Mortgage Rate Rises

jaybee said:
As am I. Now imagine me saying you know what, work a bit harder actually you moaner.
I'll answer the question about moving in more detail...

For someone who lives in and around the South East, moving somewhere with less demand and hence lower prices is tricky. It honestly means moving quite far generally speaking - aside from the random pockets of places where demand is lower, usually due to it being a particularly bad area say. So when you then move way West or Way North, it becomes over an hour away from your "base". That base being your support network, friends, family. Your life basically. If we could teleport from A to B in seconds, we could all spread out, but we locate for a combination of reasons to get a good work life balance. It's complex. I actually would not mind moving up North to get more for my money, but I cannot expect my kids to suddenly be told you know what, all your friends you likely won't see again. School will change. All the sports stuff you live for and do regularly...gone. It's brutal imo.
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I lived in Zone 4 in a 4 bed house share for £580/mo.

The problem is - "half" the people are willing to put the hard yards in. The other "half" are not. I've got friends who are cross they can't do what I can but they haven't left their own postcode since leaving school.

If you live in the SE/your kids live in the SE, you have won the "getting started" lottery anyway.
 
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adam cool dude said:
For me it is irrelevant as my house is nearly finished being paid for and I could quite happily live here till I die. Large 3 bed detached with decent front and back gardens. When the kids fly the nest it is more than enough space. Get the garage extension done so I can tinker in the winter and I am set really.

What worries me is how are my kids going to get on the ladder. Last thing I want is my daughter living at home till she is 30. I don't want her bringing boys home!

When we bought our house in 2010. The mortgage we got was only 2x our combined annual salary with a 25% deposit. To say something like that only a decade later people would think you are mad.

Luckily house prices have fallen 4.6% year to date and will go lower but they still need to come back down to pre covid rates really.
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Gees. 2x income. Can't even imagine that.
A house you're happy to stay in for 2x income.

Problem with coming down to pre covid.. That's a huge drop for those who bought at the peak.
Its a 20pc+ decline. That's a lot if you have a 4x-5x salary mortgage

What would probably be the best for all would be stagnation in absolute value, and thus mild decline with inflation
 
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dlockers said:
If you live in the SE/your kids live in the SE, you have won the "getting started" lottery anyway.
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That's an interesting perspective. I mean I guess I never think of it like that. I think it's a double edged sword. Yeah they are living in the richer part of the UK, but in some respects that is the very thing hampering them.
 
dlockers said:
The fact FoxEye will inherit a score for none of his own hard work is also lol.
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Inheritance is not something I think about for a number of reasons really.

1: Parent's I would like to think are many, many years away from that. I'll be retirement age+ I would think.
2: I'm one of 3 so would be shared a minimum of 3 ways reducing significantly.
3: It's taxed heavily.
4: Care costs will most likely eat it all anyway.
5: I'd then share it to my kids reducing further.

I've pretty much written if off in my head and I think that's a good thing. No plans should be made around it.
 
Mercenary Keyboard Warrior said:
Yep as I said earlier. very limited movement is preferable, overall, than swings
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It allows planning, it reduces stress(not to be downplayed) and helps FTB.
Also local economy as less cash would hopefully be locked up in housing.

Only people it doesn't help is downsizers. And less face it, having help when you're young (getting onto the ladder) irrespective of inheritance (not everyone has it) pays dividends when you're older.
 
dlockers said:
Is it an unpopular opinion to say house prices are a bit irrelevant/relative?

I mean I'm fortunate enough to live in a very expensive house, and I have lots of friends doing the same. The loud minority on here don't represent my lived experience.

Like Fox whinging about Cornwall but there's a perfectly good house in st austall for 200k. Just cut your cloth accordingly?

Work a bit harder or live somewhere less desirable.
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The forum is an interesting place to browse, you have people with cars worth more than people's houses, £6000 PCs, houses with swimming pools etc
 
dlockers said:
I lived in Zone 4 in a 4 bed house share for £580/mo.

The problem is - "half" the people are willing to put the hard yards in. The other "half" are not. I've got friends who are cross they can't do what I can but they haven't left their own postcode since leaving school.

If you live in the SE/your kids live in the SE, you have won the "getting started" lottery anyway.
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"I won't commute for 45 mins"
 
sigma said:
The forum is an interesting place to browse, you have people with cars worth more than people's houses, £6000 PCs, houses with swimming pools etc
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Each to thier own. But there's a naff house near me with a brand new fancy audio (not etron, probably an s/rs, can't remember) and a fancy nearly new bmw (again not sure of the model)

I'd say it's a single person(house would be OK for that) but two "samey" cars makes me think it's a showy couple.
If I was prejudging I'd say they are both expensive finance deals, and would be more than the mortgage/rent.

Obviously each to thier own, but from my perspective, it seems mad
 
Foghorn Leghorn said:
True, the cost of getting it wrong in the early years is far greater.
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we'd be adding a good chunk at current rates, say best case we'd get 5%, jumping from current 2%

it'd be going from 1650ish month to 2k ish (that's come renewal with 0 overpayment on a 350k ish mortgage)

I'm hoping to get that down to 337ish with overpayments by '25 which would keep us under £2k/month on a 25year term - think next time I'll just max out the term to lower the monthy impact and dump a monthly overpayment on top.
 
jaybee said:
That's an interesting perspective. I mean I guess I never think of it like that. I think it's a double edged sword. Yeah they are living in the richer part of the UK, but in some respects that is the very thing hampering them.
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I had to move to SE as that is where the opportunities are. In doing so, I've lost all of my support network (family etc) so I've had to demand I get compensated sufficiently to allow me to live the life I want to live.

I have friends born in the SE who fit into two camps:
1. Conditioned that they are the victim
2. Leveraging the fact they are in the SE
3. Have been given massive leg ups by their folks

The problem with '2' is, that leveraging is taking the form of staying at home making decent money and saving - but the house prices are growing quicker than their savings. Because the safety blanket is so close (speaking literally in terms of distance), it becomes very comfortable. I've got colleagues who are smoking hot but are now hitting biological clock challenges because they just haven't left home, found a partner, shagged around a bit etc.... but have like 200k in the bank.
 
dlockers said:
I have friends born in the SE who fit into two camps:
1. Conditioned that they are the victim
2. Leveraging the fact they are in the SE
3. Have been given massive leg ups by their folks
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I know people that fit all 3 of them. For some I agree there is no hope. They don't have the motivation to create a life and revel in self pity and do nothing. That's guaranteed to not help.
But for those that try hard and still struggle, it is hard to take.
 
grudas said:
we'd be adding a good chunk at current rates, say best case we'd get 5%, jumping from current 2%

it'd be going from 1650ish month to 2k ish (that's come renewal with 0 overpayment on a 350k ish mortgage)

I'm hoping to get that down to 337ish with overpayments by '25 which would keep us under £2k/month on a 25year term - think next time I'll just max out the term to lower the monthy impact and dump a monthly overpayment on top.
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Ouch :(

In that situation I'd have no choice but to sell and try to downsize. When we moved 5 years ago I extended our mortgage term but kept up the higher payments purely so if the **** hit the fan I knew I could reduce payments back down, and with First Direct there's no limit to the overpayment.
 
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