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By (user no longer on site) OP
over a year ago
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Professor Kristin Forbes a member of the Monetary Policy Committee of the Bank of England, Says interest rates will soon be going up as wages are on the rise among other things,
When was the last time you had a pay rise and will interest rates going up affect you ?
I think I spend around 20% of my monthly wages on my mortgage and was looking to move but I think I will wait and see how much they go up,
I don't know anything about these things,
Would you wait ?
How much will they go up ? |
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"Professor Kristin Forbes a member of the Monetary Policy Committee of the Bank of England, Says interest rates will soon be going up as wages are on the rise among other things,
When was the last time you had a pay rise and will interest rates going up affect you ?
I think I spend around 20% of my monthly wages on my mortgage and was looking to move but I think I will wait and see how much they go up,
I don't know anything about these things,
Would you wait ?
How much will they go up ?"
The only way is up - baaaabeeee!!!
Pay as much off now as quick as you can |
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By (user no longer on site) OP
over a year ago
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Ok next question,
My house isn't worth that much but I only owe 50k on it and I have around 10k in the bank, As I can't see myself buying another house for at least 12-18 months even if I do sell this one do you think it would be a good idea to pay a lump sum of the mortgage, Say 5k while the rates are low |
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"Ok next question,
My house isn't worth that much but I only owe 50k on it and I have around 10k in the bank, As I can't see myself buying another house for at least 12-18 months even if I do sell this one do you think it would be a good idea to pay a lump sum of the mortgage, Say 5k while the rates are low"
Speak to your mortgage company as they normally have an overpayment stipulation going on.... The other way of getting around it is reducing the term of your mortgage which means higher monthly repayments but paying it off quicker. Keep your £10k in a Santander account and get 3% on any amount over £2k. Make it your main account and pay in £500 and 2 DD's to get the interest rate. The 10k can get interest and the higher payments can be covered if you get in trouble with the £10k. Always have a contingency if you can |
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By (user no longer on site) OP
over a year ago
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"Ok next question,
My house isn't worth that much but I only owe 50k on it and I have around 10k in the bank, As I can't see myself buying another house for at least 12-18 months even if I do sell this one do you think it would be a good idea to pay a lump sum of the mortgage, Say 5k while the rates are low
Speak to your mortgage company as they normally have an overpayment stipulation going on.... The other way of getting around it is reducing the term of your mortgage which means higher monthly repayments but paying it off quicker. Keep your £10k in a Santander account and get 3% on any amount over £2k. Make it your main account and pay in £500 and 2 DD's to get the interest rate. The 10k can get interest and the higher payments can be covered if you get in trouble with the £10k. Always have a contingency if you can"
When I said bank I did mean a ISA account and I can take it out at anytime,
I did increase my payments on the mortgage a few years ago and there is no penalty clause for over paying, I was just thinking lowering what I owe with a lump sum would be better in the long run then the interest I would earn leaving it in the ISA account
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By (user no longer on site) OP
over a year ago
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"You can use the £5k to overpay and either reduce the term or monthly payments. Term would be the better idea.... "
That's what I was thinking,
Thanks |
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By (user no longer on site)
over a year ago
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I'm jealous of these small mortgages 
A rise shouldn't affect me too much. Locked into a 5 year fix last year, have enough slack so we could have to pay more if we needed to, and if we're not earning considerably more in another 4.5 years something has gone wrong in our careers. Will have tipped into 75% loan to value bracket by then as we build up equity, which opens up more rates than when you've got less equity. |
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I was fortunate to be earning good money before I retired at 42, and by choosing to live modestly, paid off the former marital home and reduced my mortgage to a peppercorn (£80 a month, 4 bed house, garage, parking for 6 cars, private road).
Though I now work part-time (and just had a re-grade plus annual increment) and could easily clear the balance, I keep it going as I figure I have at least one more house move left, so it keeps my credit history current and mortgaging options open.
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By (user no longer on site)
over a year ago
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My plan from 19 was to get a house.
Was looking through the property paper yesterday and it looks like we bought at a good time, prices seem to have risen.
We're looking at a freehold pub for Mrsdpt next  |
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