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Debate House Prices


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Mortgage rates set to soar

245

Comments

  • Sibley
    Sibley Posts: 1,557 Forumite
    Ninth Anniversary Combo Breaker
    11 more months. That's all I ask.

    I overpaid the mortgage 1st year then bought a flashy new car on HP.

    If that gets paid off by my tenant I will be a happy man.
    We love Sarah O Grady
  • RenovationMan
    RenovationMan Posts: 4,227 Forumite
    Mallotum_X wrote: »
    Ren, if I had a quid everytime you mentioned paying off 47k then I reckon I would have at least a tenner by now :p:p.
    :rotfl:

    I know, sorry about that. I do it to wind a couple of people up. They knows who they are. :)
  • abaxas
    abaxas Posts: 4,141 Forumite
    Who knows as we enter another period of uncertainty.

    One point is that mortgage rates cant really go down, they can only go up!
  • HAMISH_MCTAVISH
    HAMISH_MCTAVISH Posts: 28,592 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    pinkteapot wrote: »
    SVRs are not base rate trackers - banks can change them whenever they feel like it..

    Actually many SVR-s are base rate trackers.

    The LLoyds/C&G and Nationwide pre-2008 mortgages all come with a contractual SVR cap of no more than 2% above base rate. Some others are capped at 2.5% and 3% above.

    There are millions of people sitting on capped SVR-s which are equivalent to the best trackers available today.
    “The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.

    Belief in myths allows the comfort of opinion without the discomfort of thought.”
    -- President John F. Kennedy”
  • HAMISH_MCTAVISH
    HAMISH_MCTAVISH Posts: 28,592 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    simonSE15 wrote: »
    Bad news for anyone coming to the end of their fixed rate who is mortgaged to the limit?

    1) Very few people are "mortgaged to the limit". The average LTI in 2007 never crossed 3.5 times income.

    2) The vast majority of people coming off 5 years fixes from the major lenders will be on old style mortgages with low SVR-s. Their payments will reduce significantly.
    “The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.

    Belief in myths allows the comfort of opinion without the discomfort of thought.”
    -- President John F. Kennedy”
  • abaxas
    abaxas Posts: 4,141 Forumite
    HAMISH_MCTAVISH wrote: »
    Actually many SVR-s are base rate trackers.

    The LLoyds/C&G and Nationwide pre-2008 mortgages all come with a contractual SVR cap of no more than 2% above base rate. Some others are capped at 2.5% and 3% above.

    There are millions of people sitting on capped SVR-s which are equivalent to the best trackers available today.

    The problem is what base rate are they not allowed over?

    BBR? OBR? MUOTSBR?

    A base rate tracker does not always track the BOE base rate.
  • HAMISH_MCTAVISH
    HAMISH_MCTAVISH Posts: 28,592 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    abaxas wrote: »
    A base rate tracker does not always track the BOE base rate.

    These do.

    BOEBR + 2% for both Nationwide and Lloyds.

    So someone sitting on one of these mortgages may well enjoy the best part of a decade with their mortgage at all time low rates.
    “The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.

    Belief in myths allows the comfort of opinion without the discomfort of thought.”
    -- President John F. Kennedy”
  • abaxas
    abaxas Posts: 4,141 Forumite
    HAMISH_MCTAVISH wrote: »
    These do.

    BOEBR + 2% for both Nationwide and Lloyds.

    So someone sitting on one of these mortgages may well enjoy the best part of a decade with their mortgage at all time low rates.

    Agreed,

    But also lots of people stuck on BBR (Barclays base rate) or the GE one.
  • RenovationMan
    RenovationMan Posts: 4,227 Forumite
    abaxas wrote: »
    Who knows as we enter another period of uncertainty.

    One point is that mortgage rates cant really go down, they can only go up!

    I enjoyed the way you blended the uncertainty of the period with the certainty of rate rises.
  • abaxas
    abaxas Posts: 4,141 Forumite
    RenovationMan wrote: »
    I enjoyed the way you blended the uncertainty of the period with the certainty of rate rises.

    The uncertainty is if they will go up, but certainty that the only change will be up.

    This is for no other reason than they cant go down!
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