Mortgage Rate Rises

413x

413x

413x

Caporegime
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4-5pc probably means near stagnation of house prices.
There's still a supply shortage.
This is no bad thing imo.


For myself? Yeah. If rates stay at 4 pc I certainly wouldn't be increasing my mortgage.
Especially so as inflation is so rampant.
 
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fez

fez

fez

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b0rn2sk8 said:
Unfortunately, a lack of supply means there is always going to be long term upwards pressure on housing.

Those 2-3% mortgages we signed up to were stress tested against 6-7% rates as part of the lending criteria. You wouldn’t have got the mortgage is you couldn’t afford 4-5%.

As above, the housing market is generally buoyant at the moment and transactions have returned to more normal levels. People are financing them as they were previously.
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Well, unless people lied, which of course no one would do...

Is the market buoyant price wise? I would suggest that its largely stagnant. Fundamentally as long as people can just afford it now, they will be happy to buy a house as rates will drop a bit and prices simply won't crash. There simply isn't enough building happening to put pressure on house prices.
 

b0rn2sk8

b0rn2sk8

b0rn2sk8

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fez said:
Well, unless people lied, which of course no one would do...
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You have to prove bank statements and your pay slips. You can’t ’just lie’ like you could back in the day.

Getting any substantial increase to your salary or reduction of your outgoings would require a pretty substantial level of fraud these days, particularly as most substantial outgoings show up on a credit check anyway.

fez said:
Is the market buoyant price wise? I would suggest that its largely stagnant. Fundamentally as long as people can just afford it now, they will be happy to buy a house as rates will drop a bit and prices simply won't crash. There simply isn't enough building happening to put pressure on house prices.
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Buoyant = there are enough buyers and sellers in the market to maintain a steady stream of transactions and stable prices.

The above is what is happening right now, certainly in my area. It’s only the sellers who are out to lunch on their pricing which aren’t selling. Everything g else is selling in a reasonable amount of time.
 
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gazref

gazref

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Id agree house and asset prices will increase over the mid term but I don't think the housing market will get into gear until rates come down and the affordability issue is muted.
 

jaybee

jaybee

jaybee

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When you re-mortgage how/when does the current value of the house become agreed? So say your 5 year fix comes to an end, and you bought the house for 400K, but you now believe it's worth say 450K, this will have a potentially big affect on LTV.

I remember when we bought, HSBC just did a desktop valuation due to COVID, and I don't recall ever having an actual value assigned. It was more just that they agreed that yes, the house is worth at least what you will pay for it therefore AIP is granted.

How does re-mortgaging work then? Do you just apply for the band you believe to be in, say 60% band, and then they just agree or don't agree so again you never find what they perceive to be the value?
 

b0rn2sk8

b0rn2sk8

b0rn2sk8

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They’ll likely do a desktop valuation when you apply for your re-mortgage and they should communicate that to you.

You’ll benefit from the increase in value on the LTV calculation.
 
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EvilRob

EvilRob

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b0rn2sk8 said:
They’ll likely do a desktop valuation when you apply for your re-mortgage and they should communicate that to you.

You’ll benefit from the increase in value on the LTV calculation.
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With same lender yes.
With a different lender you enter your expected valuation during application and the lender will decide whether to do a desktop valuation or a physical inspection.
 

Sythe79

Sythe79

Sythe79

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b0rn2sk8 said:
They’ll likely do a desktop valuation when you apply for your re-mortgage and they should communicate that to you.

You’ll benefit from the increase in value on the LTV calculation.
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-Ours has just updated periodically on the mortgage app. It's pretty much consistently been about 20% lower than Zooplas valuation. Which is fair enough.
 

danlightbulb

danlightbulb

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dlockers said:
Kind of the opposite. People who couldn't see past the maths of calculating the interest over a year. Even if the max they could save was equal to the max pay-in.
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Dont take the pee. Even MSE explains it this way, the maths works out whichever way you do it.

www.moneysavingexpert.com

Regular savings accounts

Get the best regular savings accounts by ignoring normal best buy tables - you could earn up to 7% by reading our guide at Money Saving Expert
www.moneysavingexpert.com www.moneysavingexpert.com
You'll earn what looks like half the headline interest rate
On regular savings, the interest you get will be about half the interest rate of the account. But don't worry, it's not a con – it's just how the maths works out. It's all down to the money being saved monthly rather than in one lump sum.
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The issue was actually more about the differential between bonds and a bog standard instant access savings. I thought the differential was greater than it was.
 
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