Soldato
Forecasts are just below 5%.
Mortgage Rate Rises
- Thread starter glenimp617
- Start date
Caporegime
If that’s true then I feel a little relieved as we could get through that. It would have been getting dodgy anywhere over 6% though.
Soldato
Well don't forget we've got a load of tax rises and cuts to come yet. It'll be more than enough to tip a lot of people over the edge.
Caporegime
And 4.5% base rate doesn't mean a 4.5% mortgage.
I still think a 6% mortgage rate will smash most people too much with everything else.
I still think a 6% mortgage rate will smash most people too much with everything else.
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Soldato
Mortgage rates usually prices in future forecasts so it won’t be hugely higher unless forecasts at the time suggest it will be.
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Caporegime
Yes I’ve already factored that in, a 5% interest rate means our rate will be 8.25%
Caporegime
8.25% mortgage would see me homeless
Can see the effect the fixed rates of 6ish percent will be having in next couple of months.
It will reduce spending power of so many people and cause repossessions I expect inflation to start to fall away.
Many will just hunker down
Caporegime
Right now my 3.5% sounds like a bargain. Those who locked it down near 2% must be so relieved.
Soldato
I had the option of 1.8% and went with a tracker as i wanted to avoid the ERC as we're moving in under 2 years
The extra interest paid would've easily covered the ERC i'm guessing!
Permabanned
Absolutely but it still has a knock on effect to the rest of the economy.
Soldato
We're on Rate my Mortgage instead of Mortgage Rates
1% fixed for 5 years about a year ago. Right place, right time for once (I missed out on the cool things like stamp duty holidays).
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My sister and her husband are struggling very badly with mortgage price rises now.
They both work full time, she works for local council and he is a carpenter.
It is possible they may lose their home that they worked their entire life for and both are very hard working and skilled.
I would guess that a huge number of people have already lost their homes / businesses in the last 25 - 30 months.
They both work full time, she works for local council and he is a carpenter.
It is possible they may lose their home that they worked their entire life for and both are very hard working and skilled.
I would guess that a huge number of people have already lost their homes / businesses in the last 25 - 30 months.
Soldato
But most of those jobs are important, so we still need people to do them. Without fruit and veg pickers people will starve. Without delivery drivers, vulnerable people who can't get out would suffer etc.
We really need to let this notion of "unskilled" jobs are somehow "lesser" Certain "unskilled" jobs are vital for a functioning economy and really should be paid accordingly.
Soldato
Repossessions are extremely low at the moment. Currently running at 4,000 whereas in the past they have run at 50,000 per year. Banks are very reluctant to do this anymore as it takes 2 years so they will likely try other things to help first.
Soldato
Surely when they took the mortgage they'd have been stress tested to mortgage rates around 5-6% so should in theory be affordable (ignoring other rising costs). I've not really seen too much to say people are struggling beyond normal cut backs.
It is depressing seeing todays news add on £75 a month to my bill though
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For probably the first time ever I made 100% the right choice by locking into a 7 year mortgage back in 2019.
With today's interest rate hike, I'm now paying less than base rate (2.43% until July 2026).
I do feel sorry for those people mortgaged high and historically relying on low tracker mortgages etc.
With today's interest rate hike, I'm now paying less than base rate (2.43% until July 2026).
I do feel sorry for those people mortgaged high and historically relying on low tracker mortgages etc.
Well i am fixed to Jan 2025, I am expecting 8-10% by the time this comes around. Its not going to get better in 2 years, lets hope crypto ignores this rigged system and it goes to the Moooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooon.
(based on my football predictions and shares this is not going to happen either)
(based on my football predictions and shares this is not going to happen either)
