The Investment Thread

[Gaz]

24 minutes ago, Miguel Sanchez said:

@Gaz whatever happened with your Northern Rock shares?

I sold them to Fast Action

[Netan Sansara]

Without knowing someone's individual circumstances and risk profile it's hard, if not impossible, to say what the best strategy is for them. Granny is right in that some funds have gone up 100s of % in the past 5 years, and for people with a higher risk profile those could be what they're looking at investing in. Equally, trackers etc. are probably a less risky investment. It's down to the individual to get the advice they need about how they should invest their capital.

[ICTChris]

What did shareholders get when Northern Rock got nationalised?

[welshbairn]

7 minutes ago, ICTChris said:

What did shareholders get when Northern Rock got nationalised?

SFA.

[Ross.]

29 minutes ago, ICTChris said:

What did shareholders get when Northern Rock got nationalised?

As much as holders in Bradford and Bingley got back.

[Al666]

I've got my ISA with Investec, I also buy Alliance Trust shares  every month or so and put them in the ISA, but the best returns have been on my premium bonds, over the years they've consistantly returned around 5%. I reinvest the winnings in more pemium bonds, and will continue to do so until I hit the maximum allowed (currently £50000-00).

[welshbairn]

11 minutes ago, Al666 said:

I've got my ISA with Investec, I also buy Alliance Trust shares  every month or so and put them in the ISA, but the best returns have been on my premium bonds, over the years they've consistantly returned around 5%. I reinvest the winnings in more pemium bonds, and will continue to do so until I hit the maximum allowed (currently £50000-00).

You've been lucky then, average rate is 1.4%.

[bobbykdy]

19 minutes ago, Al666 said:

I've got my ISA with Investec, I also buy Alliance Trust shares  every month or so and put them in the ISA, but the best returns have been on my premium bonds, over the years they've consistantly returned around 5%. I reinvest the winnings in more pemium bonds, and will continue to do so until I hit the maximum allowed (currently £50000-00).

Just ploughed a bit into these myself, was getting f**k all in the bank, worst I can get with these is the same but with a bit of excitement thrown in at the start of each month.

Edited February 14, 2018 by bobbykdy

[monkfish]

On 06/02/2018 at 22:33, Granny Danger said:

If you're paying 0.8% (as an example) compared to 0.1% this could fade into insignificance depending upon the return.  The problem with comparisons is that they're comparing the whole market rather than specifics.  

Highest growing FTSE index in recent years has been the FTSE 250; the HSBC FTSE 250 index has grown approximately 56% in the last 5 years.  Some 'main' managed funds have vastly outperformed that; Fundsmith is over 100%.

 

That's relying on being able to pick a fund that outperforms the market though....the  point of indexed funds is they provide a 'safer' return and remove the skill / random luck required to pick a winner.

Edited February 14, 2018 by monkfish

[Granny Danger]

1 minute ago, monkfish said:

That's relying on being able to pick a fund that outperforms the market though....the  point of indexed funds is they provide a 'safer' return and remove the skill / random luck required to pick a winner.

This is true which is why have a mix of both.  However there are some funds that have outperformed the market for over a decade and a wee bit of research into this proves fruitful.

I also prefer some managed funds when looking at the small cap and non-UK markets.

 

[the jambo-rocker]

Seems as good a thread as any for this.

I've got my eyes on my first mortgage coming up shortly, on a 10% deposit. I'm oohing and ahhing over whether to take a 2 year fixed (price ranging looking at 1.8-2%) or just go for a full five year fixed (roughly looking at 2.5% for £50 a month more).

Fag packet calcuatations have me roughly pay the same eventaully is the base rate were to rise a minimum of 1% over the next two years. Judging from the last decade and talk of interest rates forecast for May, I can't see the interest rates going anywhere but up and the five year looks a no brainer for the long term. Am I missing something here?

[welshbairn]

4 hours ago, the jambo-rocker said:

Seems as good a thread as any for this.

I've got my eyes on my first mortgage coming up shortly, on a 10% deposit. I'm oohing and ahhing over whether to take a 2 year fixed (price ranging looking at 1.8-2%) or just go for a full five year fixed (roughly looking at 2.5% for £50 a month more).

Fag packet calcuatations have me roughly pay the same eventaully is the base rate were to rise a minimum of 1% over the next two years. Judging from the last decade and talk of interest rates forecast for May, I can't see the interest rates going anywhere but up and the five year looks a no brainer for the long term. Am I missing something here?

I'm considering similar and would definitely go for 5 years unless the rate is silly. With the chaos of Brexit anything could happen.

[Guts]

On 2/22/2018 at 09:29, the jambo-rocker said:

Seems as good a thread as any for this.

I've got my eyes on my first mortgage coming up shortly, on a 10% deposit. I'm oohing and ahhing over whether to take a 2 year fixed (price ranging looking at 1.8-2%) or just go for a full five year fixed (roughly looking at 2.5% for £50 a month more).

Fag packet calcuatations have me roughly pay the same eventaully is the base rate were to rise a minimum of 1% over the next two years. Judging from the last decade and talk of interest rates forecast for May, I can't see the interest rates going anywhere but up and the five year looks a no brainer for the long term. Am I missing something here?

Where was it you were quoted the 2.5% over the 5 year fixed deal. I have been watching for a reply to your question as I am a bit lost with all this. I am in the middle of negotiating a new deal and was quoted 2.98% over 5 year fixed deal. I think with the impending May time (estimated) increase of the Bank of England rate the 5 year fixed is the way to go. 

[Ross.]

On 2/14/2018 at 17:07, Emil Borkhausen said:

See there was an armed robbery where somebody was forced at gunpoint to transfer Bitcoin over into the robber’s account.

https://www.google.co.uk/amp/s/www.express.co.uk/finance/city/910958/Bitcoin-ripple-ethereum-UK-robbery-cryptocurrency-armed-thugs-oxfordshire-news-latest/amp

I wonder how they knew the guy had Bitcoin. After all, people who’ve made money on cryptocurrencies never shout it wankstaineously from the rooftops.

Boy that drinks in the pub across from my work is one of those cocks. Forever going on about having half a million dollars worth of BTC, wears those shite tee shirts with "Just hodl it" on them and spent most of december wearing a variety of Bitcoin themed Christmas jumpers. I hope it was him.

[the jambo-rocker]

27 minutes ago, Guts said:

Where was it you were quoted the 2.5% over the 5 year fixed deal. I have been watching for a reply to your question as I am a bit lost with all this. I am in the middle of negotiating a new deal and was quoted 2.98% over 5 year fixed deal. I think with the impending May time (estimated) increase of the Bank of England rate the 5 year fixed is the way to go. 

I went on Money Supermarket and searched for quotes.

https://www.moneysupermarket.com/mortgages/results/#?goal=1&property=175000&borrow=152500&types=1&types=2&types=3&types=4&types=5&page=1&periods=5

I also put the question on Reddit and got some answers. Worth a read for anyone else in the same bracket.

 

[Guts]

4 minutes ago, the jambo-rocker said:

I went on Money Supermarket and searched for quotes.

https://www.moneysupermarket.com/mortgages/results/#?goal=1&property=175000&borrow=152500&types=1&types=2&types=3&types=4&types=5&page=1&periods=5

I also put the question on Reddit and got some answers. Worth a read for anyone else in the same bracket.

 

Thank you.

[the jambo-rocker]

7 minutes ago, Guts said:

Thank you.

No worries. FWIW, I'm swaying towards a 2 year mortgage just now, mostly because the difference in rates if I can get it down to below 85% ltv will make a decent sized difference, even if the rates go up 1% over the next two years. If I can, right now I'd be quoted around a 2% (plus the 1% on top worst case scenairo) fixed on a 5 year after that.

From what I've read, I'd say if you're anything below 85% ltv, a 5 year is probably the best bet, but any higher I would keep doing 2 year fixed and pay as much off early as you can to get to that target, which is what I think I'll end up doing.

Edited February 23, 2018 by the jambo-rocker

[Guts]

14 minutes ago, the jambo-rocker said:

No worries. FWIW, I'm swaying towards a 2 year mortgage just now, mostly because the difference in rates if I can get it down to below 85% ltv will make a decent sized difference, even if the rates go up 1% over the next two years. If I can, right now I'd be quoted around a 2% (plus the 1% on top worst case scenairo) fixed on a 5 year after that.

From what I've read, I'd say if you're anything below 85% ltv, a 5 year is probably the best bet, but any higher I would keep doing 2 year fixed and pay as much off early as you can to get to that target, which is what I think I'll end up doing.

That's a brilliant idea. We have had a fair bit extra each month for a long time which we had used in doing up the property. The house is also worth a hell of a lot more as we picked it up for a song on the account of its state. Now there are childcare bills (£900 per month) we did not have prior to getting the mortgage. We no longer have enough spare to put your plan into practice but that would have been perfect. Thanks again for the advice and I hope you get yours sorted.

[welshbairn]

Nobody knows what will happen to interest rates if Brexit goes badly and there's a run on the pound, even the guys setting the fixed rates. What's for sure is the scope for increases is much greater than the scope for reductions. It's not that long ago that 10% was normal. What I'm wondering about is what would happen to house prices if interest rates rise significantly? I'd have a low ltv so it's between a 5 year fixed rate now, or waiting in case prices drop after a big hike in interest rates. The latter would be a big gamble on a Mad Max Brexit, so I'll probably buy soon.

[Guts]

45 minutes ago, welshbairn said:

Nobody knows what will happen to interest rates if Brexit goes badly and there's a run on the pound, even the guys setting the fixed rates. What's for sure is the scope for increases is much greater than the scope for reductions. It's not that long ago that 10% was normal. What I'm wondering about is what would happen to house prices if interest rates rise significantly? I'd have a low ltv so it's between a 5 year fixed rate now, or waiting in case prices drop after a big hike in interest rates. The latter would be a big gamble on a Mad Max Brexit, so I'll probably buy soon.

Haha brilliant.

 

I am leaning more toward the 5 year fixed rate as I will have significantly lees bills after 5 year as the child will be at school.