why have 5 year fixed rates rocketed???

Edale

confused31 wrote: »

its like inflation how is that worked out? i know for a fact from a 15 months ago our weekly shop went from 70 pound to over 100 pound a week now.

And we only buy the same things, inflations a joke too.

But what about your mortgage, I take it the monthly saving at your 4.15% fix will be much greater than the £120 extra you spend on your weekly shop. So you are right for you personally the headline rates are a nonesense because your cost of living has decreased massively.

Edale

Banks only have so much to lend and with the recent increase in activity they have been increasing rates to reduce the amount of lending they do. This lack of funding will ensure any increase in house prices is short lived.

confused31_2

Edale wrote: »

But what about your mortgage, I take it the monthly saving at your 4.15% fix will be much greater than the £120 extra you spend on your weekly shop. So you are right for you personally the headline rates are a nonesense because your cost of living has decreased massively.

Infact no i was on a fixed rate of 4.69% before i got the 4.15% which means im better off by 16 pound a month on my mortgage.

so take 16 pound out of the 120 pound a month = 104 pound less better off a month.

I would have had to got my mortgage at 0.9% to break even so no im not better off.

Ive only got a small mortgage of 50,000 pound so at 4.69% on 50,000 i pay 286 pound a month, on 4.15% i pay 270 pound a month so to make up the shortfall 104 pound i would need to pay to break even would 166 pound and to get that i would need to have secured a rate at less than 1%

so in a nutshell no im a lot worse off.

Just seems to me now by them putting the rates up on products , this will guarantee people not buying houses, as they just wont want a morgtage at the rates they are, especially first time buyers.

Bob_the_Saver

Bob_the_Saver wrote: »

I must be a lot older than you. Historically these are NOT high rates - watch what happens next. Look back at the rates over the last 20-30 years and give yourself a real shock.

I was there, I was paying them. OK not today, not next week, not early next year but today's rates will go up sharply. Then what? We have a generation of people who don't remember the 'high rates' of the 80's and before and soon we'll have another lot who think the current rates are 'normal'.... then here we go again.
:eek: