The increase in rates I referred to in my post is for a <60% LTV mortgage - these are massive increases not only for those that have ‘stretched their budgets’, but also for basically anyone that has bought a house in the last 2-3 years using a mortgage.
personally i think were gonna be seeing 6-7% before the tax year is out.What are people thinking worst case for a 60% LTV is going to look like over the next year? I hear talk of "6%" but is that a headline figure based around the worst case aka 90% LTV etc? Yes I should do my own research. This is part of it
santander used to do a declining % like most banks 5 year fix starts at 5% erc, then drops 1% a year.
Absolutely. We borrowed about 40% of what we were offered, because we wanted to have enough of a buffer should the proverbial hit the fan. I know many others who have borrowed the full amount and overstretched in order to get into their dream home.
That depends on where u live…
Hence we don’t live in London, even if we could afford it (for what kind of house we want) it’s not somewhere I’d want to live anyway.
Yup many factors at play. I borrowed the max when I first got my property 8 years ago.
We switched rate with HSBC last night - 75% LTV 5 year fix 3.92%. This morning that same product is 5.34%! HSBC have ramped everything up by 1.5-2%.
A standard 2 year fix at 90% for a first time buyer with HSBC is 6.24%. When we bought 20 months ago it was 2.69%.
Moving to a new deal with HSBC as an existing customer is a relatively trivial process - all done online via an automated process without any credit checks or assessments. It took a grand total of about 15 minutes. If you're changing the length of the mortgage, borrowing more or seeking advice from an advisor it becomes more complex, but all we wanted to do was move onto a new fix.
Some youngsters literally won't have known anything apart from low rates since 2008. For them it has been the way of the world, much like high housing costs. But where do you draw the line, is being cautious budgeting up to 3%... 6%? Or 10% or even 25% interest rates?! Who the hell knows. Recent events have simply shown that houses are too expensive across the board compared to incomes (as is rent), successive governments have done nothing but drive this inflation and now we will suffer the consequences.
And what happens when everyone moves to a "cheap" town. Derr it becomes expensive. Exactly what is happening up north in Manchester etc. Prices there have been rising faster than London for ages. Also, have you tried looking at any commuter towns around London <1hr on the train. Prices have been going up faster than houses within London proper in the last few years. People would rather save a bit longer, take on a bigger mortgage, or pay more rent to live in London because the alternative is to pay more to train companies for which you get absolutely nothing in return. (I did that for a while, it's hideous) If you have two earners/commuters in your household you could be looking at £10k/yr+ to get the train into London, it's jokes.
Exactly what I did.
