Base rate drops tomorrow

PerryGunn said:
If you have a mortgage and a reasonable amount of cash savings, it's well worth looking at moving over to an offset mortgage - it doesn't work for everyone as the interest rates are slightly higher than for non-offset mortgages but, with savings rates so low, it's worth doing the calcs and seeing if you'd be better off...
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We went for an offset mortgage when Mrs R worked for herself and had to find a place to tuck away the money that she would owe the tax man.

I also like the offset as the difference between your limit and balance can be used in case of some unexpected emergency.
 
RickRob said:
PerryGunn said:
If you have a mortgage and a reasonable amount of cash savings, it's well worth looking at moving over to an offset mortgage - it doesn't work for everyone as the interest rates are slightly higher than for non-offset mortgages but, with savings rates so low, it's worth doing the calcs and seeing if you'd be better off...
Click to expand...

We went for an offset mortgage when Mrs R worked for herself and had to find a place to tuck away the money that she would owe the tax man.

I also like the offset as the difference between your limit and balance can be used in case of some unexpected emergency.
Click to expand...

I switched to an offset mortgage because rates were so low on savings & it seemed to be the fastest way to pay the mortgage off, still had my savings at the end of it as well.
Rob
 
It's made my mind up 100% to attack the mortgage and clear it as early as possible in life. I'll keep a chunk stashed away for emergencies and unfroseens. But it is amazing what paying lumps of mortgage off will do - we also worked out an extra £200/month will save us something like £64k in total :o
 
Got the letter from the bank that they consider charging for credit balances for businesses Looks like getting a safe will be cheaper than leaving your money in the bank :cry:
 
pvr said:
Got the letter from the bank that they consider charging for credit balances for businesses Looks like getting a safe will be cheaper than leaving your money in the bank :cry:
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I'd be delighted to help you out with some safe space :D

On a serious note, that's a pretty shocking development :o
 
pvr said:
Got the letter from the bank that they consider charging for credit balances for businesses Looks like getting a safe will be cheaper than leaving your money in the bank :cry:
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RBS? Received my letter last week. :thumbsdown:
 
Natwest, so yes, RBS.

I have multiple business accounts between the banks to limit the funds exposure but Natwest has always been my main one so to speak. I will move the funds to a bank that does not charge.
 
pvr said:
Got the letter from the bank that they consider charging for credit balances for businesses Looks like getting a safe will be cheaper than leaving your money in the bank :cry:
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And guess who I've just moved my business and personal accounts to???

Yup, Natwest...

Mike
 
pvr said:
Got the letter from the bank that they consider charging for credit balances for businesses Looks like getting a safe will be cheaper than leaving your money in the bank :cry:
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Cool, always wanted a safe! Need to factor in the additional costs though. You need full wooden panelling to the drawing room and a large piece of artwork mounted on a hinged door. Not to mention an extension if you don't already have a drawing room.
 
bony_13 said:
It's made my mind up 100% to attack the mortgage and clear it as early as possible in life. I'll keep a chunk stashed away for emergencies and unfroseens. But it is amazing what paying lumps of mortgage off will do - we also worked out an extra £200/month will save us something like £64k in total :o
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they have an over-payment calculator on moneysavingexpert.com

http://www.moneysavingexpert.com/mortgages/mortgage-overpayment-calculator

the only way to make decent money in property these days is if you have a HUGE deposit. in the old days you could buy a place for 60K and it's worth 700K today after 30 years. gone are those times unless you live in london.
 
SonnyA85 said:
bony_13 said:
It's made my mind up 100% to attack the mortgage and clear it as early as possible in life. I'll keep a chunk stashed away for emergencies and unfroseens. But it is amazing what paying lumps of mortgage off will do - we also worked out an extra £200/month will save us something like £64k in total :o
Click to expand...

they have an over-payment calculator on moneysavingexpert.com

http://www.moneysavingexpert.com/mortgages/mortgage-overpayment-calculator

the only way to make decent money in property these days is if you have a HUGE deposit. in the old days you could buy a place for 60K and it's worth 700K today after 30 years. gone are those times unless you live in london.
Click to expand...

House prices in our town our pretty much what they were in 2007. So no increase in 9 years. Just hoping our son gets on the ladder. before they next step up again. When we bought our current home they hadn't moved much for about five years, they then doubles in the next five.

Hype effects prices in the short term, but people can only afford so much. The lower interest rates drop the more people think they can afford, so that holds the prices up. It also means interest rates are stuck low, unless the BoE wishes the economy to go into melt down. if you are able to wait, there are good and bad times to buy property, same as shares. Difference is your far less likely to lose your shirt in property, though it's not impossible. :wink: and it can be a handy place to live into the bargain. :D
 
buzyg said:
SonnyA85 said:
bony_13 said:
It's made my mind up 100% to attack the mortgage and clear it as early as possible in life. I'll keep a chunk stashed away for emergencies and unfroseens. But it is amazing what paying lumps of mortgage off will do - we also worked out an extra £200/month will save us something like £64k in total :o
Click to expand...

they have an over-payment calculator on moneysavingexpert.com

http://www.moneysavingexpert.com/mortgages/mortgage-overpayment-calculator

the only way to make decent money in property these days is if you have a HUGE deposit. in the old days you could buy a place for 60K and it's worth 700K today after 30 years. gone are those times unless you live in london.
Click to expand...

House prices in our town our pretty much what they were in 2007. So no increase in 9 years. Just hoping our son gets on the ladder. before they next step up again. When we bought our current home they hadn't moved much for about five years, they then doubles in the next five.

Hype effects prices in the short term, but people can only afford so much. The lower interest rates drop the more people think they can afford, so that holds the prices up. It also means interest rates are stuck low, unless the BoE wishes the economy to go into melt down. if you are able to wait, there are good and bad times to buy property, same as shares. Difference is your far less likely to lose your shirt in property, though it's not impossible. :wink: and it can be a handy place to live into the bargain. :D
Click to expand...

house prices are now what they were in 2007 in this area too. that is when the crash happened 2008/2009

I seen townhouses sell for £200K in 2006/2007 sell for £165-£175K this year. 10 Years worth of interest payments then lose £35K on top (nearly 20%), those buyers must be fuming.

The house I just bought sold for the exact same price in 2007 too. So the sellers have lost money on it. They have spent a fortune on doing it up a lot since they bought it 9 years ago. I'm getting a great deal in comparison.

The people that bought between 2005-2007 all got a bad deal. Those that bought in 2009-2012 all got a good deal. People buying at the moment are probably getting an okay deal, as they are paying pretty much the inflated prices of 2007.
 
SonnyA85 said:
buzyg said:
SonnyA85 said:
they have an over-payment calculator on moneysavingexpert.com

http://www.moneysavingexpert.com/mortgages/mortgage-overpayment-calculator

the only way to make decent money in property these days is if you have a HUGE deposit. in the old days you could buy a place for 60K and it's worth 700K today after 30 years. gone are those times unless you live in london.
Click to expand...

House prices in our town our pretty much what they were in 2007. So no increase in 9 years. Just hoping our son gets on the ladder. before they next step up again. When we bought our current home they hadn't moved much for about five years, they then doubles in the next five.

Hype effects prices in the short term, but people can only afford so much. The lower interest rates drop the more people think they can afford, so that holds the prices up. It also means interest rates are stuck low, unless the BoE wishes the economy to go into melt down. if you are able to wait, there are good and bad times to buy property, same as shares. Difference is your far less likely to lose your shirt in property, though it's not impossible. :wink: and it can be a handy place to live into the bargain. :D
Click to expand...

house prices are now what they were in 2007 in this area too. that is when the crash happened 2008/2009

I seen townhouses sell for £200K in 2006/2007 sell for £165-£175K this year. 10 Years worth of interest payments then lose £35K on top (nearly 20%), those buyers must be fuming.

The house I just bought sold for the exact same price in 2007 too. So the sellers have lost money on it. They have spent a fortune on doing it up a lot since they bought it 9 years ago. I'm getting a great deal in comparison.

The people that bought between 2005-2007 all got a bad deal. Those that bought in 2009-2012 all got a good deal. People buying at the moment are probably getting an okay deal, as they are paying pretty much the inflated prices of 2007.
Click to expand...

This is the problem with the housing market , everyone is so fixated on the future value they forget that first and foremost it should be somewhere you want to live in and enjoy .
 
Paulwirral said:
SonnyA85 said:
buzyg said:
House prices in our town our pretty much what they were in 2007. So no increase in 9 years. Just hoping our son gets on the ladder. before they next step up again. When we bought our current home they hadn't moved much for about five years, they then doubles in the next five.

Hype effects prices in the short term, but people can only afford so much. The lower interest rates drop the more people think they can afford, so that holds the prices up. It also means interest rates are stuck low, unless the BoE wishes the economy to go into melt down. if you are able to wait, there are good and bad times to buy property, same as shares. Difference is your far less likely to lose your shirt in property, though it's not impossible. :wink: and it can be a handy place to live into the bargain. :D
Click to expand...

house prices are now what they were in 2007 in this area too. that is when the crash happened 2008/2009

I seen townhouses sell for £200K in 2006/2007 sell for £165-£175K this year. 10 Years worth of interest payments then lose £35K on top (nearly 20%), those buyers must be fuming.

The house I just bought sold for the exact same price in 2007 too. So the sellers have lost money on it. They have spent a fortune on doing it up a lot since they bought it 9 years ago. I'm getting a great deal in comparison.

The people that bought between 2005-2007 all got a bad deal. Those that bought in 2009-2012 all got a good deal. People buying at the moment are probably getting an okay deal, as they are paying pretty much the inflated prices of 2007.
Click to expand...

This is the problem with the housing market , everyone is so fixated on the future value they forget that first and foremost it should be somewhere you want to live in and enjoy .
Click to expand...

That isn't the problem with the housing market. The problem is prices are too high. Future value is a mute point unless it goes down and you have negative equity or could of saved yourself £50K by buying 2 years later after a recession fallout.

Who cares if your house increases by £100K within the next 5 days. If yours has that means others have too. Therefore if you sell it and try to buy another house it has risen too. It's got nothing to do with future values but current prices being high. I'd rather I pay a cheaper price, which means I pay a lot less interest over my life.
 
The problem with houses is people buy them as investments instead of as a home.
The value has been driven up by people buying 2nd, 3rd and 4th houses as buy to let, pricing ordinary people out of the market.
Just think how many properties the banks would own if they did hike up the interest rate.
 
Nictrix said:
The problem with houses is people buy them as investments instead of as a home.
The value has been driven up by people buying 2nd, 3rd and 4th houses as buy to let, pricing ordinary people out of the market.
Just think how many properties the banks would own if they did hike up the interest rate.
Click to expand...

Very true. It's the elite and the upper middle class that are to blame.

Nobody should be allowed to own more than say 2 homes. Also should be more stringent rules on foreigners buying them especially investors who never step foot in the country. France has these, if your a foreigner you need to own your home for x number of years to be exempt from capital gains tax even if it's your only home.

Also hiking interest rates would hurt those that can barely afford their homes or those that can't afford to buy the most. Those who have multiple homes rented out tend to have very small loans on them if any at all. Especially if they have had them for 10+ years. So that isn't the answer either. People who can barely afford the current interest would essentially become homeless. Landlords would simply hike up rents to compensate if they have large loans on them.
 
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