Mortgage Rate Rises

V F said:
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.
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On the flip side I see a lot of high end cars driving about - not just fancy badges but top of the range cars. The gap between poor and rich is quite evident.
 
purplesky said:
The current economic situation isn't going away, so it's a continuation. It's too late for many people however.
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It’s not and with a reasonable management of the situation, people can be stable, and, we can balance the books - but it will take some quality moves by the government to protect everybody in the middle and set a long term plan. Most people wouldn’t be upset at a 3% lifetime mortgage and would ensure stability for years into the future.
 
200sols said:
Piling up on maximum possible debt doesn't sound alarm bells to you?
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Its worked for the last 10 years. Its all most my age and younger have ever experienced

Would probably help a lot if moving wasn't such a money burn. That was my main reason for maxing out.
 
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Not over extending myself is exactly what I did when we brought our first house. I didn’t care about getting the biggest, most expensive house I could possibly get, I got the house that fitted our needs and was easily achievable.

I have been reading this vey thread for a while now and it was the posts within it, that prompted me to pay an ERC and fix for 10 years. Thank all.

If you have gambled and won fair shout to you. If you have gambled and lost, my commiserations. I don’t like gambling and I’m not a greedy person. Modest will do us fine I hope.
 
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Cost of moving
-redecorating again
-stamp duty
-conveyancing
-searches
-removals
-risk of chain break down after spending
-etc etc

It costs so much, causes so much stress, takes so much time.

I certainly don't regret maxing out. If I get caught out, it's unlucky. And it's my fault. But I know the reasons that drove me to that.
 
sigma said:
That's doesn't answer the question.

What's the next big shock that's coming and what impact will it have on whatever it impacts?
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I don't have a crystal ball. A sensible person also didn't need a crystal ball to realize that interest rates would begin to normalize at some point either. You're taking things completely out of context.
 
Doobedoo said:
Not over extending myself is exactly what I did when we brought our first house. I didn’t care about getting the biggest, most expensive house I could possibly get, I got the house that fitted our needs and was easily achievable.

I have been reading this vey thread for a while now and it was the posts within it, that prompted me to pay an ERC and fix for 10 years. Thank all.

If you have gambled and won fair shout to you. If you have gambled and lost, my commiserations. I don’t like gambling and I’m not a greedy person. Modest will do us fine I hope.
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Absolutely - most people would be happy with modest and fair - this current situation is not it.

The rate of these raises is unlinke anything before it. - 0.5% a year would send alarm bells for people and you’d see people fixing for longer terms when their 2yr rates came to an end, or downsizing - stabilising the housing market - not crashing it! But this has happened within 6 months.

The policy changes have been too quick in a flinch reaction to an economic sneeze. We are nose diving into a recession and by the time we pull out of the dive we will be in deep recession. The only winners will be Liz Truss’ mates in the banking and oil sectors.
 
Uther said:
I think you might have to wait until he can consult with his team on Monday morning before he can answer.
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Then you'd be wrong as I've already answered the question. Like already pointed out, a sensible person would have been aware that interest rates would rise, and would have been setting aside money each month in preparation. It really is that simple.
 
purplesky said:
I don't have a crystal ball. A sensible person also didn't need a crystal ball to realize that interest rates would begin to normalize at some point either. You're taking things completely out of context.
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I think most people were always expecting rates to go up but, as the years went on with little to no movement, not only did people increasingly believe it not to happen imminently but I think even the most prudent of people are surprised at the speed of the increases of mortgage rates especially considering the much slower speed of BoE rises
 
purplesky said:
I don't have a crystal ball. A sensible person also didn't need a crystal ball to realize that interest rates would begin to normalize at some point either. You're taking things completely out of context.
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Well you certainly have made yourself out to be some kind of mystic Meg. Can you give me the lottery numbers for this week's draw? I don't think many foresaw a pandemic and war back to back
 
Richie said:
I think most people were always expecting rates to go up but, as the years went on with little to no movement, not only did people increasingly believe it not to happen imminently but I think even the most prudent of people are surprised at the speed of the increases of mortgage rates especially considering the much slower speed of BoE rises
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I agree about the speed of rate increases, but there are many people out there who genuinely thought rates between 0 - 2% we're normal.
 
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