Mortgage Rate Rises

413x said:
You are getting custom at 7pc?

Whos choosing to lock in at 7pc??
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We are getting tons.

Monday only skived about an hour and a half, thats the most hours I've worked in a day for years...

This is buy to let, but not even subprime stuff these are high quality portfolio landlords with high income and spotless credit history.
 
BUDFORCE said:
We are getting tons.

Monday only skived about an hour and a half, thats the most hours I've worked in a day for years...

This is buy to let, but not even subprime stuff these are high quality portfolio landlords with high income and spotless credit history.
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Crazy.
Having never been through anything like this, I'm shocked at the difference in last month.
 
mid_gen said:
University demographics are very different now to 10 years ago.

My other half is a lecturer, and this years crop on her course is 100% foreign students, Korean, Chinese etc. They are paying a fortune and are generally studious and motivated, which can't be said for the British cohort.
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30 years ago only a select few went for degrees, Tony devalued them
 
BUDFORCE said:
We are getting tons.

Monday only skived about an hour and a half, thats the most hours I've worked in a day for years...

This is buy to let, but not even subprime stuff these are high quality portfolio landlords with high income and spotless credit history.
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So if these are the sort of people desperate to lock in at 7% then that must be telling us something. Do they know something the rest of us don't?
 
And as has been pointed out many times, when you adjust for inflation and house price to income ratio the 14% of the 80's is equivalent to about 3% today in terms of affordability. So just comparing rates is pretty meaningless.
 
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Freakbro said:
And as has been pointed out many times, when you adjust for inflation and house price to income ratio the 14% of the 80's is equivalent to about 3% today. So just comparing rates is pretty meaningless.
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No it isn't. An average of a mathematical fact.

9.2% is the average boe rate since 1975. Income adjusted doesn't change that fact. It will most likely not give up to 15% again but you can't ever rule that out either
The cost of your house or how much you earn is irrelevant to the money markets. You are insignificant
 
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LabR@t said:
No it isn't.
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Yes it is, in terms of affordability (I did edit that just as you must have been quoting it)

www.mpamag.com

Why a 3% rate today is the same as a 14% rate in the 1980s

Why a small rate rise today is so much more painful for your clients
www.mpamag.com www.mpamag.com

LabR@t said:
9.2% is the average boe rate since 1975. Income adjusted doesn't change that fact.
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It's talking about affordability, which is the relevant part of what the interest rate is, not that 14 = 3 :cry:
 
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LabR@t said:
Update with actual figure, you do know how average works right?
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So much has changed in that time it's not applicable to today. An average over a period of time doesn't mean anything when so many other factors have changed.

Particularly affordability.

We will not see figures from the 80s.
 
413x said:
That's 50-30 years ago
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I think what he is referring is that the rates we have had the past ten years are not normal and were more a reaction to 2008 to get the country going. When we got our first mortgage in 2010 we were close to 4% but that was 75% LTV. Most were closer to 6%.

The problem isn't rates but more wage stagnation for the vast majority.
 
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