Mortgage Rate Rises

Thankfully my 2.64% is locked in until 2027. Fingers crossed **** has sorted itself out by then. Might start looking into paying off lump sums over the next 5 years too to reduce the hit if things are still in the ******* in 2027. It's absolutely insane seeing peoples monthly payments going from £700 to £1200, I didn't even realise it could get this bad this quickly tbh.
 
Last edited:
413x said:
Good idea.
2 bank accounts. One steady for wages etc (maybe first direct) and then another to hop on offers.
Click to expand...

No, that suggestion isn't allowed to be made on this forum. Not that long ago I was accused of being a troll for having a petty cash account. Not long after that, I was accused of being a troll for having a floating account.

The people on this forum are only allowed one bank account, and the credit balance mustn't be over £200.
 
I think I lucked out...

My mortage deal is due to expire at the end of Feb and my current lender wouldn't let me secure a new deal until there was only 4 months left.
I was thinking of doing the early exit on my current deal and taking the 1% hit on ~100K left of the mortage just to take a lower interest rate, but the rates going at the time didn't seem cost-effective and the fact that people are saying this will last more than 5 years, so the sooner I take a deal the sooner and higher rate I have to pay on a new deal after the 5 years.

I managed to secure a 5 year deal at 4.14% (my current one is at 2.99%), some how it's cheaper than the 3.85% deal that had fees for when my current one ends. It still looking better than the 5%+ rates I've seen going around now, and my current lender is only offering a 2 year deal.

Fingers cross they won't withdraw the offer, I've already spoke to them at the start of the chaos and they said it's been signed for etc, so they won't withdraw it.
 
Mercenary Keyboard Warrior said:
Bah if we are going to crash lets do it properly.
Wipe off 50%

I will do an upgrade then ;)
Click to expand...

The extent of the drop is fully correlated to how high rates get to, and stay at.

If they hit 6%, and sit there, the models show that's a 30% haircut. But nobody really knows.

The deluded people that think nothing will change, or even worse prices will rise, are in for a genuine shock. Assets don't like high inflation and interest rates. Housing has supply issues, but its certainly not immune from market forces like some think.

This is coming from someone who has a large mortgage on an identikit london flat. These will be the worst hit, and there is a lot of supply, and literally no differentiator. I fully expect all my equity to evaporate, and I'm actually planning for this eventuality when my fixed rate ends in 2025. I'm literally planning on starting again from scratch at 38, and renting my out and hoping it recovers in by 2035. Luckily, I can gather the required 25% deposit you will need for the house.

This is the new reality.
 
Last edited:
regulus said:
Fair enough.

It's a great place if you have money (like most places I suppose). I've moved back to the South Island to a little place just outside Christchurch. Probably one of the best places to live in NZ in my opinion. Which I suppose makes it a contender for one of the best places to live in the world.

But you need money. It's a miserable place if you're struggling.
Click to expand...
How much money?
 

Maybe they were doing the purchase privately with the landlord with no solicitor involved, but the mini budget was 20 days ago.

If they were planning to complete a week ago the mortgage would/should have been agreed weeks ago and so the rates wouldn't have changed.

And with rates increasing a landlord would want to sell if at all sensible, before property prices fell.

So what's behind the story
 
LabR@t said:
www.dailymail.co.uk

Bank of England issues warning over mortgage repayments

Bank of England chief economist Huw Pill said he still thought a 'significant monetary policy response' will be required when the next rates decision is made early next month.
www.dailymail.co.uk

How high will they go? 8,9, 10%?
Click to expand...
8/9/10 base rates would crush every western country, the sheer amount of debt around means that isnt plausible unless we have a nice debt crisis..
 
Luckily we're fixed at 1.14% for 4 more years, but in kind of a weird spot because I've lucked into a much better paid job recently and to be honest we kind of would have wanted to move (for a variety of reasons), but it seems totally idiotic to try and do that now. Not a terrible problem to have but still, trying to work out a likely best path over the next few years
 
uncle_rufus said:
Luckily we're fixed at 1.14% for 4 more years, but in kind of a weird spot because I've lucked into a much better paid job recently and to be honest we kind of would have wanted to move (for a variety of reasons), but it seems totally idiotic to try and do that now. Not a terrible problem to have but still, trying to work out a likely best path over the next few years
Click to expand...

well unless you have a portable one then moving would likely see you go from 1% to 5%

count your blessings and over pay / save while you can
 
You must log in or register to reply here.
Back
Top Bottom