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Ir On Fixed Mortgage 18 Months Ago?

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Can anybody tell me what (roughly) the avarage interest rate would have been on a 2 year fixed mortgage 18 months ago?

Also, is it about 5.5% now?

Im just trying to work out how much extra somebody who borrowed £100k 18 months ago will have to pay in 6 months.

Thanks

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Thanks.

Another question I have is why are some banks doing a fixed rate now for just under the base rate of 5.5% when it looks like IR's are going to be going up??

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Prob about the time I got my mortgage, hmm maybe not quite 18months yet. Mine is fixed at 4.2 iirc - that was the best rate at the time, Nationwide, cost £399 to arrange. So a little less than the 4.75 quoted above, but maybe that was fee free?

Im prob not a good person to compare against though as my overpayments have seen my monthly fee drop a fair amount already. And tbh my (nothing to write home about) pay rises would have seen me ahead anyway. Good old wage inflation - it really does exist!

I suspect I will be back to my starting repayment rate when I remortgage, its a bit depressing at first but then I think, hold on at this rate ill be mortgage free in 7years or so - and im not even a massive earner! Living a frugal life is very rewarding, financially and spiritually. I think most people agree on that one round here given the way people talk about vacuous lifestyles with such distain. But anyway, once it is all paid off Ill have 40 years to enjoy a larger income - although I bet I get hit by a bus the day its paid off lol!

Most people I know are well aware of what rising IRs mean and have been preparing already, but then most recent home buyers are kinda by definition pretty financially aware, you have to be a saver and a grafter to afford one in the first place. Oh no wait I forget all recent FTBs have commited fraud to get their mortgages ;)!

Anyway im rambling and thats prob not of interest to you lol!

GL chap :)

Edited by Orbital

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Prob about the time I got my mortgage, hmm maybe not quite 18months yet. Mine is fixed at 4.2 iirc - that was the best rate at the time, Nationwide, cost £399 to arrange. So a little less than the 4.75 quoted above, but maybe that was fee free?

Yes it was fee free. Also 5 yr fixed rate. I was guessing 2 yrs would be about the same (they seem to be at present)

Over paying? Excellent idea - up to a point. Once wage inflation starts to kick in then don't over pay at all just let inflation work for you!

Our monthly mortgage bill is now slightly less than the rent we were paying for a far inferior property.

Frugal living? Nah - get on and earn more seems a much better idea to me! Frugality will only take you so far.

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Thanks.

Another question I have is why are some banks doing a fixed rate now for just under the base rate of 5.5% when it looks like IR's are going to be going up??

Because they've got a pool of money they've borrowed at a fixed rate from the "money wholesalers" a while ago at that rate. This money will dry up.

They can also offset any margin mismatch with their arrangement fees and other fees for "services" they offer relating to the mortgage.

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Can anybody tell me what (roughly) the avarage interest rate would have been on a 2 year fixed mortgage 18 months ago?

Also, is it about 5.5% now?

Im just trying to work out how much extra somebody who borrowed £100k 18 months ago will have to pay in 6 months.

Thanks

The arrangement fees allows the lenders to make the IR more attractive as they make so much out of these fees now.

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From July 2005

MASSIVE CUTS TO HALIFAX RATES

4.29% 2 Year Fixed Rate NO UP FRONT COSTS – £599 ARRANGEMENT FEE CAN BE ADDED TO LOAN

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Guest d23
Can anybody tell me what (roughly) the avarage interest rate would have been on a 2 year fixed mortgage 18 months ago?

Also, is it about 5.5% now?

Im just trying to work out how much extra somebody who borrowed £100k 18 months ago will have to pay in 6 months.

Thanks

according to CML statistics in Jan 06 72% of all mortgages taken out were fixed rate at an average of 5%

Jan 05 39% were fixed @ an average of @ 5.66

Jan 04 30% were fixed @ an average of @ 4.67

Jan 03 28% were fixed @ an average of @ 4.61

Jan 02 32% were fixed @ an average of 5.12

latest figures I could find are for April this year when 78% were fixed at an average of 5.5%

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Frugality will only take you so far.

Agreed, that is if you see its purpose is to liberate the mind to intellectual riches.

But I imagine, in truth, you believe frugality is ultimately vulgar.

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Agreed, that is if you see its purpose is to liberate the mind to intellectual riches.

But I imagine, in truth, you believe frugality is ultimately vulgar.

That's great cos I'm extremely vulgar and ******ing tight!

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Prob about the time I got my mortgage, hmm maybe not quite 18months yet. Mine is fixed at 4.2 iirc - that was the best rate at the time, Nationwide, cost £399 to arrange. So a little less than the 4.75 quoted above, but maybe that was fee free?

Im prob not a good person to compare against though as my overpayments have seen my monthly fee drop a fair amount already. And tbh my (nothing to write home about) pay rises would have seen me ahead anyway. Good old wage inflation - it really does exist!

I suspect I will be back to my starting repayment rate when I remortgage, its a bit depressing at first but then I think, hold on at this rate ill be mortgage free in 7years or so - and im not even a massive earner! Living a frugal life is very rewarding, financially and spiritually. I think most people agree on that one round here given the way people talk about vacuous lifestyles with such distain. But anyway, once it is all paid off Ill have 40 years to enjoy a larger income - although I bet I get hit by a bus the day its paid off lol!

Most people I know are well aware of what rising IRs mean and have been preparing already, but then most recent home buyers are kinda by definition pretty financially aware, you have to be a saver and a grafter to afford one in the first place. Oh no wait I forget all recent FTBs have commited fraud to get their mortgages ;)!

Anyway im rambling and thats prob not of interest to you lol!

GL chap :)

Good on you being on target to pay off in 7 years. Im on target for near that as well. Posting this i am sure your prepared for lots of bearish banter and critique but wont be long and you will be mortgage free while lots of others sit out and wait while paying someone elses mortgage with dead money. Nice.

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Two things to consider:

+ Massive fees, such as arrangement, exit...

+ They buy money in big lumps, so todays rates are based on money bought several days/weeks ago.

Now, today swap rates are 6.29% for expire June '09. That's what the banks would buy the money at today.

Watch this space..!

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