'A mortgage warning, take a look at the UK Interest rates' history..' blog discussion

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  • Rates have been dropped for the banks and the banks only as they lick their self inflicted wounds.

    Make no mistake the credit crunch has been expected and orchestrated by those that make the rules, the low interest rates are helping x amount of homeowners as the system hobbles along in 'safe' mode.

    Still, buying a house is as expensive as it need to be to tie the workers to a lifetime of payments that keep us on the wheel, that wont change for the vast majority of us, as that is rule number 1. Fair play to those who find themselves with tiny mortgage payments through the fault of the banks. They should seize the opportunity to reduce their debt as much as possible.
  • I paid 16.5% back in the late 80s. It was on a lower sum (£24K) but it cost me half of my pay. I didn't have to spend £100 per month on mobile phone contracts, broadband andthe latest in widescreen TVs and leather settees.

    If you think rates will rise, consider fixing. If not, find a tracker (but BofE BR +2.5% is a high enough margin).

    It would be political suicide for the government to allow 100,000s of homes to repossessed and it wouldn't help the lenders either. IMHO, it ain't gonna happen - but who knows what Ant n Dec will do next. I'll stick with my trackers.

    Overpaying a low rate tracker is just stupid. Before the base rates plummetted I had £30K in an mortgage offset savings account. With base rates at 0.5% I was earning just 1.24% on this money so I moved it to a West Bromwich BS bond at 4.3% for a year. This gave me £1,032 after tax compared to just £372 had I left it in the offset.

    The banks want you to overpay these low rate mortgages. The banks want you to move to new products.

    Scare stories only help them to meet their targets.

    GG
    There are 10 types of people in this world. Those who understand binary and those that don't.
  • When the bank rate went down i bemoaned the fact that i was on a 5% fixed rate but it would have cost too much to change. Now I've only got to worry about whether the endowment will make enough to pay it off in 2012 when it ends. It should as we converted 1/3rd of the morgtage to repayment and left the endowment as it was.
    I'd rather be an Optimist and be proved wrong than a Pessimist and be proved right.
  • I paid 16.5% back in the late 80s. It was on a lower sum (£24K) but it cost me half of my pay. I didn't have to spend £100 per month on mobile phone contracts, broadband andthe latest in widescreen TVs and leather settees.

    If you think rates will rise, consider fixing. If not, find a tracker (but BofE BR +2.5% is a high enough margin).

    It would be political suicide for the government to allow 100,000s of homes to repossessed and it wouldn't help the lenders either. IMHO, it ain't gonna happen - but who knows what Ant n Dec will do next. I'll stick with my trackers.

    Overpaying a low rate tracker is just stupid. Before the base rates plummetted I had £30K in an mortgage offset savings account. With base rates at 0.5% I was earning just 1.24% on this money so I moved it to a West Bromwich BS bond at 4.3% for a year. This gave me £1,032 after tax compared to just £372 had I left it in the offset.

    The banks want you to overpay these low rate mortgages. The banks want you to move to new products.

    Scare stories only help them to meet their targets.

    GG

    Yes they do want you to over pay, so when it comes to you wanting to borrow again you have to take out a new more expensive loan.

    There is a balance, and after all its best (in normal historical circumstances) to have a bit in the bank and no debt.... Thats where the 'never had it so good' crowd are lapping it up with a bit of careful money management.

    Careful money management........ Many people are blowing the spare cash saved from low rates, if that isnt stupid ??????

    The banks hate the idea of any of us fleecing them with the bank rate anomole.....
  • bundance
    bundance Posts: 1,114 Forumite
    First Post First Anniversary Combo Breaker
    I read martins blog, and in 2006 I got a 10yr fixed rate of 5.18%. I doubt if I have much equity on my home. At the moment I dont work and am on benefits, but hope to become well enough to work when I am ready.

    Any advice appreciated

    thanks
  • If staying on benefits means staying in your home its a no brainer.

    There is no guarantee for the forseeable future that any job you might end up doing is going to last.... dont risk your position.
  • Landofwood
    Landofwood Posts: 765 Forumite
    5 years later, and the party appears to be winding down.
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