Interest Rates

lostinrates

sss555s wrote: »

I agree with the above where a 2 year fixed has a high potential of finishing just as we are getting to the worst of it.

I'm half way through a 5 year fixed and it was the best thing i ever did.

It's a big relief when you don't have to worry financially where the rates are going.

Are you worried about the timing of yours too, or is this 5 yr period the end of yours?

It would be interesting to know the divide of fix and trackers on the board.

[Deleted User]

the way many svr are now anything upto 4/5% above base rates will be frightening when base rates hit 5% as they surely will in the not to distant future,that could put svr`s into double figures before too long.
interest paid on savings will also trail base rates rather than massively increase,the problem is caused by lenders having to answer to shareholders and not members as they did 25 years ago,we are now about to pay the price for selling off the b/soc,i hope you all enjoyed your £300 bonuses?

fc123

lostinrates wrote: »

Are you worried about the timing of yours too, or is this 5 yr period the end of yours?

It would be interesting to know the divide of fix and trackers on the board.

We track and always have done plus it suits us as we also are used to variable income. I remember all the fixing and moving your mortgage during the 00's and thinking 'I really ought to do this'' and never getting around to it so we may have paid too much interest during that period but are benefitting now.
It has made me a bit of a believer in swings and roundabouts for the average person...the banks always win longterm. My cousin is an actuary and chatting to him confirms that you have got to be smart and quick to win over the banks.

We are ''enjoying'' our tracker at the moment and I fully accept it won't last forever.
However, I couldn't tell you to the nearest £ what we will earn in, say, May 2012. I have lived with that for 23 years and am used to it..I know what we need to earn but nothing is set in stone..actually, it's all very gravelly.:)

So it could be a choice based on how much uncertaintity you can live with.


I sympathise with savers who are feeling the low rates but we chose to use the savings on mortgage interest payments to assist with expanding our business (rather than overpaying a lot...we are a bit but not much). We now employ 5 people (we employed no-one 18 months ago) and are about to create another 2 jobs in July.

fc123

I just remembered something...Co-op were keen to sell us a 10 yr fix about 3 years ago.....or could have been 30 months...as we bank with them. I am sure it was 5% ish. I remember them wanting proof of earnings and 3 yrs accounts (and one had A Very Bad Year) so we didn't bother but I did think it seemed good at the time. As I used to pay in at the counter all the time from the shop, the teller did a sales pitch and I followed it up.
Hindsight....a wonderful thing.....we are 0.99%.

sss555s

lostinrates wrote: »

Are you worried about the timing of yours too, or is this 5 yr period the end of yours?

It would be interesting to know the divide of fix and trackers on the board.

Mine will be finished at the end of the 5 year which really turned it into a 5 year loan.

I paid some off and upped the payments a bit so that would be the case.

fc123

Where's Sabre Tooth Tiger when you need him? Could be worth stalking him on the savings board as I find his intuition (coupled with research) quite on the spot.

Thrugelmir

woodbine wrote: »

the way many svr are now anything upto 4/5% above base rates will be frightening when base rates hit 5% as they surely will in the not to distant future,that could put svr`s into double figures before too long.
interest paid on savings will also trail base rates rather than massively increase,the problem is caused by lenders having to answer to shareholders and not members as they did 25 years ago,we are now about to pay the price for selling off the b/soc,i hope you all enjoyed your £300 bonuses?

Why will SVR's rise to double figures?

SVR's are at current levels as this reflect cost of raising money. Whether it be wholesale or retail. The biggest impact on mortgage rates in the future will be the rate that lenders offer retail depositers. In recent years retail deposits have taken a back seat as lenders securitised mortgage debt to raise money. Now the market has changed.