How much will BoE cut rates by today?

[BrilloPad]

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Have a

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Interestingly highest number of votes was for 1% - clearly cuk is full of intelligent people.

[SallyAnne]

I love having an interest only mortgage

[Bagpuss]

Why? It's worse than a capital repayment mortgage

[SallyAnne]

Why? It's worse than a capital repayment mortgage

Because when the interest rates hit 0% the £4k per month we put into our mortgage account wil go straight off the balance!

We will have paid our house off before the interest rates go back up again

Ideally.

[Bagpuss]

Because when the interest rates hit 0% the £4k per month we put into our mortgage account wil go straight off the balance!

We will have paid our house off before the interest rates go back up again

Ideally.

Interest rates can't hit 0%. To do so will crash the economy

[gingerjedi]

Because when the interest rates hit 0% the £4k per month we put into our mortgage account wil go straight off the balance!

We will have paid our house off before the interest rates go back up again

Ideally.

How does that differ from a repayment mortgage? You can overpay you know.

[SallyAnne]

Interest rates can't hit 0%. To do so will crash the economy

You didn't put "FACT!" at the end of that.

We already saved £400 per month on the last drop, and drop is good for us. The lower the better.

[BrilloPad]

Interest rates can't hit 0%. To do so will crash the economy

Well they did in Japan!

And don't confuse the issue by mentioning there 15 year recession.......

[SallyAnne]

How does that differ from a repayment mortgage? You can overpay you know.

Repayment mortgages wont go down with interest rates will they? aren't they normally fixed amounts? Or are they fixed % aligned with the BoE interest rates or something?

I dont have one, so I wouldn't know.

If the interest rates hit 0% we could pay nothing each month. Could people with repayment mortgages also pay nothing?

[BrilloPad]

Repayment mortgages wont go down with interest rates will they? aren't they normally fixed amounts? Or are they fixed % aligned with the BoE interest rates or something?

I dont have one, so I wouldn't know.

If the interest rates hit 0% we could pay nothing each month. Could people with repayment mortgages also pay nothing?

If you keep paying the same it pays the mortgage off alot faster. An extra couple of hundred per month can often reduce term from 25 years to 15 years.

Some repayment mortgages will let you take a holiday and/or pay intewrest for a while - depends on the deal.

I am also just on a repayment mortgage : but them most of my money is tied up in a business deal. When that goes through the mortgage will be repaid.