Yeah they aren't really known for fueling the flames.
Very much feels like the energy price stuff.
In October the advice when I fixed was.. Don't fix this is a blip. I fixed. Its not a blip.
Doing same with mortgage. It's not a blip.
Interest rates increased
- Thread starter Dirk Diggler
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Yeah they aren't really known for fueling the flames.
Very much feels like the energy price stuff.
In October the advice when I fixed was.. Don't fix this is a blip. I fixed. Its not a blip.
Doing same with mortgage. It's not a blip.
Associate
Agreed, this is 5 years of real pain, and maybe never go back down, just everything gradually catch up, or not.
Soldato
Silly low interest rates were never going to last for ever.
I just hope that anyone buying a house past few years was sensible of the affordability and can cover the possible extra hundreds a month interest.
Oh well not like everything else is going up as well right?..................................
I just hope that anyone buying a house past few years was sensible of the affordability and can cover the possible extra hundreds a month interest.
Oh well not like everything else is going up as well right?..................................
I would have gone 10 had it not been for the high get out fees. And life changes (break up, leave the country, moving difficulties)
If I was single and stable I think I'd have gone 10.
Most people have no concept. I mean I only really paid attention as I got close to the time to buy. I was looking at rates between 1-2pc and thinking "that 2.3 seems a lot more than 2.0" never did I really consider 5pc etc. And I'm an overthinking/maths type.
Average Joe would have no chance of thinking
'if I remortgage now and pay the exit fee I'll be better off long term than waiting"
2k seems a lot to chuck away right now vs "1pc" later.. Every month.. For years.
Thr average person can't work out the price cap on energy. They have no chance with mortgage rates
Associate
My first mortgage was 1997, I think 10% deposit and I paid 6%, I thought that was a good deal at the time - that was what was normal then. I can see it going back up there agin in the next 3+ years.
Soldato
Edited - oh, I see. Your complaining about the cost of houses in the UK relative to income? Yes, it's a ball ache but I'm not sure what can be done to resolve it.
No, it's similar to others - £80K. Pre-COVID house prices in West Wales were still fairly sensible. I've owned the other 3 between 7 and 20 years so mortgages aren't huge.
Just as they are looking to weaken the affordability tests....
Soldato
I dunno I cant see how people with those jobs easily gained the ability to get that much property simply. However timing may have made a big difference.
Why for example did they get 3. Suspect at some point they had funds available to double up.
My grandparents, served as youngsters in WW2, when they married sometime after the war they couldn't afford a house they had to rent a room, and thats with my grandfather in the police by that point. I know my nan worked but forget what, I think shop but not sure.
My parents managed to afford a decentish house, but gained quickly in the 80s, my father an accountant and my mother part time (full time mum she would say). They skimped on many things, I for example had crap clothes/trainers when I went to secondary school, most of the "poor" kids had better gear than me, whilst we lived in a highly desirable area.
I didn't struggle as such to buy, first property right at the start of the 90s. In fact I would argue from everything I was told by both my parents and grandparents I probably had it easier. I think by then wages were better. I did have a pretty decent job (accountant) and my other half also had a decent office job. It wasnt easy, and this is my point, its never been really cheap, like no need to worry about money cheap to buy a house. What was easier to manage was that the house prices were cheap, but the rates high. As the rates started to come down, and house prices went up then the affordability for those already bought in get better really quickly, when you have highish inflation driving highish wage rises once your on the ladder its great.
People forget lots of things in regards mortgages as well, and the general state of housing and space etc.
60s etc land was cheap, and as such there was no real pressure to maximise density in fact there were no density plans. Whilst people blame developers for smaller houses its the councils that devise the density plans! So there was more land available for fewer houses.
Nimbyism wasn't really a thing
You couldnt just apply to a bank for a mortgage. Banks mainly didnt do mortgages, and so you were forced to use a building society, and they wanted to see far more evidence of good financial management, like for example having a good savings history WITH THEM.
Capital was often limited, my father tells me of when he would que round the building society on the day they released funds in order to secure a mortgage, once the allocation was done thats it. "Come back next month folks"
Cities, towns etc were smaller. So everyone was closer to stations etc, public transport worked (somewhat) so it was far easier to get around without a car, and people tended to work closer to home, less commuting costs.
I knew a girl at work in the early 90s. She was struggling to pay her mortgage, she stopped eating. I think many who never saw it think it was different somehow.
Things like "At 10:30 am on 16 September, the British government announced an increase in the base interest rate, from an already high 10%, to 12% to tempt speculators to buy pounds" happened.
A simple solution to start addressing the issues would be to start getting the public on board to much more land being used for housing, until you do that you have no hope.
The housing would probably feel a hell of a lot better value for money if more space was allocated, the costs of adding an extra couple of metres in each direction when building isnt that high since a big chunk is fixed costs. Kitchen, bathroom, staircase, heating system etc etc
Soldato
Sorry I meant they managed to upgrade houses 3 times. Not own 3 properties (although they did own 2 at a time)
As soon as I saw the thread title I thought “I bet they’re all in there trying to e-peen about how big their mortgages are”. Thread did not disappoint.
Strange times when people try to boast about the crazy amounts of debt they’re in.
Strange times when people try to boast about the crazy amounts of debt they’re in.
Inflation is still predicted to rise until the end of the year.
Caporegime
Most people don't have an issue with land being used for housing, they have a problem with the way these things are done. The local amenities are not considered, new areas are built to maximise profits for developers, not to create good places to live. New build estates are horrible rabbit warrens designed to cram as many houses as cheaply as possible into the land. Parking is awful. Houses are poorly built and ugly.
We have unfortunately got to the stage with our population that the infrastructure simply isn't capable of sustaining the number of people. Add another 5000 cars to most areas that are already built up and it just makes the issue way worse.
I know part of it is NIMBY-ism but I don't really blame people. They bought a house in an area with a certain environment in mind and suddenly you might find that its completely changed due to a new massive housing estate being built on your doorstep. Fingers crossed it isn't all social housing as well.
I believe into next year too if its a slow rise
Associate
Exactly this, interest rates will rise until inflation comes down, realistically at least 2 to 3 years, and it is unlikely that interest rates will then return to recent levels again.
Soldato
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Damn, times have changed. We bought our first house in 2002 I think I was, and the mortgage was 6.5% IIRC. It slowly came down, and down, and down....then really down!
Everyone when taking out a mortgage should budget for a 1% increase, but this 'might' be much more.
Mines up this time next year and I'll be fixing for 5yrs with a 5yr term so after that it's all paid. It does mean a few years of struggle, but I want rid of the damn thing now.
Soldato
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and he's right. I'm almost certain our neighbours house is one. They just vanished overnight and the listing on rightmove has gone from £300k to £250k in a month. Someone will pick up a bargain if they can wait it out. I'm surprised it's not already sold.
Soldato
I remember growing up as a kid and my parents, anyone of the previous generation to me basically saying we dont know how easy we have it.
I look at my kids now/generation below me thinking, damn, you guys are ******.
I look at my kids now/generation below me thinking, damn, you guys are ******.
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Soldato
I dunno about most people not having an issue, it seems where there is most capacity people really do care
Your right, we build to high density (by existing UK terms) but as I said thats not the developers, thats the council, they create a plan and part of that is the density. As they up the density they need to find less land to allow building on, less NIMBY issues etc
I struggle to agree with the poorly built, its different, having lived in houses across the ages of most UK housing stock, 1890s to early 2000s they all have pros and cons. I tend to look back at all of them and say that was good, that was bad. Etc
Eg the 1890s had to have extension for bathroom and kitchen, plumbing was surface mounted, had lathe and plaster ceilings, walls were curious, some places like granite, some like sand solid walls that sucked heat out in the summer and felt like radiators in the summer etc.
I find most modern houses ok to look at. I can certainly think of better, but again I can certainly travel not far from me and see far far worse! Beauty is in the eye of the beholder.
The problems with infrastructure is most of it has been privatised so the developers need to pay that as well and of course they do the minimum, there is no national infrastructure plan. No socialising of services, just ask anyone who needs to get a quote for electric to a new location etc.
People simultaneously complaining not enough is added to the price of the house for lower density, more roads etc, whilst simultaneously complaining they are too expensive. I think Schrodlinger may comment there
This is the issue when you go pretty heavily along the route we have, its every man for himself.
We have stripped far too much to the bone, taken advantage of immigrants in regards GDP expansion and income from taxes, whilst not building up to support.
We get what we deserve.