Interest Rates up 0.25%

[blockhseagull]

Fingers crossed then

 

[Lammy]

If only, I have not got a backhander in 15 years !

What did you spend it on?

 

[Publius Ovidius]

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.

bean counter alert

 

[Publius Ovidius]

My mortgage finishes in October 2008 after 27 years of paying somewhere near £500 per month.

500 x12 = 6000 p a

6000 x 27 years = £162,000

£162,000 to borrow £25k

 

[Lammy]

My mortgage finishes in October 2008 after 27 years of paying somewhere near £500 per month.

500 x12 = 6000 p a

6000 x 27 years = £162,000

£162,000 to borrow £25k

You must have extended that a few times...

 

[Publius Ovidius]

no....only a couple of times and not for much., but those figures may be a bit low as we were hammered interest wise in the 80's and took the hit every time.

friends of hours who continued paying the same amount when the rates went down, finished their mortgages off on average after 15 years odd

 

[Man of Harveys]

You must have extended that a few times...

*watches puerile smutometer explode off the scale*

 

[Cian]

friends of hours who continued paying the same amount when the rates went down, finished their mortgages off on average after 15 years odd

my parents did that, paid off the IE£35,000 mortgage in 12 years - Irish interest rates got even more horrendous than UK ones during the worse times.

 

[Uncle Spielberg]

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.

you need to get out more

 

[aftershavedave]

you need to get out more

eh?

 

[Gwylan]

Gareth, empty your PM box

 

[Uncle Spielberg]

done

 

[Mrs Coach]

Just moved into my flat and have a 10 year fixed at 5.18%. Hope 10 years isn't too long!

Same as me! Housie housie though, not flat. Wouldn't fit my brood into a flat.

 

[Lokki 7]

My mortgage finishes in October 2008 after 27 years of paying somewhere near £500 per month.

500 x12 = 6000 p a

6000 x 27 years = £162,000

£162,000 to borrow £25k

Did Uncle Spielberg sell you that mortgage?

 

[Publius Ovidius]

Did Uncle Spielberg sell you that mortgage?

Nah - Sun Alliance via halifax B Socy. The Mrs worked for Sun Alli and got a supposed staff discount

 

[Lokki 7]

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.

Is the right answer.

 

[Man of Harveys]

OK, I'll ask - what is the "sterling long term yield curve"?

 

[Publius Ovidius]

OK, I'll ask - what is the "sterling long term yield curve"?

its the shape made when you throw a pound coin at an assylum seeker coming to steal our houses.

Copyright The mail On Sunday

 

[Lokki 7]

OK, I'll ask - what is the "sterling long term yield curve"?

Basically there is a market for money, the interest rate being the price if you like. For any given maturity (ie 2, 5, 10 years etc) there will be an interbank market price where you can either borow or lend money for that period. Put simply, join up these prices and you get a curve, usually upward sloping which is the long term yield curve. If rates are expected to rise in the future, this curve will steepen. Right now for Sterling it is pretty flat out to 20 years.

 

[Publius Ovidius]

Basically there is a market for money, the interest rate being the price if you like. For any given maturity (ie 2, 5, 10 years etc) there will be an interbank market price where you can either borow or lend money for that period. Put simply, join up these prices and you get a curve, usually upward sloping which is the long term yield curve. If rates are expected to rise in the future, this curve will steepen. Right now for Sterling it is pretty flat out to 20 years.

a bit like Hitch hikers Guide to the Galaxy where all the people used leaves as currency, but burned down the trees to make the currency scarce