Yeah very pleased with my sub 2pc. But even though its for 5 years it's no guarantee.
I think more of a concern for myself is the jobs market going to hell
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Mortgage Rate Rises
- Thread starter glenimp617
- Start date
Yeah very pleased with my sub 2pc. But even though its for 5 years it's no guarantee.
I think more of a concern for myself is the jobs market going to hell
Ours is fixed until 2027. But like you looking now it would be 500ppm more!
With all the other costs be looking at a cost of living increase of 700-800ppm! That's a huge amount of money.
This is "only" a 200k mortgage. Bank would have lent 300k! Which I even said to the advisor was crazy irresponsible!
We have a low cost of living base line. Horrible to think of what others are going through!
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Soldato
If they need to remortgage look at extending the term, pay more interest long term but if it brings the cost down it would be worth doing.
Later when interest rates hopefully drop they can then overpay or lower term.
Caporegime
I could fix for 2 years at 3.24%, but with a £4.5k ERC for still another 90 days, I'm in deep doo-doo.
So sad. Especially when it's no fault of their own. I know life isn't fair. But it seems cruel that bad timing and pure chance timing can completely redefine your whole life. It's not even an exaggeration reading stories about those who've gone through similar.
Hope they can manage to get payments down as low as possible extending term and doesn't come to that!
Soldato
That's a good point. I'm glad i didn't max out my mortgage offer as things would be much worse. I do however regret taking out an additional mortgage for some work we had done vs getting a slightly higher interest loan and just dealing with the shorter term pain of higher monthly payments.
Permabanned
Many people will still be on fixes, when the terms come to an end that’s when **** will hit the fan. Gonna take a little while to filter through.
My mates looking to move to a bigger, more expensive house, he’s on hold due to the chain breaking twice. No matter what he does I think he’s going to end up feeling the pinch.
My mates looking to move to a bigger, more expensive house, he’s on hold due to the chain breaking twice. No matter what he does I think he’s going to end up feeling the pinch.
Soldato
Sure?
I've just taken out a 0% balance transfer card, which also had a 0% transfer fee and it's got 22 months on it. I've not seen any disappear yet.
This is my one benefit at the moment, ramping spend onto these cards and using the money i would otherwise be paying into a 5% savings account. No risk of not having the money, should i be unable to switch i'll have more than enough in those savings accounts.
Just shows how badly off affordability checks are.
This has fueled the problem. Both elevating prices and making people more vulnerable.
We maxed out to get this house in 2020 and took a 3 Yr fix. Panned out OK. But knowing what I know now. It was reckless.
I consider myself quite financially savvy but consider those decisions a mistake I got away with.
I find it particularly unfair when people belittle others who have no financial knowledge of making poor decisions when even experts and advisors are telling you to basically max out.
Affordability is too loose! And it's gotten us (the country) into this situation. Me and my gf should never have been able to buy the house we did!
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Associate
Do these accounts even exist?
Well the offers are not dead, but 2 of my cards which were offering me constantly ofr 5+ years no longer have offers, although one card gave me a new deal out of nowhere, logically though these offers are going to become more costly to provide so at the very least the criteria will get tightened.
I havent applied for any new cards for a while, so am referring to existing customer deals. Either way I am not taking chances so have decided to kill the debt quickly.
What you doing is fine of course as you have the ability to pay it if needed.
Soldato
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They do if you're happy fixed the money away for a year.
Permabanned
No lessons were learned from 2008 it seems.
I kinda see it both ways.
Yes - people shouldn't be overstretching, but the reality is - house prices have gotten so damn expensive, unless you earn a ton of money - pretty much everyone is going to be overstretching themselves to buy a house in the last couple of years (before this charade)
People just want decent places to live, if you have a family and you need 3-4 bedrooms, a garden and garage - unless you're right up north or in a real crap area, you're going to need in the region of £340k to get anything relatively standard. If you're in the south - basically forget it now.
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No, how we ever got back to allowing 5pc deposits is beyond me.
OK, maybe a 5pc deposit but you Must take a 5 year fix would be sensible.
But there will be many with 95pc ltv on 2 Yr fixes coming out with 90pc plus ltv into this storm.
Soldato
What is happening to house prices, and could there be a crash?
How higher interest rates are changing the UK's housing market.
www.bbc.co.uk
Pretty much it yeah, the alternative of private rental is far far worse, even interest only mortgage is a better option than renting.
Soldato
That doesn’t seem right for both numbers.