Mortgage Rate Rises

Slam62 said:
So you are focusing on what you perceive the older generation are saying/thinking rather than the real issue which is that house prices are too high.
Click to expand...

no one is "perceiving what the older generation are saying" - it IS what they are saying. Any time someone from younger generations mentions how tough it is to buy a house or that the older generations had it easier to buy a house (affordability wise), the automatic rhetoric from the older generations is how tough they had with things like "we had interest rates of 15%!!!!"

The real issue IS that house prices are too high but, instead of addressing this, the older generations take the hump and get defensive.

Tell me if any of the following points are incorrect:
  1. House Prices are too high today (and for last 10 years)
  2. Average House Prices as a multiple of average incomes are a LOT higher than the 1960s-1990s
  3. Given 2, this makes it harder w.r.t affordability to purchase a house since circa 2010 than in the 1960s-1990s
 
Last edited:
Richie said:
The real issue IS that house prices are too high but, instead of addressing this, the older generations take the hump and get defensive.

Tell me if any of the following points are incorrect:
  1. House Prices are too high today (and for last 10 years)
  2. Average House Prices as a multiple of average incomes are a LOT higher than the 1960s-1990s
  3. Given 2, this makes it harder w.r.t affordability to purchase a house since circa 2010 than in the 1960s-1990s
Click to expand...

There is no way for us to address this, it is neither the fault nor the responsibility of previous generations to rectify. It is largely the responses of central bankers to the crisis that they caused in the first place. Ever cheaper credit and increasing money supply are a major cause. Politicians and bankers in the 21st century have not been able or wanted to control house prices adequately, this seems to be the case still.
Most private landlords are now in their forties or younger, they are the ones with their hands on the housing supply. I have only ever owned one house at a time and that always bought with great attention to ability to pay in mind. I have lived in private rented from 2012 to 2022 returning to buying just three years ago.
 
Hagar said:
Most private landlords are now in their forties or younger.
Click to expand...
Citation needed. I'll help..

Age, ethnicity and gender of landlords​

The median age of individual landlords was 59 years old. Almost two thirds (64%) of landlords were aged 55 or older, a similar proportion to the 2021 survey (63%). Landlords with larger portfolios tended to be older. Over three-quarters (77%) of landlords with five or more properties were aged 55 or older, compared with 57% of single-property landlords, Annex Table 1.7.

In terms of ethnicity, 87% of individual landlords identified as white, 8% Asian, 2% mixed, 2% black and the remaining 1% as other. Annex Table 1.8. This is similar to landlords in 2021. In the 2021 Census statistics for England, a smaller proportion of the population identified as white (81%). The remaining population identified as Asian or Asian British (10%), 4% as black, black British, black Welsh, Caribbean or African, 3% mixed or multiple ethnic groups, and 2% other.

Half (50%) of individual landlords were female, 49% were male and 1% identified as ‘other’. The proportion of female landlords has increased since 2021 when 44% said they were female. Male landlords were more likely to have larger portfolios, with 63% of landlords with five or more properties being male, Annex Table 1.9, Figure 1.3.
Click to expand...
www.gov.uk

English Private Landlord Survey 2024: main report

www.gov.uk www.gov.uk

So in essence... entirely fabricated? How you feel or something you read?
 
Remortgage time looming soon, will be leaving 1.7% rate so it's going to sting a little.

We have typically gone with 5 year fixes which has certainly played in our favour last time but the rate market seems very mixed for 2 or 5 years fixes. I am hoping it might seem clearer in a couple of months.
 
shiver said:
Remortgage time looming soon, will be leaving 1.7% rate so it's going to sting a little.

We have typically gone with 5 year fixes which has certainly played in our favour last time but the rate market seems very mixed for 2 or 5 years fixes. I am hoping it might seem clearer in a couple of months.
Click to expand...

Hard to say at the mo.. inflation has seen a slight rise to 3.8%

www.independent.co.uk

Why inflation has risen above expectations – and what it means for you

Rachel Reeves has said there is ‘more to do to ease the cost of living’ following the latest figures
www.independent.co.uk www.independent.co.uk

If we assume BOE is targeting 2% inflation, that makes a further 0.25% interest cut this year less likely, especially if that trend continues... and we've got the Autumn budget comming up so that could impact things too...
 
Hagar said:
Well dropping bank rates has not done much to reduce inflation this year. My ISA savings interest rate with Yorkshire BS is being kept the same after the last reduction leading to thoughts that the bank rate may go back up in September?

As for the above, yes people today do have it tough but also you cannot live the lived reality of previous generation through articles on the Internet. I will concede that it may be or is tougher than we had it but there are multiple other factors of being in that time. Most people just got on with it.
Click to expand...

Definitely agree with not dwelling on the past.
And also not focusing everything on the future.

If it was harder/easier doesn't make life any different today or tomorrow. You have to make best of it.

Is harder now for sure. But there are more options for travel and more life paths and less societal pressure.

I wouldn't trade now for the past at the end of the day. I expect I'd be richer in money in past but I'd probably be living a life that others think I should lead vs a life I chose.
 
Hagar said:
There is no way for us to address this, it is neither the fault nor the responsibility of previous generations to rectify.
Click to expand...

I didn't say it was the fault nor responsibility of the previous generations to rectify house prices. You've kinda proved my earlier point on defensiveness and taking objective comments as a personal sleight (generationally speaking) TBH.
 
Not a political post, but just wondering, is there a risk that Rachel from Accounts' autumn budget could be just as disastrous as Liz Truss' mini-budget back in 2022?

I'm due to remortgage at the end of the year, so I think I'll get a rate locked in before the budget.
 
Last edited:
FBi7 said:
Not a political post, but just wondering, is there a risk that Rachel from Accounts' autumn budget could be just as disastrous as Liz Truss' mini-budget back in 2022?

I'm due to remortgage at the end of the year, so I think I'll get a rate locked in before the budget.
Click to expand...
I mean... The simple answer to that is no.

It boggles my mind that anyone could think that tbh.. one was a bat**** crazy idealogue who'd crawled to the top of the pile of a lot of quite far right free market nutcases in the thrall of lunatics like patrick minford..

The other has been trying to clean up the mess for a year.
 
Last edited:
Hagar said:
My bad, that particular sentence. The rest in essence stands.
Click to expand...
It does to some extent although the average landlord being nearly 60 does somewhat reinforce the fact that property wealth is distributed to the more elderly and they have a vested interest in that not changing.

My own personal view is we need a period of prolonged stagnation with price controls, the purchase of multiple properties curtailed drastically, property becoming no longer a sensible investment or retirement income stream etc.

Radical thinking like for example a subsidised mortgage market with the government taking any "profits" upon sale making such profits meaningless and killing the inflation in the market stone dead. Banning leasehold properties. Massive council house project etc.

But then the right wing client media would go mental screaming about communism, they're not far off now and this labour government could show Blair a thing or two about being right of centre.
 
Richie said:
I didn't say it was the fault nor responsibility of the previous generations to rectify house prices. You've kinda proved my earlier point on defensiveness and taking objective comments as a personal sleight (generationally speaking) TBH.
Click to expand...
Previous generations definitely had it easier when it come to house buying. Generally. They could buy a house and raise a family on one income, and they were competing against less people to buy a house.

Don't need any specialist qualifications to understand that.

But yeh, the old and bold normally defend that circumstance by alluding to their higher interest rates/inflation/lack of Netflix, Costas and iPhones as the reasons
 
matt100 said:
I mean... The simple answer to that is no.

It boggles my mind that anyone could think that tbh.. one was a bat**** crazy idealogue who'd crawled to the top of the pile of a lot of quite far right free market nutcases in the thrall of lunatics like patrick minford..

The other has been trying to clean up the mess for a year.
Click to expand...
At least Truss had some ideas on how to try and stimulate growth, Rachael from accounts is instead busy tanking an already fragile situation with basically zero knowledge and experience. Expect things to get worse.
 
Last edited:
FirebarUK said:
At least Truss had some ideas on how to try and stimulate growth, Rachael from accounts is instead busy tanking an already fragile situation with basically knowledge and experience. Expect things to get worse.
Click to expand...


If I recall correctly, Trusses 'ideas' damn near crashed the entire UK economy.

Just because a person has ideas, it doesn't mean they are good ones.
 
b0rn2sk8 said:
It’s not even my kids, I’m looking at my siblings (~15 year age gap) and thinking the same thing.
Click to expand...

Yup absolutely.

They be honest even our generation, I got lucky really, one of my brothers earns double what I do and he's mortgaged to the hilt on a 1 bed flat and he's been sensible with money. At least he got on the ladder I suppose.
 
You must log in or register to reply here.
Back
Top Bottom