Mortgage rates set to soar

DervProf

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!

http://www.youtube.com/watch?v=FnxAM9zllo0

BTW. Good that you'll be saving on what you've overpaid, but what about the effect of 10% on the outstanding balance (unless you have a fixed rate) ?

DervProf

wymondham wrote: »

I hope they go up. How about 8%, that would be good for long suffering savers!

The problem is if they even go up 0.5% lots of people with homes will be in trouble.... things are very fragile arnt they?

I doubt that an increase of 0.5% would have a massive effect, but the longer rates stay low, the more the property market and mortgage holders will "get used to it". People with fairly new mortgages will not know what a mortgage rate of 6% feels like, and the longer that rates are low, the more people will be in that position.

But yes, things do seem quite fragile, and it's hard to know what a modest increase in rates would mean for property prices and spending habits. I doubt there'd be a disaster, but I guess there are probably a fair few folk who are "close to the edge".

RenovationMan

RenovationMan wrote: »

:rotfl:

I know, sorry about that. I do it to wind a couple of people up. They knows who they are.

lol, it worked.

RenovationMan

AD9898 wrote: »

Yes you're right mate, unfortunately if my predictions come true, we'll be in far far deeper !!!!!! by then..... time will tell.

Sorry Ad, I was in a rush before so could only rattle off a quick response. I'm back and in a reflective mood. What are your predictions for 10 years hence?

(This isn't just peak oil is it?)

stonethrower

Renovationman I was just looking at your signature you say your property was i valued in may 2010 at £450000 and may this year at exactly the same price and is exactly the same value now, I reckon the chances of your house not having moved is very small.

AD9898_2

RenovationMan wrote: »

Sorry Ad, I was in a rush before so could only rattle off a quick response. I'm back and in a reflective mood. What are your predictions for 10 years hence?

(This isn't just peak oil is it?)

Mainly, only because it has a massive knock on effect to every sector of society. We only have look at the very tip of the iceberg now with the discussion on fuel poverty.

Of course the politicians would like to bullish!t about the causes due to panicking of markets and individuals. Eventually though the bullish!t won't wash and the emperor having no clothes will be reveiled.

Flight2quality

simonSE15 wrote: »

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?

Thats most of the BTLers house bulls on here............

RenovationMan

stonethrower wrote: »

Renovationman I was just looking at your signature you say your property was i valued in may 2010 at £450000 and may this year at exactly the same price and is exactly the same value now, I reckon the chances of your house not having moved is very small.

I know, the value has probably increased quite a bit since we moved in because we converted a former stables into a 1 bed apartment for my parents, we have redone the roof (and filled it with insulation to a level above modern building regulations) and we installed a state of the art central heating system that uses a condensing boiler and wood burner for water and space heating (with a coil ready for solar if we ever get around to that).

However, the only reliable valuation I have was the purchase price when we bought the house and as this is what the mortgage company used to calculate our LTV, this is the value I'm using in my 50% LTV challenge. It might already be that the house value has increased such that out equity is already over 50%, but I like a milestone when overpaying and this one is as good as any.

abaxas

RenovationMan wrote: »

I know, the value has probably increased quite a bit since we moved in because we converted a former stables into a 1 bed apartment for my parents, we have redone the roof (and filled it with insulation to a level above modern building regulations) and we installed a state of the art central heating system that uses a condensing boiler and wood burner for water and space heating (with a coil ready for solar if we ever get around to that).

Granny flats add almost zero value to properties.

grizzly1911

AD9898 wrote: »

Mainly, only because it has a massive knock on effect to every sector of society. We only have look at the very tip of the iceberg now with the discussion on fuel poverty.

Of course the politicians would like to bullish!t about the causes due to panicking of markets and individuals. Eventually though the bullish!t won't wash and the emperor having no clothes will be reveiled.

A bit like the Penny Falls, at the movement we are dropping bits in to keep it going at some point it will go over the edge.