# Mortgage Rate.



## Toshiba (Jul 8, 2004)

WTF - Why are people moaning about the rise in rates for.
0.25% is Â£16 on Â£100,000

So a loan would have gone up Â£80 on Â£100,000 in total with the 5 increases thus far.
Power has increase by Â£10 or so.

If it was that tight then you shouldn't have taken out a mortgage in the first place, got something more affordable or even taken on a mc'job to cover the increase in costs. :evil:


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## shelley (Nov 22, 2004)

Actually, 0.25% is nearer Â£21 on Â£100k which is Â£104 since last August.


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## Toshiba (Jul 8, 2004)

http://money.uk.msn.com/specials/intere ... id=5448827

"Borrowers with a Â£100,000 variable rate mortgage will see their monthly bills increase by around Â£16 as a result of this monthâ€™s rate rise. Over the past year, variable rate repayments have increased by around Â£80 a month."

:roll:


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## mighTy Tee (Jul 10, 2002)

Oh the joys of a 25 year capped mortgage


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## shelley (Nov 22, 2004)

Ah,  depends on whether its repayment or interest only!


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## NaughTTy (Jul 9, 2003)

mighTy Tee said:


> Oh the joys of a 25 year capped mortgage


Oh the joys of 5% fixed for 5 years


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## kwaTTro (Jul 5, 2005)

they say the main reson for the BofE to keep rising the rate is because so many people are still on fixed rate mortgages.

Because of this - these fix raters are not being impacted by the hikes in the base rate and therefore still spend like crazy causing inflation to soar.

Personally I think we will only see another 0.25% rise this year if that - people are starting to 'chill out' on spending - this is evident in the number of sales that are sprucing up on the high street which has also been helped by the 'wet June' we have had which has also hindered retail sales.

watch this space...


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## karenb (Jun 12, 2005)

NaughTTy said:


> mighTy Tee said:
> 
> 
> > Oh the joys of a 25 year capped mortgage
> ...


Oh the joys of being mortgage free!!


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## Guy (May 13, 2002)

> Oh the joys of being mortgage free!!


Mortgage, what's a mortgage? Is it a cabinet makers tool or something?


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## BAMTT (Feb 22, 2004)

Personally i feel the BOE should of started using 0.50 rises a while ago and and used 0.25 to end the cycle, However if people are moaning about Â£16 it shows just how highly leveraged the average household is in this country,

A good indication is when you go shopping just look at how many people use credit card for their weekly shop .... scary we are set for a fall, just how hard thats a different matter

Also is no-one worried about the high energy prices, much higher and they become deflationary


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## trevor (May 6, 2002)

It can go up to 16% for me , more for me Â£Â£Â£Â£Â£Â£ :lol:


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## W7 PMC (May 6, 2002)

The simple fact is that Mortgage Payments/Interest rates are so much more obvious than Energy Prices.

Totally agree in the grand scheme, Â£16 is hardly a deal breaker, but if you add it up behind a Fixed Rate, the shock for most coming off one could easily be Â£150-Â£200 if they secured a good FR in the 1st place.

Thas level of monthly increase would pi$$ me off no end. It wouldn't break the bank but Â£200 is Â£200.

I recall last summer i totally forgot we were coming out of our intro/discount/fixed/Tracker period & got a letter from our Lender saying as from the following month our repayments would be increase by over Â£350 per month  . I nearly shat myself & then beat myself up for forgetting this would happen.

Gave our lender a call & told them i'm going to shop around & surprise surprise they offer me a new 2yr fixed rate that actually meant we could either borrow an extra Â£25K with NO increase from our current payments & of course no increase in term, or we could stay at our current payment level & reduce our term or even maintain the term & take our payments lower that their current level :?

So Â£16 aint the end of the world, but it all adds up


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## jbell (May 15, 2006)

Just moved mine to a tracker and changed to HSBCs Bank Account Plus, dropped the payments be Â£60 a month as I only pay 0.4% above base now, I have kept the payments the same and reduced my mortgauge by 5 years and saved Â£9,500 in interest


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## Wallsendmag (Feb 12, 2004)

So on a Â£15k mortgage its not worth worrying about then


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## jampott (Sep 6, 2003)

I don't see the problem with putting the 'weekly shop' on a credit card either. Don't judge by what you see at the tills... it isn't a true picture.

My current mortgage is an Offset. Why on earth would I want to spend my own cash, which is saving me mortgage interest on a daily basis?

Much more efficient to mop up all the weekly shops, impulse buys etc onto a credit card.

Why? You can pay it off usually a good few days later (up to 56 days, depends on the card) and if paid in full, you aren't charged interest. So you've 'gained' the interest from sitting on your own cash in the meantime.

What else? Goods over a relatively low limit, if bought on credit card, have additional protection. In addition to your SOGA rights against the retailer, the CC provider becomes jointly liable. Great, that...

And? I can earn cashback or Virgin Air Miles depending on which credit card I pull out. A total freebie, and WELL worth having. I'm several hundred quid a year better off because of this.

So... you can pay cash for your weekly shop if you like... 

Mortgage is currently being changed, and fortunately will be on a fixed rate which is below the base rate. :roll:

I would say, bring it on... but I fear it would cause wobble in the housing market, and I'd still rather that didn't happen.


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## BAMTT (Feb 22, 2004)

jampott said:


> I don't see the problem with putting the 'weekly shop' on a credit card either. Don't judge by what you see at the tills... it isn't a true picture.
> 
> My current mortgage is an Offset. Why on earth would I want to spend my own cash, which is saving me mortgage interest on a daily basis?
> 
> ...


All very well, but you are a shrewd individual, most of the halfwits i see at Tesco's i would not credit with the same intelligence.

Personally for online stuff i use CC's as i believe protection is better like you said, + its the credit card companies money at the point of transaction, not cash out of my current a/c, Food shops are on current a/c as i need to be disciplined and draw a line somewhere


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## Dotti (Mar 9, 2003)

Pleased to be mortgage free and have been for the last 4 years


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## The Silver Surfer (May 14, 2002)

I've been using my CC for all my shopping/petrol/purchases etc etc for years.

Always pay it off in full every month and get points everytime I use the card.


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## ratty (May 18, 2004)

No mortgage for me and from a savings point of view the interest rate can go as high as it likes. However I do feel for my kids and anyone else starting out with a house purchase these day.


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## digimeisTTer (Apr 27, 2004)

God i can't stand all these smug gits with their "no mortgage for me" living thier safey safey life in the singular crappy house they've owned for 25 years and paid the mortgage co. an exorbitant amount in interest over that period of time - well done!

I currently have more than one mortgage and luckily have most on a fixed rate repayment - but like i said in my previous post if the housing market is squeezed, everything else follows suit.

Strangely tho' things have picked up a bit recently but todays interest hike might compound the issue.

Flame suit zipped :twisted:


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## Lisa. (May 7, 2002)

digimeisTTer said:


> God i can't stand all these smug gits with their "no mortgage for me" living thier safey safey life in the singular crappy house they've owned for 25 years and paid the mortgage co. an exorbitant amount in interest over that period of time - well done!
> 
> I currently have more than one mortgage and luckily have most on a fixed rate repayment - but like i said in my previous post if the housing market is squeezed, everything else follows suit.
> 
> ...


They're probably middle aged, own their own council house or still live in their 1970's 3 bed semi :wink:


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## jampott (Sep 6, 2003)

They've singularly failed to realise that the housing market fuels the rest of the economy - for better or worse - and whilst they aren't directly affected by rate rises (nor am I) they WILL be affected by a nosedive in the house prices - again, even if not directly, by the fact that the economy stands a good chance of ducking back into recession, with all the good fun that comes with it...

Still, they *think* they're OK... so they won't overly concerned, eh?


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## ag (Sep 12, 2002)

We all know that the relative health of the UK economy is due to increased borrowing based on percieved increases in house values and therefore wealth. The important word there was borrowing. At some point the cash has to be paid back. And it is just around the corner. The biggest problem is that money has been lent indescriminately to anyone and everyone, most people have gone into it with their eyes open and their brains engaged. A number of people haven't and will be in great financial difficulty soon.

This is not to mention the number of lobs that will be lost in the retail sector in the next 12 months as consumer confidence wains and Gordon brings in austerity measures.


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## redsi72 (Nov 13, 2006)

Dick head!
Â£16 is better off in my pocket or 
2 x boxes of Stella now retailing at Tesco for Â£16


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## ratty (May 18, 2004)

Lisa. said:


> digimeisTTer said:
> 
> 
> > God i can't stand all these smug gits with their "no mortgage for me" living thier safey safey life in the singular crappy house they've owned for 25 years and paid the mortgage co. an exorbitant amount in interest over that period of time - well done!
> ...


Middle aged maybe, owned a council house NO, still live in a 1970's 3 bed semi NO. Having no mortgage has come through several good house moves, prudent financial planning (max amount of time for each mortgage has been no more than 7 years) and of course with some luck. It's nothing to be smug about, hopefully everyone will reach this point with their house purchase at some time in their life. Believe me it certainly removes some of the pressure as you get on in life (also enabled me to pay for 3 lots of university fees!). The only problem I can see with this at the moment is how to get round inheritance tax.

:roll:


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## W7 PMC (May 6, 2002)

ratty said:


> Lisa. said:
> 
> 
> > digimeisTTer said:
> ...


No issue from me. I'd be as smug as a smug thing if i had no mortgage. TBH though, i/we'd have no chance of living in the house we do currently if we didn't have a mortgage.

Would i rather not have a mortgage?? damn right i'd rather not have one. Do i love the house i live in?? damn right i do, so the balance has to be a mortgage.


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