11-03-2022, 10:02 AM | #309 | |
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I said normally you cannot negotiate upwards not that it was impossible, I would also argue that receiving offers above asking is not negotiating but you tend to disagree with anything I post so maybe just put me on ignore and we can both be happy |
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11-03-2022, 12:11 PM | #310 | |
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JLR19691882.00 agentorange1507.50 |
11-03-2022, 07:31 PM | #311 | |
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Anything having to do with interest rates, car, home, loan… lock it in. Nothing is going anywhere but higher. Inflation is at 11% now and the central banks have repeatedly said they will not yield until inflation is controlled, which will not happen without major pain. It’s true I’m not English, but as the news today shows… you made the right call. In this financial environment you want to lock everything in as soon as you can, cause rates aren’t going anywhere but up. Glad you got it sorted! |
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11-04-2022, 10:42 AM | #312 | |
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The 30-year mortgage I got in 2016 is a bit under 4%, and I had multiple emails and letters about refinancing. Thing is I find all the costs involved far too high for the actual amount of work done. Some mortgage brokers down here are asking for $5k or more for refinancing. You have to look at how long it will take you to get back that $5k versus how long you intend to live in the home. As things have turned out I am going to be here a bit longer than originally planned, so a refi may have worked for me. Still, I'd never claim to live a perfect life. |
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11-04-2022, 03:50 PM | #313 | |
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11-04-2022, 06:36 PM | #315 | |
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After realizing I was in a UK forum I went and read up on your system… but the fact remains pretty much the same, you want to lock any internet rate sensitive loans in for as long a time as you can, because it is well established that interest rates are not going anywhere but up for the foreseeable future. The interest rate in the US has nearly TRIPLED in one year. I’m at 2.75% for the life of the loan and it’s now over 7%. The UK is different but you’re still seeing the same trend… it’s going up. The central banks keep saying the same thing and some people keep thinking they aren’t serious. The past year has seen blistering rate hikes and there is no indication that they will stop until inflation calms down, which hasn’t even begun to happen. I think this person will be glad they don’t have to refi for 5 years. I guess we’ll find out. Yea, I understand your system is different. It sounds awful to me to be stuck with what sounds like an ARM in our system, especially in this environment. But 5 years is a decent amount of time (especially if political winds change)… if they don’t, I’ll wager the person will wish for a 10 year lock but you take what you can get. If you are sure you are moving within a period of time, then sure it becomes a different calculation. I assumed this person was not moving. Talking with UK people can be somewhat difficult for me, and I’m trying to be polite as possible and not blunt like I usually am. Hopefully that comes across. Thnx. |
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11-05-2022, 04:50 AM | #316 | |
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11-05-2022, 04:52 AM | #317 |
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The bit that you miss with your comment is that the fixed rates on offer now include a prediction for what the market thinks will happen in the future. If they think it will rise they price that in. If they think it will rise and are uncertain how much, they price in a poor outcome as an allowance for risk.
So if the next autumn statement (budget) makes them feel better than inflation will come down and govt finances are under control, if the BoE increasing rates by 0.75% this week makes them think inflation might come down sooner, they may reprice those fixed to a lower rate, even though we still expect rates to increase.... just by less in total. Its really not as simple as you make out. I'm fixed for one more year, I may move and downsize at that point, or I may fix and stay for another 5 years. I will not be attempting a fix now as another 12 months gives more chance for things to be under control, more chance for fixes to be cheaper than they were 6 weeks ago, or now, and more time for me to plan. Do I wish I had taken a longer fix at a lower rate 3 years ago? Possibly - but no one knows what the future brings and you cant beat yourself up for not having the foresight of hindsight! |
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11-05-2022, 04:58 AM | #318 | |
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11-05-2022, 05:44 AM | #319 | ||
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11-05-2022, 05:20 PM | #320 |
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Just as an aside to this interest rate/mortgage rate discussion:
I have just got my daughter a junior ISA at 3.60%; 0.60% OVER BoE rate. Tells me they are predicting higher rates, no matter what happens with markets liking the current Gov stance. I haven't seen rates like that for 25 years. Last edited by Pond; 11-05-2022 at 05:26 PM.. |
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11-05-2022, 05:50 PM | #321 | |
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11-06-2022, 01:33 AM | #322 | |
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I was hoping 5% will be here soon, but for now 4% seems to be the best, still bears the 1% rates from 12 months ago. |
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11-06-2022, 03:21 AM | #323 | ||
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