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cupidstunt

Party Over For Fixed Rate Fans

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A fixed rate mortgage for two years, pathetic what muppet would take up this option.

Unless you intend to pay off your mortgage within 2 years, then you obviously need a fix for the life of the mortgage.

Anyone who is holding out on a variable rate, cos they think the rates today are high and they will get cheaper had better book themselves into a clinic very soon.

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Still sounds very cheap to me 4.19%

This is just a ploy to get people to act NOW like your high street "last few remaining" at this price

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Guest Riser
'The market thinks interest rates are heading up and lenders have repriced their fixed rates accordingly."

At last we are starting to see acceptance by the main stream press that rates are going up. How much longer before we see the BBC comming out of denial about increasing rates?

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Abbey have upped their 5 year fix by a huge 0.45% from 4.79% to 5.24% as of today.

Anybody detect a certain amount of panic buying? As in must buy something quick before the rates go up.

hi...the panic buying to qualify for miras before it was stopped on new mortgages and home improvement loans in 1988 created the final leap in hpi before the crash...

i remember it well.

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Interesting, I am just taking a 2 year fix at 4.39%. But will be overpaying a further 15% a year of the capital. So if rates are much higher in 2 years, I can still comfortably afford them - if however, I want to downsize or cash out or similar, I can do without a huge penalty payment.....

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Interesting, I am just taking a 2 year fix at 4.39%. But will be overpaying a further 15% a year of the capital. So if rates are much higher in 2 years, I can still comfortably afford them

But if rates are much higher in 2 years, the house you buy today will be worth half what you're paying for it.

Fixed-rate mortgages only make sense if you expect rates to rise significantly, but buying a house at today's prices makes no sense if you expect rates to rise significantly.

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But if rates are much higher in 2 years, the house you buy today will be worth half what you're paying for it.

Fixed-rate mortgages only make sense if you expect rates to rise significantly, but buying a house at today's prices makes no sense if you expect rates to rise significantly.

I am a) not buying, I am remortgaging B) have well over 40% equity at 2000 prices (not today's), c) won't (hopefully) need to sell d) wil be paying down a massive lump of capital off my mortgage, so my exposure will be reduced greatly e) did a lot of research into the market before buying - my mortgage in the worst case (I/O) would still be less than current rents at 13% interest rates....

House worth half what I paid for it, given I bought at £100K under asking and £180K less than the other one to be sold on my street 4 weeks later (same house in OK condition) - that's hysteria and total conjecture - for my house to fall by anything like that, every stockbroker, banker, lawyer and trader in London would need to lose their job - not going to happen.... it may stagnate or even fall a bit, but believe me, that's priced into my numbers (at an ultra agressive 20% fall too).

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Well, remortgaging is a different matter: though, even then, selling probably makes far more sense if you expect rates to increase significantly.

Or don't lawyers and stockbrokers care about how much they're paying on their mortgage each year?

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Well, remortgaging is a different matter: though, even then, selling probably makes far more sense if you expect rates to increase significantly.

Or don't lawyers and stockbrokers care about how much they're paying on their mortgage each year?

It could do if I honestly believed prices will tank for where we are - I don't and am trusting my own judgement, with the greatest respect I will live and die by my own sword and won't buy or sell because a keyboard warrior like myself says so.... - if I get it wrong, furry muff. I have recommended to other people that they liquidate their provincial city centre investments, one has done and has watched prices tank since he sold [ he is v happy he listened to me and other people telling him the same when the telly was telling him different] , the other is sat there trying desperately to break even on a 2004 purchase....

Then renting a similar property will cost about £4500-£5000 a month - my interest only mortgage (which it's not) would be nowhere near that figure at even 12% (not much more than half) - if we went for 7%, I would still be (assuming stable income) able to pay off an extra £[X]K a month on top off the interest only payment and still live as comfortably as we do now. Plus we spent money to make this place just so, she does not want to move anyway, it would have to be catastrophic to make us move

[please note, I know I am lucky to be able to manage such numbers [and hope to be able to manage them in future], I don't intend for them to be subject to discussion and won't answer leading questions on them]

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Yeah, but just wait until that expires and you're thrown onto their SVR, then look at the exit fees, ouch.

Am I slow here or is the cheapest fix not 4.19, it's 4.34 according to the text and 4.45 fixed (we'll ignore long term stepped fixed rates and extended tie ins). Not exactly the same. Still a better shot so far as I am concerned than an SVR or a tracker or discount for the same period....

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I am a) not buying, I am remortgaging B) have well over 40% equity at 2000 prices (not today's), c) won't (hopefully) need to sell d) wil be paying down a massive lump of capital off my mortgage, so my exposure will be reduced greatly e) did a lot of research into the market before buying - my mortgage in the worst case (I/O) would still be less than current rents at 13% interest rates....

House worth half what I paid for it, given I bought at £100K under asking and £180K less than the other one to be sold on my street 4 weeks later (same house in OK condition) - that's hysteria and total conjecture - for my house to fall by anything like that, every stockbroker, banker, lawyer and trader in London would need to lose their job - not going to happen.... it may stagnate or even fall a bit, but believe me, that's priced into my numbers (at an ultra agressive 20% fall too).

In doing the overall calculation you need to add back in income arising from the equity released if you were to sell the house and reinvest the capital, for example dividends from shares or interests, as well as weighing up whether cash/shares are likely to hold or gain capital value compared to property.

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In doing the overall calculation you need to add back in income arising from the equity released if you were to sell the house and reinvest the capital, for example dividends from shares or interests, as well as weighing up whether cash/shares are likely to hold or gain capital value compared to property.

I know that, but unfortunately I also have to work full time and don't have the time or the inclination to spend every spare moment adjusting a portfolio. It's a relatively risk averse strategy that also keeps us in a house we want to be in, it's not the biggest earner - that's my job, not the house's - it would have been nice if I could have delegated that to bricks and mortar, but that's the way it goes.

on a purely financial basis, we could sell up now, pocket the money and live on the £30K a year or so of income off it being in the bank, but we won't - we also won't sell up, rent and squirrel, it may be prudent short term, but it's not what she wants to do and I value my balls too much to make the missus do something she does not want to.... - if I see a bigger risk to our 'money' than I currently perceive, then I may look at it - at the moment, I don't......

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It could do if I honestly believed prices will tank for where we are - I don't and am trusting my own judgement, with the greatest respect I will live and die by my own sword and won't buy or sell because a keyboard warrior like myself says so.... - if I get it wrong, furry muff. I have recommended to other people that they liquidate their provincial city centre investments, one has done and has watched prices tank since he sold [ he is v happy he listened to me and other people telling him the same when the telly was telling him different] , the other is sat there trying desperately to break even on a 2004 purchase....

Then renting a similar property will cost about £4500-£5000 a month - my interest only mortgage (which it's not) would be nowhere near that figure at even 12% (not much more than half) - if we went for 7%, I would still be (assuming stable income) able to pay off an extra £[X]K a month on top off the interest only payment and still live as comfortably as we do now. Plus we spent money to make this place just so, she does not want to move anyway, it would have to be catastrophic to make us move

[please note, I know I am lucky to be able to manage such numbers [and hope to be able to manage them in future], I don't intend for them to be subject to discussion and won't answer leading questions on them]

Take it your your talking about a property value of around 3 mill ? maybe 3.5 mill ? So we are talking serious interest payments. If you are just changing mortgages to fixed rate because you believe you will get a better deal (I think you are right) even if for 2 years whilst paying off some of the capital this has to be a good thing doesnt it? But if your withdrawing equity it would be very important to look at the returns on this withdrawn money, and if IO even more carefully. If property price rises you gain paper profit if they go down you lose paper profit. Only drawback is the possible shock when changing back onto a then high rate (but nothing is certain)

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Take it your your talking about a property value of around 3 mill ? maybe 3.5 mill ?

So we are talking serious interest payments. If you are just changing mortgages to fixed rate because you believe you will get a better deal (I think you are right) even if for 2 years whilst paying off some of the capital this has to be a good thing doesnt it? But if your withdrawing equity it would be very important to look at the returns on this withdrawn money, and if IO even more carefully.

I wish :) - a lot less than that, but a comfortable house in a good area (Cobham).

You are right though, interest rates are seriously important, in that time I can pay off over 30% of the capital by overpayment and about a further 12% by scheduled repayment - that's a lot of mortgage gone and no interest to pay. I would NEVER advocate interest only today - you pay the debt down rapido to build yourself a cushion for the worst - it's been my plan since I first got a mortgage at 26, every subsequent one has been for a lesser term than 25 years (one year shorter for each year older IYKWIM) and I intend shifting this one and being able to decide whether I can be @rsed any more at 40. Which means I have to get that debt down. I am actually putting half of the savings into a lump overpayment come remortgage..... which is my new toy car fund gone ayway, but it's the prudent thing to do (I can always save extra pennies for my own indulgences)......

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  • 301 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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