# interest rate hikes and PCP



## kingswood (Jun 23, 2016)

chatting about interest rates and PCP's the other ay gym. mate was saying that with the increase in interest rates, cost of living etc the first thing people will want to get out off/default will be the big PCP's they got when times were good.

then the car prices will come down. wishful thinking??!


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## andy665 (Nov 1, 2005)

kingswood said:


> chatting about interest rates and PCP's the other ay gym. mate was saying that with the increase in interest rates, cost of living etc the first thing people will want to get out off/default will be the big PCP's they got when times were good.
> 
> then the car prices will come down. wishful thinking??!


I think new car sales will drop off massively. possibly older mainstream car prices will stay firm as people look for these as opposed to a shiny new thing - really difficult to second guess - all the predictions of collapse in used car prices during covid did not happen

I think the expensive used stuff will get clobbered - hopefully early next year when we go Aston shopping

I'm just glad i switched to a new 5 year fixed rate early in Sept at 3.4%


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## Rayaan (Jun 1, 2014)

I think its all a bit messed up in a sense. Nobody likes when they have to pay more.

On the other hand - realistically if you cant afford 10% increase in interest rates (houses, cars, whatever) then you're either stupid or loaded to the gilt with debt.

Its all a matter of people getting things they can't really afford isnt it? But yes, I would expect people to think twice before getting a new car. Whether that relates to a price drop or not is to be seen as the new car supply is still rubbish.


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## Podie (Mar 5, 2019)

If people can afford to, they'll keep their PCP deals until they renew. At that point I suspect you'll see people looking to get a new PCP deal that's cheaper. Some people may have had a car as a bit of a luxury, so they'll be the first to go.

New car deliveries still seem to be hampered by chip shortages. I suspect second hand prices will remain high until that sorts itself out.

Hard to compare this crisis to the massive mortgage rates of the past. Incomes were much higher than repayments, so there are suggestions that in affordability terms, the 1980 BoE rate of 14.2% is equivalent to 3% today. Ouch.


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## The happy goat (Jun 26, 2019)

Realistically banks should be means testing people to see if they can afford these mortgage’s if the base rate goes up.

The interest rate should be 6 - 8% it has been unrealistically low for so long people have accepted it as the norm, this has been coming for a long time.

There is still a ‘have it today paid tomorrow’ attitude people don’t learn!


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## Teamleader 21 (May 7, 2019)

Agree with some of the posts, however it isn't just mortgages that are the cause of peoples concerns, you have the rise in the costs of everything in everyday life which has partly come about because of Covid/Ukraine which are draining peoples resources. Some of us in the older age bracket were usually told to save/get a pension and most people took that advice, but things change as always and different ways of what people want /expect/afford change as well.


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## Teamleader 21 (May 7, 2019)

I was at a local dealership at the weekend and asked how things were? Reply was it wasn't good at the present with people coming and asking about trying to reduce their payments or try to get a cheaper car?


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## packard (Jun 8, 2009)

I’ve had so many emails and calls from garages I’ve been to in past offering great new car deals. I got impression they can’t shift the volume and many delays are being reduced based on lead times I was offered.


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## shycho (Sep 7, 2010)

Rayaan said:


> On the other hand - realistically if you cant afford 10% increase in interest rates (houses, cars, whatever) then you're either stupid or loaded to the gilt with debt.


My mortgage repayment on a 3 bed house is around £800 a month. At a 10% base rate it'll be around £1500 a month. 

Keep in mind, a rental property of similar size and area would be around £1100 a month right now, and I dare say landlords wouldn't eat the interest rate increase, so could reasonably assume a rental would equate to around £1800 a month at a 10% base rate.

It's not about people taking on more debt than they can afford, it's about people literally having no choice other than raising their families in a studio apartment. 

Fortunately I have three more years until I need to worry about remortgaging, but next year could see families facing bills which are literally double what they were paying last year. Not sure there are many households in the country who are responsible (see: fortunate) enough to plan for their bills to double inside 24 months.


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## Rayaan (Jun 1, 2014)

shycho said:


> My mortgage repayment on a 3 bed house is around £800 a month. At a 10% base rate it'll be around £1500 a month.
> 
> Keep in mind, a rental property of similar size and area would be around £1100 a month right now, and I dare say landlords wouldn't eat the interest rate increase, so could reasonably assume a rental would equate to around £1800 a month at a 10% base rate.
> 
> ...


Thats assuming you keep paying £800 with no overpayments and run the mortgage to the full term. Does anyone realistically do that? Even with the 1-2% overpayment charges, it still works out cost effective to pay it off as quickly as possible. 

Mortgage rates have been very low for a long time. In 1993 they peaked to around 9%. I can imagine it'd probably start heading that way within the next few years.


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## andy665 (Nov 1, 2005)

My gut feel is that with the years of very low interest rates many people have maxxed out on house size rather than getting a house that is smaller and overpaying on their mortgage.

I know there is a lot of criticism of people over-committing and running into trouble as / when rates rise but this is almost a cyclical thing, been here before and I'm sure we will be here again at some point in the future. 

Financial institutions have got far too relaxed over their lending criteria, most young people have never known anything other than very low rates - most people could see this coming - its simply that the current government have hastened it all with decent plans (in the most part) over the last week de-railed by a complete absence of explanation of how its been costed


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## shycho (Sep 7, 2010)

Rayaan said:


> Thats assuming you keep paying £800 with no overpayments and run the mortgage to the full term. Does anyone realistically do that? Even with the 1-2% overpayment charges, it still works out cost effective to pay it off as quickly as possible.
> 
> Mortgage rates have been very low for a long time. In 1993 they peaked to around 9%. I can imagine it'd probably start heading that way within the next few years.


If people's bills are literally doubling in the space of 2 years, whose even thinking about overpaying their mortgage?

Remember, we now live in a world where people are taking out 40 year mortgages at 8x - 10x their salary, and that is not considered insane.

I fear it is going to be a painful few years for people who maxed out their mortgage to get a bit more house to call home.


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## Imprezaworks (May 20, 2013)

Used car prices will stay high
People who have as said maxed out will be in trouble. Those show boating their 500 a month contract car, sadly the smiles will be put on hold.
As above ref people with high bills and not much savings will find it tough.


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## RS3 (Mar 5, 2018)

I think used car prices have already dropped by about 15% to 20% this year but the qty of new cars being supplied still hasn't recovered fully and prices have risen sharply, it's now £45k for a fully specced Focus ST!. There won't be any discounts either, due to the state of the £. The car industry is about to take a huge kicking IMO, especially in Germany and I suspect the Chinese may get the scraps with their cheap but somewhat impressive new cars but then again the Chinese are in perpetual lockdown. Who knows, it's volatile.


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## muzzer (Feb 13, 2011)

RS3 said:


> I think used car prices have already dropped by about 15% to 20% this year but the qty of new cars being supplied still hasn't recovered fully and prices have risen sharply, it's now £45k for a fully specced Focus ST!. There won't be any discounts either, due to the state of the £. The car industry is about to take a huge kicking IMO, especially in Germany and I suspect the Chinese may get the scraps with their cheap but somewhat impressive new cars but then again the Chinese are in perpetual lockdown. Who knows, it's volatile.


Prices have been going that way for a while though,i remember when i bought my GTI in 2016 i paid circa 30k for it. An equivalent spec Audi S3 was 45k then. What is a standard spec RS3 nowadays? Close to 60k?
One of my ex's, her dad bought a Citroen Xsara brand new in 2007, nothing fancy just a base spec model and i think he paid 7k. He wanted to buy a new car when he retired and moved to Doncaster in 2010 and was horrified to discover the equivalent Citroen C4 was 20k.


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## kingswood (Jun 23, 2016)

great points above. interesting to say that the high interest rates in the 80's are equivalent to the mid rates we have now.

as for over paying a mortgage its great in principle but I always stretch my mortgage as long as I can on the basis that id rather have money now than when im old. but I drive 15 year old cars as im to tight to buy new.

as ive said before im glad ive no kids to worry about and a secure (low paid) government job. 

in terms of new car increases in 2015 when I git the R32 a new R was £30k. fast forward 7 years and the new R is £50k. almost 50% increase!


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## PugIain (Jun 28, 2006)

Thankfully I signed up for a 5 year fixed a couple of years back, and have never had car finance. Though I'm sure they've got something else in the pipeline that'll affect us.


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## sharrkey (Sep 11, 2017)

Glad I bought my car 2yrs ago and secured 5yrs fixed on my mortgage at the start of the year, mortgage rates unfortunately are just gonna keep rising and new car cost are just ridiculous now. 

One car that sticks to mind for me was the Dacia Sandero, back in 2020 you could buy one new for £6k otr but now your looking at £12k plus lol


Sent from my iPhone using Tapatalk Pro


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## andy665 (Nov 1, 2005)

We are in the position that my wife has just inherited after her mum has passed away. We have sat down and discussed our options, she has a nice 4 bedroomed house that is owned outright and a chunk of cash in the bank too. Our house is smaller but we have never complained that we do not have enough space, its also got a bigger garden than her mums and much better parking

We are going to sell her house, pay off our mortgage, settle everything that we owe and end up with a totally clean sheet where our only monthly outgoings are food and utility bills - no we won't have a big house, no we won't have a flashy new car on the drive but we will be completely debt free, a healthy bank balance and the ability to save circa £2500 - 3000 per month - in the current environment we think its the most sensible route to take.

The only extravagance my wife may indulge in is that she has always dreamed of a previous generation Aston V8 Vantage so she may buy one and run it for 12 months to get it out of her system. If we buy right its unlikely to depreciate much at all, we would not buy for a while yet anyway so if a price crash is going to happen its likely to have crashed before we buy.

Thanks to my sadly departed mother-in-laws lifelong frugal nature our lives are going to be changed for the better and we are not going to simply spend it all.


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## ridders66 (May 24, 2019)

I may be unpopular, but I think interest rates have been too low, for too long. Coupled with that, I don't think the lenders have checked people out as thoroughly as they perhaps should have. I remember interest rates hitting 15% in the 90s. Too many people now don't know how to manage money, must haves include nails/hair extensions, holidays, the latest iPhone contract, tattoos etc which seem to be more important than house and contents insurance, savings for a rainy day or if the washing machine packs up. 
As we paid our mortgage off 5 years ago, it's about time we benefitted from a decent return on our savings now. God knows, we have had our struggles over the years, and have gone without many things so we could pay or bills and get the mortgage paid off.


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## Rayaan (Jun 1, 2014)

shycho said:


> If people's bills are literally doubling in the space of 2 years, whose even thinking about overpaying their mortgage?
> 
> Remember, we now live in a world where people are taking out 40 year mortgages at 8x - 10x their salary, and that is not considered insane.
> 
> I fear it is going to be a painful few years for people who maxed out their mortgage to get a bit more house to call home.


Everyone's bills have doubled in the space of 2 years though. Its not like it just affected one group of people. 

Taking out a 40 year mortgage at 8-10x salary would be considered insane by someone who knows how to manage their money well, surely? Obviously different people have different views but on a salary of lets say £26k I wouldn't even dream of taking on a £260k house on my own unless I had significant savings already or some financial backing from parents/family. Heck I remember in 2001 I bought my first house for £112k on a £25k wage and had a £30k deposit. The interest rates were around 7-8% if I remember correctly.



kingswood said:


> great points above. interesting to say that the high interest rates in the 80's are equivalent to the mid rates we have now.
> 
> as for over paying a mortgage its great in principle but I always stretch my mortgage as long as I can on the basis that id rather have money now than when im old. but I drive 15 year old cars as im to tight to buy new.
> 
> ...


I suppose you could think of new cars going massively up in price. But at the same time a GTI today is roughly as fast as the R32 was back then and has more equipment, is also larger.


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## pxr5 (Feb 13, 2012)

I totally agree with ridders66 and we too paid of our mortgage 5 years ago (a 29 year mortgage paid off in 9 years which meant forgoing things). I recall too paying 16% on a 45k mortgage in the early 90s and was paying 7-800 a month then. I think a lot of people live on the edge constantly and a variation either way either means they either spend more on crap or find themselves in trouble which ever way their finances are affected. Why don't they teach basic finance skills in schools, I dont know?


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## woodycivic (Jun 4, 2015)

andy665 said:


> We are in the position that my wife has just inherited after her mum has passed away. We have sat down and discussed our options, she has a nice 4 bedroomed house that is owned outright and a chunk of cash in the bank too. Our house is smaller but we have never complained that we do not have enough space, its also got a bigger garden than her mums and much better parking
> 
> We are going to sell her house, pay off our mortgage, settle everything that we owe and end up with a totally clean sheet where our only monthly outgoings are food and utility bills - no we won't have a big house, no we won't have a flashy new car on the drive but we will be completely debt free, a healthy bank balance and the ability to save circa £2500 - 3000 per month - in the current environment we think its the most sensible route to take.
> 
> ...


A very sensible way to go, you sound a lot like me! A big house and flashy car aren't necessarily going to improve your life or make you happier. Sorry to hear about your MIL, not an easy time when your mum/dad or partners parents pass away, it hit me like a ton of bricks when my old man went upstairs.


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## ridders66 (May 24, 2019)

pxr5 said:


> I totally agree with ridders66 and we too paid of our mortgage 5 years ago (a 29 year mortgage paid off in 9 years which meant forgoing things). I recall too paying 16% on a 45k mortgage in the early 90s and was paying 7-800 a month then. I think a lot of people live on the edge constantly and a variation either way either means they either spend more on crap or find themselves in trouble which ever way their finances are affected. Why don't they teach basic finance skills in schools, I dont know?


I think teaching basic finance, teaching kids how to prepare for real life would be more important than teaching about gender neutral non binary stuff, or teaching kids how to be offended at anything. 
I try not to think too deeply that the modern soft youth will be running the country in my old age.


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## Darlofan (Nov 24, 2010)

ridders66 said:


> I may be unpopular, but I think interest rates have been too low, for too long. Coupled with that, I don't think the lenders have checked people out as thoroughly as they perhaps should have. I remember interest rates hitting 15% in the 90s. Too many people now don't know how to manage money, must haves include nails/hair extensions, holidays, the latest iPhone contract, tattoos etc which seem to be more important than house and contents insurance, savings for a rainy day or if the washing machine packs up.
> As we paid our mortgage off 5 years ago, it's about time we benefitted from a decent return on our savings now. God knows, we have had our struggles over the years, and have gone without many things so we could pay or bills and get the mortgage paid off.


Totally agree with all of that. We're in the annoying position of fixed rate mortgage ending in Jan 24, obviously it's going to go up. Did look a few months back at getting a new one but exit fees would have wiped out the saving. Wife is annoyed by it but like I said to her. We've had a mortgage of 16years and they've all been low rates, hopefully the next 9 left won't be horrendous. Dilemma we'll have come 2024 is to fix again or chance rates dropping later on and taking the hit till then.


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## woodycivic (Jun 4, 2015)

pxr5 said:


> I totally agree with ridders66 and we too paid of our mortgage 5 years ago (a 29 year mortgage paid off in 9 years which meant forgoing things). I recall too paying 16% on a 45k mortgage in the early 90s and was paying 7-800 a month then. I think a lot of people live on the edge constantly and a variation either way either means they either spend more on crap or find themselves in trouble which ever way their finances are affected. Why don't they teach basic finance skills in schools, I dont know?


To be fair they have started doing that over the last few years. In year 6 now they teach about managing money, explaining the basics of what a mortgage is and how it works. Obviously this is only a recent thing (I never did any money management at school at all) so it will take time for this to (hopefully!) take effect when these kids get to the age where they are looking to buy a house etc.


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## BuyTheDip (4 mo ago)

Ridders they have been too long, for sure. My timing was great as the mortgage ran out on my last house in June 2021 so sold near the top.

Went into renting for 6 months and discovered by the time house prices drop, the affordability of them via interest rates would offset any reduction is price, that and there is still the inflated pound value keeping the price up and the supply and demand issue.

I was being offered sub 1% on a mortgage. It's madness, call it free lending all day long. I obliged it, laughing because it should be north of 4% for sure.

I never witnessed the days of people who seen 10%+, but 10 years ago I got my first house could only afford to scrimp 5k together for a 5% deposit on a 100k house. Interest rate was 6% and was only paying £115 off my capital and £455 was interest per month!

I played it safe and picked a house where my deposit matched 60 LTV where I'd seen others literally throwing. Themselves at 5-10% deposits for the stature of affluence. To the state where they will probably need to overpay £1k a month to get their payments to break even with current prices when they renew in 5 years.

Maybe with a bit of luck people will stop laughing at my diesel TT 🤣.


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## 121DOM (Sep 16, 2013)

As with most of the above. First mortgage at 15.9%. Back garden full of spuds (jacket potatoes the main diet week 3&4 of the month) and a pool cue for a remote for the portable tv from my old bedroom. 

Sure they’ve been mentioned above but here’s a few that I tell people. ( I know not always possible)
When you apply for a mortgage always get a quote for one or two years shorter, very little different In cost.
When you move house try and keep the end date of your mortgage on the new house the same.
Small monthly or annual overpayments can make a huge difference, just last month I told a friend to go and ask his building society about overpaying £200 a month as he didn’t believe my maths. Rang me saying wow just over 4.5 years off the term of his loan.
Dont have massive saving whilst you owe money, chances are you savings won’t attract the interest your mortgage is.
Use credit cards for security for online payments, not for things you can’t afford. 
Iphones last more than a year and there are 70 channels of cr4p on freeview if you can’t afford sky.

Back off the soapbox 

Last one, I have a friend that has a decent business, however a fleet of lovely cars on finance, mortgaged up to the hilt, holidays and expensive restaurants on credit cards and never has any cash in his pocket. He tells me I’m an total idiot and must be bored being retired. Well I retired on my 47th birthday and 6 years on I’m happy with an iPhone 8 and freeview tv .

Money management at school sounds a great idea.


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## kingswood (Jun 23, 2016)

121DOM said:


> As with most of the above. First mortgage at 15.9%. Back garden full of spuds (jacket potatoes the main diet week 3&4 of the month) and a pool cue for a remote for the portable tv from my old bedroom.
> 
> Sure they’ve been mentioned above but here’s a few that I tell people. ( I know not always possible)
> When you apply for a mortgage always get a quote for one or two years shorter, very little different In cost.
> ...


pretty much sound advice. offsetting savings v mortgage is one I struggle with tho. I understand the maths but wouldn't want to put my savings into the house, after being poor as a child there's something reassuring looking at an account seeing enough money to survive on. 



pxr5 said:


> I totally agree with ridders66 and we too paid of our mortgage 5 years ago (a 29 year mortgage paid off in 9 years which meant forgoing things). I recall too paying 16% on a 45k mortgage in the early 90s and was paying 7-800 a month then. I think a lot of people live on the edge constantly and a variation either way either means they either spend more on crap or find themselves in trouble which ever way their finances are affected. Why don't they teach basic finance skills in schools, I dont know?


well done on paying it off early but I'd always say there's a balance to be had. paying it off in 9 years - assume in ur 20's/30's and missing out on things, is a gamble you're guna live to enjoy it. buried 3 of my friends last year, the wife best friend at 31 last month, lives to short to forgo everything in pursuit of mortgage free.


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## 121DOM (Sep 16, 2013)

kingswood said:


> pretty much sound advice. offsetting savings v mortgage is one I struggle with tho. I understand the maths but wouldn't want to put my savings into the house, after being poor as a child there's something reassuring looking at an account seeing enough money to survive on.
> 
> Same upbringing to. It’s not easy to get it into you head. They say have 6 months running costs but always worked on a 12 month safety net . I think most lenders let you overpay once a year as well as monthly, It’s well worth it however little 👍👍


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## Podie (Mar 5, 2019)

Darlofan said:


> Totally agree with all of that. We're in the annoying position of fixed rate mortgage ending in Jan 24, obviously it's going to go up. Did look a few months back at getting a new one but exit fees would have wiped out the saving. Wife is annoyed by it but like I said to her. We've had a mortgage of 16years and they've all been low rates, hopefully the next 9 left won't be horrendous. Dilemma we'll have come 2024 is to fix again or chance rates dropping later on and taking the hit till then.


You can book rates in advance - so I wouldn't hang about.


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## Podie (Mar 5, 2019)

ridders66 said:


> I may be unpopular, but I think interest rates have been too low, for too long. Coupled with that, I don't think the lenders have checked people out as thoroughly as they perhaps should have. I remember interest rates hitting 15% in the 90s. Too many people now don't know how to manage money, must haves include nails/hair extensions, holidays, the latest iPhone contract, tattoos etc which seem to be more important than house and contents insurance, savings for a rainy day or if the washing machine packs up.
> As we paid our mortgage off 5 years ago, it's about time we benefitted from a decent return on our savings now. God knows, we have had our struggles over the years, and have gone without many things so we could pay or bills and get the mortgage paid off.


I think you're right. There are a whole group of people who are used to low finance rates and have leveraged it to their max.

That said, as I mentioned earlier it's hard to compare tto the past. Incomes were much higher than repayments / property values and people were generally less indebted (company cars with fuel cards vs PCP for example) - so in affordability terms the 1980 BoE rate of 14.2% is equivalent to 3% today. 

I'm certainly glad we've lived within our means and forgon the expensive holidays etc. We own our house. No one can take that from us.


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## Darlofan (Nov 24, 2010)

Podie said:


> You can book rates in advance - so I wouldn't hang about.


Even with the way things are now? Just existing lender or others too?👍


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## pxr5 (Feb 13, 2012)

kingswood said:


> well done on paying it off early but I'd always say there's a balance to be had. paying it off in 9 years - assume in ur 20's/30's and missing out on things, is a gamble you're guna live to enjoy it. buried 3 of my friends last year, the wife best friend at 31 last month, lives to short to forgo everything in pursuit of mortgage free.


No. I took out at a mortgage in 2008 when I was 44. Paid it off in 2017 and retired in 2019 at age 55. We worked to a strict budget. Any money left over at the end of the month went to pay off the mortgage. In fat we were fixed for the first 5 years and only started overpaying in 2013 - so in reality it took 4 years of slog. Over paying even a small amount can make a big difference to the mortgage end date. There are websites were you input your data and they will show a graph of when the end time will be depending on the over pay amount - they make interesting viewing.


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## Podie (Mar 5, 2019)

Darlofan said:


> Even with the way things are now? Just existing lender or others too?👍


Yep - existing lenders and brokers should be able to help.

A guy who works for me got his mortgage rate agreed 6 months in advance. Dropped off one rate and onto the next. Same lender in this case.


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## andy665 (Nov 1, 2005)

Good friend of mine has just retired at 55 - house paid off, not married, no kids (too expensive in his words), gone without holidays for 20 years to be in this position - can see the sense in it but IMHO - those levels of sacrifice are just stupid - you have to live today as well as plan for the future - he has no real happy memories to look back on - just work, work and more work


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## Podie (Mar 5, 2019)

andy665 said:


> Good friend of mine has just retired at 55 - house paid off, not married, no kids (too expensive in his words), gone without holidays for 20 years to be in this position - can see the sense in it but IMHO - those levels of sacrifice are just stupid - you have to live today as well as plan for the future - he has no real happy memories to look back on - just work, work and more work


Yep, got to find the balance.


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## Podie (Mar 5, 2019)

Darlofan said:


> Even with the way things are now? Just existing lender or others too?👍


Have a read of this - https://www.moneysavingexpert.com/mortgages/getting-ready-remortgage/


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## Eddmeister (May 6, 2011)

The happy goat said:


> Realistically banks should be means testing people to see if they can afford these mortgage’s if the base rate goes up.
> 
> The interest rate should be 6 - 8% it has been unrealistically low for so long people have accepted it as the norm, this has been coming for a long time.
> 
> There is still a ‘have it today paid tomorrow’ attitude people don’t learn!


I work in the industry and stress testing is pretty standard on affordability, the biggest issue will be if people will be willing to give up their standard of living to make the payments.

I just talked about this with the wife today I got 2.9% apr on my car last year, my mortgage rate is now higher than this.

Car prices will drop


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## ridders66 (May 24, 2019)

Eddmeister said:


> I work in the industry and stress testing is pretty standard on affordability, the biggest issue will be if people will be willing to give up their standard of living to make the payments.
> 
> I just talked about this with the wife today I got 2.9% apr on my car last year, my mortgage rate is now higher than this.
> 
> Car prices will drop


You said it. Will people be prepared to give up their luxuries, which they’ll see as necessities? 
Many people will complain they can’t afford to buy a house, yet don’t see anything wrong in a £70 a month phone contract. Also many people live off Deliveroo, quite possibly the most expensive way to eat poor quality food. Factor in monthly hair extensions, nail bars, Botox, tattoos, gym membership, before we get on to cars on PCP. The list goes on. But then they blame others for their inability to be able to buy a house. 
People don’t know how to sacrifice something in order to be able to afford something more important. 
Put on any TV channel, pick up any magazine and you’re bombarded with adverts telling you that you need this, or need that, people also feel the need to compete too, and don’t want to be ridiculed for not having the latest gadgets. Social media has a hell of a lot of influence in the way modern people live.


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## AndyA4TDI (May 7, 2012)

We stayed in our small house and overpaid our mortgage which allowed us to be mortgage free by age 52 rather than mortgage free in our 70s had we moved to a bigger home. Best decision we ever made. Now things are so expensive it really helps being mortgage free. 

What really annoys me is how banks and building societies are raising rates on mortgages at light speed but giving virtually nothing to savers.


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## Podie (Mar 5, 2019)

AndyA4TDI said:


> We stayed in our small house and overpaid our mortgage which allowed us to be mortgage free by age 52 rather than mortgage free in our 70s had we moved to a bigger home. Best decision we ever made. Now things are so expensive it really helps being mortgage free.
> 
> What really annoys me is how banks and building societies are raising rates on mortgages at light speed but giving virtually nothing to savers.


Some ISA rates around 3.3% for one year and 4% for 2 years now though.


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