To be pissed off about mortgages rates being so low and down to 1%

[feellikeahugefailure]

All in the headlines today about the 1% mortgage to last 10 years.

Oh great so landlords and those lucky enough to own will be paying even less than the have nots that cant afford to buy.

I doubt my rent will be going down, but the tiny savings I have towards a deposit and emergencys will be earning less interest than inflation :(

So you'd rather others suffer too?

Ok

How do you equate that to suffering?

Rates too high hit others too I guess. The powers that be can't afford for rates to get high and have a load of homes repossessed.

I was referring to your second paragraph where you are unhappy about those who own property paying less.

I understand the issue about interest on savings though.

But they can't pay less with out affecting savers.

I'd rather we both had fair rates and the system wasn't so sharply skewed towards helping some while simultaneously hindering others.

fair rates - interest rates are set to help manage the economy, to stop boom and bust. At least that's the theory.

The system isn't designed to do that. It's a side effect. The system is designed to ensure that the economy stands the best chance of success. It isn't about those who would like to be home owners v those who are not yet home owners. You could equally argue that if interest rates were higher then those would would like to own their own home wouldn't be able to afford to anyway because they couldn't afford the mortgage payments.

Oh Please, the system is designed to keep those with assets at the top. Printing money is not helping me, its helping those with assets and inflating the costs of the assets while decreasing the value of my savings / income.

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You sound a bit jealous to be honest, rather than pissed off. I get it I rented with no end in sight for years but finally managed to buy. It was rubbish renting. It took every penny we had and more to raise our deposit and fees over 10 years, but we did it. Why don't you put your energy into saving to buy rather than wasting it feeling bitter?even with higher savings interest , your mortgage payments would be higher so it would be cancelled out!

With higher interests you wouldn't be any closer to buying though. Perhaps further away as banks would require more income to lend the same amount.

Isn't a low mortgage rate better for people on a low income, so they find it easier to buy?

These are headline grabbing ruses anyway. Any actual sub 1% deal would only last two years, only be available to those who have already paid off 40% and have fees of £2k, meaning that if your mortgage is only 50k then you would actually be paying 3% over those two years.

Besides, the base rate has been only half a percent for years, why shouldn'
t that be reflected in mortgage rates?

And if you're renting don't kid yourself that rent won't rise to cover future mortgage increases.

There are plenty of accounts that give you 3/4 or even 5% on your current account, anyway

My mortgage is paid off now, but in 1989 I moved into the house I now own outright. Just in time for interest rates to shoot up to 15%, the instigation of the poll tax just added insult to injury. We were absolutely crippled and put off having a family until 1997 because we couldn't afford to drop a salary or even go on maternity leave.

Your "logic" is flawed.

You are right. The current gov is all about keeping the rich rich by making the poor poorer. It is what the Conservative gov is built on and it has never been glossed over. And it is unfair. People the system benefits should at least admit this instead of acting like people without much money should just save harder and work 2 jobs.

Are you pissed with people that have mortgages. I have a mortgage it's crap. When the rates go up which until 2007 they were. People struggled hence people lost their homes.

The majority of the country is working class they don't have huge savings. They may live like me hand to mouth. Mortgage, bills food. No savings no assets. If I don't pay I loose everything.

I agree rents are disgustingly high in the uk. And they are always increasing. I do agree this needs capping and landlords can't get away with hiking rents up each year.

But you seem to be cross you are in rental.

I lost my home in 2008. Repossessed. I rented and managed to buy a house last year. The bank owns most of it.

Your post seems very selfish and heartless

How about Help to Buy ISAs, the Santander / Lloyds accounts paying 3% on balances up to £20,000 / 5% up to £5,000 (I think), shared ownership...?

There's lot wrong with the property market in (parts of) the UK, but shooting daggers at landlords and homeowners because rates are low is unhelpful and imo a bit petty.

Hmm, as most landlords with mortgages to pay calculate the rent as enough to cover the mortgage plus extra to cover repairs and possible voids, I would assume rates going up would also mean average rents started creeping up. If you don't have a deposit to buy, house prices falling a bit or stagnating while some landlords sell won't help you, it'll only reduce supply of rental properties and push up rents again. (Making it worth while for landlords with higher mortgages to keep on renting them out.)

We have always traditionally had a large percentage of the population as renters, it's only in the last generation the idea that most people would own their own home has come about, and really only the post war generation that expected their landlord to not be a private one.

Better tenants rights would be more useful for you than higher mortgage rates.

Where is this information that interest rates are staying at 1% for ten years?

The current gov is all about keeping the rich rich by making the poor poorer.

That's true, but irrelevant to this.

The base rate has to remain low to stop our extremely fragile economy getting into serious trouble.

This is a decision by banks based on decisions by the Central Bank.

They are not (officially) political and are not made by the government.

Is anyone actually paying 1% on their mortgage? I'd be delighted if this were true, but can't find any news items at all.

If your savings are earning less than inflation you need to move them to better paying accounts. Look on Moneysavingexpert - there are several current accounts paying 3-5% sometimes plus introductory bonuses that can be used as savings accounts. There is also the Help to Buy ISA.

Not everyone who has already bought is rolling in it. Where I am, prices are only just back upto pre crash prices so anyone who bought in 2006/7, nearly ten years ago, hasn't really made anything on their property and won't have had much in the way of pay rises either.

And there are advantages and disadvantages of renting vs owning - owners have to pay for their own repairs and can't move without finding a buyer for their property, which is not always easy.

Although you do seem jealous I totally agree that the system right now only benefits the banks: extremely low interest rates coupled with sky high property prices=banks benefit from the low interest rates ANYWAY since it is applied on such an enormous amount borrowed. So banks would earn the same as if house prices were half but with interest rates a lot higher than today's.

But now with interest rates so low banks also get away with paying almost zero % on savings.

So they benefit either way. They get their money from mortgages AND they hardly have to pay anything on savings.

Brecon without wishing to incite hatred, I am paying quite a bit less than 1% on my mortgage as I was lucky enough to take out a lifetime tracker in 2006 that was 0.19% above base rate.

There are probably quite a lot of people in my position who were lucky enough at the time to take out such a product and stay away from fixed rates, which are usually skewed in favour of the lender.

BreconBeBuggered

If you have a deposit of over 25% you can pay 1.6-1.7% But who can afford such deposits? Either way, people cant afford to buy.

WOW BarbaraofSeville, tell us more