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The 3 year anniversary of the 0.5% BOE interest rate.
Comments
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Graham_Devon wrote: »Capital Economics suggest they could stay at 0.5% for another 3 years.
I'm not sure it will be 3 years before there is a run on sterling. It's a case of "when" and not "if".
Just watch how quick the BoE will raise the rate then, to protect sterling.RENTING? Have you checked to see that your landlord has permission from their mortgage lender to rent the property? If not, you could be thrown out with very little notice.
Read the sticky on the House Buying, Renting & Selling board.0 -
I've got low interest rates while I'm saving, and no doubt once I have a mortgage they'll leap up. Talk about bad timing.
The SVRs are already going up; 50% in some cases. That's the problem when you have low rates, as a smallish interest rate rise can double the rate. There should be some better rates for savers soon.
The mortgages board is quite active now with people who didn't have a BoE tracker. Many people are stuck on SVR due to negative equity; lower income; bought on a self cert and can't prove their earnings.
BOI; SVR just gone up 50%, from 2.99% to 4.49%
https://forums.moneysavingexpert.com/discussion/3837003
BoI SVR rises followed the SVR rises from Halifax and RBS.
https://forums.moneysavingexpert.com/discussion/3832869
If there is a run on sterling and the BoE rate has to rise fast, no doubt there will be moans on that board from people on a BoE tracker.RENTING? Have you checked to see that your landlord has permission from their mortgage lender to rent the property? If not, you could be thrown out with very little notice.
Read the sticky on the House Buying, Renting & Selling board.0 -
ringo_24601 wrote: »
To all those with big savings after many years of squirreling money away; you should look at the equity you acquired as house prices rose and rose and rose; it is substantially more than the loss you are making on interest rates
That depends how long they have been saving.
My son was going to wait to buy when these higher SVR rates bite and the benefit drops take effort (spurred on by the Welfare Bill just being being passed which see dramatic drops in benefit "income" for many). But in the area of London he has been looking at, there have suddenly been a lot of properties put on the market.RENTING? Have you checked to see that your landlord has permission from their mortgage lender to rent the property? If not, you could be thrown out with very little notice.
Read the sticky on the House Buying, Renting & Selling board.0 -
MissMoneypenny wrote: »The mortgages board is quite active now with people who didn't have a BoE tracker. Many people are stuck on SVR due to negative equity; lower income; bought on a self cert and can't prove their earnings.
That gives out a very different message to what many on this board would have us believe.
Those that are enjoying low mortgage rates must remember that not everyone is on a BoE + 1% tracker. In fact, I would have thought that the proportion of mortgage holders on such deals is fairly low.30 Year Challenge : To be 30 years older. Equity : Don't know, don't care much. Savings : That's asking for ridicule.0 -
Those that are enjoying low mortgage rates must remember that not everyone is on a BoE + 1% tracker. In fact, I would have thought that the proportion of mortgage holders on such deals is fairly low.
Last CML figures showed the average mortgage rate being paid by mortgage holders is a touch over 3% - an all time low. That's a BoE + 2.5% - yes it's not BoE + 1% but the average mortgage holder seems to have been savvy enough to search out the best deals when they could.
It doesn't seem likley that it'll stay that low as 15% (ish) of these mortgage holders will be helping to push that up. It does mean though that 85% of mortgage holders are on fixed rates or deals linked to BoE.0 -
Last CML figures showed the average mortgage rate being paid by mortgage holders is a touch over 3% - an all time low. That's a BoE + 2.5% - yes it's not BoE + 1% but the average mortgage holder seems to have been savvy enough to search out the best deals when they could.
It doesn't seem likley that it'll stay that low as 15% (ish) of these mortgage holders will be helping to push that up. It does mean though that 85% of mortgage holders are on fixed rates or deals linked to BoE.
No it does not.
I am paying a touch over 3% at the moment. I'm on SVR. I fall into your first paragrah and so will LOADS on SVR.
85% of mortgage holders on fixed rates or BOE trackers? You're havign a giraffe.0 -
MissMoneypenny wrote: »The SVRs are already going up; 50% in some cases. That's the problem when you have low rates, as a smallish interest rate rise can double the rate. There should be some better rates for savers soon.
The mortgages board is quite active now with people who didn't have a BoE tracker. Many people are stuck on SVR due to negative equity; lower income; bought on a self cert and can't prove their earnings.
BOI; SVR just gone up 50%, from 2.99% to 4.49%
https://forums.moneysavingexpert.com/discussion/3837003
BoI SVR rises followed the SVR rises from Halifax and RBS.
https://forums.moneysavingexpert.com/discussion/3832869
If there is a run on sterling and the BoE rate has to rise fast, no doubt there will be moans on that board from people on a BoE tracker.
Christ. Theres a lot of people on those threads where a 1.5% rise is, in their own words and explanations, pushing them right to the edge, with some suggesting they fear loosing their home.
The key running through most of them is they expected their house value to rise, so they could switch to a better deal with a lower LTV.
The word "trapped" and "fear" comes up frequently.
Even I didn't imagine people would find such small rises so punishing.
Just shows how many people really can't afford their homes. This small rise is costing people £200 and more!0 -
MissMoneypenny wrote: »That depends how long they have been saving.
My son was going to wait to buy when these higher SVR rates bite and the benefit drops take effort (spurred on by the Welfare Bill just being being passed which see dramatic drops in benefit "income" for many). But in the area of London he has been looking at, there have suddenly been a lot of properties put on the market.
Very true, those in one of the worst positions are people currently saving for a deposit and think there is going to be a big drop in prices.. which there will not be in London0 -
Graham_Devon wrote: »No it does not.
I am paying a touch over 3% at the moment. I'm on SVR. I fall into your first paragrah and so will LOADS on SVR.
85% of mortgage holders on fixed rates or BOE trackers? You're havign a giraffe.
According to CML last October (reported by Which at least) 1.8m mortgage holders were on SVR's. That's 16% of the mortgage market.
What I said was that 85% of mortgage holders are therefore on fixed rates or deals linked to BoE. There's a difference between a tracker and a deal linked to BoE. Nationwide, for example, have a legacy BMR in addition to their SVR which has a rate guarantee linked to BoE. It's not a tracker but is guranteed not to be more than 2% above BoE.0 -
the average mortgage holder seems to have been savvy enough to search out the best deals when they could.
Well done to them if they did, it's certainly what I would have done.
It's going to interesting to see what happens over the next year or two. Many deals taken out since 2007 will be coming to an end, and recent news suggests that the banks are wanting a little more from their mortgage payers.30 Year Challenge : To be 30 years older. Equity : Don't know, don't care much. Savings : That's asking for ridicule.0
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