Mortgage Rate Rises

I'm tracking properties around my area and things are not moving at all. Some sellers not reducing , others are dropping 25k and 50k but doesn't seem to make much difference.

I was listening to a podcast and apparently chains are breaking because the FTB at the bottom reneging at the last minute causing the chain to collapse.
 
neocon said:
I'm tracking properties around my area and things are not moving at all. Some sellers not reducing , others are dropping 25k and 50k but doesn't seem to make much difference.

I was listening to a podcast and apparently chains are breaking because the FTB at the bottom reneging at the last minute causing the chain to collapse.
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Give it a bit of time. The Repo's will be coming soon.
 
Considering upsizing, I spoke with my mortgage advisor today. His advice has served me well over the last decade and so far has saved me a small fortune. He said I’d be mad to upsize now - prices are falling and rates have quite a bit more to fall within the next 12m. My gut feel wasn’t a million miles off beforehand but now I’m more inclined to wait it out. Others seem to be doing the same.
 
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Read that there's been a sizable reduction in UK mortgage debt.
People aren't moving house. And new buyers aren't entering the market and people are paying down thier mortgages.

Which I guess is exactly what the BoE want. Drive money out of the economy.


This is making banks clamour and compete for customers to lend to. Which might explain the mortgage offers I'm getting across all my accounts. Never had that before.
 
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Scuzi said:
Considering upsizing, I spoke with my mortgage advisor today. His advice has served me well over the last decade and so far has saved me a small fortune. He said I’d be mad to upsize now - prices are falling and rates have quite a bit more to fall within the next 12m. My gut feel wasn’t a million miles off beforehand but now I’m more inclined to wait it out. Others seem to be doing the same.
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Timing is always an issue with these sort of things, if your plan is to wait it out then get all the ducks lined up and finger on the trigger. By the time you have the data to see prices plateauing / on the rise against, the window of opportunity has started diminishing due to the lag in data, time to find a property / mortgage etc. Hard to get it so you are buying right at the bottom of the trough rather than on the way back up.

I'm interested in upsizing, ideally without a mortgage so not bothered about rates - in fact falling rates would probably be bad for me because it would increase demand and hence put upwards pressure on prices.
 
I'm interested in moving too.
But I'm very fussy about property. As I've learnt some things from this one.

I don't think I'll have to extend the mortgage. And one reason I haven't been overpaying is that I have that cash to make any shortfall up.

Will probably be seriously looking in the next year. But a few decisions have to be made
 
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413x said:
Last time I looked 5-6pc?

I'd be happy if it came down to 3 when I have to remortgage
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Deep down, I think 4% would be the norm for a while. I can't see inflation going down to like 2%, which is what is required for a 3% mortgage rate. I can't see we hit the 2% inflation target for a while, not with all the challenges in politics, the war, climate, Brexit etc.
 
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neocon said:
I'm tracking properties around my area and things are not moving at all. Some sellers not reducing , others are dropping 25k and 50k but doesn't seem to make much difference.

I was listening to a podcast and apparently chains are breaking because the FTB at the bottom reneging at the last minute causing the chain to collapse.
Click to expand...

I imagine things are more likely to break at the moment as the situation is more volatile, people lower down the chain are being hammered to get on the ladder. People higher up the chain are also being hammered because they're not getting many viewings/offers, because they need to sell at an unrealistic price from 18 months ago - to get enough cash to join everything up.
 
Raymond Lin said:
Deep down, I think 4% would be the norm for a while. I can't see inflation going down to like 2%, which is what is required for a 3% mortgage rate. I can't see we hit the 2% inflation target for a while, not with all the challenges in politics, the war, climate, Brexit etc.
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4 would be 'ok' it would probably leave me with the same monthly payment at remortgage as before.
3 would be nice. But as you say, inflation would have to drop so far!
 
I spoke to my neighbours who said they can't accept any less on thier house than asking.
I think they need it for the new house.

Apparently it's an inherited house. So I'm assuming they have to pay off a sibling for thier share?

I think its very optimistic. Ie, if it sells for that our house will be worth similar! And more than I'd expect.
 
I am in shared ownership but have paid off our owner share, and am planning to staircase to 100% and freehold; and although we were in the position to buyout just before COVID, we held off not knowing what would happen with jobs etc (hindsight eh given the rate changes, wish we had gone for it now but father in law talked us out of it expecting a housing price crash which never materialised), especially as given we had paid off our share, the rental component has been really low.

Unfortunately, we recently received notice that our current landlord on the share is considering selling up the on the estate, and I have seen plenty of horror stories where new owners cause all sorts of complications; both in terms of allowing staircasing, making it difficult to take freehold, but also ramping rental massively; and I am quite eager to get out before this comes to pass (as I'd wanted to move on buying out pre-COVID ANYWAY), plus it will also give us lots more flexibility in terms of rework/improvements to the property.

Myself and the wife both work; so the plan is to get a mortgage that allows overpayments without big penalty so we can overpay (our last Santander mortgage was very good for this), and cut the mortgage term and ergo the interest accrued long term. We like the area, and the house (And have a side of the house driveway so have option to extend the house/build garage and upstairs extension, which means we could well be here for many years.)

Looking at the rates now, I am thinking a variable rate mortgage is the rate to go, the mortgage rates seem to have plateaued somewhat over recent months, and house prices seem to be sitting, not necessarily falling in my area, but they've stopped RISING at least for now. The house is a 2 bed semi though so very desirable in the sense there will always be someone wanting them, so I expect prices to start going up again sooner or later. Am I being overtly complacent thinking the rates may fall a bit, or should I just look to get a medium term fixed rate going (3-5 years) to give some dependability, in your humble opinions?
 
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413x said:
I spoke to my neighbours who said they can't accept any less on thier house than asking.
I think they need it for the new house.

Apparently it's an inherited house. So I'm assuming they have to pay off a sibling for thier share?

I think its very optimistic. Ie, if it sells for that our house will be worth similar! And more than I'd expect.
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Hardly anyone is getting what they are putting their houses on the market for. Most are simply dreaming.
 
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Jono8 said:
Hardly anyone is getting what they are putting their houses on the market for. Most are simply dreaming.
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I don't expect it to sell. It's priced at peak covid prices. They have an open day coming up. Will be interesting to see how many turn up!
 
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413x said:
I don't expect it to sell. It's priced at peak covid prices.
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Yeh, unless it is especially unique or some sort of premium place that would appeal to rich people for which money is no object, they aren't getting last years price for it.
 
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