Interest rate will go up in new year

SPAMISH_MCTAVISH

Where is that poll where majority here predicted it will not
http://www.thisismoney.co.uk/mortgages-and-homes/article.html?in_article_id=520175&in_page_id=8&ct=5

purch

Where is that poll where majority here predicted it will not

OK, so the Confederation of British Industry disagrees with the Confederation of British Forum Dwellers.

So what ? :eek:

ILW

Anyone who is not currently budgeting for a rise in base rates is an idiot.

Cleaver

ILW wrote: »

Anyone who is not currently budgeting for a rise in base rates is an idiot.

Well you can't really budget for rates going down, can you?

I haven't had to budget for anything different over a period of 12 years really. My mortgage was fixed at 4.7% from 2003 to 2008, around 5% for a short while in 2008, 3.75% in 2009/10 and is now fixed at 4% from 2010 until 2015.

I think a lot of sensible people (the majority) will have a medium / long term plan as to interest rate rises and mortgages. There's been a lot of really good value four and five year fixed rates on the market recently which I suspect many people may have taken advantage of. I guess most of those on trackers will be overpaying their mortgage at present.

chucky

ILW wrote: »

Anyone who is not currently budgeting for a rise in base rates is an idiot.

there is still QE money in the economy, the economic growth is fragile, inflation is good for debt - do people really think rates are going to go up?

and if people do think rates are going up there are decent 5 year mortgage fixed rates about to not to have to budget if rates go up.

ILW

There are many who have adjusted their outgoings to paying 1.5% or so on their tracker and seem to look no further than next month.

purch

Interest rates 'will have to rise sixfold in two years' :eek:

http://www.telegraph.co.uk/finance/personalfinance/8212723/Interest-rates-will-have-to-rise-sixfold-in-two-years.html

Starting from a base of 1/2 %, a 6 fold rise to scary heights of 2 3/4% !!!

Everyone will be Bankrupt :eek:

Cleaver

ILW wrote: »

There are many who have adjusted their outgoings to paying 1.5% or so on their tracker and seem to look no further than next month.

Do you have a source or link to an article that discussed this? Or is it just a vague opinion from you? What does 'many' mean? I can quite easily counter this by saying:

There are many who have kept their outgoings the same even though their mortgage is 1.5% on their tracker and seem to planning sensibly for the future.

Unless we have stats to back either of these up, both are just unclear statements with no evidence behind them.

ninky_2

the daily mail reports. it must be true. we're all doomed!

http://www.dailymail.co.uk/news/article-1340058/Millions-households-facing-hike-rates-200-month-home-loans.html

Really2

I have been paying at the start of the mortgage at 6% as a long term average.

With rates where they have been that and the over payments it means I am now paying the equiverlent of 6.8% as a long term average on the balance.

Can I get knocked out of the many.

ILW

Cleaver wrote: »

Do you have a source or link to an article that discussed this? Or is it just a vague opinion from you? What does 'many' mean? I can quite easily counter this by saying:

There are many who have kept their outgoings the same even though their mortgage is 1.5% on their tracker and seem to planning sensibly for the future.

Unless we have stats to back either of these up, both are just unclear statements with no evidence behind them.

True, it is purely anecdotal and I could only make a vague guess at the percentage of people who are in this position. Talking to friends of mine, it appears that about half who are on trackers are just going with the good times and not overpaying at all whilst putting the money saved into mainly cars (on finance) and holidays. These may be the only ones in the country doing it, but I somehow doubt it.

I would guess there are figures somewhere about how many are overpaying on mortgages but I have not seen them.