Anyone concerned by interest rates rising re mortgage?

[Mottie]

Christ knows why millions more never jumped onto 10 year fixed mortgages at 2% or less, common sense told you that if it still dropped slightly the loss would be minimal but if interest rates went back to historical averages then you would be laughing. When I paid the 15% mortgage back in the day when rates fell we continued to pay the same as we had done in case they went back up. Cut our cloth to suit as a result paid mortgage off 8 years early and mortgage free at 39.
To many do not look at the figures over total length of mortgage instead of trying to pay off early and save a fortune

When the mortgage rate went up, we went with it. When it went down we got a letter saying what it had gone down to but if we kept paying the same, the mortgage would finish xxx months/years earlier. We always chose that option. Paid off our 25 year mortgage in 17 years.

 

[securespark]

Homeowners left exposed by inadequate mortgage stress tests

We don’t know how many people will be adversely affected by rising rates yet

inews.co.uk

 

[securespark]

Definition of a landlord is buy a house with a mortgage and get some other sucker, who could have a mortgage of his own but
can't afford it because he is paying your buy to let mortgage.

That doesn't make sense.

If what you say is true, that person, instead of renting, could simply choose to have a mortgage of their own.

But it's not that simple.

 

[gas112]

Not all landlords have mortgages. So a case of someone trusting a tenant to look after a major investment and not trash the place devaluing it.
whilst also taking the risk that their investment may devalue tremendously in a property crash.
Property does not always increase in value

 

[Justin Passing]

I got f******g livid over mortgage interest rates. Bloke agreed to buy the biggest place I want rid of, kept procrastinating then pulled out, because he can't get a mortgage (he can afford).

All sorted, I'm keeping it. There are ways and ways.

 

[Mottie]

Definition of a landlord is buy a house with a mortgage and get some other sucker, who could have a mortgage of his own but can't……

Possibly because they never got around to saving a deposit or had a poor credit rating and a history of debt?

 

[noseall]

Christ knows why millions more never jumped onto 10 year fixed mortgages at 2% or less

Not everyone had access to it.

 

[ellal]

Not everyone had access to it.

As with everything, those most in need usually end up with a worse deal...

Thus the less well off keep getting poorer!

 

[gas112]

Not everyone had access to it.

The vast majority did though

 

[gas112]

As for interest rates for savers can't complain when a high street bank is offering upto 6.17 % on savings with many offering around 5% for 1 year fixed term

 

[JohnD]

As for interest rates for savers can't complain when a high street bank is offering upto 6.17 % on savings with many offering around 5% for 1 year fixed term

They might not complain, but with interest rates on savings less than inflation, their real value is constantly trickling away.

 

[gas112]

They might not complain, but with interest rates on savings less than inflation, their real value is constantly trickling away.

Not as much as if the rates were less. Have savings interest rates historically been higher than inflation ? . So what are you suggesting spend all your savings money just now ?

 

[JohnD]

Not as much as if the rates were less.

When inflation was 2% and interest was 0.1%, savers lost money.

When inflation was 20% and interest was 1%, savers lost money.

Now inflation is 8% and interest is 1.1%* savers are losing money


*the rates around 6% you see advertised are just a trick to lure in regular savers.

 

[gas112]

When inflation was 2% and interest was 0.1%, savers lost money.

When inflation was 20% and interest was 1%, savers lost money.

Now inflation is 8% and interest is 1.1%* savers are losing money


*the rates around 6% you see advertised are just a trick to lure in regular savers.

So your saying that it has always been the case .Glad you cleared that up.
6% to lure regular savers so what it's still 6 % .And people with savings wouldn't transfer money each month to get those rates.

 

[JohnD]

As I said.

With interest rates on savings less than inflation, their real value is constantly trickling away.