Thoughts on mortgage rates next January

[Deleted User]

Hi,

I know it's still yet to be decided but I wondered if anyone had any thoughts on what mortgage rate reductions the banks may offer with the government guarantee, purely speculative I know.

I reckon I have two options:

1. Save 21k (15%) of a £140k property taking 30 months. A quick search on moneysupermarket suggests I could get a rate of 4% or £564pm

2. Save 7k (5%) taking 14 months.

Although I appreciate a 95% mortgage is high I'd hope the reduction in mortgage rates would make it a viable option.

I'm not ruling out a new build but at current prices and availability I highly suspect an older house would be my better option.

Thoughts welcome.

Thanks

[Deleted User]

Anyone....

lee111s

No idea tbh. Save as much as you possibly can and see what's around in Jan.

shonzyd

not really something anyone on here can predict. Rates may become more competitive if there is more being dished out, but really.....who knows??? But if the government scheme is only for new builds - realistically how many new builds will be built - i think that will be the biggest challenge - the competition for new properties now and how many they are planning on building to get people on the ladder.

opinions4u

If I could predict that with any accuracy do you think I'd be posting on here?

I would be a very rich man by now!

grey_gym_sock

why would being very rich put you off from posting on here?

HappyMJ

Deleted_User wrote: »

Hi,

I know it's still yet to be decided but I wondered if anyone had any thoughts on what mortgage rate reductions the banks may offer with the government guarantee, purely speculative I know.

I reckon I have two options:

1. Save 21k (15%) of a £140k property taking 30 months. A quick search on moneysupermarket suggests I could get a rate of 4% or £564pm

2. Save 7k (5%) taking 14 months.

Although I appreciate a 95% mortgage is high I'd hope the reduction in mortgage rates would make it a viable option.

I'm not ruling out a new build but at current prices and availability I highly suspect an older house would be my better option.

Thoughts welcome.

Thanks

Could be 4%, maybe 5%, then again it could be 6%, 7% or 8%.

If you base your decision on the middle rate 6% and then do a rent/buy calculation and if buying is cheaper then go ahead and buy otherwise I'd just continue to rent.

New build should not require maintenance for many years but an older property will require you to put an amount of money aside each month for ongoing repairs so even though new build is more expensive upfront with low interest rates it may actually be cheaper than an older property priced 20% less per square foot.

opinions4u

grey_gym_sock wrote: »

why would being very rich put you off from posting on here?

I'd be too busy turning a crap lower league football club in to Champions of Europe.

tunnel

opinions4u wrote: »

I'd be too busy turning a crap lower league football club in to Champions of Europe.

:rotfl: You would have to be filthy rich for that ! and change your name to Roman.