Interest Rates up 0.25%

[CHAPPERS]

Well do you pay a mortgage ?

No!

 

[Uncle Spielberg]

5.18% fixed for 10 years ss very good, the downside is the penalties probably last for 10 years and could be up to 5% of the mortgage, little flexibility , it is vital it is portable to it can move property with you but if you sell and do not buy again or move away or split with the other half or whatever sometimes things happen you cannot plan 10 years for, I personally only fix for 2 years at a time and then relook at the market and with free surveys and free legals and fees added its worked for me

 

[seagullsovergrimsby]

Bumping up the base rate to stop house price inflation rising too quickly will slow down the economy and reduce its effect on the RPI and true inflation figures.

 

[Beach Hut]

No!

No real need to worry then unless you are thinking of one as they are becoming more expensive.

 

[Uncle C]

I am very surprised at this, most people thought it would be feb if at all and this seems a step too far, 7 increases now , I think this one could tip the market the wrong way

I would go along with a reversal of the market soon. A number of factors will combine:

1. Historically high house prices
2. Diminishing numbers of first time buyers
3. Increasing interest rates
4. More buyers being pushed into higher stamp duty
5. Record levels of debt
6. Increasing levels of bankrupcy

To add to this, Sellers Packs are planned to start in June 2007.
Most people wont want the aggro and will try and sell before it happens. A glut of houses coupled with points 1-6 will see a fall in house prices.

 

[Bry Nylon]

No real need to worry then unless you are thinking of one as they are becoming more expensive.

But if you rent, and your landlord has a mortgage on that or any other property, the increase may well be reflected in higher rents next time your rent is reviewed.

 

[aftershavedave]

I am very suprised at this, most people thought it would be feb if at all and this seems a step too far, 7 increases now , I think this one could tip the market the wrong way, if you want to re mortgage and get a fixed rate do it now.

why on earth fix now?

this rate rise, a month earlier than expected admittedly, is likely to be the high point, therefore fixing now makes no sense.

sterling long term yield curve is very flat, suggesting no great scope for more rises.

 

[Uncle C]

But if you rent, and your landlord has a mortgage on that or any other property, the increase may well be reflected in higher rents next time your rent is reviewed.

A landlord charges what the market will bear. What it costs him to finance his little nest egg is irrelevant

 

[Uncle Spielberg]

this is the best re mortgage fixed rate for loans under £ 130k

5.25% fixed until 28/2/09
No arrangement fees
Free survey
Free legals
No penalties after 28/2/09

don't be fooled by headline rates as the excessive arrangement fees usually more than negate the lower rate

 

[Marshy]

Im fixed until June.....proabably gonna fu*k me in the ass when i come to renew it....

 

[Uncle Spielberg]

PM me Marshy , need to finalise things 2 months before as re mortgage process takes 6-8 weeks and also check with present lender what they can offer

 

[pasty]

Fixed Rates Rock

 

[Marshy]

I have a so called " independant advisor " who is supposed to scoure the market for the best deal but im not so sure she is as free to choose as she/they suggest.
Bound to get backhanders/bigger deals from various lenders i would imagine.

Will mail you nearer the time thanks.

 

[dwayne]

I don't know what any of this means!

jog on ginger the big boys are talking

 

[Uncle Spielberg]

it depends what cycle you get in on 3/4 years ago a 2 year tracker rate would have been much better than a comparible 2 year fixed rate at the time over the last 2 years a 2 year fixed rate was much better than a 2 year tracker rate, now its pretty even but most people want the security of a fixed rate payment I find

 

[Uncle Spielberg]

I have a so called " independant advisor " who is supposed to scoure the market for the best deal but im not so sure she is as free to choose as she/they suggest.
Bound to get backhanders/bigger deals from various lenders i would imagine.

Will mail you nearer the time thanks.

If only, I have not got a backhander in 15 years !, lenders pay procurement fees to the advisor/company which is 0.3% - 0.5% of the mortgage amount for a standard mortgage, some unscrupulous brokers may be tempted to place people with higher paying lender who the FSA regulation of mortgage is supposed to put a stop to that as they have to give a disclosure document, kfi and mortgage suitability letter, ask for 3 rates to make sure you are not being guided to 1 deal which may be better for the advisor than you , the kfi will state the amount of money the broker will be paid, also check the fee the broker charges

 

[Marshy]

Been on a 2yr fixed. So it sounds like she did me a reasonable deal, couldnt tell you the current rate im on.

Not a big deal, as the mortgage i have is pretty small now, but will mail you as i say nearer the time, cant have enough help with these things.

 

[Uncle Spielberg]

some of the corporate estate agents do not charge fees and claim to be independent but they often use a panel of 10/20 lenders and do not search the whole marketplace

 

[blockhseagull]

Still got 9months left on mine !!

Is it likely to go any higher

 

[Uncle Spielberg]

I would be suprised , I think/hope it has peaked for a while but who knows