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[Field Marshal Dr. Opti]

0.25% is now 0.50%

I'm sure the banks will pass it on.

[Varche]

I am sure we will notice.

Anyone remember when rates were double figures!

[Field Marshal Dr. Opti]

I am sure we will notice.

Anyone remember when rates were double figures!

When I bought a house in 1990 interest rates were 15%. I actually paid 16.5% for the first year because I opted for a 100% mortgage.

[Mister Rog]

Both my offspring jumped onto the property ladder this year, I'm hoping they allowed some breathing space in their calculations.

Trouble is, we first bought when interest rates were around 16%. Mortgage payments soaked up a vast amount of combined monthly income, so rates of .25% or .5% seem pretty damned cushy. However, property prices have soared so a small percentage of a big number can still be quite a big number. Oh well, it's only money 

[Field Marshal Dr. Opti]

Both my offspring jumped onto the property ladder this year, I'm hoping they allowed some breathing space in their calculations.

Trouble is, we first bought when interest rates were around 16%. Mortgage payments soaked up a vast amount of combined monthly income, so rates of .25% or .5% seem pretty damned cushy. However, property prices have soared so a small percentage of a big number can still be quite a big number. Oh well, it's only money 

We tend to have high property prices and low interest rates, or high interest rates and 'lower' property prices.......just about doable (for some)

High interest rates and high property prices would result in very few houses being sold.

[Field Marshal Dr. Opti]

Both my offspring jumped onto the property ladder this year, I'm hoping they allowed some breathing space in their calculations.

Trouble is, we first bought when interest rates were around 16%. Mortgage payments soaked up a vast amount of combined monthly income, so rates of .25% or .5% seem pretty damned cushy. However, property prices have soared so a small percentage of a big number can still be quite a big number. Oh well, it's only money 

This should mean a SVR of about 1.25%-1.5%. In reality the SVR is close to 5% because the banks are corrupt. I think bankers should be right at the top of TB's cull list. Directly after Jeremy Kyle.

[Viral_Jim]

A friend of mine has two rental flats which are on lifetime trackers at 0.5% over base.

Funnily enough the building society contact him pretty regularly to see if he would like to change his product! 

[Sir Tigger KC]

When they dropped the interest rate last year my mortgage company took 3 months to change my payments.   

Whats the betting that my increased payment will be next month? 

[Kevin Wood]

A friend of mine has two rental flats which are on lifetime trackers at 0.5% over base.

Funnily enough the building society contact him pretty regularly to see if he would like to change his product! 

Yep, same with my house mortgage. "No, thanks, and no, I'm not interested in making any overpayments currently either."

[tunnie]

I'm fixed until Sept 2018, so bugger all impact for me. Only that when I do come to re-fix the rates will probably be higher than now 

[redelitev6]

I am sure we will notice.

Anyone remember when rates were double figures!

When I bought a house in 1990 interest rates were 15%. I actually paid 16.5% for the first year because I opted for a 100% mortgage.

I remember it well on our 27 k mortgage !  , if interest rates ever get that high again I pity todays youngsters 

[TheBoy]

A friend of mine has two rental flats which are on lifetime trackers at 0.5% over base.

Funnily enough the building society contact him pretty regularly to see if he would like to change his product! 

Or other banks constantly "guaranteeing" they can beat your current deal.  None of them have yet.

[TheBoy]

I am sure we will notice.

Anyone remember when rates were double figures!

All too well.  And no chance of a repayment mortgage, as the repayments would have more than I earnt, so "low cost" endowments only. And look how that ended.

WRT to lower prices back then, wages were an awful lot lower.  My first house was 5 times my annual salary, and interest rates well into double figures.  And that was on a rough estate in a rough town.

[ronnyd]

I am sure we will notice.

Anyone remember when rates were double figures!

Yes, and 15% mortgage rates.

[aaronjb]

I'm fixed until Sept 2018, so bugger all impact for me. Only that when I do come to re-fix the rates will probably be higher than now 

Likewise (well, August) but yes, there'll likely have been another raise by then to 0.75% so the best deals will be back around the 2% mark, I'd guess.. it'll make quite a difference to me, especially as I'd like to shave some years off it, next time around.

If they went to 15% again (I remember it well, though it was my parents who had the mortgage. I also remember the value of the house plummeting by 50%) and we return to the early 90s I'll be well and truly bollarded, as will, I suspect, most of the country.

Nobody here, of course, as you're all old and probably mortgage free by now (Tunnie excepted)

[tunnie]

I'm fixed until Sept 2018, so bugger all impact for me. Only that when I do come to re-fix the rates will probably be higher than now 

Likewise (well, August) but yes, there'll likely have been another raise by then to 0.75% so the best deals will be back around the 2% mark, I'd guess.. it'll make quite a difference to me, especially as I'd like to shave some years off it, next time around.

If they went to 15% again (I remember it well, though it was my parents who had the mortgage. I also remember the value of the house plummeting by 50%) and we return to the early 90s I'll be well and truly bollarded, as will, I suspect, most of the country.

Nobody here, of course, as you're all old and probably mortgage free by now (Tunnie excepted)

Yup, still ages to go on mine. Although I'm on-course to have it paid off by the time I'm 50. If we did borrow more for a move, I would not alter the term, to tempting for that.

If I do shave a few years off, depending what rates are this time next year, I am targeting a pay-off age of 45. 

[Field Marshal Dr. Opti]

I'm fixed until Sept 2018, so bugger all impact for me. Only that when I do come to re-fix the rates will probably be higher than now 

Likewise (well, August) but yes, there'll likely have been another raise by then to 0.75% so the best deals will be back around the 2% mark, I'd guess.. it'll make quite a difference to me, especially as I'd like to shave some years off it, next time around.

If they went to 15% again (I remember it well, though it was my parents who had the mortgage. I also remember the value of the house plummeting by 50%) and we return to the early 90s I'll be well and truly bollarded, as will, I suspect, most of the country.

Nobody here, of course, as you're all old and probably mortgage free by now (Tunnie excepted)

Omega owners do tend to be 'sad old farts' who remember the blitz and national service.

Fortunately I am not one of them.

[Field Marshal Dr. Opti]

Can't imagine the banks offering a 100% mortgage these days,  even less the 110% or £120% mortgages that some lenders were offering back in the day.

Huge deposits of £40,000 plus now seem the norm. Little wonder the age of the first time buyer has risen to 83.  

[Field Marshal Dr. Opti]

I'm fixed until Sept 2018, so bugger all impact for me. Only that when I do come to re-fix the rates will probably be higher than now 

Likewise (well, August) but yes, there'll likely have been another raise by then to 0.75% so the best deals will be back around the 2% mark, I'd guess.. it'll make quite a difference to me, especially as I'd like to shave some years off it, next time around.

If they went to 15% again (I remember it well, though it was my parents who had the mortgage. I also remember the value of the house plummeting by 50%) and we return to the early 90s I'll be well and truly bollarded, as will, I suspect, most of the country.

Nobody here, of course, as you're all old and probably mortgage free by now (Tunnie excepted)

Yup, still ages to go on mine. Although I'm on-course to have it paid off by the time I'm 50. If we did borrow more for a move, I would not alter the term, to tempting for that.

If I do shave a few years off, depending what rates are this time next year, I am targeting a pay-off age of 45. 

This scenario gives you plenty of 'surplus cash' while you are still relatively young. The economic climate means quite a number of forty five year olds have not yet joined the 'property treadmill'.

[tunnie]

Yup, I'd say I'm one of the few in my team that actually own a property.

Huge majority of my developers and others are still renting, can't see how they can save up great deal when rent is more than mortgage. 

[Field Marshal Dr. Opti]

Yup, I'd say I'm one of the few in my team that actually own a property.

Huge majority of my developers and others are still renting, can't see how they can save up great deal when rent is more than mortgage. 

Yep....problem.

I've just read that the average first deposit in London is £96000. In the rest of the country it's £34000.

This means the people who work at KFC or Kwik Fit have little or no chance of buying a house. Even less if most of their wages is used for
 rent.

[aaronjb]

This means the people who work at KFC or Kwik Fit have little or no chance of buying a house. Even less if most of their wages is used for
 rent weed.

Fixed that for you

I'd love it if my mortgage finished at 45.. right now it'll finish at 70! I'd just like it to finish at 64.. finishing any earlier than that is a pipedream short of a lottery win..

[Field Marshal Dr. Opti]

Back in the fifties all the average working man required to buy a house was a job. This is because back then the average 2-3 bed seml was roughly twice the average working man's wage. This is no longer the case.

Oh.....and the lenders wouldn't take overtime or the woman's wage into account because she had to give up her job and start her new job of looking after her husband. Just the flat basic wage of the man was used for calculation.

My FIL married and bought his first house age 21. House was around £1500, his wages around £750 P/A. He was a toolmaker.

[Kevin Wood]

Yup, still ages to go on mine. Although I'm on-course to have it paid off by the time I'm 50. If we did borrow more for a move, I would not alter the term, to tempting for that.

If I do shave a few years off, depending what rates are this time next year, I am targeting a pay-off age of 45. 

It's a good aspiration to have, and certainly worth getting it down to a manageable amount as soon as comfortable, but don't let it get in the way of you doing mad things when you're young enough. 

Also, as your LTV gets better you'll probably find your money can work better for you in savings / investments than paying off the mortgage, so don't get tunnel vision. It's nice to know it could be gone with a single cheque if need be, though.

[tunnie]

Yup, I'd say I'm one of the few in my team that actually own a property.

Huge majority of my developers and others are still renting, can't see how they can save up great deal when rent is more than mortgage. 

Yep....problem.

I've just read that the average first deposit in London is £96000. In the rest of the country it's £34000.

This means the people who work at KFC or Kwik Fit have little or no chance of buying a house. Even less if most of their wages is used for
 rent.

Really?

I bought my flat for £200k in London Zone 2, for £200k. I put a 10% deposit down, with 25 year term. All fairly standard I thought, I did stay at home to save this up. Look less than 2 years and that included me learning to ride a motorbike, buying BMW GS, snowboarding holidays and all sorts!

[tunnie]

Yup, still ages to go on mine. Although I'm on-course to have it paid off by the time I'm 50. If we did borrow more for a move, I would not alter the term, to tempting for that.

If I do shave a few years off, depending what rates are this time next year, I am targeting a pay-off age of 45. 

It's a good aspiration to have, and certainly worth getting it down to a manageable amount as soon as comfortable, but don't let it get in the way of you doing mad things when you're young enough. 

Also, as your LTV gets better you'll probably find your money can work better for you in savings / investments than paying off the mortgage, so don't get tunnel vision. It's nice to know it could be gone with a single cheque if need be, though.

Indeed. Holidays planned for next year in Europe, followed by New York I think. (MrsT really wants to go)

[Mister Rog]

Yup, I'd say I'm one of the few in my team that actually own a property.

Huge majority of my developers and others are still renting, can't see how they can save up great deal when rent is more than mortgage. 

Yep....problem.

I've just read that the average first deposit in London is £96000. In the rest of the country it's £34000.

This means the people who work at KFC or Kwik Fit have little or no chance of buying a house. Even less if most of their wages is used for
 rent.

Both offspring have bought this year, one very recently. One in London other in West Country. In both cases 10% deposits were required. Shortly after the 2008/2009 crisis deposits of 40% were needed, but of course very few could afford to do that.

As for 100% + mortgages, just plain stupid, and a major part of the cause of the financial crisis.

[Varche]

Back in the fifties all the average working man required to buy a house was a job. This is because back then the average 2-3 bed seml was roughly twice the average working man's wage. This is no longer the case.

Oh.....and the lenders wouldn't take overtime or the woman's wage into account because she had to give up her job and start her new job of looking after her husband. Just the flat basic wage of the man was used for calculation.

My FIL married and bought his first house age 21. House was around £1500, his wages around £750 P/A. He was a toolmaker.

My Dad didn't buy his first house at a similar age. The guy asked how much he earnt? £5 a week. The reply, come back when you earn £10. It was 1980 before he got on the ladder.

[Varche]

I'm fixed until Sept 2018, so bugger all impact for me. Only that when I do come to re-fix the rates will probably be higher than now 

Likewise (well, August) but yes, there'll likely have been another raise by then to 0.75% so the best deals will be back around the 2% mark, I'd guess.. it'll make quite a difference to me, especially as I'd like to shave some years off it, next time around.

If they went to 15% again (I remember it well, though it was my parents who had the mortgage. I also remember the value of the house plummeting by 50%) and we return to the early 90s I'll be well and truly bollarded, as will, I suspect, most of the country.

Nobody here, of course, as you're all old and probably mortgage free by now (Tunnie excepted)

Omega owners do tend to be 'sad old farts' who remember the blitz and national service.

Fortunately I am not one of them.

Some of the older OOF members remember active service in the Boer war. needless to say they only drive Zimmer frames now.

[aaronjb]

but don't let it get in the way of you doing mad things when you're young enough. 

That's what I blame my situation on 

[Shackeng]

I'm fixed until Sept 2018, so bugger all impact for me. Only that when I do come to re-fix the rates will probably be higher than now 

Likewise (well, August) but yes, there'll likely have been another raise by then to 0.75% so the best deals will be back around the 2% mark, I'd guess.. it'll make quite a difference to me, especially as I'd like to shave some years off it, next time around.

If they went to 15% again (I remember it well, though it was my parents who had the mortgage. I also remember the value of the house plummeting by 50%) and we return to the early 90s I'll be well and truly bollarded, as will, I suspect, most of the country.

Nobody here, of course, as you're all old and probably mortgage free by now (Tunnie excepted)

Omega owners do tend to be 'sad old farts' who remember the blitz and national service.

Fortunately I am not one of them.

Less of the sad thank you.

[Entwood]

History of interest rates is quite interesting .. table in this article shows them over nearly 50 years !!

http://www.bbc.co.uk/news/business-41846637

I well remember the 1978 ... as that's when we plunged into house purchase, thinking the worst rises were in the past, for them to leap to 17% within 2 months of moving in !!!  In January 1979 my monthly Standing Orders were £25 more than my monthly pay .... and Chris was out of work ..   My mother literally gave us bread and beans to live on ... luckily in April 1979 Callaghan tried to "bribe" the armed forces to vote for him with a very decent pay rise, needless to say, we took the money but voted him out in May     At least I could afford to feed us then even if we had little for anything else, then in June Chris got a job and things started to look up ..

BTW .. still in that same house (a tad bigger now with the extensions etc etc)... only ever bought one, and still don't know how to sell one ..

[redelitev6]

Just got an e-mail from Barclays telling me that my mortgage will go up on 1st December , that didn't take them long 

[Field Marshal Dr. Opti]

History of interest rates is quite interesting .. table in this article shows them over nearly 50 years !!

http://www.bbc.co.uk/news/business-41846637

I well remember the 1978 ... as that's when we plunged into house purchase, thinking the worst rises were in the past, for them to leap to 17% within 2 months of moving in !!!  In January 1979 my monthly Standing Orders were £25 more than my monthly pay .... and Chris was out of work ..   My mother literally gave us bread and beans to live on ... luckily in April 1979 Callaghan tried to "bribe" the armed forces to vote for him with a very decent pay rise, needless to say, we took the money but voted him out in May     At least I could afford to feed us then even if we had little for anything else, then in June Chris got a job and things started to look up ..

BTW .. still in that same house (a tad bigger now with the extensions etc etc)... only ever bought one, and still don't know how to sell one ..

Interesting, Mr Entwood.

I well remember 'black Wednesday' When Lamont pushed up the interest rates relentlessly in order to keep us in the ERM........which we soon left.

[Doctor Gollum]

Yup, I'd say I'm one of the few in my team that actually own a property.

Huge majority of my developers and others are still renting, can't see how they can save up great deal when rent is more than mortgage. 

Yep....problem.

I've just read that the average first deposit in London is £96000. In the rest of the country it's £34000.

This means the people who work at KFC or Kwik Fit have little or no chance of buying a house. Even less if most of their wages is used for
 rent.

Both offspring have bought this year, one very recently. One in London other in West Country. In both cases 10% deposits were required. Shortly after the 2008/2009 crisis deposits of 40% were needed, but of course very few could afford to do that.

As for 100% + mortgages, just plain stupid, and a major part of the cause of the financial crisis.

Only because banks were greedy enough to allow people to remortgage any growth equity at 100% on top of their initial 100% mortgages... Often more than once

[Lincs Robert]

Yup, I'd say I'm one of the few in my team that actually own a property.

Huge majority of my developers and others are still renting, can't see how they can save up great deal when rent is more than mortgage. 

Yep....problem.

I think what will happen isn’t a “lost” generation of house owners- money will pass onto the next but one generation .......

Of our 3 offspring, the middle one & his wife are on their 3rd house, oldest is in subsidised army accommodation and youngest (30) is still at home with us & no prospect of leaving ...... 

I've just read that the average first deposit in London is £96000. In the rest of the country it's £34000.

This means the people who work at KFC or Kwik Fit have little or no chance of buying a house. Even less if most of their wages is used for
 rent.

[steve6367]

A friend of mine has two rental flats which are on lifetime trackers at 0.5% over base.

Funnily enough the building society contact him pretty regularly to see if he would like to change his product! 

0.25% over base here - Barclays have tried ever trick to get me to move!

[henryd]

A friend of mine has two rental flats which are on lifetime trackers at 0.5% over base.

Funnily enough the building society contact him pretty regularly to see if he would like to change his product! 

0.25% over base here - Barclays have tried ever trick to get me to move!

Same here,mines 0.2% over base

[Field Marshal Dr. Opti]

A friend of mine has two rental flats which are on lifetime trackers at 0.5% over base.

Funnily enough the building society contact him pretty regularly to see if he would like to change his product! 

0.25% over base here - Barclays have tried ever trick to get me to move!

Same here,mines 0.2% over base

So just 0.7% even after the rise.

I'm paying 3.75% until October 2018. So it looks like I'm going to be too late to get a really good deal.

[Shackeng]

History of interest rates is quite interesting .. table in this article shows them over nearly 50 years !!

http://www.bbc.co.uk/news/business-41846637

I well remember the 1978 ... as that's when we plunged into house purchase, thinking the worst rises were in the past, for them to leap to 17% within 2 months of moving in !!!  In January 1979 my monthly Standing Orders were £25 more than my monthly pay .... and Chris was out of work ..   My mother literally gave us bread and beans to live on ... luckily in April 1979 Callaghan tried to "bribe" the armed forces to vote for him with a very decent pay rise, needless to say, we took the money but voted him out in May     At least I could afford to feed us then even if we had little for anything else, then in June Chris got a job and things started to look up ..

BTW .. still in that same house (a tad bigger now with the extensions etc etc)... only ever bought one, and still don't know how to sell one ..

How nice of him to do that after freezing the armed forces pay AND PENSIONS! in 75/76, as I still wallow in his pensions' trough forty years later.

[TheBoy]

I concur with Kevin Wood.

Though it is tempting when you know with the click of a button on a phone and it's all paid off...

[aaronjb]

I'm glad my savings accounts are making a hefty 0.05%