What do you think mortgage deals will be like in two years time?

Jhoney_2

More than 1% higher

Glastoun wrote: »

Whichever way we vote, we all get skewered anyway so what's the point?

Whatever way we are skrewed, and we all get vetoed anyway - that's their point.:T

JimmyTheWig

Exactly 1% higher

Past the half-way mark and I still don't think rates have gone up. [Obviously the base rate hasn't moved, but I don't think deals have gone up either, have they?]

Do the people who voted more than 1% last year still think that rates will rise more then 1% in the next 10 months? Or, with hindsight, would you change your vote?

Dandytf

More than 1% higher

my 5 yr fixed 5%mtg ends August 20017

When I purchased my flat initial rate was 6+% 3 yrs.

I'm wishing 1.5% increase over next 3yrs...honestly think it will be much higher increase from 20016-20017- I can cope with 6% again (though earnings are lower past 5 yrs)

Dandytf

More than 1% higher

Do the people who voted more than 1% last year still think that rates will rise more then 1% in the next 10 months? Or, with hindsight, would you change your vote?

+1% next 10 moths -thats only .5% 2 quarters -possible .5 this year -then .5 or 1% increases each quarter 20016

getmore4less

Less than 1% higher

I thought this was a new thread and still think <1% for the next 2 years.

JimmyTheWig

Exactly 1% higher

Well, I've just renewed my deal which was the point of this thread...
Gone from 2.49% to 1.79%.
So rates have come _down_ by 0.7%. Who would have guessed that, two years ago!

Well done to those 10 people saying "Less than 1% higher".

Dandytf

More than 1% higher

JimmyTheWig wrote: »

Well
So rates have come _down_ by 0.7%. Who would have guessed that, two years ago!

Well done to those 10 people saying "Less than 1% higher".

;t

I didn't vote <1% higher.

Though thanks for posting update,I'm planning on posting via this thread Jun 17 earliest I can swap from existing 5yr fixed.

fewcloudy

Less than 1% higher

Didn't realise this was a ghost thread and just voted!
But don't understand why you asked so long ago about something that was 2 years off in the future, what use was that to you?


fc

JimmyTheWig

Exactly 1% higher

fewcloudy wrote: »

But don't understand why you asked so long ago about something that was 2 years off in the future, what use was that to you?

See post #10...

JimmyTheWig wrote: »

Mortgage is in two parts.
Part A is fixed for 4 years at 2.99%
Part B is fixed for 2 years at 2.49%
My plan is to take another 2 year deal for part B when this one runs out.

I'm allowed to make overpayments of up to 10% of the balance in any calendar year. I'll be making an overpayment soon.
But which part do I overpay?
If my deal in 2 years time is a 3.49% fix (i.e. rates have gone up by exactly 1%) then it doesn't matter which part I overpay now - I'll either be saving 2.99% for 4 years if I overpay part B or I'll be saving 2.49% for 2 years then 3.49% for 2 years which averages out to 2.99% (possibly a little lower if you include compound interest, but I would guess that the difference is tiny).
If the next rate is more than 3.49% then I'd be better off overpaying part B now.
If the next rate is less than 3.49% then I'd be better off overpaying part A now.

Personally, I think a 1% increase in two years is about right.

Interesting that the consensus is with more than 1% increase, in which case I'd be better off overpaying the part with the lower current interest rate.