Interest Rates

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jowwy

Can't spell, Can't Punctuate....Sue Me
I cant see a thread in this, but with the rates increased again by another 0.50% i though it was time we had one.

How will it effect you guys....im still fixed until 1st Feb 2023
 

ianrauk

Tattooed Beat Messiah
Location
Rides Ti2
Fixed until end of next year and by then mortgage should be paid off.
More hopeful that savings rise.
 

fossyant

Ride It Like You Stole It!
Location
South Manchester
No effect as such as I've no mortgage now. Paid off a few years back (very fortunately). Do worry about sister and brother with huge feck off mortgages. Brother has a business one also (dentist).
 

Jenkins

Legendary Member
Location
Felixstowe
Like @fossyant I'm mortgage free as I paid it off about 10 years ago. One interesting side effect of the interest rate rise is that my instant access Maturity Saver with Saga Savings now pays a higher interest rate than the 1 year savings bond I have with them.
 
I would be better off if the saving rates increased
They have gone upa bit recently - saw 3% for 3 year fixed recently

Funny how they always lag by a long time and then go up but half the increase???

But we are worried about my wife's son and his partner - they seem OK for money but with 3 kids I can;t see they are not having problems
I have noticed they have gone from Alta Rica coffee to normal Nescafe!
 

gbb

Legendary Member
Location
Peterborough
Told this one before but during the mid 2000s when interest rates were high, a colleague had a new build. As the rates fell I said to him...that must be saving you some cash ? He said you can't imagine from the worst of it to where it is now, I'm saving nearly £1k a MONTH :ohmy:.
No mortgage for me, all paid off and have fairly significant savings. I remember the interest we got years ago was a really nice bonus...that was on fairly modest savings at that time. Looking forward to seeing some of that again.
 

figbat

Slippery scientist
We totally fluked it by fixing in a 5-year deal earlier this year so interest rate rises only mean increases in savings account rates with no extra outgoings. The 5-year deal will just about see us out of the mortgage, or close enough to pay it off if a new deal is not forthcoming.
 
We were close to paying off our mortgage but then made a move a few years ago into a significantly higher value property. Got a good fixed rate on the first 3 years and then secured a 10 year fixed at very close to the previous year rate. Mortgage is well within our household income and we will be overpaying for the next 10 years so it will be payed off at the end of it.

At the moment there isn’t a significant enough difference between keeping money in savings bs paying off the mortgage much quicker and , as rates increase, we may be more likely to keep more funds in savings for a bit longer. Excel being used heavily and will determine how we handle things.
 

fossyant

Ride It Like You Stole It!
Location
South Manchester
One of the things we did when we took out our mortgage in the mid 90's was to model interest rates going up to 12% or 14% to see if we could mange. We could have just managed it eating beans. Fortunately it never went that high again, but it's those 'younger' than most of us on here with £300k plus mortgages that will really suffer.
 
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