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Mortgage Rates.


Harry Potter

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Harry Potter

Cant see the rate staying as it is but with unemployment going as high as it has ever been in history 

what is everyones thought on the rate going up. 

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Problem is BOE doesn't control mortgage rates anymore. My 2007 2 yr tracker mortgage has been on the variable rate for 11 years and is currently 1.09% which is BOE rate +0.99%. Banks now set their own variable rates and most are around the 3.5% - 4.5%. It is up to the banks whether they pass on any change to customers. Guaranteed they will if rates rise and there is only one way that they can go now...

 

I overpaid my mortgage so I have 12 years to pay back the last £100 at 74p per month currently...

 

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The Real Maroonblood

Just wondering if people still do endowment mortgages.

I had one one and although there was a shortfall my circumstances changed I managed to clear it.

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highlandjambo3

I’ve always stuck with fixed rate.....might have been paying a wee bit more over the years but, at least I know what I’m paying per month.

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The Real Maroonblood
1 minute ago, highlandjambo3 said:

I’ve always stuck with fixed rate.....might have been paying a wee bit more over the years but, at least I know what I’m paying per month.

In hindsight that’s probably the type of deal I would’ve done.

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highlandjambo3
7 minutes ago, The Real Maroonblood said:

In hindsight that’s probably the type of deal I would’ve done.

And capitol repayment......none of that endowment nonsense.  I know exactly when my mortgage finishes and exactly how much I will pay down to the last penny.

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Harry Potter
37 minutes ago, The Real Maroonblood said:

Just wondering if people still do endowment mortgages.

I had one one and although there was a shortfall my circumstances changed I managed to clear it.

Are endowments not banned now due to the miss selling of them, i got about 7000 back on one a few years

back when loads of claims were put in against them.

Repayment is the best way as your clearing the debt as you go alone unlike an endowment where you are only paying the interest.

i think we are on a 5 year fixed rate at the moment.

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Ricardo Shillyshally

The economy needs help. Higher interest rates would be counterproductive 

 

More like,y VAT will be reduced in certain areas 

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The Real Maroonblood
13 minutes ago, Harry Potter said:

Are endowments not banned now due to the miss selling of them, i got about 7000 back on one a few years

back when loads of claims were put in against them.

Repayment is the best way as your clearing the debt as you go alone unlike an endowment where you are only paying the interest.

i think we are on a 5 year fixed rate at the moment.

You might be right on them being banned.

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Always went for 5 year fixed so we know exactly what we pay every month. Can’t see the interest rate changing any time soon. Current term deal ends in August and might consider taken a shorter deal on a lower rate but making over payments so I have the same monthly outlay 

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36 minutes ago, Harry Potter said:

Are endowments not banned now due to the miss selling of them, i got about 7000 back on one a few years

back when loads of claims were put in against them.

Repayment is the best way as your clearing the debt as you go alone unlike an endowment where you are only paying the interest.

i think we are on a 5 year fixed rate at the moment.

 

I don't think so, I was offered one by YBS  about 3 years ago. I'd done my research before the appointment and knew exactly which mortgage I wanted, but the guy said he was required to make me aware of all my options.

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1 hour ago, Spellczech said:

I overpaid my mortgage so I have 12 years to pay back the last £100 at 74p per month currently...

 

Is there any advantage to you to keep a mortgage going for such a piddling sum?

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On my 3rd 2 year fix in a row. I'd have went for 5 years last time but we're half planning on moving. As it is, we're probably likely to fix for 2 years again next time unless we can actually move. I don't mind this to be honest as my broker's a wizard and we often manage to wipe a few months off the mortgage every time we start a new fix. 

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5 minutes ago, Boof said:

 

Is there any advantage to you to keep a mortgage going for such a piddling sum?

 

Free storage of the deeds would be one.

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6 minutes ago, Boof said:

 

Is there any advantage to you to keep a mortgage going for such a piddling sum?

I'd keep it as well as the 74p per month payment would amuse me greatly.

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52 minutes ago, Boof said:

 

Is there any advantage to you to keep a mortgage going for such a piddling sum?

Capital Raise or Home Improvements in form of Further Advance at cheaper rate than Personal Loan is the main advantage.

 

Another is the need to avoid legal costs if you repay mortgage in full & decide to go down route of above scenarios.

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8 hours ago, Boof said:

 

Is there any advantage to you to keep a mortgage going for such a piddling sum?

Yeah - they wanted to charge me £295 Early Repayment Fee and refused to waive it until the last year of the mortgage (in 11 years!). Also I have tens of thousands of pounds credit on tap pre-approved if I should ever need it as i can drawdown the overpayments (Doubt I will though)

 

Also they could not send the statements electronically as it is an old Alliance & Leicester deal (now Santander) so they are probably paying more for the postage than I am paying on the mortgage - 8p interest this month! It's a bit bonkers...

Edited by Spellczech
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