Mortgage advice



Rick O Shea said:
Academic to this thread but I'm economically right of centre but can't see how continuing to hike interest rates are the way to control the current inflationary pressure. It's more likely to kill the patient than cure them. I took out my first mortgage at 16% though and have always had that as a gauge. I would probably try and find a lender who would give you a 35 year term.
Click to expand...
Problem is this is on top of everything else sky rocketing such as gas/electric, food, petrol. It’s worrying times for the average working man.
 
JaFlan86 said:
They've went up rapidly over past few years, so who knows. 40% seemed abit much like ha
Click to expand...
I was actually considering moving and taking up a £250k mortgage, I’m staying where I am for the foreseeable now.

Imagine moving into £350k house and the value dropping like a stone! 😳
 
TheWanderer said:
Bail out the 2.9% mortgage now and incur a 1% early redemption penalty and tie myself in to to a 4.4% mortgage for 5 years.

Or sit tight until April until my deal is up and search for deal then.

Given the possibility that interest rates are going to increase drastically, or so it’s being predicted what do the resident money experts suggest I should do?
Click to expand...
It all boils down to your appetite to risk, as a mortgage advisor wouldn’t even tell you what to do with it being unpredictable with regards to interest rates.

What’s your overriding priority? Cost effectiveness now or stability for longer?
 
TheWanderer said:
I was actually considering moving and taking up a £250k mortgage, I’m staying where I am for the foreseeable now.

Imagine moving into £350k house and the value dropping like a stone! 😳
Click to expand...

If prices do drop considerably, I might actually consider moving upwards.
 
Andy_Roker1983 said:
Problem is this is on top of everything else sky rocketing such as gas/electric, food, petrol. It’s worrying times for the average working man.
Click to expand...
That's exactly the point I was making. There is an argument for controlling wage driven inflation by using interest rates but that is not the situation we're in. It requires a more radical solution than hiking interest rates (or windfall taxes, for that matter). Something more creative like 'inviting' energy companies to reinvest their excess profits into renewable for less well off households.
 
TheWanderer said:
I was actually considering moving and taking up a £250k mortgage, I’m staying where I am for the foreseeable now.

Imagine moving into £350k house and the value dropping like a stone! 😳
Click to expand...
I'm on first mortgage. A house I got for £135k. According to my mortage app my HPI has went up 47k in last few years. How accurate that is, is any ones guess.

I'd be gutted if this equity was to be taken away from me now though. However our plans are to upgrade to maybe a 200k house. The one thing I wont be doing is over paying for one of these new builds, for it to possibly, as you say drop like a stone.

I was hoping to use the ladder properly, but who knows what's going happen
 
TheWanderer said:
£129,000
£220,000
18 years
Click to expand...
There’s probably some mortgage calculator on that Martin money tips site that will help you decide if worth jumping now and paying the fee . Gonna have massive impact as think
Loads of young couples have mortgages way in excess of their salaries
 
Fletch said:
There’s probably some mortgage calculator on that Martin money tips site that will help you decide if worth jumping now and paying the fee . Gonna have massive impact as think
Loads of young couples have mortgages way in excess of their salaries
Click to expand...

No calculator can tell you if it’s worth doing cos the answer is dependent on future rates. However one way of looking at it is that, say, a 1% ERC is really a cost of 0.20% if you’re moving to a 5 year deal.

So it’s broadly a bet on whether the market will shift by that much (and and a bit for any ‘cheap’ months you’re missing out on by breaking early).
 
NorthCountryBoy said:
No calculator can tell you if it’s worth doing cos the answer is dependent on future rates. However one way of looking at it is that, say, a 1% ERC is really a cost of 0.20% if you’re moving to a 5 year deal.

So it’s broadly a bet on whether the market will shift by that much (and and a bit for any ‘cheap’ months you’re missing out on by breaking early).
Click to expand...
Aye but you can compare rate of a new deal compared to a possible BOE 6% rate , anyway , it’s all guess work , nobody knows
An advisor was on radio this morn reminding people they can extend the mortgage terms , yet that’s the last thing I would advise unless you really are struggling massively
 
Same position as the op. Mortgage deal of 1.89% ends April. 15 years left on mortgage of 98k.

Was looking to upgrade to a 4 bed detached but going hang fire now. Press are saying today house prices could fall between 15 and 30% now. So hopefully they do and I can pick up a nice bargain.
 

Back
Top