Interest rates - How low? How long?

PGMPGM Font Of All KnowledgePosts: 1,954Registered
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?

Comments

  • T.C.T.C. Experienced Mentor Posts: 1,448Registered, Tutor
    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.
  • BluewednesdayBluewednesday Font Of All Knowledge Posts: 1,624Registered
    Oh I hope so (spot the person with a tracker mortgage and no minimum rate)
  • deanshepherddeanshepherd Font Of All Knowledge Posts: 1,809Registered
    I can see it going down to 0%.

    Loving my mortgage repayments right now!
  • MonsoonMonsoon Font Of All Knowledge Posts: 4,071FMAAT, AAT Licensed Accountant
    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:
  • PGMPGM Font Of All Knowledge Posts: 1,954Registered
    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....
  • AdamRAdamR Experienced Mentor Posts: 668Registered
    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:
  • PGMPGM Font Of All Knowledge Posts: 1,954Registered
    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:
  • AdamRAdamR Experienced Mentor Posts: 668Registered
    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:
  • BluewednesdayBluewednesday Font Of All Knowledge Posts: 1,624Registered
    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!
  • AdamRAdamR Experienced Mentor Posts: 668Registered
    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?
  • Gem7321Gem7321 Experienced Mentor DevonPosts: 1,438MAAT, AAT Licensed Accountant
    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!
  • AdamRAdamR Experienced Mentor Posts: 668Registered
    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).
  • PoodlePoodle Experienced Mentor Posts: 711Registered
    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
  • Gem7321Gem7321 Experienced Mentor DevonPosts: 1,438MAAT, AAT Licensed Accountant
    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! :(
  • PoodlePoodle Experienced Mentor Posts: 711Registered
    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
  • Gem7321Gem7321 Experienced Mentor DevonPosts: 1,438MAAT, AAT Licensed Accountant
    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!
  • DeanDean Experienced Mentor DevonPosts: 646Registered
    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
  • Gem7321Gem7321 Experienced Mentor DevonPosts: 1,438MAAT, AAT Licensed Accountant
    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
  • DiannewDiannew Font Of All Knowledge Posts: 2,814Registered
    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%.
  • Gem7321Gem7321 Experienced Mentor DevonPosts: 1,438MAAT, AAT Licensed Accountant
    I've had a look at a few but when you go to apply 'sorry, this product is currently unavailble'

    Argh! :cursing:
  • Jon_1984Jon_1984 Well-Known Posts: 186Registered
    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:
  • Gem7321Gem7321 Experienced Mentor DevonPosts: 1,438MAAT, AAT Licensed Accountant
    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:
  • PGMPGM Font Of All Knowledge Posts: 1,954Registered
    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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