Mortgage Rate Rises

[fez]

It's funny that this statement is now seen as absolutely ridiculous, it's now the same for cars, everything is debt.

It is completely ridiculous. Avg. house price is £280,000 and avg. salary is ~£30,000. After tax and living expenses you would be lucky to save £10k/year. House prices have been going up by more than that each year.

I agree that its ridiculous the number of people that get everything on the tick but houses are completely outside of that.

 

[Simon0001]

It is completely ridiculous. Avg. house price is £280,000 and avg. salary is ~£30,000. After tax and living expenses you would be lucky to save £10k/year. House prices have been going up by more than that each year.

I agree that its ridiculous the number of people that get everything on the tick but houses are completely outside of that.

Not really you dont need a house.

 

[Doobedoo]

Not really you dont need a house.

Don’t be silly. A roof over your head is a basic necessity.

 

[Simon0001]

Don’t be silly. A roof over your head is a basic necessity.

Yes. But you dont need a mortgage on a house to achieve that

 

[Doobedoo]

Yes. But you dont need a mortgage on a house to achieve that

It’s either get a mortgage or pay someone more to pay theirs.

Renting is fine for some but if you want to put down roots, then a mortgage makes sense.

 

[Mrwong]

This is the trickled down effect.

Purchased for 200 million.

Chinese tycoon agrees to buy London mansion for record £200m

Cheung Chung-kiu in process of buying 45-room property overlooking Hyde Park

www.google.com

On sale now.

A $227 million London mansion is up for sale after its Chinese billionaire owner's net worth fell by 83% in 2 years, report says

The FT reported that Hui Ka Yan is the secret owner of a $277 million mansion which went on the market two years after it was purchased.

www.google.com

 

[RaXor77]

Right cause people are going mad splashing out on mansions right? You realise a 90 ltv on the average house that the average worker will be living in means a 700 per month increase going from 2% to 7%

But yeah it's their fault for living the high life

They can throw £400 or £500 or so from their savings each month thus partly or fully offsetting the mortgage rise. After a couple of years or so things will have settled down.

 

[MatsyLR]

Yes. But you dont need a mortgage on a house to achieve that

You are either going to be paying your landlords mortgage or your own. I know which one most people would pick.

 

[Simon0001]

It’s either get a mortgage or pay someone more to pay theirs.

Renting is fine for some but if you want to put down roots, then a mortgage makes sense.

Put down roots? You need to feel secure to do that. How can you do that if you dont know if you can afford your mortgage.

 

[Doobedoo]

Put down roots? You need to feel secure to do that. How can you do that if you dont know if you can afford your mortgage.

Ask your mum and dad.

 

[Kill_Phil]

They can throw £400 or £500 or so from their savings each month thus partly or fully offsetting the mortgage rise. After a couple of years or so things will have settled down.

And what about the energy costs and everything else that has increased?

Huge recession incoming, which is one way of cooling interest rates...

 

[Simon0001]

Ask your mum and dad.

My dad bought and paid for his house during more curtain times and before everyone felt entitled to have everything

 

[Goodie]

My dad bought and paid for his house during more curtain times and before everyone felt entitled to have everything

what made your dad so entitled to think he needed curtains? Venetians do the same job at a fraction of the price, if he had anything about him he would have saved the difference and invested in gold.

 

[sigma]

Don’t be silly. A roof over your head is a basic necessity.

Tent m8

 

[Doobedoo]

My dad bought and paid for his house during more curtain times and before everyone felt entitled to have everything

No such thing as certain times.

(Goodie beat me too it lol)

 

[RaXor77]

And what about the energy costs and everything else that has increased?

Huge recession incoming, which is one way of cooling interest rates...

It's about cutting back on energy. Also the increased interest on savings can help, albeit only slightly depending on the level of savings.

The US are hiking rates despite recession. As are other central banks. Recession however likely means a job loss which leads onto one losing their home.

 

[stuman]

It is completely ridiculous. Avg. house price is £280,000 and avg. salary is ~£30,000. After tax and living expenses you would be lucky to save £10k/year. House prices have been going up by more than that each year.

I agree that its ridiculous the number of people that get everything on the tick but houses are completely outside of that.

Yes. But you dont need a mortgage on a house to achieve that

So rent somewhere? You think a landlord won’t pass on the rising interest cost?

 

[Goodie]

So rent somewhere? You think a landlord won’t pass on the rising interest cost?

depends on whether your landlord is mummy or daddy.

 

[Mrwong]

Even if real pay is cut by 5%, public sector workforce may need to be cut by more than 200,000 by 2024 to stay within current spending plans | Institute for Fiscal Studies

Public sector workers will receive pay awards of around 5% this year, on average.

ifs.org.uk

Lets see if it happens, or we carry on kicking the can.

 

[RaXor77]

Even if real pay is cut by 5%, public sector workforce may need to be cut by more than 200,000 by 2024 to stay within current spending plans | Institute for Fiscal Studies

Public sector workers will receive pay awards of around 5% this year, on average.

ifs.org.uk

Lets see if it happens, or we carry on kicking the can.

Hadn't they already decided that 91000 civil service jobs were being axed? It was announced in the summer. With the government's low tax narrative, I reckon it'll be HMRC that will get the punch.