Nationwide Oct: +0.6%

moneyinmypocket

shortchanged wrote: »

No, Lager mainly.

House prices are on the rise Woop Woop

Graham_Devon

robmatic wrote: »

I think you've missed the massive disconnect between base rate and the rates that FTBers with modest deposits are actually paying.

It doesnt matter what the disconnect is, unless you are positive that the mortgage rate won't go up when base rates do.

Infact, the disconnect could make things even worse in the future.

FTBFun

shortchanged wrote: »

That's the big danger isn't it. Particularly amongst FTB's coming onto the market who may think these current rates are normal.

I paid 4.29% in 2010 with a 15% deposit. Don't think the 0.5% helped me much.

wotsthat

Graham_Devon wrote: »

I think it's a real problem now (being stored for the future). IMHO the danger mark has been passed.

0.5% are normal now. We don't even bother discussing them anymore. Hamish doesn't even glance their way when discussing a normal market. Even economists all but ignore them now. A builders report the other day went into loads of detail about the future and current issues surrounding the market, and interest rates weren't even glanced at.

It's only dangerous if people are as stupid as you think they are.

You might have also noticed that lenders have been quite particular who they lend to for some time now. If someone has a potential problem with rates rising I doubt they've been given a mortgage. Even if we look at legacy loans the situation isn't too bad and it's improving.

When rates rise three things will happen..

1) Everyone will hear a strange noise originating from the South-West that sounds strangely like someone singing 'Joy to the World'.

2) The Daily Mail will find a couple affected by the rate rise. The picture will show them angst ridden accompanied by the subtitle "but nobody told us this could happen". This story will be posted here.

3) People do what they always do - adjust and get on with it.

Graham_Devon

wotsthat wrote: »

It's only dangerous if people are as stupid as you think they are.

Aye, and this was said about all those on IO mortgages.

Now just look at the stories emerging.

Loughton_Monkey

Graham_Devon wrote: »

Let us know when they go up and you are moaning about the injustice of it all.

Assuming you mean interest rates, whatever gives you the impression that I will moan? My own mortgage is technically fully paid, but in practice isn't because I pulled it all out again paying 1½% and earning nearer 4% on the money.

Once the interest I earn on my other savings goes up, you will hear me chinking my gin glass, not moaning.

wotsthat

Graham_Devon wrote: »

Aye, and this was said about all those on IO mortgages.

Now just look at the stories emerging.

No doubt the ambulance chasing bandwagon will be dusted off once again - doesn't mean that stories on the DM reflect reality, IO is an accident waiting to happen or low interest rates are dangerous because lenders never told borrowers that they might increase.

Let's not confuse real problems (or lack of them) with people willing to commit fraud to make a claim.

Graham_Devon

wotsthat wrote: »

No doubt the ambulance chasing bandwagon will be dusted off once again - doesn't mean that stories on the DM reflect reality, IO is an accident waiting to happen or low interest rates are dangerous because lenders never told borrowers that they might increase.

Let's not confuse real problems (or lack of them) with people willing to commit fraud to make a claim.

Aye, there will be very little in the way of problems if interest rates moved back to say 3%. It's all rosy....ahhhhh.

moneyinmypocket

Low IR for a decade plus some

wotsthat

Loughton_Monkey wrote: »

Assuming you mean interest rates, whatever gives you the impression that I will moan? My own mortgage is technically fully paid, but in practice isn't because I pulled it all out again paying 1½% and earning nearer 4% on the money.

Once the interest I earn on my other savings goes up, you will hear me chinking my gin glass, not moaning.

When a decent 5 year offset comes out I think I might be withdrawing all of the available equity that I foolishly allowed to accrue. It would seem rude not to.

Then when the opportunity comes along to make a margin of 2.5% on free money, and it will, I'll be all set. Might even celebrate with a G&T myself.