New tracker mortgage and the "end of the recession"!

Dan_1976

You are safe for 6 months to a year. evem then if rates go up 1-2% your still not paying high rates.

All is good for mortgages at the mo really. I remember good deals at 7.99%

SimbaSimon

The rate seems sensible to me, I certainly wouldn't bother switching anytime soon. Interest rates are low and should stay that way for some time, just try and get some savings put aside should you ever need to make slightly higher payments if your worried.

TMoose

flammable999 wrote: »

sorry to sort of interrupt this thread but are BASE\BofE\LIBOR rate all the same thing?

BASE = BofE rate.
LIBOR = London InterBank Offering Rate. This is the daily average of the rates that the major banks lend to each other (i.e. at the end of each day, the big banks get together and create an average of all the deals done between themselves) This, broadly speaking, is usually only a few basis points higher than Bank of England Base Rate, but there are times, such as during the liquidity crisis of Sept '08 where LIBOR can get very out of line.

Thrugelmir

TMoose wrote: »

LIBOR = London InterBank Offering Rate. This is the daily average of the rates that the major banks lend to each other (i.e. at the end of each day, the big banks get together and create an average of all the deals done between themselves) This, broadly speaking, is usually only a few basis points higher than Bank of England Base Rate, but there are times, such as during the liquidity crisis of Sept '08 where LIBOR can get very out of line.

Not quite. It is set at 11am in the morning. 16 of the major banks quote a rate at which lend at to each other. The top and bottom figures are excluded and the average of the remainder is used to determine LIBOR for that day. The banks are required to maintain a capital liquidity ratio on a daily basis. Hence why wholesale interbank lending is important. The market stopped functioning properly in August 2008 after BNP Paribas became concerned about Lehmans "activities".

barnishroader

how can i work out what benefit it will be to make overpayments.
might overpay by £50 per month but i just am not sure if it will be worth it.

getmore4less

barryheffron wrote: »

how can i work out what benefit it will be to make overpayments.
might overpay by £50 per month but i just am not sure if it will be worth it.

Just stick numbers in a calculator

http://www.whatsthecost.com/mortgage.aspx


FD had a better tracker deal in the first place why choose Barclay/Woolwich? (were you allready with them?)

barnishroader

getmore4less wrote: »

Just stick numbers in a calculator

http://www.whatsthecost.com/mortgage.aspx


FD had a better tracker deal in the first place why choose Barclay/Woolwich? (were you allready with them?)

yeah, i sorted this deal out before Christmas but i only found the FD deal the day i posted that message.

oh and i made a mistake earlier, my deal is actually 2.29 over the base rate giving 2.79 at present.
they told me today when i called that i can expect that not to change until at least October this year.

beecher2

barryheffron wrote: »

they told me today when i called that i can expect that not to change until at least October this year.

You should phone them back and ask them what the winning numbers will be on the lottery too.

getmore4less

barryheffron wrote: »

yeah, i sorted this deal out before Christmas but i only found the FD deal the day i posted that message.

oh and i made a mistake earlier, my deal is actually 2.29 over the base rate giving 2.79 at present.
they told me today when i called that i can expect that not to change until at least October this year.

I don't think it is worth jumping to a 2 year fix with £2k in fees a a 0.45% hike in rate,

barnishroader

beecher2 wrote: »

You should phone them back and ask them what the winning numbers will be on the lottery too.

yeah i thought they were being a bit presumptuous with that statement!!