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Gazer
10-11-2006, 01:25 AM
November 09 2006
The Bank of England delivered a much-anticipated blow to homeowners when it raised the base interest rate to 5% today.

The increase was necessary to dampen inflation and the UK's booming housing market, and many predict another increase in the new year. However, this hike means that some already stretched homeowners may struggle to make ends meet.

Homeowners hit
Borrowers with fixed or discount mortgages will be protected from the increase, but if your mortgage is at the standard variable interest rate, then you?ll soon see an increase in your repayments.

Switch and save
If you haven?t changed your mortgage in a few years, then you could save thousands by switching to a better deal, and in fact there are several good reasons it makes sense to remortgage regularly:

Significant savings - If you took out a loan when interest rates were high or a deal you had has now come to an end, the chances are that you can save money by switching.


Reduce monthly payments - That?s not always the same as saving money overall, as sometimes the main way in which payments are cut is by extending the loan period. But, cutting your monthly outgoings can be important at times.


Borrow more - You may need extra money for a new kitchen, bathroom or an extension, for example. In theory, you could almost certainly borrow the same amount of money from your existing lender. But sometimes the act of borrowing can serve as a catalyst for going somewhere else.


Debt consolidation - If you have lots of debts, some of them on exorbitant rates of interest, a mortgage at a lower rate will often help. But beware: your home may be at risk if you default on payments, as a mortgage is secured on your house

boabness
10-11-2006, 01:45 AM
coonts that they r ,we hav cooncal tax we hav road tax we hav fuel tax we hav vat we hav tax on wir wage fook wen do it ends any more ma .
heads hurting noo, the coonts should just take all wir wages then hand us back 50 quid and say away and get drunk lol .:53: :53: :53: :53: :53: :53:

teracir
20-11-2006, 06:46 PM
you go and get a mortgage and they put the f****** interest rate up!!!!

terrific!!!

borosmoggy
20-11-2006, 07:21 PM
Just remortgaged mine was on a tracker but switched to a fixed now i cant see the rates comming down in the near future only up i feel sorry for those people that cant get on the ladder because the have been priced out its bad enough up this end of the country god knows how you lot do it down south where house prices are just stupid if the interest rates go up much more tho i can see a big crash comming and people losing there houses like happened in the 80's :-((

teracir
20-11-2006, 07:27 PM
mine is a two year tracker but it is below the intrest rate. still if the intrest raises by 0.5% over the next year or so then that will affect me

Hammer
21-11-2006, 12:47 PM
Since I got a mortgage in April, the interest rate hikes have caused my monthly payment to go up 40quid already and about to go up again!

telboy
22-11-2006, 07:43 PM
remember when it went up to about 14% yonks ago . nearly crippled us . its been low for a fair while now , hope it dont go silly again .

scruff1963
26-11-2006, 06:39 PM
i'm glad i fixed mine for 10 years in June.
I only have 13 years to go

My last one was fixed at 7.5% 8 years ago so I was gutted when they dropped to 4%.

Fixed it this time for 4.99% so rates have just caught up.

I'm lucky as it's a low mortgage I couldn't afford to buy a house at todays rates.

mike1212
29-11-2006, 12:11 AM
I'm struggling to get a house atm anyway so this was a big blow for me :(

browser
02-12-2006, 04:36 PM
Shop around for the best deal...

amouse
02-12-2006, 10:54 PM
Once the rates go up by another 1.5 to 2% which could happen we should see a 15-20% drop in house prices. Best advice is surely to save as hefty deposit for a house now, and buy when they drop in price. Although the interest rates will be higher when you eventually buy, hopefully the price you will be paying will be (as I said) 15-20% less which should pay off in the long run. I am not an expert but looking at trends in past it does look likely that this is what will happen now. Prices in France and America seem to be on a downward (but slow) spiral now, so this may happen here too.