Rates up again - Page 2

Admiral Huddy · 12-01-2007, 15:33

Quote:

Originally Posted by Nutcase

The tiny one bed flat I'm buying (should complete by the end of jan) was bought about 4 years ago for half what I'm paying for it

Now that's a price increase

THis is why i don't think house prices is included in the governments inflation figures. It doesn't add up.

kaiowas · 12-01-2007, 16:07

Quote:

Originally Posted by Mark

Feel a bit :/ for those who have just moved in to new places (or who are about to) though.

I'm not even sure if it'll affect us at all yet. We decided on quite a long term fixed mortgage in anticipation of rates increasing so we're OK on that front plus we've bought our house as somewhere to live not as an investment so as long as we can still pay the mortgage i'm not going to worry about the absolute value of the place. My only worry is due to not being overly familiar with the mortgage process I don't know at which point the rate we were quoted becomes binding and whether we will still get the fixed rate we were quoted or is there potential for it to be increased before we complete on the purchase.

lostkat · 15-01-2007, 22:43

Quote:

Originally Posted by kaiowas

I'm not even sure if it'll affect us at all yet. We decided on quite a long term fixed mortgage in anticipation of rates increasing so we're OK on that front plus we've bought our house as somewhere to live not as an investment so as long as we can still pay the mortgage i'm not going to worry about the absolute value of the place. My only worry is due to not being overly familiar with the mortgage process I don't know at which point the rate we were quoted becomes binding and whether we will still get the fixed rate we were quoted or is there potential for it to be increased before we complete on the purchase.

Nothern Rock held ours after their offer. Lucky really because interest rates increased whilst the house sale was going through (and our mortgage stayed put) and then they increased again just before completion.

The only thing is that because we had to take out a 100% mortgage (or spend another 5-10 years saving up a £15k deposit and living apart), our choice of lender was limited. Northern Rock are one of the more expensive mortgage companies, so we were advised to go for 2 yr fixed to allow us to get rid of them ASAP. I just hope things haven't gone silly by the time we come to renew or we'll be in the sh**. Oh well, no use worrying about it until it happens. Thankfully we didn't borrow our max amount, and it was all calculated using my wages alone, so we're not being stretched TOO much at the moment.

Admiral Huddy · 16-01-2007, 11:02

The purpose of fixed rate is that you are buying a rate agreement. A bank will buy an amount of rate agreements to sell. These are non-negotiable rates and therefore can't change. If they all of sudden change the rate, then they are selling you a new rate agreement and not the one one you originally intended to buy.

Zirax · 16-01-2007, 12:11

Having just seen that we are at 3% growth, it looks as if there is gonna be a lot more rises.
http://news.bbc.co.uk/1/hi/business/6266263.stm

The aim for a while has been 2.5% in the FT, however with us hitting 3% growth thats wayyyy too quick. Again its no real surprise, after their increase the other day it was obvious a figure like this was coming.

I can see the rates going up again in Feb, probably by 0.5% rather than another token .25% rise.

Look at me here, I'm becoming mr doom and gloom

Just stating the facts of the economy though

Mark · 16-01-2007, 12:26

Dunno about the 50 basis points (.5%) - look at me all 'official' sounding.

The rest is probably true though.

Zirax · 16-01-2007, 12:42

Quote:

Originally Posted by Mark

Dunno about the 50 basis points (.5%) - look at me all 'official' sounding.

The rest is probably true though.

Yes that was my personal opinion, it depends how quickly they want to nip it in the bud.

lostkat · 16-01-2007, 18:47

Quote:

Originally Posted by Admiral Huddy

The purpose of fixed rate is that you are buying a rate agreement. A bank will buy an amount of rate agreements to sell. These are non-negotiable rates and therefore can't change. If they all of sudden change the rate, then they are selling you a new rate agreement and not the one one you originally intended to buy.

So it should be fixed from the moment they send you the mortgage offer? I think that's what happened with us. If they want to change it, I guess they have to send a new offer?

Nutcase · 16-01-2007, 18:54

Quote:

Originally Posted by lostkat

So it should be fixed from the moment they send you the mortgage offer? I think that's what happened with us. If they want to change it, I guess they have to send a new offer?

I hope so, else I'm screwed!

Less than 2 weeks till my flat, yay!

Desmo · 16-01-2007, 21:54

You'll be fine Nutcase. They'll not be changing it now

16-01-2007, 11:02	#14
Admiral Huddy HOMO-Sapien Join Date: Jun 2006 Location: Chelmsford Posts: 6,692	The purpose of fixed rate is that you are buying a rate agreement. A bank will buy an amount of rate agreements to sell. These are non-negotiable rates and therefore can't change. If they all of sudden change the rate, then they are selling you a new rate agreement and not the one one you originally intended to buy. __________________ I just got lost in thought.. It was very unfamiliar territory. Techie Talk \| My gaming Blog \| PC spec \| The Admirals log

16-01-2007, 12:11	#15
Zirax Goes up to 11! Join Date: Jul 2006 Posts: 4,577	Having just seen that we are at 3% growth, it looks as if there is gonna be a lot more rises. http://news.bbc.co.uk/1/hi/business/6266263.stm The aim for a while has been 2.5% in the FT, however with us hitting 3% growth thats wayyyy too quick. Again its no real surprise, after their increase the other day it was obvious a figure like this was coming. I can see the rates going up again in Feb, probably by 0.5% rather than another token .25% rise. Look at me here, I'm becoming mr doom and gloom Just stating the facts of the economy though Last edited by Zirax; 16-01-2007 at 12:17.

16-01-2007, 21:54	#20
Desmo The Last Airbender Join Date: Jun 2006 Location: Pigmopad Posts: 11,915	You'll be fine Nutcase. They'll not be changing it now __________________

16-01-2007, 12:26	#16
Mark Screaming Orgasm Join Date: Jul 2006 Location: Newbury Posts: 15,194	Dunno about the 50 basis points (.5%) - look at me all 'official' sounding. The rest is probably true though.