Shock Interest Rate Announcement

RenovationMan

chewmylegoff wrote: »

did you ever actually make an "interest rate gamble" or did you just buy a house to live in and decide later that it was an interest rate gamble because it might annoy people?

We were looking at buying a house after the market crashed as ours was a 4 bed 'executive detached' new build on an estate, which was pretty much everything we didn't want out of a house due to it being on a built up estate and having a very small footprint with small rooms. We always wanted a character home and had decided that our next move would be to one.

We saw our new house on the market and absolutely loved it but it was really expensive and totally out of our financial comfort zone. We kept looking around but couldn't find anything else on the market that came close, plus we felt that it was great value compared to similar properties. We had a chat with a mortgage broker and discovered, with the BoE tracker mortgage he had found, the monthly payments were not that much more than what we were already paying on our existing home.

We knew that rates would not be this low forever but we decided to buy the house and gamble that we could get the major renovation works done and pay down the mortgage a bit before rates started to climb. We therefore 'sat down with ourselves' and really analysed where the experts/pundits thought rates would go over the next 5 years.

We gambled that rates would follow what a lot of experts were saying and would stay at 0.5% for at least the first year of our ownership and would remain low thereafter for several years. We intended getting our main renovations complete in the first 12 months (which we did) and then we would settle down into a blitzkrieg of mortgage overpayments while rates stayed low.

In the end, rates stayed at 0.5% a lot longer than we thought and it wasn't so much of a gamble in hindsight. Of course we didn't know this in 2010 when we bought and had we not felt that rates would remain low for years we would not have bought. Simple as that.

nicko33

Percy1983 wrote: »

Does make me wonder how much this continues so kick the ladder away form youth.

You're young. You bought a house.

RenovationMan

chewmylegoff wrote: »

decide later that it was an interest rate gamble because it might annoy people?

What is interesting is that it only seems to annoy these people; mcc100, dervprof and shortchanged.

mcc100 was the first person to be annoyed when I first started posting on here and he and a couple of others were incredulous about the overpayments on my signature. I explained that I had money tied up in bonds that had to mature and so the overpayments were not coming from my monthly salary but from savings I already had. This satisfied everyone but mcc100 who is actually just annoyed that I had such a large amount of savings and he does not. It's not fair.

dervprof was pleasant at the beginning and was warning me that rate rises could result in the loss of my home. I explained that I would not have bought the house if I felt that and that I was convinced that rates would stay low for years. I also mentioned that I had a large amount of emergency savings to cover me for job loss. He seemed to get frustrated with my lack of fear at rate rises and created a rather bizarre set opf circumstances where I could lose my home (something to do with my wife divorcing me, a meteor striking earth, and alien abduction). DervProf finally lost it when I was proven right about rates and he was wrong. Derv doesn't like to take risks and hates it when those other people's risks take off and he really doesn't like to be proven wrong. It's not fair.

shortchanged started off berating me for my 'reckless gamble' and blamed me for the whole UK housing mess because 'people like you caused it'. I gently and patiently pointed out to him that I bought after the housing crash and after the credit crunch, so my purchase could not have caused the crash. He went away muttering to himself for a while but must have thought about it because he came back and was quite agreeable thereafter. We both found common ground bemoaning the mad 125% Northern Rock loans and were fine for a while until we disagreed about mortgage lending risk. He painted himself into a corner with an argument devoid of logic and when I pointed this out, he spat out his dummy and has now reverted to his trolling. shortchanged doesn't like it that other people go contrary to his opinions. It's not fair.

I see that they are getting so annoyed that one of them has now created a sockie with the sole purpose of trolling me. I take that as a compliment to my continued success with my mortgage gamble and the strength of my logical debating. :cool:

Batchy

Love it, please keep going RM... ;-)

DervProf

RenovationMan wrote: »

dervprof was pleasant at the beginning and was warning me that rate rises could result in the loss of my home. I explained that I would not have bought the house if I felt that and that I was convinced that rates would stay low for years. I also mentioned that I had a large amount of emergency savings to cover me for job loss. He seemed to get frustrated with my lack of fear at rate rises and created a rather bizarre set opf circumstances where I could lose my home (something to do with my wife divorcing me, a meteor striking earth, and alien abduction). DervProf finally lost it when I was proven right about rates and he was wrong. Derv doesn't like to take risks and hates it when those other people's risks take off and he really doesn't like to be proven wrong. It's not fair.

I see that they are getting so annoyed that one of them has now created a sockie with the sole purpose of trolling me. I take that as a compliment to my continued success with my mortgage gamble and the strength of my logical debating. :cool:

What a vivid imagination you have.

At "the beginning", I questioned your statement that there were lots of inflation proof, capital protected savings products available. It took quite a number of posts before I convinced you that what you stated was false. That shows, if anyone doesn't like being proved wrong, it is yourself.

And "logical debating" ? :rotfl:

I'm a bit confused about this "gamble" you talk about.

One minute it was a gamble, then next (in hindsight) it wasn't so much of a gamble. At the time is was a gamble, just like recently when I paid my money into our lotto syndicate. Just because we had a very healthy win, does not alter the fact that it was a gamble, or that it was less of a gamble. Win or lose, if you are doing something when you don't know the outcome, it is a gamble, full stop. I could say that becuase I won, the gamble was less of, or no gamble, but that would be using your confused logic.

RenovationMan

DervProf wrote: »

What a vivid imagination you have.

At "the beginning", I questioned your statement that there were lots of inflation proof, capital protected savings products available. It took quite a number of posts before I convinced you that what you stated was false. That shows, if anyone doesn't like being proved wrong, it is yourself.

And "logical debating" ? :rotfl:

I'm a bit confused about this "gamble" you talk about.

One minute it was a gamble, then next (in hindsight) it wasn't so much of a gamble. At the time is was a gamble, just like recently when I paid my money into our lotto syndicate. Just because we had a very healthy win, does not alter the fact that it was a gamble, or that it was less of a gamble. Win or lose, if you are doing something when you don't know the outcome, it is a gamble, full stop. I could say that becuase I won, the gamble was less of, or no gamble, but that would be using your confused logic.

Jeeze, what a weird and rambling post. My interest rate success really must have unhinged your mind!! :rotfl:

LOL, brilliant!:rotfl:

wotsthat

RenovationMan wrote: »

I see that they are getting so annoyed that one of them has now created a sockie with the sole purpose of trolling me. I take that as a compliment to my continued success with my mortgage gamble and the strength of my logical debating. :cool:

I think getting a sockie named after you is the sincerest form of flattery you can get.

It's the forum equivalent of a knighthood.

RenovationMan

wotsthat wrote: »

I think getting a sockie named after you is the sincerest form of flattery you can get.

It's the forum equivalent of a knighthood.

It shows that they have received such a forum drubbing that they daren't have a go at me with their usual logons and have to resort to anonymous logins as a disguise. They're all running scared. :cool: :rotfl:

runninglea

LOL - evertime I come on here the same people are trying to wind you up RM and succeding.

I thought you would have paid the mortgage off by now!

Mr._Pricklepants

Keep up the good work, RenovationMan :T

It's inspiring to read about your aspirations, aims and success.