Rates to hit 2% next year.

the_ash_and_the_oak

IveSeenTheLight wrote: »

Just checked again and it looks like the deals are getting better.
You can get a 5 year fix from 4.95% now (includes FTBers, Buying a HOme, remortgaging, existing customers etc)

http://www.hsbc.co.uk/1/2/personal/mortgages/buying-home/fixed-rate;jsessionid=0000SxW-MzJkdxmO53mGKRbnHi7:11j5bgs6c

that 5 year fix looks pretty good I got to admit. Really shows the value of borrowing at 60% LTV imo - more FTBS should think about that

mbga9pgf

I Will be, next year.

Feb 2010, 40% deposit saved on 250K. May even stick out for the 50% target by Dec 2010 if I feel like it!

FTB By the way!

Will now be looking towards a tracker instead though, think the risk premium for Fixed are too high at the mo.

Thrugelmir

the_ash_and_the_oak wrote: »

that 5 year fix looks pretty good I got to admit. Really shows the value of borrowing at 60% LTV imo - more FTBS should think about that

Average rate for FTB's in past 30 years has never been less than 83% LTV. :rolleyes:

60% LTV is cherry picking the best of the remortgaging market.

chucky

mewbie wrote: »

Here's some 'facts' for you.

0.5% now
2% eo 2010.
Quadrupling.

that will be good for pensioners savings then :j

Old_Slaphead

chucky wrote: »

that will be good for pensioners savings then :j

It will be good for everyone's savings then (provided they keep an eye on rates and vote with their feet if their own savings rates aren't near the top of the best buy tables). Going rate for instant access is now 3%+

HAMISH_MCTAVISH

mewbie wrote: »

Here's some 'facts' for you.

0.5% now
2% eo 2010.
Quadrupling.

:rotfl:

Please tell me you're not silly enough to believe the amount most people actually pay on their mortgage will quadruple when rates rise to 2%.....

whathavewedone

I hope not otherwise we'll be paying 20% when we come off our fixed rate.

new_home_owner_3

It makes me laugh i have always had 5 year fixed rates and they have all been under 5%, my latest 5 year was early this year with the post office at 4.15% and previous to that i had a five year fixed with the nationwide at 4.69%, and yet again before that i got 4.73% on a five year fixed.

Now people on here are going on about paying over 5% on a five year deal and thinking its great, how can it be great? i was getting a fixed product less than the boe base rate 5 years ago, now people are getting rates 4.5% above the boe rate and think they are great.

Interest rates will go up, but i dont think these fixed deals at over 5% are that great, if rates do go up to 5% history tells us the banks dont always sell their products above that rate.

Rates have gone up in the past but on a average over the last 35 years they have never gone over 10%.
http://www.omegaaccountancy.co.uk/bank-of-england/base-rates.html

IveSeenTheLight

mewbie wrote: »

Here's some 'facts' for you.

0.5% now
2% eo 2010.
Quadrupling.

While it would be a fact that interest rate going from 0.5% to 2.0% would be a quadrupling of the interest rate, your assumption (crystal ball) projection of 2% at end of 2010 is not yet a fact.

Well done for trying though

StevieJ

new_home_owner wrote: »

Interest rates will go up, but i dont think these fixed deals at over 5% are that great, if rates do go up to 5% history tells us the banks dont always sell their products above that rate.

The banks had plenty of spare cash when they were offering deals below BR, I don't think that is true today or the near future, having said that I fully expect margins to shrink as rates increase.