My Interest rate gamble pays off again!

RenovationMan

Other news, the BoE votes to hold rates.

YAY!!!

Percy1983

Out of interest when taking said mortgage was it much of a gamble?

I say this as currently I have fixed or tracker, fixed safe enough, tracker a big gamble as rates could rocket.

So for you, what where the risks of a tracker (or whatever you have) when you took it and how risky did it look at the time?

Graham_Devon

Am I allowed to post, or would I be looking for a fight?

Oh darn it.

I think the correct words are:

"Well done you".

Everyone join in....."Well done Renoman"

RenovationMan

Graham_Devon wrote: »

"Well done you".

Everyone join in....."Well done Renoman"

Thanks Graham!

Graham_Devon

No problem!

Let us know when it's your Birthday. I'll post you a picture of a birthday cake

RenovationMan

Percy1983 wrote: »

Out of interest when taking said mortgage was it much of a gamble?

I say this as currently I have fixed or tracker, fixed safe enough, tracker a big gamble as rates could rocket.

So for you, what where the risks of a tracker (or whatever you have) when you took it and how risky did it look at the time?

I have a tracker that is set to 2.5% over base rate for three years. I reasoned that we would have low rates for the length of that 3 year period and that I would use this to my advantage by making overpayment onto the mortgage and renovating the property I bought.

When I bought my house in May2010, I expected rates to stay at 0.5% until May 2011 and I set my renovation timetable to end that month. So far my renovations have overrun by a couple of month but so has the BoE rate prediction.

My aim now is to finish off the renovations and then concentrate on reducing down the mortgage so that by the time rates start to return to 'normal' levels I will have a 'normal' sized mortgage, but on a larger sized property.

So far, so good!

RenovationMan

Graham_Devon wrote: »

No problem!

Let us know when it's your Birthday. I'll post you a picture of a birthday cake

It feels like my birthday every BoE rate meeting. Perhaps instead of a cake, you could simply raise a glass of something tasty to the toast of the board, Reno man!

abaxas

If you took a tracker, wouldnt it have been better to take a 3% (ish) 5 year fix?

Best of both worlds? Or maybe they weren't around last year.

RenovationMan

abaxas wrote: »

If you took a tracker, wouldnt it have been better to take a 3% (ish) 5 year fix?

Best of both worlds? Or maybe they weren't around last year.

No they weren't available. I don't think they are around this year either? The best I have seen is a 3.99% fix but I'm not sure I could have had that on the LTV I had back then.

DervProf

Because you're worth it.

How about quietly enjoying your current good fortune, instead of telling us about it ? You are lucky enough to have chosen the right mortgage at the right time. I was lucky enough to buy the right house at the right time, and clear my mortgage well before retirement. I certainly don't feel I need to remind people of this every few weeks. Maybe I'm missing out ? OK folks, I have no mortgage, I have savings (can't quite bring myself to tell you how much). My house is worth 3x what I paid for it.

No, that's does nothing for me.

Really2

Thats not a gamble.:)

A gamble was when the base rate was 5% Cost of mortgage product £1000
Cost to exit fixed rate just over £1500 (I think, cant quiet remember)

To get a lifetime tracker of .49% over BOE base.

It was a gamble at the time if it work out cheaper than remortgaging 5 times over 25 years.