Interest rates - How low? How long?

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PGM
PGM Registered Posts: 1,954 Beyond epic contributor 🧙‍♂️
With talk of them being moved to a final rate of 0.5% this month, and speculation they will stay low for a year or two. What do you think?

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  • T.C.
    T.C. Registered, Tutor Posts: 1,448 Beyond epic contributor 🧙‍♂️
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    Yes, I have heard that 0.5% is possible. The likelihood that interest rates will remain low for several years seems quite possible if you read all what the economists say.
  • Bluewednesday
    Bluewednesday Registered Posts: 1,624 Beyond epic contributor 🧙‍♂️
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    Oh I hope so (spot the person with a tracker mortgage and no minimum rate)
  • deanshepherd
    deanshepherd Registered Posts: 1,809 Beyond epic contributor 🧙‍♂️
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    I can see it going down to 0%.

    Loving my mortgage repayments right now!
  • Monsoon
    Monsoon Registered Posts: 4,071 Beyond epic contributor 🧙‍♂️
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    Oh I hope so (spot the person with a tracker mortgage and no minimum rate)
    Loving my mortgage repayments right now!
    And me! :thumbup1:


    Though saying that, I wish it was still at 6% for my savings :lol::lol::lol:
  • PGM
    PGM Registered Posts: 1,954 Beyond epic contributor 🧙‍♂️
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    So this thread is all about showing off having a tracker mortgage :laugh:

    I have one also! And looking forward to the 0.5%

    I can't see it going lower, apparently dropping the rate hasn't quite produced the results they wanted, which is maybe why they're printing more money as well.

    Would be very nice if it lasts several years, but I really think 1-2 years is more likely, sadly....
  • AdamR
    AdamR Registered Posts: 668 Epic contributor 🐘
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    faerie9 wrote: »
    And me! :thumbup1:


    Though saying that, I wish it was still at 6% for my savings :lol::lol::lol:

    You want to have your cake and eat it as well??!:laugh:

    I have a tracker mortgage also - even though it has a 2% collar, my interest payments have halved since I took the mortgage out in June!:001_smile:
  • PGM
    PGM Registered Posts: 1,954 Beyond epic contributor 🧙‍♂️
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    AdamR wrote: »
    You want to have your cake and eat it as well??!:laugh:

    I have a tracker mortgage also - even though it has a 2% collar, my interest payments have halved since I took the mortgage out in June!:001_smile:

    Mine hasn't got a lower limit, just fixed at 0.69% above base rate. Thought this was good until I heard some people have 1.01% below base rate...

    Some people are never happy :tongue_smilie:
  • AdamR
    AdamR Registered Posts: 668 Epic contributor 🐘
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    PGM wrote: »
    Mine hasn't got a lower limit, just fixed at 0.69% above base rate. Thought this was good until I heard some people have 1.01% below base rate...

    Some people are never happy :tongue_smilie:

    Are they getting the 0.01% back yet then?:laugh:
  • Bluewednesday
    Bluewednesday Registered Posts: 1,624 Beyond epic contributor 🧙‍♂️
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    AdamR wrote: »
    Are they getting the 0.01% back yet then?:laugh:

    Apparently I'm sure I heard that they are going to court to try and get that 0.01% back - lol!
  • AdamR
    AdamR Registered Posts: 668 Epic contributor 🐘
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    Well there we have it, 0.5%. I know what little savings I have are going to get chucked straight at my mortgage capital now! I wonder if savings rates will go below zero next?
  • Gem7321
    Gem7321 Registered Posts: 1,438 Beyond epic contributor 🧙‍♂️
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    It's alright for you guys with mortgages, we haven't got £25,000 to put down as a deposit, espcially now that the little savings we have are getting very little return.

    Our rent is £100-200 more per month than what a mortgage would be!
  • AdamR
    AdamR Registered Posts: 668 Epic contributor 🐘
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    I was very lucky - my landlord wanted to sell up last May so I bought the property in June. Although I will lose money on the property when I decide to sell it, monthly payments have dropped from £435 (rented) to £195 (interest only mortgage).

    Unfortunately for people such as yourselves, this talk of it being a "Buyer's Market" is complete tosh for anyone who doesn't have capital behind them already - a first time buyer can't get a deposit together anymore. Have you got any Shared Ownership schemes in your area? They are worth a look because an income of £17k can sometimes be enough. (I appreciate you still need a deposit, but 25% of £50k is less than 25% of £100k).
  • Poodle
    Poodle Registered Posts: 711 Epic contributor 🐘
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    You lot make me sick!!!:001_tt2:

    My mortgage is fixed at 4.69% for another 2 years and I thought that I got, and I did get, a good deal when I fixed it.

    Poodle
  • Gem7321
    Gem7321 Registered Posts: 1,438 Beyond epic contributor 🧙‍♂️
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    No shared ownership schemes around here atm, and the ones that were around were tiny 1 bed flats.

    Before we moved to Exeter we had our eye on a 2 bed house under shared ownership, and even now they're still valuing it at £145,000! And the problem with the scheme is that you can't haggle, you have to pay the amount they're asking. We've seen a sign for a bellway development near us, but I'm not sure whether that will still be going ahead, but I know they do shared ownership so we will look at it again then :)

    A few of my cousins and friends are buying now because their parents are paying their deposits for them! :(
  • Poodle
    Poodle Registered Posts: 711 Epic contributor 🐘
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    Gem7321 wrote: »
    It's alright for you guys with mortgages, we haven't got £25,000 to put down as a deposit, espcially now that the little savings we have are getting very little return.

    Our rent is £100-200 more per month than what a mortgage would be!

    Gem

    My son was struggling like you and even though saving well could not save enough fast enough to raise the deposit so I have just taken an equity release to get my son on the housing market. The extra is treated 'officially' as a gift to him but he will be covering the repayments and when this was added to his savings and a new mortgage he has been able to get a spectacular deal on a property.

    Could your parents help?

    Poodle
  • Gem7321
    Gem7321 Registered Posts: 1,438 Beyond epic contributor 🧙‍♂️
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    Both of our parents could help, but won't.

    It's so frustrating, we would have absolutely no problem paying a mortgage, espcially when it would be so much less than our rent, but because we're paying rent we can't save for a deposit.

    Bring 100% mortgages back!
  • Dean
    Dean Registered Posts: 646 Epic contributor 🐘
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    Gem7321 wrote: »
    Both of our parents could help, but won't.

    It's so frustrating, we would have absolutely no problem paying a mortgage, espcially when it would be so much less than our rent, but because we're paying rent we can't save for a deposit.

    Bring 100% mortgages back!

    You might like to look into professional mortgages, I think they're still offering 95%?

    Regards

    Dean
  • Gem7321
    Gem7321 Registered Posts: 1,438 Beyond epic contributor 🧙‍♂️
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    Are these more common now? I know Lloyds were doing professional mortgages but you had to be over 21. I'll definitely look into it - thanks Dean
  • Diannew
    Diannew Registered Posts: 2,814 Beyond epic contributor 🧙‍♂️
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    Gem7321 wrote: »
    Are these more common now? I know Lloyds were doing professional mortgages but you had to be over 21. I'll definitely look into it - thanks Dean


    Hi Gem.


    I had never heard of these untill this thread and If you go on the websit and look under Professional mortgages....they appear to be still around...and do 100%.
  • Gem7321
    Gem7321 Registered Posts: 1,438 Beyond epic contributor 🧙‍♂️
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    I've had a look at a few but when you go to apply 'sorry, this product is currently unavailble'

    Argh! :cursing:
  • Jon_1984
    Jon_1984 Registered Posts: 186 Dedicated contributor 🦉
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    At this point can I just ask if you have met with an independent mortgauge advisor yet? ours was brilliant and their fee (due on taking out a mortgauge) was paid by commission from the mortgauge company. They were very good at identifying what we were looking for (we didnt really know...), what we had and matching the two up:thumbup1:
  • Gem7321
    Gem7321 Registered Posts: 1,438 Beyond epic contributor 🧙‍♂️
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    Yeah about 10! I'm in conversations with another one atm about professional mortgages but so far it looks like the only one that's still active is Scottish Widows who need a 15% deposit and you have to be over 21.

    I think that everywhere is looking for a 15% deposit now which simply isn't possible, it would take us nearly a year to save that if we had absolutely no outgoings. And to make it worse we've found out today that my other half probably won't be getting a payrise in April like he was supposed to. The union is trying to organise a strike but if he goes on strike he won't get paid :confused1:
  • PGM
    PGM Registered Posts: 1,954 Beyond epic contributor 🧙‍♂️
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    Gem7321 wrote: »
    Yeah about 10! I'm in conversations with another one atm about professional mortgages but so far it looks like the only one that's still active is Scottish Widows who need a 15% deposit and you have to be over 21.

    I think that everywhere is looking for a 15% deposit now which simply isn't possible, it would take us nearly a year to save that if we had absolutely no outgoings. And to make it worse we've found out today that my other half probably won't be getting a payrise in April like he was supposed to. The union is trying to organise a strike but if he goes on strike he won't get paid :confused1:

    Thats a big deposit, I suppose there trying to cover themselves for the drop in house values. But when it means a 20k deposit to get on the housing ladder its impossible!

    A friend was advising me to look into getting a fixed rate deal at some point this year, and not wait until tracker mortgages possibly get very expensive in the future.
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