Caporegime
Save, earn some interest, pick up something cheap when the property market implodes.
Mortgage Rate Rises
- Thread starter glenimp617
- Start date
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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Why is the UK's rental market in chaos?
Listings are down and inquiries are up, meaning that a rising number of renters are fighting over a dwindling supply of homes. Experts say the situation is being exacerbated by rising mortgage rates, which are turning the already strained rental market into a "pressure cooker".
You can always let out a room in your house to help pay the mortgage
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.
IF prices drop, they’ll probably just be snapped up by the wrong people. There will probably never be a “right” time to buy.
Even more so with pound so weak.
Its a gift to foreign investors
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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.
Soldato
There are edge cases where those comments could be correct for sure
eg mortage offer was ages ago (3/6 months) and was expiring, new offers unaffordable
eg mortage offer was ages ago (3/6 months) and was expiring, new offers unaffordable
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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I wouldnt mind, I dont even have a big mortgage, we have about £130k left. Might have to get the mrs to start selling feet pics at this rate.
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.
Soldato
Only if you tell the mortgage lenderWhy is the UK's rental market in chaos?
Listings are down and inquiries are up, meaning that a rising number of renters are fighting over a dwindling supply of homes. Experts say the situation is being exacerbated by rising mortgage rates, which are turning the already strained rental market into a "pressure cooker".news.sky.com
You can always let out a room in your house to help pay the mortgage
I let a room out for years and most lenders didn't care, they just wanted some paperwork signing stating that the renter knew they could be kicked out if the bank repossessed the house. It made no difference to rates or who would lend.
Soldato
Absolutely. Prime spots across the country will be targeted by foreign investors.
Yes, check your terms and conditions
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That £130k debt will be gone in six months
Permabanned
One example is if the tenant did enough damage or had an accident like a fire that demanded an insurance claim.
- Joined
- 30 Sep 2005
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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.
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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Surprised not been more take over talk of UK businesses. Must be real concerns around mid term value.
Companies are cheap in pound terms, and especially dollar terms.