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Savings and Investments thread

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  • bobmunro said:
    I definitely wouldn't put it all in a 1 year bond next month, as rates look extremely likely to rise a fair bit higher.
    https://www.thetimes.co.uk/money-mentor/article/interest-rates-rise/
    I would agree - you can get close to 3.5% now on a 1 year deal - come early next year that is likely to be 5-6%.
    I can't see a 1year fixed rate bond paying 5%+. Usually they pay just over base rate. So I would say 3% ish. 
  • I'm probably a bit behind the times as I dont really follow interest rates on cash. 
  • bobmunro said:
    I definitely wouldn't put it all in a 1 year bond next month, as rates look extremely likely to rise a fair bit higher.
    https://www.thetimes.co.uk/money-mentor/article/interest-rates-rise/
    I would agree - you can get close to 3.5% now on a 1 year deal - come early next year that is likely to be 5-6%.
    I can't see a 1year fixed rate bond paying 5%+. Usually they pay just over base rate. So I would say 3% ish. 
    You can get close to 3.5% now with base rate at 1.75% - that of course is predicated on future rises.
  • bobmunro said:
    I definitely wouldn't put it all in a 1 year bond next month, as rates look extremely likely to rise a fair bit higher.
    https://www.thetimes.co.uk/money-mentor/article/interest-rates-rise/
    I would agree - you can get close to 3.5% now on a 1 year deal - come early next year that is likely to be 5-6%.
    I can't see a 1year fixed rate bond paying 5%+. Usually they pay just over base rate. So I would say 3% ish. 
    You can get 3.48% already & rates haven't even gone up tomorrow and a further 1% minimum by this time next year.
  • I don't think you are likely to see 1 year fixes increase in line with the base rate moving TBH.

    The longer fixes will be interesting as a not a lot in a 2 year v 5 year fix with a lot of places, indicating they've already priced in a certain amount of increase in the up to 2 year fix.

    Today will be interesting, many predicting a 0.5-0.75 increase. Some people with mortgage fixes coming to an end are going to be in a whole lot of pain. Here comes the crash!!
  • Rob7Lee said:
    I don't think you are likely to see 1 year fixes increase in line with the base rate moving TBH.

    The longer fixes will be interesting as a not a lot in a 2 year v 5 year fix with a lot of places, indicating they've already priced in a certain amount of increase in the up to 2 year fix.

    Today will be interesting, many predicting a 0.5-0.75 increase. Some people with mortgage fixes coming to an end are going to be in a whole lot of pain. Here comes the crash!!
    Mortgage fixed rates are interesting at the moment. Shorter 2 & 3 year ones are startimg to get more expensive than the longer 5 year ones, which has never been the case in the past. 
  • Rob7Lee said:
    I don't think you are likely to see 1 year fixes increase in line with the base rate moving TBH.

    The longer fixes will be interesting as a not a lot in a 2 year v 5 year fix with a lot of places, indicating they've already priced in a certain amount of increase in the up to 2 year fix.

    Today will be interesting, many predicting a 0.5-0.75 increase. Some people with mortgage fixes coming to an end are going to be in a whole lot of pain. Here comes the crash!!
    My fixed rate mortgage comes to an end in December.  Its not a massive mortgage - so I think I will take money out of savings, sell some equities and maybe cash in an ISA and pay it off.  I think that is the best option - any opinions out there?
  • CafcWest said:
    Rob7Lee said:
    I don't think you are likely to see 1 year fixes increase in line with the base rate moving TBH.

    The longer fixes will be interesting as a not a lot in a 2 year v 5 year fix with a lot of places, indicating they've already priced in a certain amount of increase in the up to 2 year fix.

    Today will be interesting, many predicting a 0.5-0.75 increase. Some people with mortgage fixes coming to an end are going to be in a whole lot of pain. Here comes the crash!!
    My fixed rate mortgage comes to an end in December.  Its not a massive mortgage - so I think I will take money out of savings, sell some equities and maybe cash in an ISA and pay it off.  I think that is the best option - any opinions out there?
    Totally depends on what rate you can get on a mortgage v's savings/investments and their tax position.
  • Rob7Lee said:
    I don't think you are likely to see 1 year fixes increase in line with the base rate moving TBH.

    The longer fixes will be interesting as a not a lot in a 2 year v 5 year fix with a lot of places, indicating they've already priced in a certain amount of increase in the up to 2 year fix.

    Today will be interesting, many predicting a 0.5-0.75 increase. Some people with mortgage fixes coming to an end are going to be in a whole lot of pain. Here comes the crash!!
    Mortgage fixed rates are interesting at the moment. Shorter 2 & 3 year ones are startimg to get more expensive than the longer 5 year ones, which has never been the case in the past. 
    does this mean mortgage companies/banks are expecting interest rates to go back down in 5 years?
  • Rob7Lee said:
    I don't think you are likely to see 1 year fixes increase in line with the base rate moving TBH.

    The longer fixes will be interesting as a not a lot in a 2 year v 5 year fix with a lot of places, indicating they've already priced in a certain amount of increase in the up to 2 year fix.

    Today will be interesting, many predicting a 0.5-0.75 increase. Some people with mortgage fixes coming to an end are going to be in a whole lot of pain. Here comes the crash!!
    Mortgage fixed rates are interesting at the moment. Shorter 2 & 3 year ones are startimg to get more expensive than the longer 5 year ones, which has never been the case in the past. 
    does this mean mortgage companies/banks are expecting interest rates to go back down in 5 years?
    Yes, looks that way.
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  • Rob7Lee said:
    I don't think you are likely to see 1 year fixes increase in line with the base rate moving TBH.

    The longer fixes will be interesting as a not a lot in a 2 year v 5 year fix with a lot of places, indicating they've already priced in a certain amount of increase in the up to 2 year fix.

    Today will be interesting, many predicting a 0.5-0.75 increase. Some people with mortgage fixes coming to an end are going to be in a whole lot of pain. Here comes the crash!!
    Are you suggesting a house price crash? 
  • redman said:
    Rob7Lee said:
    I don't think you are likely to see 1 year fixes increase in line with the base rate moving TBH.

    The longer fixes will be interesting as a not a lot in a 2 year v 5 year fix with a lot of places, indicating they've already priced in a certain amount of increase in the up to 2 year fix.

    Today will be interesting, many predicting a 0.5-0.75 increase. Some people with mortgage fixes coming to an end are going to be in a whole lot of pain. Here comes the crash!!
    Are you suggesting a house price crash? 
    plz
  • edited September 2022
    redman said:
    Rob7Lee said:
    I don't think you are likely to see 1 year fixes increase in line with the base rate moving TBH.

    The longer fixes will be interesting as a not a lot in a 2 year v 5 year fix with a lot of places, indicating they've already priced in a certain amount of increase in the up to 2 year fix.

    Today will be interesting, many predicting a 0.5-0.75 increase. Some people with mortgage fixes coming to an end are going to be in a whole lot of pain. Here comes the crash!!
    Are you suggesting a house price crash? 
    Recession, rising interest rates and repossessions would historically tend to lead to a house price fall (crash may be too strong a word).

    However, there is such a huge problem with housing stock availability that it may buck the trend this time around. I anticipate flat property prices over the next couple of years rather than any significant reset. 
  • Rob7Lee said:
    I don't think you are likely to see 1 year fixes increase in line with the base rate moving TBH.

    The longer fixes will be interesting as a not a lot in a 2 year v 5 year fix with a lot of places, indicating they've already priced in a certain amount of increase in the up to 2 year fix.

    Today will be interesting, many predicting a 0.5-0.75 increase. Some people with mortgage fixes coming to an end are going to be in a whole lot of pain. Here comes the crash!!
    Mortgage fixed rates are interesting at the moment. Shorter 2 & 3 year ones are startimg to get more expensive than the longer 5 year ones, which has never been the case in the past. 
    does this mean mortgage companies/banks are expecting interest rates to go back down in 5 years?
    View is before 5 years. Maybe within 3. 
  • redman said:
    Rob7Lee said:
    I don't think you are likely to see 1 year fixes increase in line with the base rate moving TBH.

    The longer fixes will be interesting as a not a lot in a 2 year v 5 year fix with a lot of places, indicating they've already priced in a certain amount of increase in the up to 2 year fix.

    Today will be interesting, many predicting a 0.5-0.75 increase. Some people with mortgage fixes coming to an end are going to be in a whole lot of pain. Here comes the crash!!
    Are you suggesting a house price crash? 
    I've heard it said that Liz Truss could be freezing / suspending Stamp Duty again. I dont think they will but who knows with this new Government.
  • redman said:
    Rob7Lee said:
    I don't think you are likely to see 1 year fixes increase in line with the base rate moving TBH.

    The longer fixes will be interesting as a not a lot in a 2 year v 5 year fix with a lot of places, indicating they've already priced in a certain amount of increase in the up to 2 year fix.

    Today will be interesting, many predicting a 0.5-0.75 increase. Some people with mortgage fixes coming to an end are going to be in a whole lot of pain. Here comes the crash!!
    Are you suggesting a house price crash? 
    Depends on definition of crash. I believe actual sale prices will reduce over the coming 2-3 years (unless the government make significant changes). I don't think it will be huge, but there are already signs of sales struggling. On rightmove in and around my area just about every other house is showing as 'reduced' but may be currently they were pushing for unrealistic prices.
  • 0.5% increase on the base rate. Let's see what happens to savings interest (probably very little).
  • Rob7Lee said:
    0.5% increase on the base rate. Let's see what happens to savings interest (probably very little).
    Marcus up 0.3% to 1.55% (1.8% with the bonus).
  • Rob7Lee said:
    0.5% increase on the base rate. Let's see what happens to savings interest (probably very little).
    After todays announcement Saga have just increased mine from 1.4% to 1.55%.  So only passing on 0.15% of the 0.5% rise.  I had already started withdrawing my money from them and moving to Gateway Bank which was offering 2% before todays rise. 
  • Rob7Lee said:
    0.5% increase on the base rate. Let's see what happens to savings interest (probably very little).
    After todays announcement Saga have just increased mine from 1.4% to 1.55%.  So only passing on 0.15% of the 0.5% rise.  I had already started withdrawing my money from them and moving to Gateway Bank which was offering 2% before todays rise. 
    Don't forget that account has a bonus of .25% to add to the 1.55% so you should be getting 1.8% on it.

    But agree there are other better options out there. 
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  • Chase at 1.5% now looking poor. Wonder if they will increase it?
  • Chase at 1.5% now looking poor. Wonder if they will increase it?
    I emailed them.  They said that their rates are not linked to the BOE rate.  Didn't suggest they would be revising - but who knows.
  • CafcWest said:
    Chase at 1.5% now looking poor. Wonder if they will increase it?
    I emailed them.  They said that their rates are not linked to the BOE rate.  Didn't suggest they would be revising - but who knows.
    They will be losing a huge chunk of their deposits if they don't.
  • Mini budget interesting.

    Decent reduction in Stamp duty and 1p off the base rate from April, surprised the removal of the top rate though.
  • Rob7Lee said:
    Mini budget interesting.

    Decent reduction in Stamp duty and 1p off the base rate from April, surprised the removal of the top rate though.
    Markets don't like it. FTSE100 down 1.75% to 7035. Might be time to put up our considered thinking guesses for the end of the year. I think I had around 7050  :)
  • Rob7Lee said:
    Mini budget interesting.

    Decent reduction in Stamp duty and 1p off the base rate from April, surprised the removal of the top rate though.
    Markets don't like it. FTSE100 down 1.75% to 7035. Might be time to put up our considered thinking guesses for the end of the year. I think I had around 7050  :)
    Yes as at now you are top of the league! But a long way to go

     FTSE100 Level7,033.00  
         
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     bobmunro73983655.19%
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  • Markets truly spooked by the mini budget 😬 
  • Markets truly spooked by the mini budget 😬 
    yep, FTSE100 falling through the floor. Currently holding at 7000 points although did fall through that a few minutes ago. Down 2.25%.
  • Markets truly spooked by the mini budget 😬 
    yep, FTSE100 falling through the floor. Currently holding at 7000 points although did fall through that a few minutes ago. Down 2.25%.
    buy buy buy!
  • Rob7Lee said:
    Markets truly spooked by the mini budget 😬 
    yep, FTSE100 falling through the floor. Currently holding at 7000 points although did fall through that a few minutes ago. Down 2.25%.
    buy buy buy!
    maybe next week. Wouldn't want to go knife catching.
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