Drew down my mortgage in May and this will be the third interest rate that's been applied to my mortgage. :'(
Another one forecast - when will it end???
Am on my second fixed 5 year mortgage - I'd say at the end of the total 10 year period I wll be far better off that these discounted or variable - there was no way this was going last forever.
Rois, what sort of an accountant are you? You should have gone for a fixed rate mortgage, the dogs in the street knew interest was going to rise. Was at an economic seminar last week and the experts reckon that
1.There'll be one more rise this year
2.Inflation will be down to 2% by xmas after which Interest rates should start to reduce in ther new year.
Sooner the better tone, i'm getting royally fcuked at the end of every month at the minute....
Quote from: Uladh on July 05, 2007, 01:25:11 PM
Sooner the better tone, i'm getting royally fcuked at the end of every month at the minute....
your not renting a flat in Ligoneil are you?
Quote from: Uladh on July 05, 2007, 01:25:11 PM
Sooner the better tone, i'm getting royally fcuked at the end of every month at the minute....
Me too Uladh, f**king £100 a month down now. I had the option 8 months ago and choose a vairable instead of a fixed rate. What a dick :'( :'(
Quote from: T Fearon on July 05, 2007, 01:16:16 PM
Rois, what sort of an accountant are you? You should have gone for a fixed rate mortgage
A very poor one Tony with no deposit (therefore 100% with potential higher lending fee) and a house price well in excess of NI average! Very hard to bargain with moneylenders when you're in such a crap position.
Quote from: Rois on July 05, 2007, 01:55:33 PM
Quote from: T Fearon on July 05, 2007, 01:16:16 PM
Rois, what sort of an accountant are you? You should have gone for a fixed rate mortgage
A very poor one Tony with no deposit (therefore 100% with potential higher lending fee) and a house price well in excess of NI average! Very hard to bargain with moneylenders when you're in such a crap position.
Did the banks not give you an option to fix the rate rois, they shouldn't be allowed to do that if that was the case
We were outside the mutiples for the UK banks, building societies won't give 100% anyway, so our only options were the local banks. In order to avoid the higher lending fee (about £5k) we had to go with the "young professionals" packages which only gave us the variable option.
just about to change our mortgage, two year initial period now ending, anyone out there have any good advice or know of the best mortgage on the market at the minute?????
Fixed rate is not always a good thing. The banks and financial institutions have economists working for them!! They also read the economic forecasts and they factor this info into the rate they offer you to ensure they come out ahead over the period of the loan.
With a fixed rate mortgage you are gambling that you can forecast economic threads over the period of the fixed rate better than the bank can. If you can do that consistently you wouldn't need a mortgage in the first place.
A fixed rate is good for budgeting though. At least you know what you will be paying each month, even if it costs you more in the longer term.
Quote from: Gaoth Dobhair Abu on July 05, 2007, 02:18:59 PM
just about to change our mortgage, two year initial period now ending, anyone out there have any good advice or know of the best mortgage on the market at the minute?????
Is your mortgage in the North or South Gaoth Dobhair Abu
Quote from: the Deel Rover on July 05, 2007, 02:24:46 PM
Quote from: Gaoth Dobhair Abu on July 05, 2007, 02:18:59 PM
just about to change our mortgage, two year initial period now ending, anyone out there have any good advice or know of the best mortgage on the market at the minute?????
Is your mortgage in the North or South Gaoth Dobhair Abu
Thanks for that Lecale.
It's in the black north Deel R.
A guy in my firm (one of the few non-accountants) has been looking and says that Prudential have the best deal for him due to their minimal switching fees. Not sure what the deal is but be assured he's the kind that will spend a fortune to save a penny.
A fixed rate mortgage is a sure fired money saver, if taken out when Interest rates are on the rise, and for the last two years everyone knew that this would happen, surely?
Surely the best way to get the best mortgage deal is to go to one of the independent Mortgage Advice shops , on any High Street, and they will trawl their database to see who has the best deal to suit your circumstances, and they are totally independent
Aye 'totally independent' :D
whats the variable rate up north at the moment
5 yar fix as well, saving money from the last hike
BOE rate up to 5.75% so depends what your deal was when you got it what your rate is up to.
Quote from: T Fearon on July 05, 2007, 04:15:09 PM
Surely the best way to get the best mortgage deal is to go to one of the independent Mortgage Advice shops , on any High Street, and they will trawl their database to see who has the best deal to suit your circumstances, and they are totally independent
An independent mortgage advisor - jeez, never thought of them ::) For people with my circumstances they just couldn't deliver on what we wanted.
Bank of Ireland currently buying 12-month loans at 6.5% themselves so short term outlook in their eyes is another 0.75% rise. Aaaaggghh!!!!
Quote from: Rois on July 05, 2007, 04:53:44 PM
BOE rate up to 5.75% so depends what your deal was when you got it what your rate is up to.
Quote from: T Fearon on July 05, 2007, 04:15:09 PM
Surely the best way to get the best mortgage deal is to go to one of the independent Mortgage Advice shops , on any High Street, and they will trawl their database to see who has the best deal to suit your circumstances, and they are totally independent
An independent mortgage advisor - jeez, never thought of them ::) For people with my circumstances they just couldn't deliver on what we wanted.
Bank of Ireland currently buying 12-month loans at 6.5% themselves so short term outlook in their eyes is another 0.75% rise. Aaaaggghh!!!!
jesus and i thought we were bad down here , i'm on a ecb tracker rate and it 4.6% despite it going up 2% the past 20 months ,god bless the euro
Quote from: T Fearon on July 05, 2007, 04:15:09 PM
A fixed rate mortgage is a sure fired money saver, if taken out when Interest rates are on the rise, and for the last two years everyone knew that this would happen, surely?
Surely the best way to get the best mortgage deal is to go to one of the independent Mortgage Advice shops , on any High Street, and they will trawl their database to see who has the best deal to suit your circumstances, and they are totally independent
Bollocks. Clearly the clown is not Tony Fearon! Avoid these people like the plague.
Quote from: Square Ball on July 05, 2007, 04:48:10 PM
5 yar fix as well, saving money from the last hike
But I think you'll find you were paying over the odds before that. Swings and round abouts. Banks make money on mortgages. That's their business. We can only try to ensure they don't make too much out of us.
Independent Financial Advice is your best bet Rois. They are properly regulated, unlike the so called Independent Mortgage Advice centres on the high street.
Sound advice there Lecale. Would you be an IFA yourself?
Not sure of the North, but looking at the ECB I wouldn't go for more than 2-3 years fixed rate, saying 5 years + is not always a good idea as the rates may drop & you are stuck on the higher rate. If you wish to swith your mortgage for a more favourable rate with another lender and you are on a fixed rate you may incur penalties from your lender, but this will not happen on a variable rate, not saying not to go with a fixed rate, but not necessarialy too long term. I of course don't know the situation North of the border re: mortgages.
Quote from: Take Your Points on July 05, 2007, 08:04:38 PM
Current rates even with recent hikes are nothing compared with the 15% interest rates of the late 80's when I was at the same stage as most of you "young" people!
Bought when it was horrendous as well, 17500 was about 280 per month.
I have always gone the middle of the road way when getting a mortgate. 50% fixed and 50% variable.
Two obvious statements follow:
-Fixed rates are always higher than variable, and it takes a number of increases to get into a money saving position.
- Don't get a fixed rate for 5 years if you think you'll sell in 2 or 3 years - otherwise you'll be likely hit with a big penalty
Lecale or anyone else out there, can you recommend any good IFA's and what are the normal costs for advice, or is it fee on signing up to a product??????????
GDA, if you're asked for anything more than £250 for advice,tell them to stick it!! There should be no other fees as the valuation fee and legal fees should be paid for by the lender. The only other fee you should watch for is a "deeds release fee" which your existing lender will hit you for should you clear the loan for any reason (i.e. re-mortgaging, moving house or clearing you loan from your own means). that fee should be in the region of £200-£300.
Worth checking with your existing lender to see what rate they'll give you to keep the business, more of them are doing this now.
Don't go for a five year deal like some are suggesting, what appears to be a great rate now may not be so hot in 18 months time, 2 year mortgage reviews would be spot on.
well there is only going to be more increases in the ECB rate at the moment i'm afraid. For you southern homeowners the other day i was reading a paper published by UCD economist back in March/April forecasting decline of about 70% in Irish house prices over the coming 8-9 years based on studies of housing booms and busts in the OECD since 1970. Most of these busts have had a minimal effect on the economy except Finland in early 80's which brought the banking system down, but in these cases most countries housing market was contributing only about 5% of GD, whereas in Ireland the construction sector has contributed more like 15-20%.
I had thought about buying about a year back but just didn't thik prices could keep going up. I see prices have started to come down a bt, and when I read this report I was thanking my lucky stars. No guarantees of course but food for thought
After Gordon Brown talking about them, here is the first one, would you take the jump? I would have, the same payment for 25 years, winners, losers but at least you know where you stand.
Nationwide launches 25 year fixed loan
Britain's biggest building society today announced plans to relaunch its 25-year fixed rate loan.
The move comes the day after Prime Minister Gordon Brown said the Government would introduce measures to help mortgage lenders finance "more affordable" long-term home loans.
Nationwide said it had always planned to relaunch the product after an initial offering of the deal, launched in March this year, sold out within five weeks.
The group is charging an interest rate of between 6.39% and 6.89% for the loan, depending on whether the borrower is a new or existing customer and whether they are remortgaging or moving house.
People who want to pay off their mortgage early will have to pay a redemption penalty of 3% of the amount they borrowed during the first 10 years of the loan, but there are no charges after this period.
The mortgage is portable, meaning borrowers do not have to change it if they move home, and people can also increase the amount they borrow during the period.
There is a £599 arrangement fee for new customers taking out the deal, which will be available from July 17, while existing customers will be charged £499.
Nationwide is only the fourth lender in the UK to offer a 25-year fixed rate deal, and the first of the top 10 biggest lenders to have one.
But Louise Cuming, head of mortgage services at moneysupermarket.com, criticised the 10-year tie-in.
She said: "Ten years is a long time to tie in to a loan. Anything could happen.
"You are tying yourself into a deal that costs a lot of money to come out of if you change your mind."
The Government yesterday said it planned to introduce a new regime under which lenders could use so-called covered bonds to back long-term mortgage deals in a bid to make them cheaper and more attractive to consumers.
But while the industry gave the news a cautious welcome, experts said they were unsure whether the move would significantly reduce the rates lenders charged on long-term fixed rate mortgages.
Andy Wiggans, mortgage director at Bradford & Bingley, said the new regime could reduce the cost of the deals by as little as 0.01%.
Ray Boulger, senior technical manager at John Charcol, said lenders would need to build more flexibility into long-term fixed rate deals if borrowers were going to take them out.
He added that at this point in time he wouldn`t recommend anybody took out a long-term fixed rate loan as we were at the top of an interest rate cycle.
Forecasts of 4.75% in Euroland for start of next year, 5% if inflation stays above 2% from JP Morgan.
Those £500 and £600 arragement fees are incredible.
I dont think there even half that down south for mortgages, and even then its usually easy enough to haggle them into removing it altogether, given the competition for mortgages.