Return of the tracker.......

payless

As I said, there will be many people that were better off buying before peak than after in this crash. Something the bears seem to forget.

interesting point-
I may have lost 20% ( moved June 2007) but on a low rate term tracker its more affordable than new buyer today .... so long as I don't sell up yet!

Thrugelmir

HAMISH_MCTAVISH wrote: »

Yes. And I bet still low, or at least, base rates still low. I'd imagine the banks will still be making userous margins on new customers though.

A 60K saving on a 200K house is not bad going........ for someone that bought before the crash.;)

As I said, there will be many people that were better off buying before peak than after in this crash. Something the bears seem to forget.

You seem very optimistic. Particularly expecting BOE base to remain low. Though with global funding markets. It will the demand for money to service the consumer debt in this country that'll determine the cost ( ie interest rates) not base rate.

Ultimately whether your house turns out to be a good or bad investment in £ terms only time will tell. By paying less interest I wouldn't call this saving money.

Why are people better off before the peak? We haven't hit the bottom yet. So those still saving for a deposit will be the lucky ones. As rising interest rates and lower property prices will reduce the amount they borrow and ultimately the amount they need to repay.

michaels

Why would anyone on a +1% tracker be overpaying when they could be getting 5% in a savings a/c with newcastle BS?

Thrugelmir

michaels wrote: »

Why would anyone on a +1% tracker be overpaying when they could be getting 5% in a savings a/c with newcastle BS?

How long do you have to tie your money up for though?

michaels

90 days - i reckon you are fairly safe that rates won't go up by more than 3.5% in the next 3 months...?

HAMISH_MCTAVISH

michaels wrote: »

90 days - i reckon you are fairly safe that rates won't go up by more than 3.5% in the next 3 months...?

Or even 3 years.....

Thrugelmir

HAMISH_MCTAVISH wrote: »

Or even 3 years.....

That would be very surprising unless the BOE's remit to control inflation changes.

andykn

Graham_Devon wrote: »

I think this is where you will find you are wrong.

There was a clause in the capping at 2% above base rate, if the base rate went below (normally) 3%.

Which means, if the base rate was 2.5%, or, indeed, in a bizzare situation, say, I dunno, 0.5%, the capping part would cease to exist.

I was on a 2% above BOE rate on my tracker. However, I'm now paying 3.75%, 3.25% above the base rate.

I'm also now a Lloyds group customer thanks to banks buying each other for 10p and Fred Twatwins last rolo.

I doubt there are that many, on trackers at the moment who are paying 2.5%, though I'm sure most of the bulls will be....but they will also be on a fix for 52 years, and mortgage free, depending on what suits best at the time

Like my BOE +0.99% from Firstdirect. Had it fully offset but then maxed it out and put it in a joint savings account to offset the g/f's BOE +2.something %, also from Firstdirect.

System

Interesting idea though, a cap on the maximum rather than the minimum.