Where are mortgage rates going?

Crashy_Time

Jack_Johnson_the_acorn wrote: »

Don't be confusing the poor lad.

Lets just hope that 60k terrace you bought for 120k holds it`s "value" in the coming return to reality eh?

westernpromise

I have 8 years left on a 10-year fix. Never really regretted it. I would have done better fixing earlier this year but earlier this year I might not have got the deal, as school fees are now in the picture where previously they were not.

westernpromise

Crashy_Time wrote: »

Lets just hope that 60k terrace you bought for 120k holds it`s "value" in the coming return to reality eh?

While we're at it, let's just hope it falls £150k in value so you're back in the money Crashy.

Crashy_Time

http://www.propertytribes.com/an-introduction-to-negative-equity-uk-t-127627419.html

michaels

How long is a piece of string?

Conrad wrote: »

Michael I've seen countless posts over the last 8 years telling me where rates are going.


My stance is fix at low rates and forget, 5 years I prefer but the downside is you cannot so readily release equity if you are tied in during that period - the existing lender might allow it but it can be at overly high rates (BM are a bit naughty for this), although some such as TMW I have found very good at allowing further advances, at any point after year one.


As to what they will be in 2 years - well always the answer to this question people tend to give is 'they will be higher', it's just Human nature to think this way, but NO ONE AND I MEAN NO ONE HAS A CLUE

Based on the balance of opinion on the poll it is clear that the 'wisdom of crowds' is could be higher but not sure. I agree with you re 5 year fix (although it turns out the one I am in at 2.49 was a mistake) but now I could dump and go to a 7 year fix at an effective rate of 2.7% for the next 7 years - expensive based on current 5 year fixes but possibly cheap if rates are higher in 2 years.

Linton

Crashy_Time wrote: »

Because he has already made his money in property and that doesn`t align with the issues he was elected on?

Which do you think he will sacrifice when things get difficult? Has there ever been a property tycoon who has said: "OK, I have made my money in property so I dont need any more"?

padington

Less than 1% higher - up to 2.85%

Conrad wrote: »

Michael I've seen countless posts over the last 8 years telling me where rates are going.


My stance is fix at low rates and forget, 5 years I prefer but the downside is you cannot so readily release equity if you are tied in during that period - the existing lender might allow it but it can be at overly high rates (BM are a bit naughty for this), although some such as TMW I have found very good at allowing further advances, at any point after year one.


As to what they will be in 2 years - well always the answer to this question people tend to give is 'they will be higher', it's just Human nature to think this way, but NO ONE AND I MEAN NO ONE HAS A CLUE

Trump and Hammond think they do, they're going to borrow a fortune on the basis that low rates are here for years, maybe decades.

padington

Less than 1% higher - up to 2.85%

Linton wrote: »

Which do you think he will sacrifice when things get difficult? Has there ever been a property tycoon who has said: "OK, I have made my money in property so I dont need any more"?

Crashy thinks trump is taking the hassle and assassination risk for him and family to make choices which will destabilise his family business just to make the world a better place.

:rotfl:

Jack_Johnson_the_acorn

Same as now - 1.85%

Crashy_Time wrote: »

Lets just hope that 60k terrace you bought for 120k holds it`s "value" in the coming return to reality eh?

The terrace (detatched) is apparently upto £160k..... How's your property (hmo) doing? Still renting I guess? Still time for you yet though...... remember I'm about 20 yrs younger and closer to being mortgage free than you.... so everyone should dream big :rotfl:

chucknorris

How long is a piece of string?

Crashy_Time wrote: »

Good luck with the cheap money forever dreams.

It doesn't have to be forever to make a significant contribution to your wealth, when the base rate was cut to 0.5%, I hoped for about 3 years of cheap money, but we are now coming up to 8 years! That has already provided us with over 300k of additional rental profit, and still counting. I think that I will probably have sold up before the base rate reaches 3%, so for us, it might as well have been forever.