Mortgage Rate Rises

dirtychinchilla said:
I don't think double the people working = double the salary, but I think the point you make is valuable.
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Richie said:
Goes against the gender pay gap narrative though doesn't it? ;) If it exists, women are earning less than men ergo the household income doesn't double (I realise you used quotes around it)
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I almost caveated this exact point, but decided not to as ultimately "average" covers this off, so if more women entering the work force reduced salaries...well....
 
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rG-tom said:
Is this not an almost exact correlation to the fact that in the 1980s, most households had only one income, and now most have two, as it's no longer taboo for women to work? Pretty much basic supply and demand, household incomes "double", house prices double (relatively).

Great for the women who want to work. Not ideal for those who want to raise a family in a more traditional manner now it has flipped from those who want to can to everyone has to.
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To get our mortgage it took both our wages, but the wife's wage was only taken at 1x.
1981
 
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So we've had an offer accepted...

Looking at the market for 70% ltv it seems pretty stable at around 3.9% give or take. I take it that's about right?

And given everyone seems to be at the same ish rate.. are there any benefits to any lenders like beneficial bank accounts or freebies etc that are worth considering?
 
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matt100 said:
So we've had an offer accepted...

Looking at the market for 70% ltv it seems pretty stable at around 3.9% give or take. I take it that's about right?

And given everyone seems to be at the same ish rate.. are there any benefits to any lenders like beneficial bank accounts or freebies etc that are worth considering?
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HSBC Premier and Lloyds offer lower interest rates for current account holders on their mortgages. I think Premier is the lowest on the market at the moment.

Outside of that, I think Lloyds Club is a decent freebie account - it gives you a yearly freebie if you deposit £2k a month (I move it in and straight out).
 
The lowest I've seen so far is LLoyds at 3.86 but HSBC isn't far behind at 3.94 and I'm already a premier customer so that would be perhaps a bit easier than pretending to be a lloyds customer.

Obviously I could move to Lloyds but I'm very familiar with HSBC so I'd need a decent reason to move.

Bit of a shame that offset mortgages are about 0.3% higher, they make sense to me.
 
matt100 said:
The lowest I've seen so far is LLoyds at 3.86 but HSBC isn't far behind at 3.94 and I'm already a premier customer so that would be perhaps a bit easier than pretending to be a lloyds customer.

Obviously I could move to Lloyds but I'm very familiar with HSBC so I'd need a decent reason to move.

Bit of a shame that offset mortgages are about 0.3% higher, they make sense to me.
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HSBC are listing 3.99% for premier 5 year fixed at 70% LTV when I just checked here: https://www.hsbc.co.uk/mortgages/move-your-mortgage/rates/

Club Lloyds is 4.09% on their calculator for 70% LTV.
 
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I worked out what HSBC did on my remortgage in terms of charges. I arranged a deal 6 months early before renewal and locked in in January. I did not know this, but they charged the £999 arrangement fee immediately adding it to my balance. I was under the impression that this would only be added on when the renewal and new rate kicked in in June. So I've been paying extra interest on that for 6 months. That's annoyed me. Is that normal?

Then, when I changed my renewal with them to a better rate in May, they charged me £999 again accidentally! But they credited me the £999 back a month later. So I again paid an extra months interest with a balance £999 higher.
Should I write to complain and get them to calculate the extra I paid and ask for it to be refunded?

EDIT: I can see a "DEBIT INT REFUND" of £5.94 when they returned the £999 in June, so that's obviously been accounted for. So the original point stands...normal to add to balance immediately?
 
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matt100 said:
I'm not going higher than 2 years tbh, firstly my gut tells me rates will drift down for a while and secondly we're going to spend a small fortune, it'll need revaluing and may drop the LTV further.
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So the favourite now is staying with nationwide at 3.85%...

Any better deals for 70% LTV and 2 year fix out there?
 
We need to re-mortgage in a couple months. Current rate fixed for 5 years 1.49%, those were the times. Tempted to get another 5 year fix, our LTV is ~42% so looking at 3.95% with HSBC no fee
 
BoE cuts interest rate to 4.0%.

Hopefully another cut later in the year before I remortgage, as this cut's probably already priced in to current offers.
 
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I see rates eventually at 10% because that was the 90's and PTSD instructs me it will happen again. The constant failure to balance the budget, manage the debt or the economy generally in a fiscally responsible way are reasons why; we would not be choosing 10% rates voluntarily obviously but this is the path of least resistance in my pessimistic view.
 
danlightbulb said:
I'll be happy with 3% mortgage rates by mid-2027. It might be a 2.5% base rate is needed for that though, it might not get that low.
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Yes. We are on same time line.

I'm more concerned with job security myself. That's the big one for me and my partner
 
silversurfer said:
I see rates eventually at 10% because that was the 90's and PTSD instructs me it will happen again. The constant failure to balance the budget, manage the debt or the economy generally in a fiscally responsible way are reasons why; we would not be choosing 10% rates voluntarily obviously but this is the path of least resistance in my pessimistic view.
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No way. Wouldn't be needed. Would be ruinous. The damage of rates even at 6pc would be enough to do the job.


If we had 10pc base rate and subsequent over 10pc mortgage rates we'd sell up.
 
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Yea its a problem, the recent spike in inflation I dont see as isolated and that is the (macro) trend I fear would force this outcome. I know it would cause a lot of damage, especially if many are selling all at once & banks would be under great pressure as in 2008 etc.
Its why its avoided so its hard to weigh why it would occur but I think its a possibility. More immediately I think rates fall but thats the lower bounds of a range, Im referring to the upper possible rate range.

My point of view 6% is normal median and we have been outside a normal range for a long time. 10% is so feared I've long been expecting higher inflation and that might just continue to be true, not without harm but preferred.
I dont see any easy answer, the bias to assets is deliberate and it harms those merely with a working wage as income ~ easy money policy.
 
silversurfer said:
Yea its a problem, the recent spike in inflation I dont see as isolated and that is the (macro) trend I fear would force this outcome. I know it would cause a lot of damage, especially if many are selling all at once & banks would be under great pressure as in 2008 etc.
Its why its avoided so its hard to weigh why it would occur but I think its a possibility. More immediately I think rates fall but thats the lower bounds of a range, Im referring to the upper possible rate range.

My point of view 6% is normal median and we have been outside a normal range for a long time. 10% is so feared I've long been expecting higher inflation and that might just continue to be true, not without harm but preferred.
I dont see any easy answer, the bias to assets is deliberate and it harms those merely with a working wage as income ~ easy money policy.
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Personally I see that the normal has moved and historic rates are not applicable.

Rates of 5-6 percent can now cripple the productive demographic of society.

Housing costs are massive. And companies are in debt significantly (more than historic? I don't know).

So small rate increases have a big impact on consumers. Costing jobs as companies fold, pushing up national debt so taxes increase, shooting up rent/mortgage costs, and forcing companies to raise prices of goods.

Job security is most important for me. We (me and partner) are not interested in expanding our debt (though CCs or mortgage or finance cars) due to these factors. And we obviously aren't the only ones.

I considered buying a pcp EV last year. And glad I didn't as I lost my job. Redundancies are rampant.
We want to move house but will not be increasing the mortgage. Our jobs are too volatile.


I get the feeling many people are hunkering down especially with this redundancy round and recession brewing.

I don't think we need higher rates towards 10pc to cause a downturn.

This is my noob view
 
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