Worried about higher interest rates?

MFW_ASAP

mayonnaise wrote: »

If James Perrett took out a tracker before the crash, can't we assume he was paying base rate + margin before the crash? Let's say 6-ish percent at least?
The banks aren't dishing out those BR trackers since BR is at 0.5%, shorty, I'm sure you noticed.

I have lost track of how many times I've said this to Shortchanged and s/he does the same thing as s/he has now done with you - ghosted away from the discussion when defeated by logic, only to reappear a couple of weeks later with the same discredited point.

I hardly come on here these days, things have moved on from the heady days of the GFC and so have most of the bears now they have bought their houses. All that is left are the circular arguments with shortchanged and graham. Dull, TBH.

bigheadxx

Thrugelmir wrote: »

Where are they going to live? A property is a home. Once paid for a home gives security. Something that people rightly aspire to.

If they don't repay the capital at the end of the mortgage term the bank will be within their rights to take possession. They certainly won't be getting a thirty year mortgage aged fifty or sixty.

MFW_ASAP

bigheadxx wrote: »

I really don't see how not repaying the principal is a good thing long term. Yes the rate shock will be more severe if you are interest only but in reality the majority of people who have not made any kind of provision for repayment of capital, would not be staying in their homes long term anyway.

We have a large family home that we have no intention of staying in forever. Before we retire we will downsize to a more appropriate home. We were interest only on our home, but found it difficult to get one when we remortgaged because of the 'nanny state'. We have no intention of paying off our mortgage completely while we live here, we will sell up in 20 years, pay off the remaining mortgage and then use the tax free equity to buy a cottage, investing any surplus in a pension (now that you can access 100% of the money).

Blacklight

I'll be annoyed if any rate increase erodes my massive overpayments. I'll have to pass it all on to the tenants I suppose.

shortchanged_2

Blacklight wrote: »

I'll be annoyed if any rate increase erodes my massive overpayments. I'll have to pass it all on to the tenants I suppose.

Good luck with that one.

Jonbvn

MFW_ASAP wrote: »

We have a large family home that we have no intention of staying in forever. Before we retire we will downsize to a more appropriate home. We were interest only on our home, but found it difficult to get one when we remortgaged because of the 'nanny state'. We have no intention of paying off our mortgage completely while we live here, we will sell up in 20 years, pay off the remaining mortgage and then use the tax free equity to buy a cottage, investing any surplus in a pension (now that you can access 100% of the money).

Sounds a simple plan but is very dependent on continued low interest rates (unless you are on a 20 yr fix).

Thrugelmir

Blacklight wrote: »

I'll be annoyed if any rate increase erodes my massive overpayments. I'll have to pass it all on to the tenants I suppose.

Rate increases may well erode your equity as well.

Big_Baldy

Already panicking about rate increase, and we don't have what you would call a particularly high mortgage.

Sod it, I'm selling the house and buying a winnebago!

Thrugelmir

Big_Baldy wrote: »

Sod it, I'm selling the house and buying a winnebago!

Fuel is on it's way down in price.

Graham_Devon

Commentator on the radio today suggested Mark Carney will now switch tack again, and suggest rates won't rise in the near future due to lower than expected inflation and EU worries.... we'll see I guess in a couple of weeks or so.

Goes hand in hand with George Osbournes announcement today suggesting were heading for round 2.

Amusing today either way. It was all about China consuming too much and polluting too much a couple of years ago. Now were wallowing in misery over our future due to China not producing enough and the world not using enough oil.