Mortgage Rate Rises

413x said:
But a desirable house is still a desirable house.
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Well yes, but the numbers still have to add up…

Around here, before the interest rates went up alongside sky-high house prices, the monthly repayments were *possible*, now for many people they’re just not, or they’re being crucified.
 
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My fix comes to an end 31st December so I've locked in my product switch now.

Going from 1.93% to 5.61%, which works out about another £340 per month. It is what it is. Fortunately it's still within our means but I feel for people who are already squeezed.
 
youtu.be

FEAR and PANIC Hits The Housing Market! (UK House Price Crash 2023)

The UK Housing Market has become gripped with FEAR and PANIC as homeowners FINALLY start to accept the HIGH probability of a HOUSE PRICE CRASH! Although UK h...
youtu.be youtu.be

According to this chap 90% are now fixing whereas before they were on trackers presumably because they thought things might get better which they now aren't.

Quite interesting what he's saying about right move index being based on new listing prices only.
 
neocon said:
youtu.be

FEAR and PANIC Hits The Housing Market! (UK House Price Crash 2023)

The UK Housing Market has become gripped with FEAR and PANIC as homeowners FINALLY start to accept the HIGH probability of a HOUSE PRICE CRASH! Although UK h...
youtu.be youtu.be

According to this chap 90% are now fixing whereas before they were on trackers presumably because they thought things might get better which they now aren't.

Quite interesting what he's saying about right move index being based on new listing prices only.
Click to expand...

I’m kind of the opinion that if most people are fixing that’s the wrong thing to do, rates will probably go down soon.
 
GordyR said:
It looks like even asking prices are starting to come down now. Actual transaction prices will be significantly lower.

https://www.bloomberg.com/news/news...lers-in-the-uk-are-waking-up-to-a-new-reality
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I guess that's bound to happen as interest rates rise.

The difference in monthly payments will reduce people's willingness/ ability to trade up. That will reduce the numbers buying and, hey presto, price reductions.

People are still asking (comparatively) stupid money where I live, but I'm not seeing many sold signs now. That's a noticeable change to a year ago.
 
It's very interesting looking through Rightmove, where you can see that a house was purchased in 2021 and then it's been "refurbished". Sellers are then trying to sell for an additional 150k on what they paid! The logic being , I spent x refurbishing so now it's worth what I paid plus x.

May not even be able to get what they paid in 2021...
 
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neocon said:
It's very interesting looking through Rightmove, where you can see that a house was purchased in 2021 and then it's been "refurbished". Sellers are then trying to sell for an additional 150k on what they paid! The logic being , I spent x refurbishing so now it's worth what I paid plus x.

May not even be able to get what they paid in 2021...
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Yeah, same around here...

I just looked at one property which sold for £450k in 2022, now he wants £550k for it..

The thing that makes me laugh in all of this, is how when the war in Ukraine started and energy costs went through the roof, the government were right there "oh this is terrible, we'll help" and started contributing towards energy bills.

Now, we have a situation where the bank of england is like "Party's over people, gotta fix inflation - up go the rates" and the government have to grin and bear it and basically go along with it, because it's the right thing to do, and ultimately the result of endlessly kicking the can down the road.

In the back rooms, the conservatives must be pulling their hair out, as they must be absolutely done for the next GE.
 
neocon said:
It's very interesting looking through Rightmove, where you can see that a house was purchased in 2021 and then it's been "refurbished". Sellers are then trying to sell for an additional 150k on what they paid! The logic being , I spent x refurbishing so now it's worth what I paid plus x.

May not even be able to get what they paid in 2021...
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Good. It was getting pathetic. Need at least a good 30% correction.
 
neocon said:
Quite interesting what he's saying about right move index being based on new listing prices only.
Click to expand...

I’ve not had a chance to watch the video you linked to but having done a fair bit of research into this over the last 6-9 months, it’s become quite obvious to me that Rightmove’s index is grossly misleading.

It only includes asking prices, and only of properties that were newly listed that month, meaning that any properties that are struggling or are being reduced, aren’t included in their data at all.

It’s pretty much useless.
 
Folks come on….Bid, Offer/Ask, Mid prices all useful. It’s how markets work. Admittedly the housing market has glacier paced settlement and low liquidity.
 
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Screeeech said:
Yeah, same around here...

I just looked at one property which sold for £450k in 2022, now he wants £550k for it..

The thing that makes me laugh in all of this, is how when the war in Ukraine started and energy costs went through the roof, the government were right there "oh this is terrible, we'll help" and started contributing towards energy bills.

Now, we have a situation where the bank of england is like "Party's over people, gotta fix inflation - up go the rates" and the government have to grin and bear it and basically go along with it, because it's the right thing to do, and ultimately the result of endlessly kicking the can down the road.

In the back rooms, the conservatives must be pulling their hair out, as they must be absolutely done for the next GE.
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They'll get my vote if they scrap inheritance tax.
 
neocon said:
They'll get my vote if they scrap inheritance tax.
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They were talking about that on LBC the other day, as it's one of the "sick" taxes which people find repusive and punitive, as potentially a way where the tories could win a lot of votes in a "retail giveaway" of tax cuts.
 
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Screeeech said:
They were talking about that on LBC the other day, as it's one of the "sick" taxes which people find repusive and punitive, as potentially a way where the tories could win a lot of votes in a "retail giveaway" of tax cuts.
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Well if you aren’t sure you’ll be in the top 5% of estates (my rounding) you’ll be an utter mug :D and just who the Kippers are looking to impress!

www.gov.uk

Inheritance Tax liabilities statistics

Statistics and statistical tables relating to Inheritance Tax. These data are provided for the year in which the wealth transfer took place.
www.gov.uk www.gov.uk
 
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Screeeech said:
They were talking about that on LBC the other day, as it's one of the "sick" taxes which people find repusive and punitive, as potentially a way where the tories could win a lot of votes in a "retail giveaway" of tax cuts.
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Ah yes, the block of voters otherwise known as total morons since it would never affect them anyway.

Definitely the most important voter issue and worth giving this bunch another term to waste in power over.
 
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LiE said:
My fix comes to an end 31st December so I've locked in my product switch now.

Going from 1.93% to 5.61%, which works out about another £340 per month. It is what it is. Fortunately it's still within our means but I feel for people who are already squeezed.
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We're looking at a similar move from 1.94% to 5.09% ourselves which will be a similar uplift monthly - not fun but affordable still although a pain any way you look at it!

Not sure we'll come across anything better before 31st Dec but we've locked in just in case things do get worse and rates are already higher than that now so hoping we've done the right thing - 5 year fix.
 
TheOtherOption said:
We're looking at a similar move from 1.94% to 5.09% ourselves which will be a similar uplift monthly - not fun but affordable still although a pain any way you look at it!

Not sure we'll come across anything better before 31st Dec but we've locked in just in case things do get worse and rates are already higher than that now so hoping we've done the right thing - 5 year fix.
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Five years is a sensible option. It is unlikely to drop more than a couple of percent by then in my opinion and over the longer term will be felt less as inflation and salary uplift takes a toll on it.
 
Ultimately, if we weren't paying the mortgage we would still be paying out rent instead, and that at least where I am is still rising faster than interest rates it seems.
 
Richie said:
So you reckon £85k should be taken off the average house price of £285k?
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Yes. Houses should be a place to live not a nest egg imo. Cheaper housing boosts the economy for the vast majority of people.

Once housing isn't its own economy for the filthy rich then the middle and working class can prosper.

This is all utopia BS that will never happen however. I am also a homeowner so this isn't being bitter but more for my children than myself as I was lucky.
 
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