The Top Fixed Interest Savings Discussion Area

jimexbox

Patr100 said:

jimexbox said:

Unfortunately there are a lot of folk who have never known anything but extremely low base rates, and think its normal. I hope their lenders correctly assessed their ability to pay increased mortgage costs. 

So do I. The problem for payers today is that while rates were higher eg in the 90s - mortgages were relatively more affordable -
eg deposits of 5% or 10% were doable and house price to salary ratio was a stretch (sometimes a max of 3.5 annual salary)  , but achievable. Back then fixing for up to 5 years was often the way to go. I was lucky. when I bought my first home in 1993, house prices had dropped at the time.
But as rates rise today , borrowers will actually be paying a relatively higher portion of income, than we were in the 90s. 

Absolutely. Never had mortgage more than x2.5 my salary, now I'm mortgage free. A flat in my area is x6 average salary. A house, x10/11. Its not sustainable, a correction is coming and a lot of people will find out what negative equity means. 

billy2shots

The problem with the affordablilty tests was it gave a lot of responsibility to the borrower. 

If the borrower saved their "extra' each month then it wouldn't be too much of a worry if rates rise 3%. 
Unfortunately many borrowers fall to lifestyle creep and load up on expensive phone contracts, Netflix, Disney, Amazon subscriptions etc. 

Spare money has already been spent in many cases, that safety gap 'affordability test' is longer there. 



Back on topic. 

How realistic do we feel a 4% 1 year fix is. Either savings or ISA.  I believe we will get there but I'm not sure it's coming in this round of hikes. 
I have a large sum sat at 1.5% easy access (not changing for 0.3  in the hope of a good jump soon). 

RG2015

billy2shots said:

How realistic do we feel a 4% 1 year fix is. Either savings or ISA.  I believe we will get there but I'm not sure it's coming in this round of hikes. 
I have a large sum sat at 1.5% easy access (not changing for 0.3  in the hope of a good jump soon). 

Fully expect it within a couple of weeks.

ZeroSum

billy2shots said:

The problem with the affordablilty tests was it gave a lot of responsibility to the borrower. 

If the borrower saved their "extra' each month then it wouldn't be too much of a worry if rates rise 3%. 
Unfortunately many borrowers fall to lifestyle creep and load up on expensive phone contracts, Netflix, Disney, Amazon subscriptions etc. 

Spare money has already been spent in many cases, that safety gap 'affordability test' is longer there. 



Back on topic. 

How realistic do we feel a 4% 1 year fix is. Either savings or ISA.  I believe we will get there but I'm not sure it's coming in this round of hikes. 
I have a large sum sat at 1.5% easy access (not changing for 0.3  in the hope of a good jump soon). 

Isa rates tend to be lower than normal savings, but if the rumours are to believed about the emergency BoE meeting, then could be round the corner. Although if you have a spare £20m then you can get over 4% on a 1 year fix now.

jimexbox

billy2shots said:

The problem with the affordablilty tests was it gave a lot of responsibility to the borrower. 

If the borrower saved their "extra' each month then it wouldn't be too much of a worry if rates rise 3%. 
Unfortunately many borrowers fall to lifestyle creep and load up on expensive phone contracts, Netflix, Disney, Amazon subscriptions etc. 

Spare money has already been spent in many cases, that safety gap 'affordability test' is longer there. 



Back on topic. 

How realistic do we feel a 4% 1 year fix is. Either savings or ISA.  I believe we will get there but I'm not sure it's coming in this round of hikes. 
I have a large sum sat at 1.5% easy access (not changing for 0.3  in the hope of a good jump soon). 

I'm using zopa's boosted pots until next year before I jump for a 1 Yr fix. 90 day at 2.25% and give notice immediately. 

Daliah

billy2shots said:

I have a large sum sat at 1.5% easy access (not changing for 0.3  in the hope of a good jump soon). 

what would be your trigger rate?

billy2shots

Daliah said:

billy2shots said:

I have a large sum sat at 1.5% easy access (not changing for 0.3  in the hope of a good jump soon). 

what would be your trigger rate?

2.5% with full freedom to jump at a moment's notice depending on other products and stock market performance. 

Krakkkers

Some reports saying 1% rise being touted for November and possibly an emergency rise this week?

jimexbox

billy2shots said:

Daliah said:

billy2shots said:

I have a large sum sat at 1.5% easy access (not changing for 0.3  in the hope of a good jump soon). 

what would be your trigger rate?

2.5% with full freedom to jump at a moment's notice depending on other products and stock market performance. 

Took me 5 minutes to open a zopa account and a few days to move money out of Chase. For hundreds in extra interest. 

billy2shots

jimexbox said:

billy2shots said:

Daliah said:

billy2shots said:

I have a large sum sat at 1.5% easy access (not changing for 0.3  in the hope of a good jump soon). 

what would be your trigger rate?

2.5% with full freedom to jump at a moment's notice depending on other products and stock market performance. 

Took me 5 minutes to open a zopa account and a few days to move money out of Chase. For hundreds in extra interest. 

0.75 better than my chase but 90 day restriction on moving it. 

I don't plan on holding for a year in a these type of accounts, more like 1 month. Circa £60j going in means £37 difference in interest before tax on shavings (over £1000 interest). 

That's why it's quite a balancing act for me at the moment, not so straight forward.