Interest Rates to rise this week?



jackynutmeg said:
I'm considering taking some money out of an endowment i've got to pay a lumper off my mortgage.
The endowment only has 2 years left to run.
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I paid a lump sum off a few weeks ago. I slightly miscalculated the maximum I could overpay so they sent me a snotty letter that I was in breach of the T&Cs and they were going to charge me an "overpayment fee" of.... £3.49. I'm sure I'll cope.
 
Darlo1973 said:
I paid a lump sum off a few weeks ago. I slightly miscalculated the maximum I could overpay so they sent me a snotty letter that I was in breach of the T&Cs and they were going to charge me an "overpayment fee" of.... £3.49. I'm sure I'll cope.
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mine will be ok
I've got two mortgage deals with the Nationwide (one is for extra lending)
The deal for the smaller amount is up next Feb so I'm thinking about taking that amount out of the endowment and clearing it off. Then let the rest of the endowment run.
 
jackynutmeg said:
mine will be ok
I've got two mortgage deals with the Nationwide (one is for extra lending)
The deal for the smaller amount is up next Feb so I'm thinking about taking that amount out of the endowment and clearing it off. Then let the rest of the endowment run.
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I'm alright Jack(y). :rolleyes:
 
Darlo1973 said:
Use older folk will remember the days of interest rates of over 10% in the 80s and 90s and even under the last Labour government, rates were 6-8% but that was expected from the start. It's only since 2008 that rates have been historically low. There will be a lot of people who have taken out a mortgage in the last 10 years on the basis of borrowing as much as possible at very low rates.
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Back then most people were getting cost of living wage increases. The average salary rose 16% in real terms during the 80s so the expectation was varying interest rates would still be affordable for most people.
 
r@mside said:
Back then most people were getting cost of living wage increases. The average salary rose 16% in real terms during the 80s so the expectation was varying interest rates would still be affordable for most people.
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We bought our house in '96 with a repayment mortgage on SVR.

Over the next 18 months or so (if I remember correctly) the rates went up every couple of months or so until we were paying nearly £100 more per month than we had been when we started. My missus worked in a commission-only job so it was left to my wage to bear the brunt.

Unfortunately it either coincided with a government pay-freeze on public-sector workers (which I was at the time) or it was one of those years where it took the union over a year to thrash out a pay increase - usually no more 1.5%, and often less. Not bad for the lumper you got at the end of it, but not much good for dealing with real-time increases.

Our first couple of years were a real struggle until we changed to a fixed-rate mortgage which allowed us to budget much more accurately. No more days of walking around the supermarket at the end of the month with a calculator, totting-up everything going into the trolley to make sure we didn't exceed our overdraft limit or that the card wasn't declined.
 
Just been on to Barclays as my remortgage seemed to have died a death.. hopefully sorted now and backdated to the application..

Will make about £200 a month difference on the interest payments
 
r@mside said:
Back then most people were getting cost of living wage increases. The average salary rose 16% in real terms during the 80s so the expectation was varying interest rates would still be affordable for most people.
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And yet we look back on the 80s as a bad decade. Remind me what socialist government was in power in the 80s?
 

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