MPC Minutes

StevieJ

Thrugelmir wrote: »

2% above bank base is historically a normal rate. Its only amazingly good as long as bank base remains at crisis levels. Once bank base returns to level of 3.5% to 5% band it won't look so attractive.

I was referring to those who remortgaged onto sub 1 % or even .35% above base for life.

The days when banks were competing to give away money.

I have one of those, unfortunately I paid most of my mortgage of before BR collapsed It wasn't long ago that people on here were talking about mortgage rates being BR + 4% as the norm, as a reaction to some of us arguing that bank mortgage margins will shrink when rates start increasing.

Gorgeous_George

StevieJ wrote: »

I have one of those, unfortunately I paid most of my mortgage of before BR collapsed It wasn't long ago that people on here were talking about mortgage rates being BR + 4% as the norm, as a reaction to some of us arguing that bank mortgage margins will shrink when rates start increasing.

Have you asked if you can draw down some of the original mortgage amount?

GG

Generali

StevieJ wrote: »

Then again many could not understand why wage rates (hence inflation) were subdued during the Brown boom years. Or was that the great moderation.

Wage rates I think were subdued on average but there were sectors (eg finance, public sector and construction) where they were anything but subdued or at least were consistently rising faster than inflation.

I guess that in other sectors, wage rates were held down by competition with China, India and Eastern Europe getting their acts together and competing.

StevieJ

Gorgeous_George wrote: »

Have you asked if you can draw down some of the original mortgage amount?

GG

I can do but I can't be bothered going through thew hoops with A&L.

Loughton_Monkey

Gorgeous_George wrote: »

Have you asked if you can draw down some of the original mortgage amount?

GG

They normally allow it, but not at your original rate. Only at a new 'market rate'.

There is only one way to go, and I don't understand why more don't do it. An Offset mortgage. Apart from the odd times when it is 'neutral', you have either of two things going for you:

1. Your mortgage rate is lower than savings account interest [like mine]. In this case, you 'rape' your mortgage of the full amount and put all your hard-earned offset money into a much higher earning savings account. Lovely Jubbly.

2. Your mortgage rate is higher than savings accounts. In which case, your mortgage gives you a tax free haven for all your savings, without any stupid £5,340 limits. Every £100 you shove in your offset is earning (say) 4% tax free. Instant access. Lovely Jubbly.

hillcats

Indeed LM offset mortgages are grand.
We have an offset lifetime tracker... details below.