RichieST

iTrader: (2)

My fiancee's boss told her today that her tracker mortgage has gone from £1000 a month to £6.79

Anyone else in a similar fortunate situation?

Rich

andyt

iTrader: (1)

bollocks.....

RichieST

iTrader: (2)

I am not saying its a fact or anything, so don't shoot the messenger.....

Apparantely the interest rate is pretty much 0%....

Fil

there was a few 100 lucky ones paying 1p a month, as that had to make some payment, as the computers couldn't handle a non payment without saying they were defaulting on the loan

MikeR

I am being offered morgages at 5.89% and 4.30% if l put down 25% i thnk that is shit but the difference in monetary terms is large

Mike

Rich_bloor

mine is less than half it was last year.

kjc300

iTrader: (1)

my interest only tracker has fell from £900 to £235 in the last few months. I'm on 1.59% now.

arch

Mate of mine has got an interest only tracker of £250000. Payments used to be in the region of £1600, now he pays something like £400. Just rented his place out for £1500 month, so he is deffo quids in.

PAUL S

iTrader: (8)

The ones that track at the actual BOE rate or even under usually only have a short term remaining, as these were doing the rounds a year or so ago, they then revert to the lenders standard variable. Its probably one of those, they best make hay while the sun shines because it will jump back up and they are no longer around to swap to another. They also usually had high initial fees to set up

The ones to have had at the time tracked at a low but sensible sum just above BOE, usually around .18 to .75% as these last the life of the mortgage not just for a honeymoon period, and had low or no set up fees associated with them

Mines gone from over £700 to just under £150 and will remain that way as long as the BOE stays on its arse

The banks have learned there lesson, current trackers are no where near as good as they used to be

Rhys

Mines fallen from £630 a month to £197 and i got my mortgage just as they started go tits up.

COMEDY DAN

I know many people whos mortgage is lass than a quarter of what it was thanks to being on a Tracker, not a bad position to be in as long as the Bank of England base rate stays low.

Cossy Mike

iTrader: (4)

Eh? how do you guy's work this out?

Am I right in saying you've all got INTEREST ONLY trackers?

So after the term you still have the full whack to pay?

Rhys

Yes and no. People paying nothing are on interest only as obviously you still need to repay the amount owed. However even if your paying back the capital the payments will be substantially lower due to the drop in interest rates. AS we all know the majority you pay of especially in the first half of mortgage term is interest.

Personally im on Interest only as need all avaible funds to renovate my house. And was planning to start whacking of capital once move in an finances settle down. But not due to my £400 a month saving i can already start paying capital of. Once i settle in i will prob be paying of £300ish a month of the mortgage now that fantastic for the start. Just wish i could fix the rate for ever as i t is now. lol.

Least Interest rates wont go up imo for a year. Well if they do it wont be much.

foreigneRS

i wouldn't bet on that, seeing as we now officially have deflation

Stu @ Claims Care Centre

iTrader: (1)

my business partner is paying £83 a month now lucky bstard

.Pete.

I think I heard david cameron only pays 1p a month now as he has something like a BOE - 1% tracker. It used to be over £1000 a month. It should be less than 1p, but the system doesn't recognise it.

The Youth.

iTrader: (1)

mine is at 1.25% at the moment but those that took a big tracker'd mortgage in say 2006 might be very lucky and be at -1% of boe rate those are usually over short terms ie a max of 4 years so, in the next 12 months there going to get a shock when renegoitiating there mortgage!!
before moving in 2006 my mortgage was a .75% under the base rate for the lifetime of the loan!!! shame it had to go when I moved house and the scarborough building society wouldn't honour it.. with an increased amount borrowed

steve

Rhys

How would altering Interest rate combate Deflation? They would bet money on them not going up much over the year. Look at the state of the economy. Yes the primary role is to look at inflation but using interest rate to combate deflation is a different thing, especially as economy is in free fall.

foreigneRS

it shouldn't. but the BoE are there to use interest rates to control inflation, not to look at the rest of the economy

Rhys

Yeah i agree with that, however to control deflation is going to be different. Also they have never been at the helm of the ship when the economy is in free fall so wether that is now there primary goal is another thing..... maybe. I know they are independant but the govt can put a load of pressure on imo.

Ryan

mine on my rental flat has gone from £475 to £0

Chip

iTrader: (3)

Mine on a rental property was £728 interest only at the beginning of last year, its £115 now

Chip

iTrader: (3)

The problem at the moment for new deals, is that the interbank lending rate, is still up at 3-4% where as normally it sits more or less level with the base rate, so banks simply cant afford to lend money at the same rate that many of us have deals on already that they are tied into.

Ryan

exactly chip, but there still loads better than what they were 2 years ago. so still positive but people seem to forgot that 4% is still fecking low!

Chip

iTrader: (3)

A car manufacturer I work with is doing 3.9% APR deals at the moment, which given the base rate sounds perfectly reasonable, but in reality thats actually a subsidised rate to the customer, as the flat rate for borrowing is in the 3.5% region, which is more like 6% APR over 2 years.

But yes, thats still better than it used to be, but the problem is that because people keep hearing about the lucky ones like me and you on 0-1% interest rates on their mortgages, they have unrealistic expectations at the moment.

alan12112

Well mines gone from £480 to £320 and i'm happy with that considering the £480 was on a tracker now i'm on the building society's variable rate!

Doesn't feel like i've got an extra £160 in my pocket though what with higher bills for gas, elec, coucil tax etc etc