Borrowing rate

biggles · May 20, 2019

I'm looking at buying my first bit of ground, cost will be about £300k I can raise about half from sale of some bits and savings etc, what rate should I expect and from who with what strings, sorry it it sounds daft but have never borrowed before, cheers

Still Farming · May 20, 2019

biggles said:
I'm looking at buying my first bit of ground, cost will be about £300k I can raise about half from sale of some bits and savings etc, what rate should I expect and from who with what strings, sorry it it sounds daft but have never borrowed before, cheers

Bet they want 3-4 times the amount back for the pleasure over 20-25 yr loan typical periods???

biggles · May 20, 2019

Still Farming said:
Bet they want 3-4 times the amount back for the pleasure over 20-25 yr loan typical periods???

That's rapidly spoiled the mood! Was expecting it to be similar to a house at about double, obviously dependent on future rates

Still Farming · May 20, 2019

biggles said:
That's rapidly spoiled the mood! Was expecting it to be similar to a house at about double, obviously dependent on future rates

Could be?
Crystal ball needed?
Interest rates at all time low, so guess good time.
Was about 14-18% interest when I went through it all ?

multi power · May 20, 2019

biggles said:
That's rapidly spoiled the mood! Was expecting it to be similar to a house at about double, obviously dependent on future rates

I'm in the process of buying a house every pound I borrow I will pay back £1.61 and that is around 2% over 27 years

Highland Mule · May 20, 2019

multi power said:
I'm in the process of buying a house every pound I borrow I will pay back £1.61 and that is around 2% over 27 years

Why are you taking so long to pay back? Surely best to pay quickly I’d rate is that high. I’ve had same mortgage since 2006 at 0.17% over BoE base rate, so in no hurry, but if it was much higher I’d be shoving all I could into it.

multi power · May 20, 2019

Highland Mule said:
Why are you taking so long to pay back? Surely best to pay quickly I’d rate is that high. I’ve had same mortgage since 2006 at 0.17% over BoE base rate, so in no hurry, but if it was much higher I’d be shoving all I could into it.

I'm not going to take that long to pay it back, that is just the figures I was quoted, if I double up the monthly payment it will knock about 5 or 6 years off it

egbert · May 20, 2019

Highland Mule said:
Why are you taking so long to pay back? Surely best to pay quickly I’d rate is that high. I’ve had same mortgage since 2006 at 0.17% over BoE base rate, so in no hurry, but if it was much higher I’d be shoving all I could into it.

With rates so low, I don't pay back a mortgage we've got, but keep any surplus cash on deposit as a war chest.
The difference is 1-2 %, but rearranging a similar loan if I suddenly took a fancy to something with a big price tag........ for a start i mightn't get that rate again.
If/when rates start going up, I'd look at paying it of faster.

farmgineer · May 20, 2019

biggles said:
I'm looking at buying my first bit of ground, cost will be about £300k I can raise about half from sale of some bits and savings etc, what rate should I expect and from who with what strings, sorry it it sounds daft but have never borrowed before, cheers

I'm paying 3.8% but the rates have gone up a bit. We fixed the rate over 10 years to pay it off quick. From memory £120k is costing me £24k over that period. I fixed for piece of mind but it would have been cheaper so far for variable. We are with AMC. Hope this helps.

Nick Adams · May 20, 2019

I recommend you try the AMC.

Muddy Boots · May 20, 2019

+1 for AMC. Had a need for quick funds on a cost over run and was done and dusted in eight weeks with a very good rate. Can’t recommend more highly.

lazy farmer · May 21, 2019

Surely rates will also depend upon on ability to pay back and collateral?

For what it’s worth we are paying around 1% above base on variable monies during yr 6 of a 10 yr loan. In this world of automising there won’t be inflation so why fix ? It’s looking like we will pay £28k interest on £200k over the 10yrs.

thesilentone · May 21, 2019

Have to agree on fixing, I only see the World Economy reducing prices not increasing, therefore no imminent reason to fix. But, events change things, and who knows what Mr Trump may do ?

A run on the pound after a no-deal Brexit will see rates increase, but once the Billionaires have used there security, they will go down again.

ollie989898 · May 21, 2019

lazy farmer said:
Surely rates will also depend upon on ability to pay back and collateral?

For what it’s worth we are paying around 1% above base on variable monies during yr 6 of a 10 yr loan. In this world of automising there won’t be inflation so why fix ? It’s looking like we will pay £28k interest on £200k over the 10yrs.

These figures just make your head spin really, 28K for the ability to control 200K- I just can't help thinking we won't ever see rates like this again in my lifetime.

Steevo · May 21, 2019

I can't see interest rates climbing much for the next 20+ years. Would bankrupt much of the country if they did based on 90% mortgages etc.

Makes you wonder where it will all end up...

Pond digger · May 21, 2019

ollie989898 said:
These figures just make your head spin really, 28K for the ability to control 200K- I just can't help thinking we won't ever see rates like this again in my lifetime.

Can’t get much lower than nowt, and that’s pretty much where we’re at.

farmerm · May 21, 2019

Steevo said:
I can't see interest rates climbing much for the next 20+ years. Would bankrupt much of the country if they did based on 90% mortgages etc.

Makes you wonder where it will all end up...

with all the wealth in the hands of very very few.....

biggles · May 22, 2019

Cheers for all the replies, had a ring round yesterday, and 3.5% seems about the norm that I can find for a 10 year, variable rate, with no over payment penalties, tried amc and the main banks, is this about the bottom line or should I be trying somewhere else? Cheers

Muddyroads · May 22, 2019

biggles said:
Cheers for all the replies, had a ring round yesterday, and 3.5% seems about the norm that I can find for a 10 year, variable rate, with no over payment penalties, tried amc and the main banks, is this about the bottom line or should I be trying somewhere else? Cheers

Was that from AMC?

glasshouse · May 22, 2019

farmerm said:
with all the wealth in the hands of very very few.....

Wait till next friday when corbyn takes the reins

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