Mortgage Rate Rises

BUDFORCE said:
Yea more or less.

I've actually been doing slightly more work this week as I'm doing a bit of a project.

Looking at hundreds of applications from the same two brokers, applicants all from the same community which I won't name*.

Anyway, these guys have lots of property yet are not declaring any of the income, basically apparently all unrelated applicants, all have the same style payslips, all with incomes of £10k or less. All using the same couple of accountants and all the mortgages are going through the same solicitor.

I think ...... What they are doing is instead of drawing the rental as income (and paying tax), they are setting up companies which exist on paper, probably invoicing from one company to another for some made up service, the same amount of profit made on rental income. Then getting all their mates to be "employees" of this company, and paying them all under the tax thresholds.

It's legitimate as in the income is real, but these people aren't actually doing these jobs. All declared as "admin" and when you look up the employer it's some boarded up take away or similar.

Tax evasion on a grand scale.

*Apparently it's not the done thing to be anti Semitic these days.

Shalom.
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Lol cross at Jews for doing legal things whilst logging off after 3 hours work to play video games. I back your clever clients
 
Just had a discussion with a friend, who was trying to convince me that it's all just the media blowing everything up, and it'll all be fine and something will be done to prevent carnage.

Part of me wants to believe him, but I don't understand how - when I look at the situation with mortgages right now, it's a lot worse than it was.

I also don't understand how this can just be "rectified" as there are so many knock-on effects which can't easily be undone...
 
Screeeech said:
Just had a discussion with a friend, who was trying to convince me that it's all just the media blowing everything up, and it'll all be fine and something will be done to prevent carnage.

Part of me wants to believe him, but I don't understand how - when I look at the situation with mortgages right now, it's a lot worse than it was.

I also don't understand how this can just be "rectified" as there are so many knock-on effects which can't easily be undone...
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In a recession carnage won’t be prevented just minimised.
 
I am not sure how the media can "blow" things up. The media don't set the bank's interest rates, it's the mortgage products being pulled that's making the news. IMF statement isn't made up, BoE buying bonds isn't made up. Reporting facts and what the latest mortgage rates are is just what it is.

Granted, if the media piece says that "interest rates will be 15% by 2024....that would be blowing everything up. But what i've seen where reports showing the latest rates being offered by the bank are just facts.
 
dLockers said:
Lol cross at Jews for doing legal things whilst logging off after 3 hours work to play video games. I back your clever clients
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It's.not legal if it's tax evasion (if @BUDFORCE is correct)... Tax avoidance is legal albeit morally ambiguous at times but tax evasion is illegal.


I just seen this clip from Question Time:

BBC News - BBC Question Time: 'My mortgage offer went to 10.4% after mini-budget' https://www.bbc.co.uk/news/uk-politics-63084380

10.4%?

Given her initial rate was 4.x%, I can't see it being because of risk... That increase is mental.
 
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Richie said:
It's.not legal if it's tax evasion (if @BUDFORCE is correct)... Tax avoidance is legal albeit morally ambiguous at times but tax evasion is illegal.


I just seen this clip from Question Time:

BBC News - BBC Question Time: 'My mortgage offer went to 10.4% after mini-budget' https://www.bbc.co.uk/news/uk-politics-63084380

10.4%?

Given her initial rate was 4.x%, I can't see it being because of risk... That increase is mental.
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It is going through the system, BOOM surge all over the western financial system..
 
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I’m stuck with what to do myself

I remortgaged on a tracker earlier this year, at 1.8% I think, I have a 56% LTV.
Mortgage was £336, but as of today, is now at £390.

When I looked at fixing 2 years + originally, i could have got it at £400 if I recall, but now it’s quoting £477 at 5.09%

I have a meeting Friday next week but I feel it’s gona rise again before it comes

How much does the baseline have to jump to reach those ‘fixed’ prices? Am I being daft considering staying on the tracker ? Or do I suck it up and pay £140 extra for the next 2-3 years?
 
I think at the moment the first question is what's more relevant to your situation, affordability/keeping up repayments should things get worse or saving money in either short or long term.

Right now if it were me i'd be looking at either 2yr or 10yr fix. 5yrs just feels sketchy as the general election i feel is very relevant right now looking at Truss' strategy.

Staying on a tracker for 2yrs could be plausible for a few people.
 
Screeeech said:
Just had a discussion with a friend, who was trying to convince me that it's all just the media blowing everything up, and it'll all be fine and something will be done to prevent carnage.

Part of me wants to believe him, but I don't understand how - when I look at the situation with mortgages right now, it's a lot worse than it was.

I also don't understand how this can just be "rectified" as there are so many knock-on effects which can't easily be undone...
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Sadly the government can't do much when it comes to interest rates. With the gas and electric they could step in,
 
scottomus0 said:
I’m stuck with what to do myself

I remortgaged on a tracker earlier this year, at 1.8% I think, I have a 56% LTV.
Mortgage was £336, but as of today, is now at £390.

When I looked at fixing 2 years + originally, i could have got it at £400 if I recall, but now it’s quoting £477 at 5.09%

I have a meeting Friday next week but I feel it’s gona rise again before it comes

How much does the baseline have to jump to reach those ‘fixed’ prices? Am I being daft considering staying on the tracker ? Or do I suck it up and pay £140 extra for the next 2-3 years?
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So your tracker is 1.8+base rate?
If so you're about 4 percent right now.

Base rate only has to breach 3.3pc to hit the tipping point.


That's if it is 1.8+base.
 
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