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[News] The first interest rate rise in 10 years [Sponsored]



Uncle Spielberg

Well-known member
NSC Patreon
Jul 6, 2003
42,781
Lancing
The Bank of England have raised the Base Rate for the first time since July 2007, upping the rate from 0.25% to 0.5%. This rise may come as a shock to many people who have become accustomed to ultra-low rates and will have been hoping to have enjoyed low interest rates indefinitely.

Anyone on a variable rate or tracker rate will see their rate rise by 0.25% immediately. This will equate to an increase in the interest element of the mortgage of £20.84 pm per £100,000 borrowed. For someone with a £200,000 mortgage, this will mean having to find over £500 more in interest payments per year.

Where will the Bank of England base rate go next? This is uncertain but some experts are predicting a rate of 3% as a possibility by 2020.

Most lenders have started to reprice their fixed rate mortgages from 2-5 years upwards in recent weeks and this trend may continue.

The mortgage market is very fluid and constantly changing and you need a daily finger on the pulse to keep track of what is available. Also, whilst the rate itself is a factor there are many other considerations when trying to find the best lender such as criteria, income multiples, property types to name but three.

The Buy To Let mortgage market has, in particular, seen many changes this year.

As a mortgage broker since 1990 I have considerable experience in helping home-owners assess their current mortgage position and, where possible, identify a better choice of mortgage that may help them to reduce outgoings.

I have previously assisted many NSCers, and would be happy to help any others who are unsure of what this rate change may mean for them.


[MENTION=17374]Bulldog[/MENTION]: “Uncle Spielberg, or Gareth if you prefer, sorted out my mortgage and life insurance. He makes the whole process easy and he knows his stuff. A definite recommendation from me.”

[MENTION=970]SK1NT[/MENTION]: "Uncle Spielberg is ABSOLUTELY your man. I was naturally a bit dubious at first using someone that i have never met and only know from a football forum. It's not exactly dealing with a few quid but the biggest asset i have and tens of thousands of pounds HOWEVER i could not have been further from the truth.

I currently have a mortgage going through with US now and by a country mile got me the best rate out there for me. I had spoken to 3 other brokers before US and 1 offered me a rate that was 1.5% higher than the offer from US the other two couldn’t even offer me anything."

As well as his knowledge and the rate i got he is also very polite, friendly, great communication keeps you up to date with everything. I was actually going to start a Uncle Spielberg appreciation thread myself. I won’t be using any other broker in future
."

[MENTION=25]Gwylan[/MENTION]: “Another vote for Gareth for me. He's honest too - because I was trying to get a mortgage when I was self-employed he told that a deal wasn't right for me and he lost the business. Not his fault and his honesty does him credit."​

Contact me via PM if you would like to have some guidance on how the interest rate rise may affect you.
 


Bozza

You can change this
Helpful Moderator
Jul 4, 2003
55,575
Back in Sussex
That last rise was in July 2007 and was from 5.50% to 5.75%. Those rates seem like something from another world.
 


Stat Brother

Well-known member
NSC Patreon
Jul 11, 2003
73,382
West west west Sussex
That last rise was in July 2007 and was from 5.50% to 5.75%. Those rates seem like something from another world.

One I sure as hell couldn't afford now.
 




Blackadder

Brighton Bhuna Boy
Jul 6, 2003
16,077
Haywards Heath
That last rise was in July 2007 and was from 5.50% to 5.75%. Those rates seem like something from another world.

I remember a thread, circa 2009/10? where we couldn't believe how low mortgage rates had fallen. I was on a tracker and it felt like a pay rise every couple of months or so. I still recall colleagues in tears when the rate hit 15% in 1991 with the ERM fiasco.

Times have changed. I have since paid off the mortgage. It would be nice to have some extra interest for savings now.
 




Uncle C

Well-known member
Jul 6, 2004
11,678
Bishops Stortford
You'd certainly not be alone. Even a slow climb up to 2-3% ver the next few years will cause pain to a fair few families.

And I guess none of them saw it coming.
 




beorhthelm

A. Virgo, Football Genius
Jul 21, 2003
35,265




larus

Well-known member
The Bank of England have raised the Base Rate for the first time since July 2007, upping the rate from 0.25% to 0.5%. This rise may come as a shock to many people who have become accustomed to ultra-low rates and will have been hoping to have enjoyed low interest rates indefinitely.

Anyone on a variable rate or tracker rate will see their rate rise by 0.25% immediately. This will equate to an increase in the interest element of the mortgage of £20.84 pm per £100,000 borrowed. For someone with a £200,000 mortgage, this will mean having to find over £500 more in interest payments per year.

Where will the Bank of England base rate go next? This is uncertain but some experts are predicting a rate of 3% as a possibility by 2020.

Most lenders have started to reprice their fixed rate mortgages from 2-5 years upwards in recent weeks and this trend may continue.

The mortgage market is very fluid and constantly changing and you need a daily finger on the pulse to keep track of what is available. Also, whilst the rate itself is a factor there are many other considerations when trying to find the best lender such as criteria, income multiples, property types to name but three.

The Buy To Let mortgage market has, in particular, seen many changes this year.

As a mortgage broker since 1990 I have considerable experience in helping home-owners assess their current mortgage position and, where possible, identify a better choice of mortgage that may help them to reduce outgoings.

I have previously assisted many NSCers, and would be happy to help any others who are unsure of what this rate change may mean for them.


[MENTION=17374]Bulldog[/MENTION]: “Uncle Spielberg, or Gareth if you prefer, sorted out my mortgage and life insurance. He makes the whole process easy and he knows his stuff. A definite recommendation from me.”

[MENTION=970]SK1NT[/MENTION]: "Uncle Spielberg is ABSOLUTELY your man. I was naturally a bit dubious at first using someone that i have never met and only know from a football forum. It's not exactly dealing with a few quid but the biggest asset i have and tens of thousands of pounds HOWEVER i could not have been further from the truth.

I currently have a mortgage going through with US now and by a country mile got me the best rate out there for me. I had spoken to 3 other brokers before US and 1 offered me a rate that was 1.5% higher than the offer from US the other two couldn’t even offer me anything."

As well as his knowledge and the rate i got he is also very polite, friendly, great communication keeps you up to date with everything. I was actually going to start a Uncle Spielberg appreciation thread myself. I won’t be using any other broker in future
."

[MENTION=25]Gwylan[/MENTION]: “Another vote for Gareth for me. He's honest too - because I was trying to get a mortgage when I was self-employed he told that a deal wasn't right for me and he lost the business. Not his fault and his honesty does him credit."​

Contact me via PM if you would like to have some guidance on how the interest rate rise may affect you.

With respect, if there are people that can't live a mortgage rate rise of 0.25% (assuming they aren't on a fixed rate) then they to be asking serious questions from their last mortgage adviser. Put it in perspective, if you have a £200k mortgage, it's £500 extra over 12 months.

It's about time we got back to realistic interest rates so that house prices stop the incessant rise which takes them further away from affordable levels for the young.

The reality is, all low interest have done is supported overvalued house prices. A gradual re-balancing can only be good for the overall state of the economy.
 


Bozza

You can change this
Helpful Moderator
Jul 4, 2003
55,575
Back in Sussex
With respect, if there are people that can't live a mortgage rate rise of 0.25% (assuming they aren't on a fixed rate) then they to be asking serious questions from their last mortgage adviser. Put it in perspective, if you have a £200k mortgage, it's £500 extra over 12 months.

Circumstances change though, don't they? People lose jobs, have hours cut or other outgoings arise. What may have been seen as a perfectly manageable increase when a mortgage was taken out, may not be quite the same by the time it happens.
 








Uncle Spielberg

Well-known member
NSC Patreon
Jul 6, 2003
42,781
Lancing
The one big mistake the BofE made recently was reducing interest rates to 0.25% last summer. Absolutely no need to do that. It is just going back to where they had been for 8 years. Had several e mails from lenders already saying their variable and tracker rates will go up the full 0.25% from next month
 


Pevenseagull

Anti-greed coalition
Jul 20, 2003
19,515
Anyone who can have sustained themselves advising on mortgages since 1990 is well worth listening to.

Good work Uncle Spielberg
 




Uncle C

Well-known member
Jul 6, 2004
11,678
Bishops Stortford
easier to foresee than, say, a house price crash.

It'll still happen when the government runs out of options to underpin the market with all sorts of hand outs. Just ask yourself how many of them are landlords and multiple house owners and why they may have a vested interest in props. But those props are gradually being kicked out from underneath them. Landlord taxation and rising interest rates are the first props to go.
 


Uncle C

Well-known member
Jul 6, 2004
11,678
Bishops Stortford
Circumstances change though, don't they? People lose jobs, have hours cut or other outgoings arise. What may have been seen as a perfectly manageable increase when a mortgage was taken out, may not be quite the same by the time it happens.

And those same people are incapable of asking themselves "what if?". Nope, in with both feet.
 


Westdene Seagull

aka Cap'n Carl Firecrotch
NSC Patreon
Oct 27, 2003
20,938
The arse end of Hangleton
With respect, if there are people that can't live a mortgage rate rise of 0.25% (assuming they aren't on a fixed rate) then they to be asking serious questions from their last mortgage adviser. Put it in perspective, if you have a £200k mortgage, it's £500 extra over 12 months.

It's about time we got back to realistic interest rates so that house prices stop the incessant rise which takes them further away from affordable levels for the young.

The reality is, all low interest have done is supported overvalued house prices. A gradual re-balancing can only be good for the overall state of the economy.

Since we took our mortgage out nearly 10 years ago our household income has dropped by over 50% AND costs have risen. If we tried to borrow our mortgage today we couldn't. Interest rates of the past ( and I don't mean the 1980's ) will cripple many households who already had to make cutbacks to the bone.
 








D

Deleted member 22389

Guest
Since we took our mortgage out nearly 10 years ago our household income has dropped by over 50% AND costs have risen. If we tried to borrow our mortgage today we couldn't. Interest rates of the past ( and I don't mean the 1980's ) will cripple many households who already had to make cutbacks to the bone.

We are in the same boat as you, we got our mortgage 4 years ago.
 



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