Mortgage Rate Rises

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

Save, earn some interest, pick up something cheap when the property market implodes.
 
Save, earn some interest, pick up something cheap when the property market implodes.

LTVs will be max 80%, with massive rates. Similar to during the pandemic, when it was only the 75% LTV that got acceptable rates.

It’s one of the situations that you need to reprogram your brain. The price isnt cheap then, its just the going rate. The price of the house will mostly go back up with incomes, or debt cost decreasing. Ie. very slowly, no more 20% insane bull markets due to people behaving like morons FOMOing
 
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You can always let out a room in your house to help pay the mortgage
 
Save, earn some interest, pick up something cheap when the property market implodes.

1.14 WOW!!! My best friend is looking to buy as a FTB with a 40k deposit. Best rate he got offered yesterday was 6.1%

Mortgage advisor also told him it doesn't really make a difference in LTV atm asrates are more or less all the same. Seems insane atm. So unaffordable in top of every other price increase.
 

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

Yeah that story is full of holes. A lad in my team at work is buying his first house with his GF. Whilst they're still going through the searches etc so the house isn't theirs just yet, they did manage to get the mortgage offer approved at 3.something%. The mortgage offer is usually approved well before you get to the point of exchange.
 
LTVs will be max 80%, with massive rates. Similar to during the pandemic, when it was only the 75% LTV that got acceptable rates.

It’s one of the situations that you need to reprogram your brain. The price isnt cheap then, its just the going rate. The price of the house will mostly go back up with incomes, or debt cost decreasing. Ie. very slowly, no more 20% insane bull markets due to people behaving like morons FOMOing

Once the market stablises higher LTV offers will return and things will get a lot better for buyers. The initial chaos only lasts as long as prices are going down, but not after they stablise. Some people pretend like if there's a 20% crash then all mortgage offers will disappear and nobody (except cash buyers) will be able to buy anything until the market recovers the full 20% and then some. That's not how it works.

The corrupt government will also introduce further mortgage guarantees to inflate the bubble quickly again, just like when they did during the pandemic.
 
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thats pretty good tbh

it hurts a bit because even though me and my partner earn a decent combined salary we live well within our means and have a very manageable mortgage. An additional £300 a month isnt going to cripple us, but it does mean the usual types of holidays we go on probably wont happen.
 

You can always let out a room in your house to help pay the mortgage
Only if you tell the mortgage lender
 
I'm sure this has been mentioned before, but for those who's fixed rate is coming to an end, check out the banks SVR follow on rate.

Santanders 5yr fixed is higher than their SVR. Depends what your views are long term, but it's food for thought.

I'm not sure I like the idea of fixing at 5.74% for 5yrs when I can roll on to the SVR at 5.5% without any ERC penalties. It gives you a lot more options, but the obvious risk is rates shooting up even higher.

Maybe good for those with smaller mortgages who want/can overpay by a healthy amount.
 
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