Jonnyboy Posted 16 October, 2011 Share Posted 16 October, 2011 Interest rates - will they rise in 2012??? Got to sort it out this week. Link to comment Share on other sites More sharing options...
Thedelldays Posted 16 October, 2011 Share Posted 16 October, 2011 Interest rates - will they rise in 2012???Got to sort it out this week. I signed up again on a fixed term in feb 2010....for some reason I was sure that the rates would go up not long after the general election....how wrong I was.....still, my new deal worked out at £80 per month less than my previous fixed deal with the rates at the time... Link to comment Share on other sites More sharing options...
dune Posted 16 October, 2011 Share Posted 16 October, 2011 Interest rates - will they rise in 2012??? Got to sort it out this week. It's very unlikely that the BOE base rate will rise in 2012. Link to comment Share on other sites More sharing options...
dune Posted 16 October, 2011 Share Posted 16 October, 2011 http://www.thisismoney.co.uk/money/news/article-1607881/Interest-rates-News-predictions.html Link to comment Share on other sites More sharing options...
buctootim Posted 16 October, 2011 Share Posted 16 October, 2011 (edited) It depends how long you are going to fix for. If you want a 10, 15 or even 25 year fix then interest rates now or even next year will have little influence on the rate you get. If you just want a new two or three year deal interest rates would have to go up an awful lot for a fixed deal to work out cheaper than a tracker. Edited 16 October, 2011 by buctootim Link to comment Share on other sites More sharing options...
Jonnyboy Posted 16 October, 2011 Author Share Posted 16 October, 2011 Was looking at a 3 year fixed at 3.19% versus an hSBC lifetime tracker at 2.89% (currently - which only saves about 30 quid a month) Link to comment Share on other sites More sharing options...
Clapham Saint Posted 16 October, 2011 Share Posted 16 October, 2011 I work closely with the business support teams at a number of high street banks. Their internal forecasts vary a little (obviousy), but none of the forecasts that I've seen have interest rates rising in 2012. Link to comment Share on other sites More sharing options...
Jonnyboy Posted 16 October, 2011 Author Share Posted 16 October, 2011 Hmm, I wonder if our mortgage advisor gets better commission if he sells us a fixed deal? Link to comment Share on other sites More sharing options...
buctootim Posted 16 October, 2011 Share Posted 16 October, 2011 Was looking at a 3 year fixed at 3.19% versus an hSBC lifetime tracker at 2.89% (currently - which only saves about 30 quid a month) HSBC offer a good deal on trackers so you are already in a pretty good place, although you could get it down to 2.5% if you only need 60% LTV. If you add in the fees for switching I'd be surprised if the 3 year fix at 3.19% was a good move. Try moneysupermarket.com - all the deals without a biased advisor pushing you (be sure to scroll down past the 'sponsored' deals at the top of the list and sort them by lowest overall cost. Link to comment Share on other sites More sharing options...
Jonnyboy Posted 16 October, 2011 Author Share Posted 16 October, 2011 appreciate the tips, thanks guys. Link to comment Share on other sites More sharing options...
hamster Posted 16 October, 2011 Share Posted 16 October, 2011 Don't gamble in the property market. The time is perfect to let your house, please trust me, I know what I am talking about. I am no expert but have owned houses for over 28 years and have had every mortgage product under the sun; BTL, trackers, endowment (ouch, that hurt), repayment, Fixed rate, Variable, ISA, you name it I have had it. With one exception, namely 'Interest Only' (BTL). If you can buy your own house off of yourself, right now, you have 25% equity and you are working, or even if you are on a half decent pension. NOW is the time to get an Interest Only Buy To Let mortgage. You get to try out a new house with a new lifestyle thrown in free of charge, if you don't like it then see it as a 6 month holiday. You'll not only have your mortgage paid, but on those figures I quote above, you will also be making a nice little profit; enough to cut your hours by about 20%. Try that dream job [sic] that you've been wondering about. Spend more time with the missus. Take a punt just don't leave it, those house prices are gonna start creeping up next year. This is the time to see what it's like to semi-retire. 'Semi Retired' How nice does that sound. Link to comment Share on other sites More sharing options...
hamster Posted 16 October, 2011 Share Posted 16 October, 2011 Don't worry about the interest rates. They are all good at the moment. Not many BTL Interest Mortgages out there though. I would be more than willing to PM you who the best lenders and the best Letting Agents are. Use a Letting Agent first time, You really do want to forget about the managing of it first time, just go away, forget all about the house and most importantly, have a think about what your going to spend that extra couple of hundred quid per month on. It's by no means a lotto win but it don't half change you outlook on life, imagine, I am giving myself a 25% pay rise, payable in hours in which to do whatever the hell I wish. I can, and will, recommend to you the best conveyancer known to man. I am not on commission, but Carol Luckett, Google her name, is brilliant. Never had better and I've had a few. Link to comment Share on other sites More sharing options...
Lord Duckhunter Posted 17 October, 2011 Share Posted 17 October, 2011 My old man was a Building Society Manager for 30 years and the best bit of advise he ever gave me was to look at your mortgage as rent and not a debt. After 25 years of paying rent, you are then given the house rent free. Obviously you are liable for repairs ect, but generally I've always had a pretty relaxed attitude towards my Mortgage as I would have to pay rent somewhere if I didnt have this "debt". Link to comment Share on other sites More sharing options...
stevegrant Posted 17 October, 2011 Share Posted 17 October, 2011 please trust me, I know what I am talking about. immediately followed by... I am no expert Link to comment Share on other sites More sharing options...
Raging Bull Posted 17 October, 2011 Share Posted 17 October, 2011 When it comes to renting your house out which is all very well and rents are doing very well ( I'm a landlord ), you still have to live/rent somewhere and rents have gone up across the board, unless you down size or move to a less desirable area. Link to comment Share on other sites More sharing options...
eastleighhalo Posted 17 October, 2011 Share Posted 17 October, 2011 Its re mortgage time for me as well . Ive been on a 5 year fixed term with A and L at 5.09 which seemed a good deal at the time .. its now gone to the A and L SVR at 4.99 ..i was expecting ( wrongly) to go to the Santander SVY of 4.24 as they have bought A and L out during the term of my fixed rate.... so now lookng for a new deal . Ive contacted Santander and have been offered various deals but im sure there are far better out there ... a problem i have is that because the the crash there isnt hardly any equity in the house that i have so may be stuck with what i have ...any advice would be welcome Link to comment Share on other sites More sharing options...
aintforever Posted 17 October, 2011 Share Posted 17 October, 2011 Interest rates can't go any lower so I've gone for a fixed rate. I know next to nothing about economics but I think they usually raise interest rates to combat inflation. Recently we've been printing money like crazy so if the economy picks up we will probably get serious inflation. Having said that it is looking more and more like we are entering a recession/depression so god knows what will happen. Link to comment Share on other sites More sharing options...
Jonnyboy Posted 17 October, 2011 Author Share Posted 17 October, 2011 Its re mortgage time for me as well . Ive been on a 5 year fixed term with A and L at 5.09 which seemed a good deal at the time .. its now gone to the A and L SVR at 4.99 ..i was expecting ( wrongly) to go to the Santander SVY of 4.24 as they have bought A and L out during the term of my fixed rate.... so now lookng for a new deal . Ive contacted Santander and have been offered various deals but im sure there are far better out there ... a problem i have is that because the the crash there isnt hardly any equity in the house that i have so may be stuck with what i have ...any advice would be welcome see a mortgage advisor and then compare against what you can get from others that always have to be booked through the bank, eg HSBC (not sure of others but I think includes Natwest) Link to comment Share on other sites More sharing options...
SO16_Saint Posted 17 October, 2011 Share Posted 17 October, 2011 Interest rates will not go up for the forseeable. If you're risk averse, ignore the above statement, and get yourself on a medium term fixed - 3/5 years - pref 5, so that this sh*t can sort itself out. If you want to take a risk, and play the game, it's tracker time. Only you, and your partner, can decide which way to go. If you want security, no matter what, expect to pay £x more per month, don't read the papers / listen to the news, and be safe in the knowledge that you did the right thing for YOU at the time. Don't know if that helps any...? Link to comment Share on other sites More sharing options...
Jonnyboy Posted 17 October, 2011 Author Share Posted 17 October, 2011 Don't gamble in the property market. The time is perfect to let your house, please trust me, I know what I am talking about. I am no expert but have owned houses for over 28 years and have had every mortgage product under the sun; BTL, trackers, endowment (ouch, that hurt), repayment, Fixed rate, Variable, ISA, you name it I have had it. With one exception, namely 'Interest Only' (BTL). If you can buy your own house off of yourself, right now, you have 25% equity and you are working, or even if you are on a half decent pension. NOW is the time to get an Interest Only Buy To Let mortgage. You get to try out a new house with a new lifestyle thrown in free of charge, if you don't like it then see it as a 6 month holiday. You'll not only have your mortgage paid, but on those figures I quote above, you will also be making a nice little profit; enough to cut your hours by about 20%. Try that dream job [sic] that you've been wondering about. Spend more time with the missus. Take a punt just don't leave it, those house prices are gonna start creeping up next year. This is the time to see what it's like to semi-retire. 'Semi Retired' How nice does that sound. Seems like a strange idea, youd have a bit more cash to play with each month but youd still have a large mortgage hanging round your neck, and be paying just to rent so that debt wouldnt be decreasing. Link to comment Share on other sites More sharing options...
aintforever Posted 17 October, 2011 Share Posted 17 October, 2011 Take a punt just don't leave it, those house prices are gonna start creeping up next year. I think they will fall again, the house market is slow at the moment and there's bound to be another recession. Link to comment Share on other sites More sharing options...
hamster Posted 17 October, 2011 Share Posted 17 October, 2011 When prices rise it is usually at a rate far in excess of what you coould match by repayments, even with generous overpayments.Compare the difference between repyment and interest only products atm. The difference could be yours to spend. Wisdom is learnt from experience, every now and then the market works in your favour and imho right now is one of those times. Timing is key. Link to comment Share on other sites More sharing options...
Channon's Sideburns Posted 17 October, 2011 Share Posted 17 October, 2011 HSBC offer a good deal on trackers so you are already in a pretty good place, although you could get it down to 2.5% if you only need 60% LTV. If you add in the fees for switching I'd be surprised if the 3 year fix at 3.19% was a good move. Try moneysupermarket.com - all the deals without a biased advisor pushing you (be sure to scroll down past the 'sponsored' deals at the top of the list and sort them by lowest overall cost. All comparison sites are just adverts - as are best buy tables in the papers - so don't be fooled. Fixed rates are at risk next year by the Eurozone probs pushing up the cost of borrowing for the lenders, so if you can look at longer term deals (e.g 3 or 5yr) now, then you could benefit WHEN rates start to rise. 15 years experience as an adviser tells me...you won't see cheaper fixed rates for a LONG time. Also, commission paid on deals is not higher on certain types. HTH. Link to comment Share on other sites More sharing options...
Lord Duckhunter Posted 18 October, 2011 Share Posted 18 October, 2011 What I tried to do when my fixed rate ended was to go onto the SVR, continue to budget as if I was paying the fixed rate, and save the difference. The money saved can then be offset against interest rate rises in the future, whilst keeping one eye out ready to fix once rates start to go up. It looked good on paper, but in practise the £100 per month less that I pay Nationwide , has just been swallowed up by other bills and not saved. Link to comment Share on other sites More sharing options...
Channon's Sideburns Posted 19 October, 2011 Share Posted 19 October, 2011 If you're on SVR now and you're planning to fix in the future - don't wait. The pricing for fixed rates is different to Trackers linked to the Bank of England base rate. Woolwich are putting some of their fixed rates up tonight at midnight - they will be the first of many. Fixed rates will continue to rise as the Eurozone goes pop. Link to comment Share on other sites More sharing options...
trousers Posted 19 October, 2011 Share Posted 19 October, 2011 I had a spot of fortune (for once) with my remortgage a few years ago....switched to an HSBC "0.89% above base rate tracker" deal just before interest rates tumbled....my payments fell from c. £600 pcm to c. £150 pcm on a c. £120k mortgage. There's a potential pitfall looming in that I've adjusted my cost of living accordingly, so would be somewhat stuffed if interest rates leapt up again, but I can't see that happening for at least a year or so. Link to comment Share on other sites More sharing options...
Channon's Sideburns Posted 20 October, 2011 Share Posted 20 October, 2011 I had a spot of fortune (for once) with my remortgage a few years ago....switched to an HSBC "0.89% above base rate tracker" deal just before interest rates tumbled....my payments fell from c. £600 pcm to c. £150 pcm on a c. £120k mortgage. There's a potential pitfall looming in that I've adjusted my cost of living accordingly, so would be somewhat stuffed if interest rates leapt up again, but I can't see that happening for at least a year or so. The thing you need to factor in is this - assuming a loan to value of less than 75%, you could get a 2yr Fixed Rate now of around 2.5%, a 3yr Fixed Rate around 2.9% and a 5yr Fixed around 3.5%. Bank of England base rate does not affect these rates directly, however the money markets does. If the cost of borrowing increases as is now expected, fixed rates etc are only likely to rise higher...so the choice is to take the hit now, or later. It's a gamble, no doubt - but fixed rates have NEVER been this low. I now end this mortgage sermon. Link to comment Share on other sites More sharing options...
Jonnyboy Posted 20 October, 2011 Author Share Posted 20 October, 2011 The thing you need to factor in is this - assuming a loan to value of less than 75%, you could get a 2yr Fixed Rate now of around 2.5%, a 3yr Fixed Rate around 2.9% and a 5yr Fixed around 3.5%. Bank of England base rate does not affect these rates directly, however the money markets does. If the cost of borrowing increases as is now expected, fixed rates etc are only likely to rise higher...so the choice is to take the hit now, or later. It's a gamble, no doubt - but fixed rates have NEVER been this low. I now end this mortgage sermon. Who are those fixed rates with? Are they fee free? Link to comment Share on other sites More sharing options...
Whitey Grandad Posted 20 October, 2011 Share Posted 20 October, 2011 Er... what's a mortgage? Link to comment Share on other sites More sharing options...
gazd83 Posted 20 October, 2011 Share Posted 20 October, 2011 Don't worry about the interest rates. They are all good at the moment. Not many BTL Interest Mortgages out there though. I would be more than willing to PM you who the best lenders and the best Letting Agents are. Use a Letting Agent first time, You really do want to forget about the managing of it first time, just go away, forget all about the house and most importantly, have a think about what your going to spend that extra couple of hundred quid per month on. It's by no means a lotto win but it don't half change you outlook on life, imagine, I am giving myself a 25% pay rise, payable in hours in which to do whatever the hell I wish. I can, and will, recommend to you the best conveyancer known to man. I am not on commission, but Carol Luckett, Google her name, is brilliant. Never had better and I've had a few. Muh better than her out there i'm afraid. Cheaper too. Link to comment Share on other sites More sharing options...
buctootim Posted 21 October, 2011 Share Posted 21 October, 2011 (edited) Who are those fixed rates with? Are they fee free? This is a good deal if you want fixed. You can find lower headline interest rates, but with big fees attached. Basically it only makes sense to pay a £1,800 arrangement fee to benefit from a lower interest rate for two or three years if you have a huge mortgage. http://www.moneysupermarket.com/mortgages/details.aspx?productId=1017&selectedProductGroupType=3&enquiryid=3499780&passcode=73912434-ac9e-458c-a1ea-bf75a7b3b9b2 Edited 21 October, 2011 by buctootim Link to comment Share on other sites More sharing options...
eastleighhalo Posted 24 October, 2011 Share Posted 24 October, 2011 Its re mortgage time for me as well . Ive been on a 5 year fixed term with A and L at 5.09 which seemed a good deal at the time .. its now gone to the A and L SVR at 4.99 ..i was expecting ( wrongly) to go to the Santander SVR of 4.24 as they have bought A and L out during the term of my fixed rate.... so now lookng for a new deal . Ive contacted Santander and have been offered various deals but im sure there are far better out there ... a problem i have is that because of the crash there isnt hardly any equity in the house that i have so may be stuck with what i have ...any advice would be welcome Im just adding to this for hopefully some further advice... my mortgage is £150000 and has always been payed in an interest only basis... the value of my property is now only approx £1700000 .. so I have LTV issues. Link to comment Share on other sites More sharing options...
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