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Debate House Prices
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First Direct swamped by lifetime tracker mortgage applications
Comments
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If everyone did that no one would even rent let alone buy? You never know.
Eh ? That`s a ridiculous statement.
If I`m in a modestly paid job, with a low chance of salary increases or promotion, I would probably go for a fixed rate deal.
If I`ve recently started a career where promotion is on the cards, then I might take a chance on a variable rate deal.30 Year Challenge : To be 30 years older. Equity : Don't know, don't care much. Savings : That's asking for ridicule.0 -
IveSeenTheLight wrote: »Why not overpay in those 3-4 years.
You'll reduce the capital and the interest you pay on the loan.
When rates start to rise, youll be in a far better position
I did overpay, for more than 3-4 years. Offsetting also reduced the amount of interest I paid back. Mortgage virtually paid off, so interest rate rises won`t directly bother me. Indirectly, I worry for the economy in general.30 Year Challenge : To be 30 years older. Equity : Don't know, don't care much. Savings : That's asking for ridicule.0 -
I did overpay, for more than 3-4 years. Offsetting also reduced the amount of interest I paid back. Mortgage virtually paid off, so interest rate rises won`t directly bother me. Indirectly, I worry for the economy in general.
Yet you say you still your repayments would remain static for 3-4 years.
You could pay it off even earlier.
Sounds like you are doing as I am and taking advantage of low rates to repay your mortgages quicker.
Well done :wall:
What we've got here is....... failure to communicate.
Some men you just can't reach.
:wall:0 -
IveSeenTheLight wrote: »Yet you say you still your repayments would remain static for 3-4 years.
You could pay it off even earlier.
Sounds like you are doing as I am and taking advantage of low rates to repay your mortgages quicker.
Well done
Not quite what I meant.
In general, if interest rates are not increasing for 3-4 years, it would mean that mortgage payments for many people will be fairly static.
I am not taking advantage of low rates, as my mortgage is now very small. The only reason I keep my mortgage is that there is an early repayment of about £150. The other reason is that while I have the mortgage, I have almost instant access to increase my borrowing, should the need arise. I could pay the mortgage off tomorrow, but I choose to keep it going until term (another 8-9 years). I`m still offsetting, so I`m paying no interest. I`m certain that the loss of interest on the amount I`m using to offset is less than the mortgage interest. I don`t even bother to see what my mortgage rate is, because I don`t pay it anyway.30 Year Challenge : To be 30 years older. Equity : Don't know, don't care much. Savings : That's asking for ridicule.0 -
julieq tried to explain this to a few people the other day...Not quite what I meant.
In general, if interest rates are not increasing for 3-4 years, it would mean that mortgage payments for many people will be fairly static.
I am not taking advantage of low rates, as my mortgage is now very small. The only reason I keep my mortgage is that there is an early repayment of about £150. The other reason is that while I have the mortgage, I have almost instant access to increase my borrowing, should the need arise. I could pay the mortgage off tomorrow, but I choose to keep it going until term (another 8-9 years). I`m still offsetting, so I`m paying no interest. I`m certain that the loss of interest on the amount I`m using to offset is less than the mortgage interest. I don`t even bother to see what my mortgage rate is, because I don`t pay it anyway.
the usual suspects didn't get it...0 -
"The best idea is to check out how much your mortgage will cost you if it goes up by 1% or 2% and consider if you can afford the rise," he said. "If not, fix,"
But the fixed is at least 1.5% above this tracker. So how can they afford it. useless advise.0 -
Eh ? That`s a ridiculous statement.
If I`m in a modestly paid job, with a low chance of salary increases or promotion, I would probably go for a fixed rate deal.
If I`ve recently started a career where promotion is on the cards, then I might take a chance on a variable rate deal.
You said employment prospects (that is will I have a job or not), not promotion or wage inflation prospects.0 -
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But the fixed is at least 1.5% above this tracker. So how can they afford it. useless advise.
Your mortgage is not done of the affordability of the current rate. You are not allowed to borrow 10X more if the rate is 10X lower.
EG
if you borrow
£100K @ 5%
They wont lend you
£1M @ 0.5%
Just because the rate is low it does not mean you can borrow more. FD HSBC are fairly strict.0
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