Mortgage Rate Rises

MatsyLR said:
Had an offer accepted on a house, mortgage come out to £333 monthly at 5.56% over 5 years (41.54% LTV)
Not sure whether to go tracker instead....its 4.34% at the moment concidering completion wont be for a few months, conflicting information on if the general consensus is that its just going to keep going up and up well into next year.
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I'd go with fixed based on everything we are hearing at the moment. It sounds like a 1 or 2 percent rise from the BoE is coming soon, if not this year then next, so your fixed rate will be winning then.

Crystal ball time obviously but I would fix if you can afford it as you then don't need to worry for 5 years if rates go even higher!
 
A dear friend of mine who currently rents out several fully-owned properties has been getting exceptionally excited over the past couple of weeks. He's sitting on the sidelines with large piles of cash ready to dive in further when the time is right.
 
purplesky said:
A dear friend of mine who currently rents out several fully-owned properties has been getting exceptionally excited over the past couple of weeks. He's sitting on the sidelines with large piles of cash ready to dive in further when the time is right.
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Ready to skyrocket rent prices and kick out anyone who can't afford it, lovely fella.
 
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purplesky said:
A dear friend of mine who currently rents out several fully-owned properties has been getting exceptionally excited over the past couple of weeks. He's sitting on the sidelines with large piles of cash ready to dive in further when the time is right.
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Housebuilder stocks will return much more than actual houses ;)
 
dowie said:
Yup! I never bothered fixing it, the lifetime tracker has been fine for me, no hassle, and don't need to change. Would have had to pointlessly pay additional fees every 2-3 years over the past decade or perhaps a higher rate if I'd pointlessly fixed for 5 years say.

I guess fixing for say 15 years might have been a nice move a few months ago IF I were staying put but I'm likely not and I want the flexibility so the tracker is fine, can pay it off in full with no penalty.

The rate is like 3%-ish or something now so still a much better deal than the current or recent fixed rate offers from banks.
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I may well switch onto one of these when my fix ends.

Its an odd time now. For rates to go up nearly 4pc in 6 months is insane. So in this instance paying erc and fixing was sensible. But if I can get the mortgage down low enough that rates aren't such an impact a tracker may well be better.

The fees (and especially ercs) are no fun.
 
purplesky said:
There are many people like him ready to hoover up repossessions. I'm not saying I necessarily agree as I prefer to remain neutral. But they do say money makes the world go around.
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I know a few, not cash rich, but my age with enough money to buy a second property. I'm not sure if it's a dead cert thing to do. But they are certainly keen and hoping for a crash.

About 3 of them
 
purplesky said:
There are many people like him ready to hoover up repossessions. I'm not saying I necessarily agree as I prefer to remain neutral. But they do say money makes the world go around.
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IF there are enough people ready to hoover them up, then the price won't drop that far.

Prices will only really crash when basically no one wants to buy.
 
I think some people have the old fashioned thinking that lenders will offload repossessions at low prices just to get them off their books and the loan covered.

I don't think that's the case anymore... They will sell at market rate and take the profit into the business as this makes business sense.
 
Richie said:
I think some people have the old fashioned thinking that lenders will offload repossessions at low prices just to get them off their books and the loan covered.

I don't think that's the case anymore... They will sell at market rate and take the profit into the business as this makes business sense.
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No.

They have always sold at market rate, but they used to limit the market in that you needed to be chain free so either cash or no chain mortgage. They didn't (don't still I assume) want loads of chains forming with these properties.

They dont take the profit, they have to give any excess proceeds back to the original homeowner if they exceed the mortgage (and costs for court etc)
 
platinum87 said:
There are not so many people who can afford to buy houses without a mortgage, to affect things in the scale you guys are talking about.
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What about the double discount?

Drop in value of the pound and property price discount?
There's a lot of foreign money around.

If I was betting. I'd say 10-15pc over next 2 years drop
 
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dl8860 said:
IF there are enough people ready to hoover them up, then the price won't drop that far.

Prices will only really crash when basically no one wants to buy.
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When estate agents get real and stop trying to raise market prices for each and every property in every area.

It took me thirty years to be mortgage free for a medium priced three bed semi. 1982 to 2012. The only fixed rate mortgage we had was taken out in 2003, all the others were variable rate repayment type and probably had interest calculated and deducted annually. Times were different.
 
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