So, where are interest rates going?

beecher2

Pincher wrote: »

They say a typical mortgage is £200k. I assume such a person doesn't have that much in savings, so lets say £50k in savings. Surely such a person would want the rates to stay low?

A typical mortgage is nowhere near £200k and many people are mortgage free. The average person certainly doesn't have a 200k mortgage and 50k in savings.

wynnvegas

We got a 105% mortgage from Northern Rock when we bought our house in 2003 so I can empathise a wee bit. I had factored in being able to afford (just!) repayments with interest rates up to and including 12%. My estimate is one 0.25% increase in the base rate between now and the end of 2010 although I'd be surprised if this came in June. We've been lucky with interest rates in the last two tyears and, come the end of the year, we'll probably be calling for massive interest rate hikes as we'll have started saving. I think a lot of people are going to be in deep trouble when BoE interest rates start creeping up. Our interest payments dropped from £300 per month in October 2008 to £24.99 a month now with the movement which was great but I wouldn't fancy being hit the other way.

Best of luck.

Cheers,

Billy

Pincher

beecher2 wrote: »

A typical mortgage is nowhere near £200k and many people are mortgage free. The average person certainly doesn't have a 200k mortgage and 50k in savings.

I keep reading "For illustrative purposes, the monthly payment on a typical £200k mortgage......." ; which I find a bit odd as well.

My point was simply that usually your mortgage is much larger than your savings, so assuming you are not on a long term fixed deal, surely a lower interest rate is what most people would want?

keith.bucknall

Pincher,

You mentioned the Co-Op fixed rate, do you have any details around this? LTV, deposit etc..

thanks

beecher2

keith.bucknall wrote: »

Pincher,

You mentioned the Co-Op fixed rate, do you have any details around this? LTV, deposit etc..

thanks

http://www.moneysavingexpert.com/news/mortgages/2010/05/cheapest-five-year-fix-mortgage-in-over-a-year-launched-by-the-co-op?utm_source=forum&utm_medium=sidebar&utm_campaign=box

beecher2

Pincher wrote: »

I keep reading "For illustrative purposes, the monthly payment on a typical £200k mortgage......." ; which I find a bit odd as well.

My point was simply that usually your mortgage is much larger than your savings, so assuming you are not on a long term fixed deal, surely a lower interest rate is what most people would want?

Probably most people do - I was only talking from my own point of view as I'm debt free and getting rubbish rates on my savings. I'd hazard a guess that most people who don't have a mortgage would feel the same way.

tbourner

beecher2 wrote: »

Probably most people do - I was only talking from my own point of view as I'm debt free and getting rubbish rates on my savings.

And like I said earlier; quit moaning about it you lucky git!!

ILW

tbourner wrote: »

And like I said earlier; quit moaning about it you lucky git!!

Why is anybody that has saved some money (rather than spending it all)considered lucky?

tbourner

ILW wrote: »

Why is anybody that has saved some money (rather than spending it all)considered lucky?

Don't they have jokes where you come from? I've already said I know it's my fault and savers have just simply been smarter, and I know I'm jealous. Jeez! You obviously all hate me over here and think I'm an irresponsible young idiot so I'll just skulk off to hide in the DFW forum with the other losers.

*walks away in disgrace*

beecher2

tbourner wrote: »

Don't they have jokes where you come from? I've already said I know it's my fault and savers have just simply been smarter, and I know I'm jealous. Jeez! You obviously all hate me over here and think I'm an irresponsible young idiot so I'll just skulk off to hide in the DFW forum with the other losers.

*walks away in disgrace*

Well I do think you missed my point somewhat - I have no debt because I've lived within my means, not because of luck. It isn't about being jealous, lucky or any of the rest of it - is about living within your means, and only taking on debt you can afford. I'm as entitled to 'moan' about interest rates as someone who has overstretched themselves - perhaps more so as these very same people have boasted about all their 'stuff' and their bigger houses for long enough.