How Low Is Your Mortgage Interest Rate?

At the peak of the property boom back in November 2007, when every penniless fucker was snapping up unrealistically priced properties like they were Donald Trump, the Bank Of England base rate was at 5.75%. In the space of a little over 2 years, the rate has dropped by 5.25%, and tumbled to a low of 0.5%. Check out the Bank Of England Base Rate graph for further analysis.

Donald Trump

Oddly, people are still complaining and getting nose bleeds at the towering rate of 0.5%. That’s how desperate people have gotten. It’s sad in two senses. Firstly, it’s sad that a lot of people are genuinely struggling out there. Secondly, in a total twist, it’s sad that people were so naive to think that they could get away with buying something they ultimately couldn’t afford. If your property is 6 times more than your annual salary, alert signals should have been blinking like fucking crazy. But then again, I don’t know specific details, I’m just speculating with that one scenario. All I know is that a lot of people made a lot of stupid purchases, hence, le’ recession. It’s a controversial issue- some people blame the banks, I blame the borrowers. Potato Pototo, Tomato, Tomoto.

It’s a bad time for savers and those caught in a fixed rates mortgage, but great for borrowers on a variable rate. Fortunately, I fall into the latter- chilling with the bunch of variable rate beneficial’s.

There are thousands and thousands of borrowers that have benefited from the drop in rates. There are even some borrowers on a 0% rate because their on a tracker plan that guarantees them a rate which is always 1% below the base rate. I wasn’t quite fortunate enough to snap up that deal, but I’m still on a few pretty good rates. Most importantly, affordable rates.

What’s the lowest rate I currently have?

Yesterday I received a letter from Birmingham Midshires informing me that following the Bank of England’s decision on 5th March 2009 to decrease the Base rate; they’ll be reducing my interest rates on the 1st April 2009 to 0.89%. That’s the lowest rate I’ve ever had.

Does anyone else have a lower rate? What’s your current rate and who’s your lender?

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5 Comments- Join The Conversation...

Guest Avatar
Jools 18th April, 2009 @ 20:43

I am paying £0.00 on an interest only mortgage! Bracing for the supreme arse shagging I am going to get in a year or so when the rates rise to 7%+

Jools

1
The Landlord Avatar
The Landlord 19th April, 2009 @ 11:12

You lucky git, Jools!

My mortgages are all repayment. I'm also making overpayments on my low rate mortgages. Like you said, when rates shoot back up, a lot of people are going to be serious pain!

2
Guest Avatar
Jools 19th April, 2009 @ 11:44

Perhaps we should start planning as a collective how we are going to ask the government to bail us poor landlords out just like the banks/car industry et al!

Either that or lube up and be prepared for the financial s*****g we are going to get!!

3
Guest Avatar
FNW 20th April, 2009 @ 19:52

My residential Mortgage is a tracker at 0.13 over. Truly needed though as work has really dried up. I suspect a lot of people would love to be overpaying considerably but are just using the money saved to live on, as income has dropped due to the terribly low work levels currently for many...

4
Guest Avatar
Sam Smith 11th August, 2010 @ 10:27

I found a mortgge broker specialising in large remortgages who moved me onto a rate of 2% over base which was lower than my floating rate - www.largemortgagebroker.co.uk

5

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