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Interest rate rise.

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MrPT
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Interest rate rise.

Post by MrPT » Sat Nov 04, 2017 12:10 am

85genius wrote: Fri Nov 03, 2017 3:52 pm
Taz wrote: Fri Nov 03, 2017 3:26 pm will I now make millions more on my savings?
millions and millions
...and billions and billions

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Havard
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Interest rate rise.

Post by Havard » Sat Nov 04, 2017 8:58 am

Gaffa22 wrote: Fri Nov 03, 2017 10:07 pm My fixed rate was up next month so I signed up a 5 year fixed rate a couple of weeks ago so I'm laughing all the way to the bank :D
Presuming you only have 5 years left on your mortgage and the rates don't jump massively over the next 5 years.

I have to laugh at the modern approach to money. I never buy anything I can't comfortably afford and wait till I have the cash. Lending money, even a mortgage can be very expensive of you don't know what you are doing. Having flexibility and paying what you can is everything. The numbers don't lie.

H
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Smartbear
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Interest rate rise.

Post by Smartbear » Sat Nov 04, 2017 11:16 am

Havard wrote: Sat Nov 04, 2017 8:58 am
Gaffa22 wrote: Fri Nov 03, 2017 10:07 pm My fixed rate was up next month so I signed up a 5 year fixed rate a couple of weeks ago so I'm laughing all the way to the bank :D
Presuming you only have 5 years left on your mortgage and the rates don't jump massively over the next 5 years.

I have to laugh at the modern approach to money. I never buy anything I can't comfortably afford and wait till I have the cash. Lending money, even a mortgage can be very expensive of you don't know what you are doing. Having flexibility and paying what you can is everything. The numbers don't lie.

H
Did you save up & pay cash for your house? :o
That’s quite an achievement!
Rob
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Havard
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Interest rate rise.

Post by Havard » Sat Nov 04, 2017 7:51 pm

Smartbear wrote: Sat Nov 04, 2017 11:16 am
Havard wrote: Sat Nov 04, 2017 8:58 am
Gaffa22 wrote: Fri Nov 03, 2017 10:07 pm My fixed rate was up next month so I signed up a 5 year fixed rate a couple of weeks ago so I'm laughing all the way to the bank :D
Presuming you only have 5 years left on your mortgage and the rates don't jump massively over the next 5 years.

I have to laugh at the modern approach to money. I never buy anything I can't comfortably afford and wait till I have the cash. Lending money, even a mortgage can be very expensive of you don't know what you are doing. Having flexibility and paying what you can is everything. The numbers don't lie.

H
Did you save up & pay cash for your house? :o
That’s quite an achievement!
Rob
Yes Rob. I bought my first house at 55, after living in a shop door way until then. It's a false economy otherwise... :D

On a serious note, a mortgage is the only lending I have ever taken out in my 43 years on the planet. Unless life means that you have no option but to borrow money then I understand. My main reference was to extravagant purchases, sports cars, named brand clothes, holidays, even nights out. I just see so many people without the patience to save up and also are unaware of the vicious circle of debt they are getting into with interest charges and tie ins etc.

I am lucky enough to live mortgage free at 43 but I have always put paying off as much of my mortgage to the top of my list when I could afford to. I don't feel that we have missed out on a great deal, maybe a couple of holidays, a newer car in years gone by but the kids have wanted for very little.

I was shocked when borrowing £150K, just how much you actually paid back over 25 years. Shortening the payback period by a few years can save you thousands and you don't miss the money month to month as long as you can live within your means. I know at no point in my life I could hand over £40-50K to anyone... :o

H.
Last edited by Havard on Sat Nov 04, 2017 9:37 pm, edited 1 time in total.
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Gaffa22
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Interest rate rise.

Post by Gaffa22 » Sat Nov 04, 2017 8:58 pm

Havard wrote: Sat Nov 04, 2017 8:58 am
Gaffa22 wrote: Fri Nov 03, 2017 10:07 pm My fixed rate was up next month so I signed up a 5 year fixed rate a couple of weeks ago so I'm laughing all the way to the bank :D
Presuming you only have 5 years left on your mortgage and the rates don't jump massively over the next 5 years.

I have to laugh at the modern approach to money. I never buy anything I can't comfortably afford and wait till I have the cash. Lending money, even a mortgage can be very expensive of you don't know what you are doing. Having flexibility and paying what you can is everything. The numbers don't lie.

H
I only have a small mortgage, and have never had anything else on finance that couldn't have paid cash for, but if offered interest free credit I take it and keep my cash invested.
I used to be a financial advisor so know what I'm doing
You're right the numbers don't lie but you can use them to your advantage.
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andyfanshawe
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Interest rate rise.

Post by andyfanshawe » Sat Nov 04, 2017 9:03 pm

Gonna seriously gloat here!!! And be a bit selfish lol!

My mortgage paid off 3 years ago, no debts, no credit cards etc, so don't care!!

But, I can certainly remember when interest rates were a lot higher (10 years ago +) when we were paying a mortgage, and any interest rate rise caused an initial concern/worry for us, especially with 2 kids, But it was soon forgotten about (direct debit anyway) and life went on. As it will now, and as it always does.

Saying all, that......interest rate rise......Ha!

andy.

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Interest rate rise.

Post by Z4M-2006 » Sat Nov 04, 2017 9:06 pm

Im similar in that i cleared my Mortgage at 39,it felt like a millstone around my neck..... Interest rates averaged 5-6% over my term of payment,which roughly meant that for every £1 borrowed you paid paid £2 back,i didnt like that..

I also borrowed money for a brand new Honda Fireblade is 1999,it was a spur of the moment purchase after getting a new job with better pay... I regretted it quickly,sold the bike after 12 months and cleared the borrowing.



People are so different now,they want everything NOW.....But dont actually own anything,they would prefer to rent a house,PCP a car and borrow to go on holidays..

It may be a smart approach,live life whilst you can,no pockets in a shroud etc etc.... But i just see it as working until you die on the job because you have put yourself in the position that you have to...

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Interest rate rise.

Post by Nanu » Sat Nov 04, 2017 9:32 pm

For quite a few years now we have had an offset mortgage with Santander which is just about to go up from 1% to 1.25%. interest (No longer available)

Even so we hopefully in the next few days will be getting approval to double our mortgage with them from £40k to £80K and very happy to do it. The reason is simple, the money goes straight into our savings side of the offset account with Santander which effectively also gives 1.25% interest (In my wifes name who does not pay any tax). The bonus is we pay out monthly payments of £800pm from our Santander 123 account which gives us cash back for paying Santander their own money.

A crazy situation but as long as they pay us to pay them we will take it. Unfortunately they won't lend us any more than £80K or we would take it.
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Havard
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Interest rate rise.

Post by Havard » Sat Nov 04, 2017 9:35 pm

Gaffa22 wrote: Sat Nov 04, 2017 8:58 pm
Havard wrote: Sat Nov 04, 2017 8:58 am
Gaffa22 wrote: Fri Nov 03, 2017 10:07 pm My fixed rate was up next month so I signed up a 5 year fixed rate a couple of weeks ago so I'm laughing all the way to the bank :D
Presuming you only have 5 years left on your mortgage and the rates don't jump massively over the next 5 years.

I have to laugh at the modern approach to money. I never buy anything I can't comfortably afford and wait till I have the cash. Lending money, even a mortgage can be very expensive of you don't know what you are doing. Having flexibility and paying what you can is everything. The numbers don't lie.

H
I only have a small mortgage, and have never had anything else on finance that couldn't have paid cash for, but if offered interest free credit I take it and keep my cash invested.
I used to be a financial advisor so know what I'm doing
You're right the numbers don't lie but you can use them to your advantage.
Actually I told a little fib. We bought some furniture at Oak Furniture Land and the total amount came about £150.00 over qualifying for interest free credit. It was offered to us as I was just about to pay. Instead of £3500 out of the bank we ended up with £152 a month and no interest payments so why not.... :D
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