Is 1%+ base rate good - HotUKDeals
We use cookie files to improve site functionality and personalisation. By continuing to use HUKD, you accept our cookie and privacy policy.
Get the HUKD app free at Google Play

Search Error

An error occurred when searching, please try again!

Login / Sign UpSubmit

Is 1%+ base rate good

£0.00 @
is this a good rate for a mortgage?
sassie Avatar
banned6y, 8m agoPosted 6 years, 8 months ago
is this a good rate for a mortgage?
sassie Avatar
banned6y, 8m agoPosted 6 years, 8 months ago
Options

All Comments

(13) Jump to unreadPost a comment
Comments/page:
#1
fixed? tracker?
banned#2
ivegotalobon
fixed? tracker?


tracker, well i think its a tracker, will always pay 1% and whatever the BOE base rate is
#3
sassie
tracker


How long is the initial period? 2 years?

Basically you need to be wary with trackers as if the base rate goes up so do your mortgage payments.

Shouldnt really worry for the next few years, but after that the base rate is gonna be a good few % higher.

Trackers are best if the base rate is high and it is expected to get lower.

Also, what is the early repayment charge period?

EDIT: Just seen your edit, are you sure it will be 1% above forever?, usually there is an introductory period of a few years at that rate, then it will go up to a higher % above base rate.

If you are correct, and it will always be 1% above base rate, then crack on and get it, you won't get a better deal. However i am sure it won't be.
banned#4
ivegotalobon
How long is the initial period? 2 years?

Basically you need to be wary with trackers as if the base rate goes up so do your mortgage payments.

Shouldnt really worry for the next few years, but after that the base rate is gonna be a good few % higher.

Trackers are best if the base rate is high and it is expected to get lower.

Also, what is the early repayment charge period?


i have had it 8 years, so am not tied in, not sure on early repayment, the paperwork makes little sense :oops:
#5
sassie
i have had it 8 years, so am not tied in, not sure on early repayment, the paperwork makes little sense :oops:


Well after 8 years, you won't have an early repayment charge, so ignore that.

However are you 100% sure you are paying 1% above base rate? if so, you will be hard pressed to get a better one. The rate isn't going to go up significantly for (my estimation) 5 years.

A guy from my work last year was offered a loan, can't remember the amount, but they wanted to give him it at 0.05% interest. So getting ridiculously low rates is not unheard of, however, with your mortgage, that is a VERY good deal.
banned#6
ivegotalobon
Well after 8 years, you won't have an early repayment charge, so ignore that.

However are you 100% sure you are paying 1% above base rate? if so, you will be hard pressed to get a better one. The rate isn't going to go up significantly for (my estimation) 5 years.


yes, deffo 1% plus base rate, so am paiying 1.5% at the mo
#7
sassie
yes, deffo 1% plus base rate, so am paiying 1.5% at the mo


If you are thinking of moving, do not sell that property. Keep the mortgage going and rent it out & get a whole new mortgage for your new property.

It would be a sound investment to do that now anyway, you would be effectively getting a free house out of it at that rate.
banned#8
ivegotalobon
If you are thinking of moving, do not sell that property. Keep the mortgage going and rent it out & get a whole new mortgage for your new property.


i can take mortgage to new property i believe, although i owe very little on it. do you know if you can add to it, take more money out, or would that fall under a new mortgage
#9
sassie
i can take mortgage to new property i believe, although i owe very little on it. do you know if you can add to it, take more money out, or would that fall under a new mortgage


It would be a new mortgage, and the chances are you would be paying more like 2% above base, but like i say dont settle that mortgage as it is effectively a free house in your portfolio.
banned#10
ivegotalobon
It would be a new mortgage, and the chances are you would be paying more like 2% above base, but like i say dont settle that mortgage as it is effectively a free house in your portfolio.


a free house thats falling apart - lol
#11
sassie
a free house thats falling apart - lol


Ever thought property development? once you have your second house it would be very easy to start devoloping as long as you can get your current house sorted relatively quick. Rent that one out for guaranteed income (with your mortgage at 1% above base rate it wouldn't be difficult to generate extra income out of that property)
banned#12
ivegotalobon
Ever thought property development? once you have your second house it would be very easy to start devoloping as long as you can get your current house sorted relatively quick. Rent that one out for guaranteed income (with your mortgage at 1% above base rate it wouldn't be difficult to generate extra income out of that property)


you are joking, i am absolutely crap at any kind of maintenance, and if i ever find a job i will be outta here and into something already done















ready for me to wreck - lol
#13
sassie
you are joking, i am absolutely crap at any kind of maintenance, and if i ever find a job i will be outta here and into something already done


ready for me to wreck - lol


Just don't waste the opportunity of having a second house to rent out.

Post a Comment

You don't need an account to leave a comment. Just enter your email address. We'll keep it private.

...OR log in with your social account

...OR comment using your social account

Looking for Twitter login?
Thanks for your comment! Keep it up!
We just need to have a quick look and it will be live soon.
The community is happy to hear your opinion! Keep contributing!