Mortgage rates set to soar

simonSE15

http://www.dailymail.co.uk/news/article-2068875/King-Our-systems-crisis--Governor-warns-mortgage-rates-likely-soar-tells-banks-slash-bonuses.html

Bad news for anyone coming to the end of their fixed rate who is mortgaged to the limit?

DervProf

Mortgage payers better hope that Mervyn's prediction about lending rates is as accurate as those he made about inflation.

wotsthat

"slash", "soar", "spiralling out of control"

I was really quite concerned about what Merv had said until I found out he hadn't.

Thanks for the reminder of why I don't buy newspapers.

RenovationMan

Yorkshire Building Society have a 10 year fixed rate mortgage at 4.39%. I'm assuming that the current financial crisis will be forgotten by then.

In comparison with the 5% average over the last decade, that's not a bad rate. Something to think about for those mortgage holders who are worried about rising rates. Those who aren't will do what I am doing and stick to their low rate trackers and overpay their mortgages like mad.

I've overpaid £47k so far over the last couple of years, which only equates to a saving of £100 per month at my current mortgage rate. If rates went to 10% I'll be saving £392 per month. The joys of overpayments!

pinkteapot

SVRs are not base rate trackers - banks can change them whenever they feel like it. In reality, they tend to follow LIBOR more than the base rate as that's the cost of borrowing for banks.

Heyman_2

Zzzzzzzz....wake me up when something actually happens, rather than being 'reported' as happening.

Mortgage rates have apparently been 'soaring' for the last few years, except that everytime I look at the actual rates, they seem to be more or less the same. Hmmmm..........

SecondLegDownIsTheBigOne

RenovationMan wrote: »

Yorkshire Building Society have a 10 year fixed rate mortgage at 4.39%. I'm assuming that the current financial crisis will be forgotten by then.

In comparison with the 5% average over the last decade, that's not a bad rate. Something to think about for those mortgage holders who are worried about rising rates. Those who aren't will do what I am doing and stick to their low rate trackers and overpay their mortgages like mad.

I've overpaid £47k so far over the last couple of years, which only equates to a saving of £100 per month at my current mortgage rate. If rates went to 10% I'll be saving £392 per month. The joys of overpayments!

You are obviously a fair and representative cross-section of all homeowners.

RenovationMan

SecondLegDownIsTheBigOne wrote: »

You are obviously a fair and representative cross-section of all homeowners.

I guess so, I know most of my friends and collegues who are home owners are using the low rates to pile cash away either into bank accounts or onto the mortgage. Given the record mortgage repayment figures out recently, we're not unique.

IveSeenTheLight

Heyman wrote: »

everytime I look at the actual rates, they seem to be more or less the same. Hmmmm..........

Agreed there has been little movement in the last couple of years, but in my experience, they seem to be lowering and easing of LTV options as well.

Mallotum_X

RenovationMan wrote: »

I've overpaid £47k so far over the last couple of years, which only equates to a saving of £100 per month at my current mortgage rate. If rates went to 10% I'll be saving £392 per month. The joys of overpayments!

Ren, if I had a quid everytime you mentioned paying off 47k then I reckon I would have at least a tenner by now


Anyway rates dont seem to be doing very much. The YBS have always offered pretty good fixed deals, 4.39 is a pretty safe place to be for anyone worried. I had a two year fix from them at a similar rate to that a few years back - although base rates were a fair bit higher at the time! Still with YBS myself although on a fixed offset deal.

Turnbull2000

Nothing of substance as usual. Just scary words.

Dreamers keep dreamin’