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Interest rates
Hi
I see interest rates are going to rise
http://www.telegraph.co.uk/finance/economics/8220862/Homeowners-should-prepare-for-interest-rates-of-5pc-warns-Bank-of-England-markets-chief-Paul-Fisher.html
We have a house with a two year fixed rate of about 3.8%. It is due to expire in a year....should we look at getting a fixed 5 year on a relatively low rate now before the rates go up?
It's really worrying me!
I see interest rates are going to rise
http://www.telegraph.co.uk/finance/economics/8220862/Homeowners-should-prepare-for-interest-rates-of-5pc-warns-Bank-of-England-markets-chief-Paul-Fisher.html
We have a house with a two year fixed rate of about 3.8%. It is due to expire in a year....should we look at getting a fixed 5 year on a relatively low rate now before the rates go up?
It's really worrying me!
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I am on a tracker mortgage and have been for a year now. I am worried it will go up sharply.
Ahem. Been on a fixed rate of 6.5% for the past 3 years, got another 2 to go. Not all of us have had it easy, thank you.
Did you know that savers outnumber borrowers by six to one?
Depends on how you count them. My wife and I have 4 savings accounts and 1 mortgage account between us. So even just between the two of us, savers outnumber mortgage borrowers by 4 to 1.
I would agree, but from the same paper....
http://blogs.telegraph.co.uk/finance/ianmcowie/100009125/homebuyers-should-lock-into-fixed-mortgages-before-rates-rise/
My first mortgage was at 12.5% and that was good at the time!
and you gambled when you took out 5 year fixed that it would not be going down.
Oh I don't know. I remember our mortgage went up to about 16% or so in the '80's. Bank rate was around 14% at the time.
Should you not have changed it? I know there are penalty charges but would they have been more than the interest payments? Most of the money sites have a calculator on them to see if it's worth it, It may still be worth it now.
Because we came out of our 5 year fixed rate of about 5.69% earlier this year and the SVR we are now paying is 4.79% and the BOE interest is 0.5%. So if the BOE went up to 5% would that mean the SVR would be about 9.79%?
September 2005 - 6.35%
September 2006 - 6.60%
December 2006 - 6.85%
February 2007 - 7.10%
June 2007 - 7.35%
October 2007 - 7.60%
January 2008 - 7.35%
March 2008 - 7.10%
May 2008 - 6.85%
December 2008 - 5.85%
January 2009 - 5.35%
February 2009 - 4.99%
April 2009 - 4.74%
March 2010 - 5.19%
As you can see even with the BOE rates changing over time the SVR isn't really that different. Even when the base rate was 5% a few years ago the SVR wasn't much higher. Although nothing to say the banks wouldn't take the opportunity to up their SVR to something like 9%! I believe for banks the Libor rate is more important, but not something I know a huge amount about! Base rate is obviously very important for those people on tracker mortgages as at the moment the only way is up!
How come you didn't look around for another deal at the time? Earlier this year (May) I moved in to an interest rate of 2.69% so there are decent enough deals out there. You could have been spending £100+ extra each month compared to a different mortgage.
I'm currently paying 0.9% having been lucky enough to have opted for a tracker with no floor.
We have got a new deal of 2.75% fixed for two years with £250 cash back .