Mortgage Rate Rise.

[TheRemainsOfTheDave]

Regarding interest (and saving for a house), read the MSE guide on lifetime ISA's (LISA). Govt matches 25% of what you put in, up to 4K, so effectively giving you 25% interest in 1st year. That obviously smooths out , over time so , after 6/7/8 years you would have earned that much in the normal highest earning savings accounts.
But you can put in another 4K the next year etc, and get 25% on those as well.

You need to open with at least £1 (age 18-40) but can shove any other money (up to 4K) in at any point, or not at all.

Only for first time buyers or you can't withdraw until you're 60! Basically a pension pot with the option to take money out if you're buying your first house.

 

[Two Gun Bob]

Submitted now and thanks for the advice.
She has decided on a ten year fix for piece of mind.
In order to negate some of the extra interest over a 5 yr fixed she has increased the deposit affording a 75% LTV which is cheaper than the 77%.
Offering @3.18% and coming in around £527 for the 10 year fixed.

 

[Chippy_boy]

Take the 10 fella at 2.9%, historically that's a good rate. Peace of mind is worth £50 a month.

Makes me realise how lucky I've been.

After my discount came to an end, I switched to my lenders Standard Variable rate which although not linked contractually, is set at 1% above base. So I've been paying 1.5% or less for the last 8 years. (And 1.25% for over a year.)

Still, I did have to pay > 10% during the 80's and some of the 90's. I wonder how many homes would get repossessed if we ever saw 10% again?

 

[Chippy_boy]

I remember it at 17% at one point I was lucky to have fixed for a number of years but my best mate hadn't I had to lend him £4000 to get over a couple of months, there where so many repos going on at that time, I have just fixed for my last 5 years at 1.92% happy with that as its only going up from now on.

Exchange rates say otherwise. The Pound/USB pair went from 1.32 to 1.36 in the days following the BoE's last monitory policy committee meeting and hawkish comments from Carney. But since then we've seen productivity lower yet again, and growth forecasts cut. The pound is back to 1.31 now. We may see a tweak in rates up to 0.5% in November, but even that is not certain and could not happen until the New Year. And I am not sure there's much scope for a succession of rate rises whilst the economy threatens to flatline under Brexit concerns.

Still 1.92 is a decent rate and not a bad decision imo.

 

[hilts]

Makes me realise how lucky I've been.

After my discount came to an end, I switched to my lenders Standard Variable rate which although not linked contractually, is set at 1% above base. So I've been paying 1.5% or less for the last 8 years. (And 1.25% for over a year.)

Still, I did have to pay > 10% during the 80's and some of the 90's. I wonder how many homes would get repossessed if we ever saw 10% again?

When it started going above 10% my old man was in shit creek, he just about managed to see it through. If it ever happened again it would be a total disaster.

 

[Gaylord du Bois]

Submitted now and thanks for the advice.
She has decided on a ten year fix for piece of mind.
In order to negate some of the extra interest over a 5 yr fixed she has increased the deposit affording a 75% LTV which is cheaper than the 77%.
Offering @3.18% and coming in around £527 for the 10 year fixed.

Can't see anything but a win on that rate. This might be worth a butchers for you https://www.google.co.uk/url?sa=t&s...iCDgQFgg4MAA&usg=AOvVaw0KLCv2r5-N48P8jbyfhfyF