Is 1%+ base rate good

Banned
is this a good rate for a mortgage?

13 Comments

fixed? tracker?

Original Poster Banned

ivegotalobon;8779839

fixed? tracker?



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

sassie;8779851

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.

Original Poster Banned

ivegotalobon;8779913

How long is the initial period? 2 years?Basically you need to be wary … 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:

sassie;8779929

i have had it 8 years, so am not tied in, not sure on early repayment, … 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.

Original Poster Banned

ivegotalobon;8779991

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

sassie;8780010

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.

Original Poster Banned

ivegotalobon;8780041

If you are thinking of moving, do not sell that property. Keep the … 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

sassie;8780064

i can take mortgage to new property i believe, although i owe very little … 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.

Original Poster Banned

ivegotalobon;8780126

It would be a new mortgage, and the chances are you would be paying more … 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

sassie;8780137

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)

Original Poster Banned

ivegotalobon;8780194

Ever thought property development? once you have your second house it … 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

sassie;8780212

you are joking, i am absolutely crap at any kind of maintenance, and if i … 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 doneready for me to wreck - lol



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