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Fixed Rate Mortgages Begin To Soar - Loans Rocket To 6 Month Record High

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http://www.telegraph.co.uk/finance/personalfinance/borrowing/mortgages/8310820/Highest-fixed-rate-mortgages-for-six-months.html

Highest fixed rate mortgages for six months
With interest rates at their lowest ever level, it is tempting to forget about the rate you are paying on your mortgage.
But latest figures suggest the cost of fixed rate deals has risen sharply during the past six months and will continue to do so amid fears that the Bank of England will increase interest rates sooner than expected.

What a glorious, glorious hiking frenzy! :lol::lol::lol:

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The cost of a typical five year fixed rate deal has reached 5.45 per cent, the highest level since August last year, according to the research by personal finance website Moneyfacts.

The average three year fixed rate mortgage has reached 5.05 per cent, the highest level since September, while a two year fixed rate deal is at 4.49 per cent, the highest level since August.

The base rate of 0.5% has become completely irrelevant. In the real world, banks require a positive real interest rate. Inflation is forcing rates up whether the BOE like it or not.

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http://www.telegraph.co.uk/finance/personalfinance/borrowing/mortgages/8310820/Highest-fixed-rate-mortgages-for-six-months.html

Highest fixed rate mortgages for six months
With interest rates at their lowest ever level, it is tempting to forget about the rate you are paying on your mortgage.
But latest figures suggest the cost of fixed rate deals has risen sharply during the past six months and will continue to do so amid fears that the Bank of England will increase interest rates sooner than expected.

What a glorious, glorious hiking frenzy! :lol::lol::lol:

Simply awful. :lol: In a few months people will ask themselves "Do I fill up the car with petrol and buy food or pay the mortgage?".

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Simply awful. :lol: In a few months people will ask themselves "Do I fill up the car with petrol and buy food or pay the mortgage?".

Fill the car up so that you can get to work to maybe pay the mortgage.......sorry, can't afford to drive into work this week will have to wait until pay day to fill up. ;)

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Fill the car up so that you can get to work to maybe pay the mortgage.......sorry, can't afford to drive into work this week will have to wait until pay day to fill up. ;)

I thought the key was to live near enough to work to walk?

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This part was interesting:

It follows a 47 per cent increase in swap rates – the rates which lenders use to price their fixed rate mortgages – from 1.35 per cent for the two year swap rate in November to 1.98 per cent today.

It is a sharp turnaround in fortunes for those looking for a fixed rate deal. In November last year, the Bank of England reported the average rate on a five year fixed rate mortgage dropped significantly to 4.86 per cent in October, down from 5.04 per cent the previous month and the lowest five year fixed rate since the summer of 2003.

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I thought the key was to live near enough to work to walk?

...or work from home....if they want you they will have to pay your expenses...good enough for MPs....are they special? ;)

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...or work from home....if they want you they will have to pay your expenses...good enough for MPs....are they special? ;)

Yes but they have 2 homes, perhaps they have a work home and a recreational one? I only have one house so I'll be expected to work elsewhere.

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This part was interesting:

It follows a 47 per cent increase in swap rates – the rates which lenders use to price their fixed rate mortgages – from 1.35 per cent for the two year swap rate in November to 1.98 per cent today.

It is a sharp turnaround in fortunes for those looking for a fixed rate deal. In November last year, the Bank of England reported the average rate on a five year fixed rate mortgage dropped significantly to 4.86 per cent in October, down from 5.04 per cent the previous month and the lowest five year fixed rate since the summer of 2003.

Surely Swap rates are relevant for fixed rate deal setting and have much less relevance for tracker /SVR rate setting?

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Yes but they have 2 homes, perhaps they have a work home and a recreational one? I only have one house so I'll be expected to work elsewhere.

...I take it you only have one job also. ;)

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im saying nothing

What is wrong with a 5% mortgage fixed for 10 years ... seems like a good deal to me.

With regards to the Swiss Franc mortgages at 2% or there abouts to buy UK property, i enquired about these and theyre only available to those earning in CHF, unless of course you know anywhere else

Edited by I-hate-scumlords

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What is wrong with a 5% mortgage fixed for 10 years ... seems like a good deal to me.

With regards to the Swiss Franc mortgages at 2% or there abouts to buy UK property, i enquired about these and theyre only available to those earning in CHF, unless of course you know anywhere else

the poster earns in chf, its a sort of in joke

Edited by Tamara De Lempicka

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the poster earns in chf, its a sort of in joke

you said it ;)

I'm actually very happy with the deal. There's another joke that I play with the wife when she comes home from Geneva/Brussels bags laden with Swiss/Belgium chocolate... I ask her why she brought me back cadbury's chocolate when I can get it here (most if their chocolate is stamped Kraft too).

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The base rate of 0.5% has become completely irrelevant.

The base rate is still relevant for all base-rate trackers, a major part of the mortgage market.

I took a gamble by getting tracker (+1.69%) rather than a long-term fix in the expectation that base rates will only rise very slowly due to the other MPC mandate of maintaining financial stability. Could be right, could be wrong.

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  • 311 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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