Good SVR

kriss_boy

Our mortgage is currently dirt cheap, something like 0.75% above BoE for the entirity of the mortgage term.

Supposing interest rates do stay low for 3 or 4 years as some suggest, will lenders like the Lloyds TSB turn around and refuse to honour our low rates? Can they do that?

Also, if my SVR rate is historically low and in light of the potential interest rate hikes arent I mad to overpay the mortgage?

Surely I should be saving capital so that when we do upsize in a few years time the extra we need to borrow is minimised as it will be borrowed at a lesser rate that our existing mortgage?

jonesMUFCforever

If they break the terms and conditions of their loans (presumably as long as you keep your side) then you can sue them for any loss ie what they should be charging you and what they will charge you.
I think as long as you can find a savings account paying more (net) than you are charged on the mortgage then save as much as you can.

There are two sides to each question you could argue that if high inflation returns in a few years time then borrowing more then might turn out better for you - but who knows??

kriss_boy

jonesMUFCforever wrote: »

If they break the terms and conditions of their loans (presumably as long as you keep your side) then you can sue them for any loss ie what they should be charging you and what they will charge you.
I think as long as you can find a savings account paying more (net) than you are charged on the mortgage then save as much as you can.

There are two sides to each question you could argue that if high inflation returns in a few years time then borrowing more then might turn out better for you - but who knows??

High Inflation being good if we get equally high wage inflation and an increase in house prices?

If you mean high inflation insofar as energy bills and food going up in price then its a bad thing right?

Thrugelmir

Read the terms and conditions of your mortgage offer, possible that your lender has included a "get out" clause. Some lenders are attempting to rebase their mortgage terms on the back of the extended period of low interest rates.

These are exceptional times so budget on the unexpected.