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[Vamps]

......
I remember when interest rates were around 17%. .....
     

Mmm!  My mortgage was almost a fortnight's wages when they were!

Not much has changed, my mortgage is 55% of my monthly take home

So what will you do when the rate rises? as it will....

[tunnie]

......
I remember when interest rates were around 17%. .....
     

Mmm!  My mortgage was almost a fortnight's wages when they were!

How long until they're that high again, I wonder The 0.5% bubble has to burst eventually..

I won't care in another 15 months ...........  Mine will be paid by then! 

Shut up you 

Like Vamps, it's a bit of a worry for me - granted I'm stuck with 6.19% fixed rate for another three years, but heaven only knows what interest rates will be when that ends..


Best we start forming a line at Tunnie's door

Same as me   

[tunnie]

......
I remember when interest rates were around 17%. .....
     

Mmm!  My mortgage was almost a fortnight's wages when they were!

Not much has changed, my mortgage is 55% of my monthly take home

So what will you do when the rate rises? as it will....

Fixed rate currently. At 6%, which is feking high as you can get 4% ones now fixed for 5 years.

[aaronjb]

Same as me   

If you're in a position to remortgage and get a good rate (equity in the house, capital you can pay off) then there are some great deals out there now around the 3% mark.. Sadly I've got penalties to pay if I exit before my fixed period ends that make it impossible.

A friend of mine moved at the same time (December 2009, so mortgage taken out around September) and got 4.19% fixed for 5 years - but then he did have a 30% deposit on his 300k house..

[Vamps]

......
I remember when interest rates were around 17%. .....
     

Mmm!  My mortgage was almost a fortnight's wages when they were!

Not much has changed, my mortgage is 55% of my monthly take home

So what will you do when the rate rises? as it will....

Fixed rate currently. At 6%, which is feking high as you can get 4% ones now fixed for 5 years.

Reminds me, I should be looking at re jigging mine.....

[Lazydocker]

I'm hoping the low rate will last another year or so, then keep watching as when the base rate starts rising the fixed deals will start falling Currently on the lender's standard rate as it's lower than any deals out there Need to be able to stay on it for at least a year though as currently have no Self-Employed accounts to show

[tunnie]

Same as me   

If you're in a position to remortgage and get a good rate (equity in the house, capital you can pay off) then there are some great deals out there now around the 3% mark.. Sadly I've got penalties to pay if I exit before my fixed period ends that make it impossible.

A friend of mine moved at the same time (December 2009, so mortgage taken out around September) and got 4.19% fixed for 5 years - but then he did have a 30% deposit on his 300k house..

Took me long enough to save £30k, so I was screwed with a 10% deposit (used £20k) - Decided fixed was best, as my commute was free, I know whats going in and out. So knew I could afford it.

I've managed to increase my earnings by 12% in last 18 months so things not so tight any more.

One thing I don't really get with paperwork, is it says if rates stay the same (ie 6%) - After the 3 year fixed rate expires, my monthly payment will fall by almost £300 

[aaronjb]

I was in the same boat as you Tunnie - I had about a 15% deposit when I moved here, largely equity from the flat, so 6.19% was the best I could get. Heck, at the time (the peak of the lender's paranoia) I only had a choice of about two lenders..


Another friend of mine got incredibly lucky through all this, though - he was on an interest only mortgage (only way he could afford a place after the split from his partner) that tracked at 0.25% above base rate with no lower cap..

Voila, 0.75% interest rate and suddenly his mortgage payment was pennies, allowing him to save up a fair amount and knock off most of the capital in a very short time.


Grr.

[Ken T]

Thing is, there is a difference between a £500 car service going on the credit. Having a considerable 5 figure sum is another.

Its the way things build up, one minute its £500, next month its £610, next its £750, next its....  an exponential growth. Before you know it you are many £K's in debt and no obvious way of getting out. Short term financial solutions to ease the pain are sought, but they don't, they just land you deeper in the sh1t.

Shelf stacking at Tesco, a nice easier earner esp if your living accomodation is effectively paid for. I had a period not long ago without any source of income, but plenty outgoings to service. I managed to find 'work' at a place that deals with the packing waste from Asda, going thro pallets of stuff and seperating it into plastic or cardboard. That's hard graft for 8hrs a day. Plus stacking the packing trays out of the washer, you could just keep with the output in stacking but when it came to changing over to another pallet......... 

Plus they started getting  overstaffed ( with Poles ), so I would drive out there, which cost me about £5 in fuel, only to be told I was not needed.....

Hope you are never in that situation.

Ken

[tunnie]

I was in the same boat as you Tunnie - I had about a 15% deposit when I moved here, largely equity from the flat, so 6.19% was the best I could get. Heck, at the time (the peak of the lender's paranoia) I only had a choice of about two lenders..


Another friend of mine got incredibly lucky through all this, though - he was on an interest only mortgage (only way he could afford a place after the split from his partner) that tracked at 0.25% above base rate with no lower cap..

Voila, 0.75% interest rate and suddenly his mortgage payment was pennies, allowing him to save up a fair amount and knock off most of the capital in a very short time.


Grr.

Lucky git! 

[Vamps]

I'm hoping the low rate will last another year or so, then keep watching as when the base rate starts rising the fixed deals will start falling Currently on the lender's standard rate as it's lower than any deals out there Need to be able to stay on it for at least a year though as currently have no Self-Employed accounts to show

I think it will, but either way it will go up sharply in the near future, though the result, nationwide, of a big interest rate, no government will like to see as most recent borrowers have done so on a low rate but maximised there mortgage based on these, any hike and repossessions will be on every street in the country..........us older generation may cope, the younger generation will suffer big time........

[aaronjb]

I'm hoping the low rate will last another year or so, then keep watching as when the base rate starts rising the fixed deals will start falling Currently on the lender's standard rate as it's lower than any deals out there Need to be able to stay on it for at least a year though as currently have no Self-Employed accounts to show

I think it will, but either way it will go up sharply in the near future, though the result, nationwide, of a big interest rate, no government will like to see as most recent borrowers have done so on a low rate but maximised there mortgage based on these, any hike and repossessions will be on every street in the country..........us older generation may cope, the younger generation will suffer big time........

I think the effects of the general moral decline (the yob culture) and this financial episode (impending repossessions, adverse credit, people unable to ever get on the property ladder) will be felt for at least a couple of generations to come.

[Lazydocker]

I'm hoping the low rate will last another year or so, then keep watching as when the base rate starts rising the fixed deals will start falling Currently on the lender's standard rate as it's lower than any deals out there Need to be able to stay on it for at least a year though as currently have no Self-Employed accounts to show

I think it will, but either way it will go up sharply in the near future, though the result, nationwide, of a big interest rate, no government will like to see as most recent borrowers have done so on a low rate but maximised there mortgage based on these, any hike and repossessions will be on every street in the country..........us older generation may cope, the younger generation will suffer big time........

Not so sure they'll go up that sharply... I certainly think it will be slower than they came down

Either way though, you're right. Lots of repossessions on the cards Fortunately (?) we took ours out just as the rates were starting to drop so got a good tracker deal

Trouble is, I don't have the job and income I used to have so need the business to get established and give documented results (and income) before the rates go up too much

Of course, we also need house prices to improve to better levels too for the situation to be better

[Vamps]

I'm hoping the low rate will last another year or so, then keep watching as when the base rate starts rising the fixed deals will start falling Currently on the lender's standard rate as it's lower than any deals out there Need to be able to stay on it for at least a year though as currently have no Self-Employed accounts to show

I think it will, but either way it will go up sharply in the near future, though the result, nationwide, of a big interest rate, no government will like to see as most recent borrowers have done so on a low rate but maximised there mortgage based on these, any hike and repossessions will be on every street in the country..........us older generation may cope, the younger generation will suffer big time........

Not so sure they'll go up that sharply... I certainly think it will be slower than they came down

Either way though, you're right. Lots of repossessions on the cards Fortunately (?) we took ours out just as the rates were starting to drop so got a good tracker deal

Trouble is, I don't have the job and income I used to have so need the business to get established and give documented results (and income) before the rates go up too much

Of course, we also need house prices to improve to better levels too for the situation to be better

[/highlight]

Agreed, our house shot up over the last 12 years we have been in it, we also increased the original mortgage to do some work on it, fortunately although the prices have dropped, we owe less than we could sell the house for today......

[davethediver]