Mortgage renewal help

[One Legged Striker]

Mortgage needs renewing this month, what sort of rates should i be looking at getting.

Looking for fixed rate, good credit history, and good employement status.

Any ideas.

 

[Chicken Runner61]

Look at first direct or HSBC

First Direct are offering some fee free which is a result. Personally I can't see the point of fixing unless you can get a really long fix and at under 4% because I can't see Bank rate going up till end of this year or early next

 

[Uncle C]

I can't see Bank rate going up till end of this year or early next

With inflation way above target, I think you may be wrong.

 

[Chicken Runner61]

No that inflation jump was just because VAT went up and fuel has gone up. Retail sales were not as good as thought and some stores only did well because some of their competitors went bust

 

[Uncle C]

No that inflation jump was just because VAT went up and fuel has gone up. Retail sales were not as good as thought and some stores only did well because some of their competitors went bust

The inflation jump was for December. The VAT increase is from Jan 1st and is still to figure.

Fuel is due to go up even more as the World comes out of recession and demand goes up again.

 

[Chicken Runner61]

Yes point taken but many retailers put prices up in November/ December so they could say they were holding them in January and not passing on the VAT increase. They expected consumers to spend more in Dec (and they did) to try to avoid the Vat Hike.

Also we are not out of recession and a very hard nine months is ahead.

Retail sales weak in Dec as prices surge - Yahoo! Finance

 

[Uncle C]

Also we are not out of recession and a very hard nine months is ahead.

I totally agree with this.

The underlying problem is that during recessions its 'normal' for inflation to fall, often going into negative territory. However during our recession, inflation has for many of the last months been above predictions.

Its a real concern that this may be the result of quantitative easing, which is by definition inflationary, and will influence the economy over the months ahead.

 

[brulee]

i think ur right uncle c.

 

[Chicken Runner61]

I totally agree with this.

The underlying problem is that during recessions its 'normal' for inflation to fall, often going into negative territory. However during our recession, inflation has for many of the last months been above predictions.

Its a real concern that this may be the result of quantitative easing, which is by definition inflationary, and will influence the economy over the months ahead.

Yes my thoughts too, when they stop pumping the money in the system things will get worse. Thats why I think rates won't go up, Its the cumulative easing and the low BOE rate that stopped total meltdown. They will have to stop pumping money in soon or we will go completely bust, keeping rates low is the only thing they will be able to continue with. Japan never really recovered from its low rates and even today struggles to move them. Even if they start moving them up in may it will be 8 or nine months before they get to 4% as they will do it in 1/4% increases

 

[Uncle C]

Yes my thoughts too, when they stop pumping the money in the system things will get worse. Thats why I think rates won't go up, Its the cumulative easing and the low BOE rate that stopped total meltdown. They will have to stop pumping money in soon or we will go completely bust, keeping rates low is the only thing they will be able to continue with. Japan never really recovered from its low rates and even today struggles to move them. Even if they start moving them up in may it will be 8 or nine months before they get to 4% as they will do it in 1/4% increases

But raising the bank rate is the only mechanism the BOE has to hold back inflation. They are commited to keeping inflation at 2% and even in recession it is 2.9%. They have a problem.

 

[brulee]

bank rates 0.5. u try and get a mortgage near that

 

[Chicken Runner61]

But raising the bank rate is the only mechanism the BOE has to hold back inflation. They are commited to keeping inflation at 2% and even in recession it is 2.9%. They have a problem.

You wont get inflation if no one has any money, we were close to deflation not so long ago. 3% inflation is nothing especially with interest rates so low as its mortgages that are the bulk of peoples outgoings.

When we had high inflation and interest rates before they were much worse.

Whats scary is what will happen when they run out of money. Its the banks that are taking the piss charging 4/5% for morgages when the bank rate is 0.5% and how they can charge 8% and up for ordinary loans is criminal.

 

[Uncle Spielberg]

Look at first direct or HSBC

First Direct are offering some fee free which is a result. Personally I can't see the point of fixing unless you can get a really long fix and at under 4% because I can't see Bank rate going up till end of this year or early next

Agreed if you are on a tracker rate but millions of people are sitting on their lender's historicall low variable rates at the moment in a false sense of security and they will be in for a shock this year as lenders are and will increase their variable rates this year even if the bank base rate does not go up.

The latest the week, The Skipton Bs have increased their svr from 3.50% to 4.95% exercising an " extraordinary " circumstances " clause. About 12 lenders have done this and this will follow to the big lenders soon.

There is a 2 year fixed rate at 3.45% at the moment. This is dependant on loan to value and personal circumstances.

 

[Uncle Spielberg]

You wont get inflation if no one has any money, we were close to deflation not so long ago. 3% inflation is nothing especially with interest rates so low as its mortgages that are the bulk of peoples outgoings.

When we had high inflation and interest rates before they were much worse.

Whats scary is what will happen when they run out of money. Its the banks that are taking the piss charging 4/5% for morgages when the bank rate is 0.5% and how they can charge 8% and up for ordinary loans is criminal.

mortgage costs are now at an all time low of around 10% of net income on average.

 

[Uncle Spielberg]

But raising the bank rate is the only mechanism the BOE has to hold back inflation. They are commited to keeping inflation at 2% and even in recession it is 2.9%. They have a problem.

Bank base rate is expected to be 2% by the end of the year.

 

[Chicken Runner61]

welcome back US

 

[Uncle C]

You wont get inflation if no one has any money, we were close to deflation not so long ago.

Oh yes you can. Its called stagflation.

 

[Uncle Spielberg]

welcome back US

I am an observer only now. I am commenting and doing posts on REMF and work related only. Not commenting on any other topics you will be glad to hear.

 

[beorhthelm]

try Nationwide, they are one of the better rates, more transparent about fees than most and dont leave a footprint on your credit rating if you dont use them, even if declined.

 

[Uncle Spielberg]

Look at Nationwide and go with them if they prove to be the lowest based on rate and fees. At the moment they aren't.