So, where are interest rates going?

Hoopylass

beecher2 wrote: »

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.

Ive just been reading this thread and I feel that you are being unfair in your last point. I took out a 125% mortgage in 2005 and at the time I was living well within my means and infact still am however I am now finding myself worried as my fixed rate is coming to an end and I am in no position to remortgage or sell. Im worried if the rates shoot up and what will happen if I cant afford to pay each month and I dont have "stuff" or a big house just a normal 1 bed flat so i take offence to your comment

CLAPTON

Hoopylass wrote: »

Ive just been reading this thread and I feel that you are being unfair in your last point. I took out a 125% mortgage in 2005 and at the time I was living well within my means and infact still am however I am now finding myself worried as my fixed rate is coming to an end and I am in no position to remortgage or sell. Im worried if the rates shoot up and what will happen if I cant afford to pay each month and I dont have "stuff" or a big house just a normal 1 bed flat so i take offence to your comment

some would consider getting a mortgage at 125% was living above your means

beecher2

Hoopylass wrote: »

Ive just been reading this thread and I feel that you are being unfair in your last point. I took out a 125% mortgage in 2005 and at the time I was living well within my means and infact still am however I am now finding myself worried as my fixed rate is coming to an end and I am in no position to remortgage or sell. Im worried if the rates shoot up and what will happen if I cant afford to pay each month and I dont have "stuff" or a big house just a normal 1 bed flat so i take offence to your comment

Sorry you take offence but I don't believe taking out a 125% mortgage is living within your means. I believe that to live within your means you need to be in a position where you can afford high rates, and have a safety net of savings. It seems to mean 'make the minimum payments' and hope things improve to many. Again, I'm sorry if this offends you - it is merely my position, and why I'm not in debt.

Hoopylass

Well Im sorry I disagree with you both...i was in a position where I had to move out of home and it was either rent at astronomical prices and pay someone else's mortgage or pay my own mortgage.
My plan was always to sell when my fixed rate ended which unfortunetly is not an option right now.
I think its unfair of you to judge people on their circumstances when they have came on here looking for advice when you are not facing the same problems as them.

Henry_P_Chester

Hoopylass wrote: »

Well Im sorry I disagree with you both...i was in a position where I had to move out of home and it was either rent at astronomical prices and pay someone else's mortgage or pay my own mortgage.
My plan was always to sell when my fixed rate ended which unfortunetly is not an option right now.
I think its unfair of you to judge people on their circumstances when they have came on here looking for advice when you are not facing the same problems as them.

You are renting! All you are doing is renting from the bank. You do not own a home, the bank owns it you have no stake in it anymore than you have if you rent from a landlord. How long was your fixed rate? Did you think property prices would rise by 25% in that time? House prices go down as well as up.

Im sorry but in my book that was a massive gamble and just plain stupid.

Why anybody would want to get a 100%+ mortgage is beyond me! The people who took on such mortgages are as guilty as the bankers who lent them.


Back to interest rates. I don't mind low rates as long as they are above inflation. My savings are getting smaller every month due to high inflation and a low interest rate policy.

opinions4u

Hoopylass wrote: »

Ive just been reading this thread and I feel that you are being unfair in your last point. I took out a 125% mortgage in 2005 and at the time I was living well within my means and infact still am however I am now finding myself worried as my fixed rate is coming to an end and I am in no position to remortgage or sell.

Does that not totally highlight the point being made? Your liabilities exceed your assets. If you were a business you would be insolvent.

Im worried if the rates shoot up and what will happen if I cant afford to pay each month and I dont have "stuff" or a big house just a normal 1 bed flat so i take offence to your comment

One bed flats are notoriously difficult to sell, even in a strong housing market. Surely you can see, with the benefit of hindsight, that saddling yourself with a 125% mortgage was not a good idea.

Pincher

There is a vision of paradise called home ownership.

There is always a bunch of people barred from paradise,
and they will do anything to get in.
Telling people not to get a 125% mortgage
is like telling Mexicans not to go to North America.
They know it's dangerous, but do you know what their alternatives are?

You think where they were was a cosy little bedsit,
with a lovely landlady who makes them a hot cup of tea every day,
or a slum landlord with broken boilers and thieving flatmates?

Unfortunately, when they cross the pearly gates, they find loanshark rates, repossession orders and broken boilers.

It's funny, the LibCons are against immigration, but in favour of home ownership, when both are irresistible economic aspirations.

Plans_all_plans

This is an interesting thread. We are soon to be taking out a mortgage on a 5 yr fix with Halifax at 5.19%. I am a stay at home mum and my fiance (soon to be husband) works full time earning 15.5k. We have a 40k deposit to put down. Originally we thought that a fixed rate for 5 yrs would be best as I will be out of workplace for next 5 years, but would people on here think we should be going for a tracker? If interest rates go higher than 6% we couldnt afford the repayments though.

Are we best sticking with the 5 yr fix in our circumstances?

Thrugelmir

Pincher wrote: »

In view of the Co-Op five year fix at 3.99%, would you consider that question answered?

No, as any lender can have a headline grabbing rate. Marketing like this is as old as the hills. Also how much money have they committed to this rate?

property.advert

Plans_all_plans wrote: »

This is an interesting thread. We are soon to be taking out a mortgage on a 5 yr fix with Halifax at 5.19%. I am a stay at home mum and my fiance (soon to be husband) works full time earning 15.5k. We have a 40k deposit to put down. Originally we thought that a fixed rate for 5 yrs would be best as I will be out of workplace for next 5 years, but would people on here think we should be going for a tracker? If interest rates go higher than 6% we couldnt afford the repayments though.

Are we best sticking with the 5 yr fix in our circumstances?

Not at a busting 5.15% you are not.

At 5.15%-3.99%=1.16%, each £100k borrowed is costing you £96.67 a month too much.