border Scott Posted February 5, 2011 Report Share Posted February 5, 2011 Anybody got a crystal ball. Im trying to figure out if i can afford to go ahead with a project which would be life changing for me and the wife but i think would give my two kids a great start to life in the country. As things stand with interest rates we can do it but my question is do you think they will rise and how far will they go. Ive looked back in time and if they went to the same levels as say 1987 - 1991 we would be on the street. That said i rent at the moment, ive got a dangerous job and if i dont come home from a night shift ( sounds dramatic but true) my family has nothing and would be without a house. If i go for it and something happens its paid for. What do you guys think? Quote Link to comment Share on other sites More sharing options...
twitchynik Posted February 5, 2011 Report Share Posted February 5, 2011 (edited) Work out what payments would be at 6% to give a realistic maximum. If you can comfortably afford that then you know your safety zone. No-one knows what will happen in the long term other than rates are highly unlikely to be at this level for much longer nor into the coming years. However, rate rises are likely to be small and spread out and take a while to get back to a perceived norm of 5%ish, if at all. So once you know your max monthly limit you can factor in some slack and overpay while the going is good. IMHO, YMMV etc etc. Go see the mortgage advisors and kick their tyres, get lots of professional opinions. Edited February 6, 2011 by twitchynik Quote Link to comment Share on other sites More sharing options...
CZ550Kevlar Posted February 6, 2011 Report Share Posted February 6, 2011 The long and the short of it is, the only way is up. Quote Link to comment Share on other sites More sharing options...
al4x Posted February 6, 2011 Report Share Posted February 6, 2011 the only way is up. But it won't be fast as said bank on 5 to 6 percent worst case. If it went up to that fast the country would sink at the moment. If you are concerned you can fix the rate and the fact you can do that for 5 years plus says the banks don't think its going up much Quote Link to comment Share on other sites More sharing options...
Mungler Posted February 6, 2011 Report Share Posted February 6, 2011 Interest rates are deffo on the rise, because real inflation is soaring. We just fixed last month at 4.49% for 5 years with the Yorkshire. We went in on the very same day the Yorkshire were putting their rates up. It may go up, it may go down - but at least I know for certain what I'll be paying for the next 5 years Quote Link to comment Share on other sites More sharing options...
PhilR Posted February 6, 2011 Report Share Posted February 6, 2011 Here's a link to a mortgage calculator that you can see what payments would be on various interest rates http://www.guardian.co.uk/money/mortgage-calculator hope this helps. Quote Link to comment Share on other sites More sharing options...
Beardo Posted February 6, 2011 Report Share Posted February 6, 2011 we fixed for 5 years at 4.25% (25% deposit) at the end of Nov/beginning of Dec with Coventry Building Society (through my financial adviser). i wanted the stability whilst i'm the only one paying for it whilst the wife is in child mode. Quote Link to comment Share on other sites More sharing options...
jasper3 Posted February 6, 2011 Report Share Posted February 6, 2011 same here..just going for a fixed rate Quote Link to comment Share on other sites More sharing options...
bk Posted February 6, 2011 Report Share Posted February 6, 2011 Im in the same boat, Ive seen 10 yr fixed for 4.99 which Im tempted by Quote Link to comment Share on other sites More sharing options...
12borejimbo Posted February 6, 2011 Report Share Posted February 6, 2011 Im an estate agent, and my mortgage advisor told me that she has just had a deal released last week and she can do 2.09!!! She has access to the whole of market, PM me if you want to talk about it. Quote Link to comment Share on other sites More sharing options...
gyp Posted February 6, 2011 Report Share Posted February 6, 2011 Im an estate agent, and my mortgage advisor told me that she has just had a deal released last week and she can do 2.09!!! She has access to the whole of market, PM me if you want to talk about it. Blime, must be on a 80% deposit or something. Quote Link to comment Share on other sites More sharing options...
DSPUK Posted February 6, 2011 Report Share Posted February 6, 2011 People of today have never had it so good 1980 did me -- took a long time for me to get back on track To be honest we sold up in 1979 and moved to Shropshire - put every single penny we had into a deposit and walked into our house with £30 so rate didn't affect me that much - it did from 75-79 though http://www.assetsure.com/mortgage-interest-rates.htm. Dave Quote Link to comment Share on other sites More sharing options...
RC45 Posted February 6, 2011 Report Share Posted February 6, 2011 It is scandalous how much the Mortgage companies can make off lending to home owners. They should have a 2% ceiling. Quote Link to comment Share on other sites More sharing options...
bk Posted February 6, 2011 Report Share Posted February 6, 2011 It is when the boebr is low at the moment Quote Link to comment Share on other sites More sharing options...
HDAV Posted February 6, 2011 Report Share Posted February 6, 2011 Im an estate agent, and my mortgage advisor told me that she has just had a deal released last week and she can do 2.09!!! She has access to the whole of market, PM me if you want to talk about it. Blime, must be on a 80% deposit or something. More likely its a 2.09% above base or interest only...If not let me know! Quote Link to comment Share on other sites More sharing options...
Vipa Posted February 6, 2011 Report Share Posted February 6, 2011 Work out what payments would be at 6% to give a realistic maximum. If you can comfortably afford that then you know your safety zone. No-one knows what will happen in the long term other than rates are highly unlikely to be at this level for much longer nor into the coming years. However, rate rises are likely to be small and spread out and take a while to get back to a perceived norm of 5%ish, if at all. So once you know your max monthly limit you can factor in some slack and overpay while the going is good. IMHO, YMMV etc etc. Go see the mortgage advisors and kick their tyres, get lots of professional opinions. Yeahhh.... if you say so! work on 10% and you're being more realistic long term. Historic average for mortgages is nearer 8.5% however it will more than likely spike much higher than that when the BoE try to reign in rapidly increasing inflation which will probably be after the dust settles with the public sector cuts. Im an estate agent, and my mortgage advisor told me that she has just had a deal released last week and she can do 2.09!!! She has access to the whole of market, PM me if you want to talk about it. Bank base plus 2.09... plenty of them around (some less) but all trackers... right now... you don't want a tracker! It is scandalous how much the Mortgage companies can make off lending to home owners. They should have a 2% ceiling. I don't understand this comment... Are you assuming the banks buy the money at BoE base rate then lend on at the rates quoted? This is not the case. The banks buy and sell money based on LIBOR, the 3 month version of which is currently .31%, the one year LIBOR rate is .78 which would suggest a pessemistic longer range forcast. You will note I wrote 'based on...' the actual rate a bank/building society will pay for a tranche of money will be LIBOR plus x. In real terms they will be making a gross profit of probably 3-4% but they are also having to factor in the risk of rates rising. Whilst they may lend to the public as a fixed rate, their underlying risk is variable so, if they get it wrong, and rates rise, they could be seriously out of pocket. Quote Link to comment Share on other sites More sharing options...
Vipa Posted February 6, 2011 Report Share Posted February 6, 2011 Im in the same boat, Ive seen 10 yr fixed for 4.99 which Im tempted by Snap their hands off!!! Quote Link to comment Share on other sites More sharing options...
leeds chimp Posted February 6, 2011 Report Share Posted February 6, 2011 we are paying 5.99% till may next year...only deal we could get Quote Link to comment Share on other sites More sharing options...
deejay Posted February 6, 2011 Report Share Posted February 6, 2011 Anybody got a crystal ball. ive got a dangerous job and if i dont come home from a night shift ( sounds dramatic but true) my family has nothing and would be without a house. If i go for it and something happens its paid for. What do you guys think? Looks like your on a winner with advice about mortgage rates .............but me personally where the family matters. Think this quote would be my main concern at the minute .Your family and your children should always be looked after if this ever turned sour,You can always do your project too but sort an insurance policy out first. Darren Quote Link to comment Share on other sites More sharing options...
Beardo Posted February 6, 2011 Report Share Posted February 6, 2011 it's a good point - surely you have some kind of life insurance with your dangerous job? i'm a graphic designer not the most dangerous job in the world, but i still wouldn't dream of risking my family getting kicked out of our house if i should croak it. Quote Link to comment Share on other sites More sharing options...
border Scott Posted February 6, 2011 Author Report Share Posted February 6, 2011 it's a good point - surely you have some kind of life insurance with your dangerous job? i'm a graphic designer not the most dangerous job in the world, but i still wouldn't dream of risking my family getting kicked out of our house if i should croak it. Thanks for all the advice lads. When i said my family would be left with nothing i meant bricks and mortar wise as we rent. I have a life insurance policy that would see them right, Quote Link to comment Share on other sites More sharing options...
12borejimbo Posted February 7, 2011 Report Share Posted February 7, 2011 Spoke to my mortgage advisor today, but for someone on here who messaged me they had 40k to put down and I could get them 4.84 for 10 years fixed! Bloomin great deal! Quote Link to comment Share on other sites More sharing options...
HDAV Posted February 7, 2011 Report Share Posted February 7, 2011 Spoke to my mortgage advisor today, but for someone on here who messaged me they had 40k to put down and I could get them 4.84 for 10 years fixed! Bloomin great deal! hmmm whats LTV rate? Quote Link to comment Share on other sites More sharing options...
Fisherman Mike Posted February 7, 2011 Report Share Posted February 7, 2011 Anybody got a crystal ball. Im trying to figure out if i can afford to go ahead with a project which would be life changing for me and the wife but i think would give my two kids a great start to life in the country. As things stand with interest rates we can do it but my question is do you think they will rise and how far will they go. Ive looked back in time and if they went to the same levels as say 1987 - 1991 we would be on the street. That said i rent at the moment, ive got a dangerous job and if i dont come home from a night shift ( sounds dramatic but true) my family has nothing and would be without a house. If i go for it and something happens its paid for. What do you guys think? You have one life.....LIVE IT Quote Link to comment Share on other sites More sharing options...
al4x Posted February 8, 2011 Report Share Posted February 8, 2011 Spoke to my mortgage advisor today, but for someone on here who messaged me they had 40k to put down and I could get them 4.84 for 10 years fixed! Bloomin great deal! and I thought Vipa was a financial advisor, there is no chance while you can get 10 year fixed deals near that that anyone in the know expects 8% or more just isn't going to happen the country would be down the plughole I've just gone through the hastle with the house I'm buying and fortunately can port my old mortgage so happy days 1.89% at the moment obviously will go up but we could manage if the rates went to 10% and as its a lifetime mortgage I haven't got to re negotiate it down the line. What I found amusing was the life and critical illness cover we got told was such a good thing, not surprised when the kickback to the advisor is 4K as soon as we take it out and at £169 a month its nearly as much as the mortgage itself Its definitely buyer beware when dealing with sheister financial advisors Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.