Interest rates

Anything goes in The Snug, the GD's rebellious little brother. An off-topic den of iniquity for non-football/news related musings.

Moderators: bristolhammerfc, sicknote, -DL-, Rio, Gnome, chalks, the pink palermo

Interest rates

Postby mumbles87 on Wed Oct 11, 2017 9:40 am

Rumoured to rise next month.. could be a good thing for the economy but bad for many people

How many are prepared?

Us personally I have been working to clear the loan we got when we moved in (to do the house up) by summer 2018 which is 3 years early

Mortgage deal ends next December so will reevaluate then

The plan was to cut 6 years off the mortgage but keep monthly payments same by taking advantage of my rising house price however if that turns out to be only 2 years cut off it's not a bad thing!

Took out a few grand on credit last night to clear the loan now and have it interest free until August to pay off the loan bang on scedhule

Saved £300 in interest aswell

Am I the only one keeping an eye on it ready to adjust? Mainly cuz it's never happened to me before
mumbles87
 
Posts: 9265
Joined: Sun Jul 01, 2012 10:35 am

Re: Interest rates

Postby rare as rockinghorse shat on Wed Oct 11, 2017 1:06 pm

Always found interest rate fluctuations much of a muchness when swallowed up in the amount of money that the average consumer 'wastes' elsewhere and/or not playing the credit game as wisely as they could.

You can offset £1000s in interest on wisely obtained and repaid 0% cards and loans, save money on monthly bills with cashback, incentives and such.

Always find it oddly intriguing to hear people complain that their mortgage is going to cost them £500 more per year, but continue sleepwalking into £1200 mobile contracts and/or lay out upwards of £90 to Sky without a hint of reviewing it's value.
User avatar
rare as rockinghorse shat
 
Posts: 53831
Joined: Sun Jan 23, 2005 3:43 am
Location: The Ambassador of Quan

Re: Interest rates

Postby mumbles87 on Wed Oct 11, 2017 1:12 pm

rare as rockinghorse shat wrote:Always found interest rate fluctuations much of a muchness when swallowed up in the amount of money that the average consumer 'wastes' elsewhere and/or not playing the credit game as wisely as they could.

You can offset £1000s in interest on wisely obtained and repaid 0% cards and loans, save money on monthly bills with cashback, incentives and such.

Always find it oddly intriguing to hear people complain that their mortgage is going to cost them £500 more per year, but continue sleepwalking into £1200 mobile contracts and/or lay out upwards of £90 to Sky without a hint of reviewing it's value.


Only thing with constantly reviewing is now there is no fat to trim my budget anymore

Virgin we ditched for BT saved like £50 pm

contracts we both on sim only £15 each

constantly switch energy

muilti cover the house and car
mumbles87
 
Posts: 9265
Joined: Sun Jul 01, 2012 10:35 am

Re: Interest rates

Postby Iron-worx on Wed Oct 11, 2017 1:13 pm

The last few years have been unusual.

Unusual in that rates have been unprecedentedly low, and unusual in they haven't fluctuated a great deal either.

Neither of those things are likely to continue indefinitely because higher rates fluctuating more is what's historically normal and the last few years have been abnormal.
User avatar
Iron-worx
 
Posts: 5071
Joined: Tue Aug 16, 2011 12:44 pm
Location: Rebuilding Lady Garrets Tower

Re: Interest rates

Postby Denzil on Wed Oct 11, 2017 1:19 pm

Currently looking at getting my first mortgage, likely to be early 2018. Could this have a big effect on my monthlys then?
User avatar
Denzil
 
Posts: 1136
Joined: Tue May 10, 2011 2:39 pm

Re: Interest rates

Postby mumbles87 on Wed Oct 11, 2017 1:21 pm

Denzil wrote:Currently looking at getting my first mortgage, likely to be early 2018. Could this have a big effect on my monthlys then?


by early 2018 I expect interest rates to be either 0.5-0.75 % , it shouldnt affect too much however it could bring down the price of the house you buy slightly .. or least stop it going up
mumbles87
 
Posts: 9265
Joined: Sun Jul 01, 2012 10:35 am

Re: Interest rates

Postby Denzil on Wed Oct 11, 2017 1:30 pm

Cheers Mumbles. Might even itself out then if anything. Having been keeping an eye on properties in the area lately a lot have been on the market for sometime now with a few slashing the original asking price. I was pretty keen to get into somewhere asap but I am paying off a credit card too, so wanted to wait until that was paid till I did.

This makes me a bit happier to wait.
User avatar
Denzil
 
Posts: 1136
Joined: Tue May 10, 2011 2:39 pm

Re: Interest rates

Postby mumbles87 on Wed Oct 11, 2017 1:32 pm

Denzil wrote:Cheers Mumbles. Might even itself out then if anything. Having been keeping an eye on properties in the area lately a lot have been on the market for sometime now with a few slashing the original asking price. I was pretty keen to get into somewhere asap but I am paying off a credit card too, so wanted to wait until that was paid till I did.

This makes me a bit happier to wait.


We were gonna do the same but moved just before we paid them off to take advantage of the market

Saved 20k on a house getting in just as he was desperate to sell
mumbles87
 
Posts: 9265
Joined: Sun Jul 01, 2012 10:35 am

Re: Interest rates

Postby chelmsfordhammer91 on Wed Oct 11, 2017 1:41 pm

We don't have credit card so etc, the only real debt we have is the mortgage and our student loan repayments.

Hopefully the interest rate rise when it inevetibly happens won't affect us much as we just renewed our mortgage to a five year fixed rate, knocking off 8 years and saving around £175 a month.

The Mrs is on maternity leave but when she goes back to work next year we will most likely borrow on Ann interest free card to either get the kitchen done or get a new car.

Like what has been said, I would have thought most of us are not as frugal with inessentials as we could be so a small rise shouldn't have a big impact on the relatively financially secure.
User avatar
chelmsfordhammer91
 
Posts: 228
Joined: Sat Nov 07, 2015 5:59 pm
Location: Broomfield, Chelmsford

Re: Interest rates

Postby westham,eggyandchips on Wed Oct 11, 2017 5:13 pm

Too many people on variables for it to go up too much. Probably 0.25% before Xmas then possibly another 0.25% next summer/Autumn.
User avatar
westham,eggyandchips
 
Posts: 11436
Joined: Tue Aug 07, 2007 8:06 pm
Location: Shake for me girl, I wanna be your backdoor man!

Re: Interest rates

Postby sendô on Wed Oct 11, 2017 5:30 pm

Signed a 3 year fixed in August :thup:

Can't see it going up by much, certainly not initially. Increments of 0.25% likely.

Plenty of people on £40+ p/m phone contracts, £100+ p/m TV contracts, take aways all the time, eating out, beer money.

I did a review of our expenditure in August and was shocked at how much money we'd wasted mainly on take aways, lunch, beer and so on. All non-essentials if it means keeping a roof over your head.
User avatar
sendô
 
Posts: 23479
Joined: Thu Nov 10, 2005 1:41 pm
Location: in the pessimistically optimistic camp.

Re: Interest rates

Postby Denzil on Wed Oct 11, 2017 5:39 pm

Very true Sendo. It's amazing the amount of cash gets spent monthly when you aggregate together your breakfasts, lunches, coffees, beers etc. I'm not regimented enough to kick that into touch too much though at the moment.
User avatar
Denzil
 
Posts: 1136
Joined: Tue May 10, 2011 2:39 pm

Re: Interest rates

Postby mumbles87 on Wed Oct 11, 2017 5:54 pm

Denzil wrote:Very true Sendo. It's amazing the amount of cash gets spent monthly when you aggregate together your breakfasts, lunches, coffees, beers etc. I'm not regimented enough to kick that into touch too much though at the moment.


With you on that

We don't eat out much but since little one arrived I like a take away every now and again

Coffee tho I'm glad I don't drink

Biggest waste of money I've seen Jesus
mumbles87
 
Posts: 9265
Joined: Sun Jul 01, 2012 10:35 am

Re: Interest rates

Postby rare as rockinghorse shat on Wed Oct 11, 2017 6:00 pm

Depends where you go, mumbles.

I like my coffee and it may be an opinion that some dislike/disagree with, but McDonalds coffee is generally pretty decent and relatively inexpensive.
Not too dissimilar to a cuppa tea from a cafe/van/hut and certainly not as expensive as many high street chains, let alone the poncey coffee places.
User avatar
rare as rockinghorse shat
 
Posts: 53831
Joined: Sun Jan 23, 2005 3:43 am
Location: The Ambassador of Quan

Re: Interest rates

Postby Monkeybubbles on Wed Oct 11, 2017 6:06 pm

Dan?
User avatar
Monkeybubbles
 
Posts: 3479
Joined: Sun Feb 02, 2014 12:00 pm
Location: Rumble, Brighton, Tonight.

Re: Interest rates

Postby RichieRiv on Wed Oct 11, 2017 6:17 pm

Mortgage payments are very much based upon individual circumstances. What mortgage works for me will not work for anyone else.

We have a couple of IFA's on here who will hopefully pop up and give some useful advice to those looking to mortgage.

What we do know is that people are leveraged to **** on mortgages both on their main abodes as well as their B2L's.

A significant increase in rates would smash the housing market to bits.
User avatar
RichieRiv
 
Posts: 14420
Joined: Tue Dec 17, 2002 3:35 pm
Location: http://www.helpforheroes.org.uk/

Re: Interest rates

Postby Iron-worx on Wed Oct 11, 2017 6:30 pm

westham,eggyandchips wrote:Too many people on variables for it to go up too much. Probably 0.25% before Xmas then possibly another 0.25% next summer/Autumn.


Borrowers are far from the foremost consideration with view to rate rises, other factors outweigh them and indeed did in the late 1980s when the market crashed and two million went into negative equity, property repossessions galore.

Too long ago to feature highly in peoples memories but less than thirty years ago, Google negative equity 1980s, it happened.
User avatar
Iron-worx
 
Posts: 5071
Joined: Tue Aug 16, 2011 12:44 pm
Location: Rebuilding Lady Garrets Tower

Re: Interest rates

Postby RichieRiv on Wed Oct 11, 2017 6:48 pm

What are these other factors?
User avatar
RichieRiv
 
Posts: 14420
Joined: Tue Dec 17, 2002 3:35 pm
Location: http://www.helpforheroes.org.uk/

Re: Interest rates

Postby mumbles87 on Wed Oct 11, 2017 7:20 pm

rare as rockinghorse shat wrote:Depends where you go, mumbles.

I like my coffee and it may be an opinion that some dislike/disagree with, but McDonalds coffee is generally pretty decent and relatively inexpensive.
Not too dissimilar to a cuppa tea from a cafe/van/hut and certainly not as expensive as many high street chains, let alone the poncey coffee places.


I'm a big tea drinker but I'm too tight I refuse to pay good money for hot water and a tea bag

Make at home costs next to nothing
mumbles87
 
Posts: 9265
Joined: Sun Jul 01, 2012 10:35 am

Re: Interest rates

Postby DasNutNock on Wed Oct 11, 2017 7:26 pm

Monkeybubbles wrote:Dan?


Doing manual labour. Too tired to pass comment,
User avatar
DasNutNock
 
Posts: 3947
Joined: Sat Sep 17, 2016 4:41 pm

Next

Return to The Snug

Who is online

Users browsing this forum: alkali, LincolnshireHammer, mushy, Rocket and 7 guests