Mortgage Rate Rises

Uther · 9 Oct 2022 at 09:40

purplesky said:
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.

I can only assume you've not read simons other posts all over the forum. He is most definitely a troll, who probably lives at home with his mum.

jonneymendoza · 9 Oct 2022 at 09:40

purplesky said:
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%.

But we are looking at 7 percent interest rate and more

purplesky · 9 Oct 2022 at 09:55

Uther said:
I can only assume you've not read simons other posts all over the forum. He is most definitely a troll, who probably lives at home with his mum.

I've taken a look. I don't see anything out of the ordinary.

purplesky · 9 Oct 2022 at 09:58

jonneymendoza said:
But we are looking at 7 percent interest rate and more

Yes, but it won't stay at that level. A little bit of savings will bridge the gap until rates settle and normalise at 5%

Goodie · 9 Oct 2022 at 10:20

purplesky said:
full of armchair experts.

I would consider the irony but then not everyone on the forum has an apparent team of experts backing up their postings

purplesky · 9 Oct 2022 at 10:58

TBH, a thread like this shouldn't exist, at least not as far as 143 pages over a short period of time. I get that unforseen circumstances can cause people to get into difficulty, particularly divorce or job loss, however they are not the common themes here.

This thread is basically full of crybabies suddenly shocked that interest rates have, and are continuing to increase. Anybody with any common sense should have been able to predict that rates would increase at some point, and should have prepared accordingly.

RaXor77 · 9 Oct 2022 at 11:05

purplesky said:
TBH, a thread like this shouldn't exist, at least not as far as 143 pages over a short period of time. I get that unforseen circumstances can cause people to get into difficulty, particularly divorce or job loss, however they are not the common themes here.

This thread is basically full of crybabies suddenly shocked that interest rates have, and are continuing to increase. Anybody with any common sense should have been able to predict that rates would increase at some point, and should have prepared accordingly.

Fully agree. It's just down to people's stupidity more than anything.

Surveyor · 9 Oct 2022 at 11:13

purplesky said:
TBH, a thread like this shouldn't exist, at least not as far as 143 pages over a short period of time. I get that unforseen circumstances can cause people to get into difficulty, particularly divorce or job loss, however they are not the common themes here.

This thread is basically full of crybabies suddenly shocked that interest rates have, and are continuing to increase. Anybody with any common sense should have been able to predict that rates would increase at some point, and should have prepared accordingly.

RaXor77 said:
Fully agree. It's just down to people's stupidity more than anything.

Perhaps the two of you could advise what we should be preparing for now and how to go about it.

LabR@t · 9 Oct 2022 at 11:14

RaXor77 said:
Fully agree. It's just down to people's stupidity more than anything.

Don't worry the government will bail them out.

The government should pay the increase in the interest, it is not their fault after all.

Zatoichi.uK · 9 Oct 2022 at 11:21

Surveyor said:
Perhaps the two of you could advise what we should be preparing for now and how to go about it.

It's pretty standard financial planning to have 3-6 months saved in case of emergencies and/or difficulties. This alone could prevent some of the hardship people are now facing.

That being said I don't blame people for stretching themselves to buy a house. It's basically that or pay someone else's mortgage, which isn't much of a choice.

stuman · 9 Oct 2022 at 11:31

Zatoichi.uK said:
It's pretty standard financial planning to have 3-6 months saved in case of emergencies and/or difficulties. This alone could prevent some of the hardship people are now facing.

That being said I don't blame people for stretching themselves to buy a house. It's basically that or pay someone else's mortgage, which isn't much of a choice.

We can afford to pay it. I’m just disgusted at the amount of profit the banks will be making - for us to live in a modest house.

But don’t you guys worry, you’ve obviously worked 50x harder than everybody else, everybody who isn’t as well heeled as you must be a lazy work shy bum.

The answer has been hinted at pre-Covid - a 25yr fixed rate mortgage at 3% if the house has to be repossessed - it can then be absorbed as a council house.

purplesky · 9 Oct 2022 at 11:38

Surveyor said:
Perhaps the two of you could advise what we should be preparing for now and how to go about it.

It might be too late for some people. A second job might help.

The problem is, some people have been living each day as if it was one constant party. If they're so far gone, I don't know what will really help. I don't want to wish bad on anyone, but I think we're going to see a lot of house repossessions in the not too distant

Surveyor · 9 Oct 2022 at 11:43

purplesky said:
It might be too late for some people. A second job might help.

The problem is, some people have been living each day as if it was one constant party. If they're so far gone, I don't know what will really help. I don't want to wish bad on anyone, but I think we're going to see a lot of house repossessions in the not too distant

That's advice on the current situation. You said everyone should have seen this coming and prepared accordingly. What's the next thing coming and how do we prepare for it?

Zatoichi.uK · 9 Oct 2022 at 11:46

stuman said:
We can afford to pay it. I’m just disgusted at the amount of profit the banks will be making - for us to live in a modest house.

But don’t you guys worry, you’ve obviously worked 50x harder than everybody else, everybody who isn’t as well heeled as you must be a lazy work shy bum.

The answer has been hinted at pre-Covid - a 25yr fixed rate mortgage at 3% if the house has to be repossessed - it can then be absorbed as a council house.

Hey I never said anything of the sort and its a crappy situation. Don't hate the player and all that...

V F · 9 Oct 2022 at 11:51

purplesky said:
It might be too late for some people. A second job might help.

The problem is, some people have been living each day as if it was one constant party. If they're so far gone, I don't know what will really help. I don't want to wish bad on anyone, but I think we're going to see a lot of house repossessions in the not too distant

I'm hearing a lot of things not good and about locals in town and conversations between people waiting in hospital as it is right now. Let alone by the time April comes along.

purplesky · 9 Oct 2022 at 11:56

Surveyor said:
That's advice on the current situation. You said everyone should have seen this coming and prepared accordingly. What's the next thing coming and how do we prepare for it?

The current economic situation isn't going away, so it's a continuation. It's too late for many people however.

V F · 9 Oct 2022 at 12:05

purplesky said:
The current economic situation isn't going away, so it's a continuation. It's too late for many people however.

If it's true as the Bank of England has originally stated, 2023 could be a very bad year saying 2023 could be a year of no growth. As it is already I'm seeing shops closing early lunchtime on Thursdays because of the prices for electricity and heating. Friday and the weekends is now dead except coffee and food shops. Which was never a thing on weekends.

LabR@t · 9 Oct 2022 at 12:08

Fully expect a lot of places to go down to 3 day weeks to save running costs, manufacturing and retail.

413x · 9 Oct 2022 at 12:10

purplesky said:
TBH, a thread like this shouldn't exist, at least not as far as 143 pages over a short period of time. I get that unforseen circumstances can cause people to get into difficulty, particularly divorce or job loss, however they are not the common themes here.

This thread is basically full of crybabies suddenly shocked that interest rates have, and are continuing to increase. Anybody with any common sense should have been able to predict that rates would increase at some point, and should have prepared accordingly.

You can say this. But from 2009 until let's say 2018. If you were being over cautious "oh I don't want to over extend" you'd probably be worse off.
So all people know of FTB age is "get biggest debt you can".

You can't expect everyone to be a financial expert. This is complex stuff.
I think its unfair to say people can't feel hard done by to be caught at the peak.
And where do you get this advice from? Most advisors would still be saying "get the most you can"

Life isn't fair however and there will always be people who were "unlucky" and we will have a batch now. Same as in 2007.

But I don't think telling people "oh you shouldn't have done what everyone else in the prior decade benefitted from because.." is a great way to respond

V F · 9 Oct 2022 at 12:16

LabR@t said:
Fully expect a lot of places to go down to 3 day weeks to save running costs, manufacturing and retail.

I find it depressing observing what is happening to be honest. Even in 2008/9/10/11 it wasn't like this. Staff in shops watching people go by waiting on customers. While there are still some, you usually only see one or two people inside at a time or one only looking when there was a time before Covid when you had to squeeze past so many people.

Now you see shutters 11am - 12pm, shutters before 3 - 4pm when you'd only see shutters at 6am and after 5:30 - 6pm.