    My 5.5% fixed is going to look very expensive in the coming months.
    I should have seen this coming and got a tracker, would be saving £100 per month. Damn it.

    I think a tracker will be a good idea for the next 12 to maybe even 24 months at the outside. After that however, I'd want to be on a good low fix if I was borrowing.

    Remember, every action has a consequence. We have had a decade of ridiculously low rates which helped make this problem and the 'cure' mooted as the solution for the problem is .... more ridiculously low rates.

    This doesn't add up - watch out for things to get very 'interesting' (in the Chinese proverb sense) from here on in.
    --
    Every pound less borrowed (to buy a house) is more than two pounds less to repay and more than three pounds less to earn, over the course of a typical mortgage.
  • GDB2222
    GDB2222 Posts: 26,570 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    carolt wrote: »
    I was thinking of those about to retire, already hammered by stockmarket falls. Are annuity rates not based on base rates?

    No, these are long-term contracts, and they reflect long-term bond yields.
    No reliance should be placed on the above! Absolutely none, do you hear?
  • Really2
    Really2 Posts: 12,397 Forumite
    10,000 Posts Combo Breaker
    mr.broderick wrote: »
    Thought i'd done everything by the book.
    Bought a house in 2007 at less than 2004 value and got a nice wad of cash paid cashback aswell, bought in to a tangible asset as the storm approached.
    My 5.5% fixed is going to look very expensive in the coming months.
    I should have seen this coming and got a tracker, would be saving £100 per month. Damn it.

    Whats the redemption?
    I changed to a lifetime offset tracker .49 over base £999 fee + £1500 (redemption fee) for the last mortage and I was woried about recovering the fees over the term of the mortgage.
    The last month of cuts will now pay them off in 7 months.:eek:
  • MissMoneypenny
    MissMoneypenny Posts: 5,324 Forumite
    mr.broderick wrote: »
    Thought i'd done everything by the book.
    Bought a house in 2007 at less than 2004 value and got a nice wad of cash paid cashback aswell, bought in to a tangible asset as the storm approached.
    My 5.5% fixed is going to look very expensive in the coming months.
    I should have seen this coming and got a tracker, would be saving £100 per month. Damn it.

    Just be grateful that you still have your job.
    RENTING? Have you checked to see that your landlord has permission from their mortgage lender to rent the property? If not, you could be thrown out with very little notice.
    Read the sticky on the House Buying, Renting & Selling board.


  • mr.broderick
    mr.broderick Posts: 3,778 Forumite
    1,000 Posts Combo Breaker
    MissMoneypenny wrote: »
    Just be grateful that you still have your job.

    Thanks. Why have you lost yours?
  • morg_monster
    morg_monster Posts: 2,392 Forumite
    moneypenny hasn't been in the last 2 bond films :-( think they outsourced sexy secretary work to India.
  • MissMoneypenny
    MissMoneypenny Posts: 5,324 Forumite
    No. Still have my job at the moment. People are going into work wondering if they are going to get that email.

    Investment banks seem to be relocating some of their jobs abroad (deserting a sinking ship?) and those job loses are going to have a knock on effect.
    RENTING? Have you checked to see that your landlord has permission from their mortgage lender to rent the property? If not, you could be thrown out with very little notice.
    Read the sticky on the House Buying, Renting & Selling board.


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