Mortgage Rate Rises

adam cool dude said:
Yes in the present but I would have thought in the next couple of years they will drop significantly to more reasonable levels.
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What is a reasonable drop?

Am I just a necessary sacrifice? At current interest rates that are on offer my mortgage goes from £632 to £1095 a month.

I live in a new build, my old house was a new build, we had a 2 bed terraced, their current rent is £600 per month.

I live in a house almost twice the size of that currently
 
Martini1991 said:
What is a reasonable drop?

Am I just a necessary sacrifice? At current interest rates that are on offer my mortgage goes from £632 to £1095 a month.

I live in a new build, my old house was a new build, we had a 2 bed terraced, their current rent is £600 per month.

I live in a house almost twice the size of that currently
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Work weekends with a side hustle to pay the extra? There is always a way.
 
LabR@t said:
I don't want that either I have children that hope to buy a home it helps no-one
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Not sure what the issue is... Surely your kids can just ..
LabR@t said:
Get a better job then. But wages have never been higher
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purplesky said:
You're probably wasting your time telling people that on this forum. They just want an easy life which involves everyone paying for their existence. Don't even think about mentioning a second job - going by their post count and frequency of postings, i'd guess most of them don't even have a job at all.
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What's funny is you're quoting and agreeing with the resident troll and can't see the irony/sarcasm at all :cry:
 
jon86 said:
I recently talked with my financial advisor about whether to overpay on our mortgage to clear it within the next few years. He suggested that I could do that if my wife and I just want the peace of mind that comes with owning our home, but financially, it makes far more sense to invest the money elsewhere, given that we're on a 30 year 2.5% APR (lifetime) mortgage, where our mortgage payment is only a small fraction of our household budget. Also, as mortgage interest is tax deductible in the USA, the 2.5% APR is more like 1.75% APR after taxes are deducted, and a 1 year fixed term cash savings account will pay 3.25% interest right now.
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I wish we had that here.
Basically takes the worry out of mortgages forever (bar losing your job)
 
GordyR said:
You’re joking, surely?
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The maximum the bank will lend me will take me 8.5 years to save in cash, excluding any investment returns, maybe 6.5 years with investments figured in, give or take.

If i lived outside of london, likely i would have already bought a house, as the above would match, however london prices are much higher for decent properties.

Obviously moving and changing jobs is a big thing, however in a few years i will have enough to buy a house outright in many parts of the UK.
 
platinum87 said:
The maximum the bank will lend me will take me 8.5 years to save in cash, excluding any investment returns, maybe 6.5 years with investments figured in, give or take.

If i lived outside of london, likely i would have already bought a house, as the above would match, however london prices are much higher for decent properties.

Obviously moving and changing jobs is a big thing, however in a few years i will have enough to buy a house outright in many parts of the UK.
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My issue is that he said that like it’s normal.

I’m well aware of my privilege and how lucky I’ve been.
 
Low interests rates have contributed to higher house prices but they haven't contributed to lack of affordability.
If rates had stayed higher, prices would be lower but affordability just the same because mortgages would be more expensive to service. It's a nonsense arguement.

As is suggesting the 25-35yr olds are the benefactors rather than those 40 and above who have been far and away the primary beneficiaries.

The issues are lack of housing stock, lack of incentives to improve quality of existing stock and lack of dicinscentive for keeping property empty.
 
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Simon0001 said:
It should be normal. People are just moaning because they feel entitled
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Why should it be normal?

Because you want extra return on your savings?

You want to reward people with excess money - with more money - and increase the wealth gap?

“Entitled?” to a house being financed in a way where we are not being gouged by either the banks - or landlords on behalf of banks?
 
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Martini1991 said:
Not having a life doesn't sound fun
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No but it is better than potentially losing a house.

It is an alien notion for me to think that the world owes them something. We are in this mess and nothing will change that but if I was in the position where affordability of my mortgage was a serious problem I would be looking for other revenue streams or cut backs to bring it in line.

Kamakazie! said:
Low interests rates have contributed to higher house prices but they haven't contributed to lack of affordability.
If rates had stayed higher, prices would be lower but affordability just the same because mortgages would be more expensive to service. It's a nonsense arguement.

As is suggesting the 25-35yr olds are the benefactors rather than those 40 and above who have been far and away the primary beneficiaries.

The issues are lack of housing stock, lack of incentives to improve quality of existing stock and lack of dicinscentive for keeping property empty.
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You make it sound like that is a problem? Again people thinking it is a god given right that everything is given to them. The problems is that people cannot afford their houses because it is too expensive. I would rather have cheaper houses that require a bit more capital to purchase than really expensive ones where 90-95% is bought on the drip. 0% credit is never a good idea because the vast majority of the population just cannot help themselves. People would learn to save and get capital together for a better deposit with higher interest rates.
 
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adam cool dude said:
No but it is better than potentially losing a house.

It is an alien notion for me to think that the world owes them something. We are in this mess and nothing will change that but if I was in the position where affordability of my mortgage was a serious problem I would be looking for other revenue streams or cut backs to bring it in line.



You make it sound like that is a problem? Again people thinking it is a god given right that everything is given to them. The problems is that people cannot afford their houses because it is too expensive. I would rather have cheaper houses that require a bit more capital to purchase than really expensive ones where 90-95% is bought on the drip. 0% credit is never a good idea because the vast majority of the population just cannot help themselves. People would learn to save and get capital together for a better deposit with higher interest rates.
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What’s the point in reasonably working if you can’t reasonably live?

We’re not talking about LTV and deposits here, this is interest rate based - profit for the highest earners off of the backs of the lives of people in the middle - they need to make people poorer to slow inflation, fine, but they are not targeting the people with excess they are literally targeting the people who specifically don’t.
 
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Richie said:
What's funny is you're quoting and agreeing with the resident troll and can't see the irony/sarcasm at all :cry:
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Your definition of a troll is someone who doesn't agree with you. Classic misuse of the definition, but quite common nevertheless on a forum full of armchair experts.
 
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I find it strange for someone to consider me entitled when I don't want my mortgage to go up about 60% a month. That's not wanting the world to owe me.

Some people really do hate the working class I guess, maybe we should just live in a work camp :s
 
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Simon0001 said:
It should be normal. People are just moaning because they feel entitled
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This.
They've wasted money like water over the years and possibly got free money and an easy life during COVID. Many probably thought that COVID would completely kill the current economic system, banks would go bust and they would be gifted their house as they assumed they wouldn't owe a bust bank any further mortgage payments. Probably thought they had won the jackpot. What they should have been doing over the years was putting some money away for difficult times to weather the storm.

Many are now crying as they can't live their easy lifestyle any longer and demand those rates go down to 0%. Many probably don't realise that normal rates are around 5%.
 
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stuman said:
Why should it be normal?

Because you want extra return on your savings?

You want to reward people with excess money - with more money - and increase the wealth gap?

“Entitled?” to a house being financed in a way where we are not being gouged by either the banks - or landlords on behalf of banks?
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An alternative viewpoint is that a saver has lost money due to low interest rates for the past 14 years. So in effect, they're just getting some of it back. As inflation is generally above interest rates, assuming a personal inflation rate of 10% (it may be lower or higher), a saver is still losing money.

We also need to consider how a saver has money in the first place. If it's from working hard, I doubt they'll be happy to be losing large amounts of it through high inflation.
 
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