Mortgage Rate Rises

adam cool dude said:
It is not a perfect storm though is it. You would have to be blind to think paying the country to stay at home 2 and half years ago would be met with no bad outcome.
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To be fair, the Covid borrowing and also the Energy subsidy borrowing weren't *that* much of a problem. because a) every country is/are doing it, so it's all relative, b) it's a one off cost that just raises everyones debt similarly and c) the cost of not doing them far outweighs the cost of doing them.

The issue has been the pants on head decision of this mini-budget to borrow not for investment, but to fund tax cuts and then to not even lay out economic forecasts and reasonings detailing how the Govt expect it to work. Funnily enough "Trust me" from Blunder Truss and Kami-Kwasi just isn't enough for the international money markets.
 
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No one has actually said rates are going to definetly reach 6% it is a conservative prediction at this point in time.

With my tin foil hat on you could say its scaremongering and shocked everyone into using spare cash to pay down their mortgage or start saving which would reduce inflation
 
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a1ex2001 said:
it is a perfect storm though we have two simultaneous major issues (COVID followed by War in the Ukraine) and countless smaller ones damaging the global economy and a third (Brexit) that is special to Britain also battering us simultaneously, when you then throw in a British government that seems hell bent on making it worse if that doesn't add up to the perfect storm for you I don't know what does!
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That's the point. Things like what you have been mentioning happen all the time throughout history. You cannot expect the world to be a utopia and perfect. This is why those that extend themselves end up bankrupt.

Maybe I am on drugs but the moment Covid hit (I am pretty sure I even mentioned it) that we would go into a recession. Regardless of the energy crisis which was partially influenced by Covid anyway. All that has done is hasten its arrival. Brexit hasn't really changed anything as the rest of Europe are in it just as bad or even worse in some cases. At least we are not attached to the EU when it sinks.
 
adam cool dude said:
Why should they? What about the people who have been cautious about what they do. I don't want to be paying off other peoples mortgage with my tax because they have over stretched themselves.

Absolutely nothing will be learnt if the government bails everyone out and will continue the same till it happens again 10-15 years from now.
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Yes but do you want the entire economy to implode, your house price will go down. Don't cut off ones nose...
 
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Freakbro said:
To be fair, the Covid borrowing and also the Energy subsidy borrowing weren't *that* much of a problem. because a) every country is/are doing it, so it's all relative, b) it's a one off cost that just raises everyones debt similarly and c) the cost of not doing them far outweighs the cost of doing them.

The issue has been the pants on head decision of this mini-budget to borrow not for investment, but to fund tax cuts and then to not even lay out economic forecasts and reasonings detailing how the Govt expect it to work. Funnily enough "Trust me" from Blunder Truss and Kami-Kwasi just isn't enough for the international money markets.
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That's some mindset. No big deal if we follow everyone else's failings. The world was warned about shutting down their economies. If they jump off a cliff, lets also follow on.
 
adam cool dude said:
That's the point. Things like what you have been mentioning happen all the time throughout history. You cannot expect the world to be a utopia and perfect. This is why those that extend themselves end up bankrupt.

Maybe I am on drugs but the moment Covid hit (I am pretty sure I even mentioned it) that we would go into a recession. Regardless of the energy crisis which was partially influenced by Covid anyway. All that has done is hasten its arrival. Brexit hasn't really changed anything as the rest of Europe are in it just as bad or even worse in some cases. At least we are not attached to the EU when it sinks.
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Started well, ended up pants on head.
 
neocon said:
Yes but do you want the entire economy to implode, your house price will go down. Don't cut off ones nose...
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It honestly doesn't bother me because everything is relative. I am actually hoping the prices crash because that's when I make my move if a want to get into my "final" house the cheapest way possible.
 
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I don’t know why there is such scathing sentiment against people that “can’t afford it” when the changes are going to significantly affect huge swathes of people regardless of whether they can afford it or not. People are going to have hundreds of £ less available than before.

So widespread is the scope of people that this will negatively impact, that if you’re not affected you should consider yourself lucky you’re not amongst the masses affected, who are mostly in the situation by virtue of just living their lives.

In fact, the people who have ‘buckled down for years and saved hard for a mortgage’ are exactly the people who are being ****ed by the rates rises.

So yeah, no idea why there is this sentiment against anyone. Mostly in it together.
 
adam cool dude said:
That's the point. Things like what you have been mentioning happen all the time throughout history. You cannot expect the world to be a utopia and perfect. This is why those that extend themselves end up bankrupt.

Maybe I am on drugs but the moment Covid hit (I am pretty sure I even mentioned it) that we would go into a recession. Regardless of the energy crisis which was partially influenced by Covid anyway. All that has done is hasten its arrival. Brexit hasn't really changed anything as the rest of Europe are in it just as bad or even worse in some cases. At least we are not attached to the EU when it sinks.
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Brexit is not having a more significant impact on the UK than any other country in the world ...... Hmmmm not sure if serious.

Anyway ignoring that comment please point to the last few times in history we had anything like the current level of global issues with anything close to the same impact on the economy, you say it happens all the time so shouldn't take you two minutes.

I'm lucky in that I can hopefully afford the likely rate increases and our fixed rate insulates us for a few years so we can plan and hopefully salary increases will make it less of a shock than it could have been, it won't be particularly pleasant though and I will be noticeably worse off than I have been which will require some cut backs I'm sure which will have a knock on effect on those places I spend my money and our PM is making it worse for 90% of the population instead of better!
 
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adam cool dude said:
Brexit hasn't really changed anything...
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Brexit has changed absolutely everything, by pretty much whatever metric we care to look at.

The impacts have been gargantuan and the effects are all going to feed in to worsening the mortgage affordability crisis that we're about to find ourselves in.

You can't just handwave away things like the UK's GDP growth per capita utterly collapsing versus France/Germany since 2016.

This stuff matters as it underpins everything, and unless we finally face up to reality and begin working to rebuild what's left of our trading relationship with the EU, then this heartbreakingly sad economic decline is going to continue.
 
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V F said:
That's some mindset. No big deal if we follow everyone else's failings. The world was warned about shutting down their economies. If they jump off a cliff, lets also follow on.
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Did the financial markets go into meltdown over UK PLC when we and everyone else did it? No. That is the context of the post you quoted.
 
SpeedFreak said:
Nationwide mortgage rates are now at c. 6%. This is going to get brutal.
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I think a lot of the high prices are due to the volatility in the market and banks trying ti reduce demand. I reckon the will come down again once things start to settle over the next couple of months.

Base rate is still only 2.25
 
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Freakbro said:
Did the financial markets go into meltdown over UK PLC when we and everyone else did it? No. That is the context of the post you quoted.
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We also don't know what is ahead because of the consequences of this mess that didn't need to happen.
 
kevman said:
No one has actually said rates are going to definetly reach 6% it is a conservative prediction at this point in time.

With my tin foil hat on you could say its scaremongering and shocked everyone into using spare cash to pay down their mortgage or start saving which would reduce inflation
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Which will cause GDP to plummet and tax revenues to fall.....................
 
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