Mortgage Rate Rises

413x said:
Think we are near/at the peak.
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I think for the medium term either interest rates continue to rise or the entire financial system will fail. Although it failing is not necessarily a bad thing as the current FIAT currency system is extremely unjust, counterproductive and basically parasitic on hard working people. It also inhibits true non-financial private enterprise. Not to mention totally ridiculous house prices.
 
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matt100 said:
That's not how it works.

All that actually needs to happen for inflation to go down is.. nothing.

It's an annualising measure so every year you basically start again.

I think that's why it's being forecast that it'll drop like a stone over the next couple of years, the horse has bolted and the prices have shot up but as long as they don't do that AGAIN then inflation drops to basically nothing.
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Yep, assuming there is not :
a) a massive currency devaluation pushing more prices up and,
b) wage inflation does not become significant and ingrained
then inflation will naturally fall significantly 12 months after it rose

radderfire said:
I think for the medium term either interest rates continue to rise or the entire financial system will fail. Although it failing is not necessarily a bad thing as the current FIAT currency system is extremely unjust, counterproductive and basically parasitic on hard working people. It also inhibits true non-financial private enterprise. Not to mention totally ridiculous house prices.
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Hehe you know you want to mention your unicorn and fairies solution, we are all waiting
 
radderfire said:
I think for the medium term either interest rates continue to rise or the entire financial system will fail. Although it failing is not necessarily a bad thing as the current FIAT currency system is extremely unjust, counterproductive and basically parasitic on hard working people. It also inhibits true non-financial private enterprise. Not to mention totally ridiculous house prices.
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The only other option is gold, the only real difference, is that it would stop the government from being able to borrow, thus it makes it possible for the government to go bankrupt.

This can simply be achieved by passing laws prohibiting the BOE from purchasing government bonds.

The government borrowing money and squandering it, is what is unjust and what is parasitic on hard working people, is useless people.
 
platinum87 said:
The only other option is gold, the only real difference, is that it would stop the government from being able to borrow, thus it makes it possible for the government to go bankrupt.

This can simply be achieved by passing laws prohibiting the BOE from purchasing government bonds.

The government borrowing money and squandering it, is what is unjust and what is parasitic on hard working people, is useless people.
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A tax, not called a tax, that they don’t have to ask permission to have.
 
platinum87 said:
The only other option is gold, the only real difference, is that it would stop the government from being able to borrow, thus it makes it possible for the government to go bankrupt.

This can simply be achieved by passing laws prohibiting the BOE from purchasing government bonds.

The government borrowing money and squandering it, is what is unjust and what is parasitic on hard working people, is useless people.
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Essentially the issue is that the supply of the currency is totally controlled by a small sector of society, effectively this is the private banking sector, as the government gets totally captured for various reasons. What most people don't understand is that currency itself is a debt instrument, it's a "note" as in debt note issued by a bank, essentially an IOU. This IOU used to represent a weight of gold, but now it does not. Yes I agree gold is an option, but remember we used to have this, and it got removed by political action, meaning the bankers plus captured government control money issuance, i.e. the time value of human effort, so they have control over human action. The other issue I have with gold is that it is quite polluting and damaging to the environment in terms of mining impact, which is a shame, because I like that gold has the capability to enshrine the true value of money, and human society would be much better off with a money that truly represented human effort instead of something which can be issued at will by a small privileged sector of society.

Once you have complete control of the money supply, you can relatively straightforwardly takeover everything, by manipulating the business cycle, i.e. a prolonged period of lowering interest rates, where you can print money for yourself and buy up everything, and then a prolonged period of raising interest rates, where you extract money from everyone and then make everyone bankrupt and seize assets (what will happen more in the property market). Ultimately it comes down to FIAT currency fundamentally being a scam as it is an unfair form of money for society, as a small sector of society is able to issue it and control it for themselves. Hopefully more people will be able to understand this, which is partly why I write these posts here, and call for a fairer form of money. A gold backed currency would be a major step in the right direction. The problem is, a lot of the population does not take enough interest so they are easily deceived.
 
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Our fixed rate finishes in April 2023. Based on current rates we’re looking at £800-£1000 more a month. If this is the case we simply can’t afford it and will have to sell and move back into rental. Pretty gutting as we are first time buyers and finally managed to get on the ladder in 2019. We fixed in 2021 for 2 years - oh how I regret that decision.
 
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Meatball said:
Our fixed rate finishes in April 2023. Based on current rates we’re looking at £800-£1000 more a month. If this is the case we simply can’t afford it and will have to sell and move back into rental. Pretty gutting as we are first time buyers and finally managed to get on the ladder in 2019. We fixed in 2020 for 2 years - oh how I regret that decision.
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Short term can you extend the term? 35 maybe even 40 year terms might be possible. Should reduce the mandatory payments a bit.

It's not a long term fix but it may help tide you over until rates come down.

If you have a spare room consider a lodger as well. Not ideal maybe but then neither is losing the property.
 
Meatball said:
Our fixed rate finishes in April 2023. Based on current rates we’re looking at £800-£1000 more a month. If this is the case we simply can’t afford it and will have to sell and move back into rental. Pretty gutting as we are first time buyers and finally managed to get on the ladder in 2019. We fixed in 2020 for 2 years - oh how I regret that decision.
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If you fixed in 2020 for two years how does your fix end in April 2023?
 
Meatball said:
Our fixed rate finishes in April 2023. Based on current rates we’re looking at £800-£1000 more a month. If this is the case we simply can’t afford it and will have to sell and move back into rental. Pretty gutting as we are first time buyers and finally managed to get on the ladder in 2019. We fixed in 2021 for 2 years - oh how I regret that decision.
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Surely it won't be as bad as that.

How much did you borrow? You could probably lock in an offer for a 5 year fix at 5.3% or so right now for April.
 
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EvilRob said:
Surely it won't be as bad as that.

How much did you borrow? You could probably lock in an offer for a 5 year fix at 5.3% or so right now for April.
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It can be, take a £300k mortgage, plenty of people with one that size (or much larger!)

1.5% -> 5% = Roughly an extra £820 a month. Many many people in this situation, and even with a smaller mortgage the problems still exist because they tend to be on lower salaries.
 
200sols said:
It can be, take a £300k mortgage, plenty of people with one that size (or much larger!)

1.5% -> 5% = Roughly an extra £820 a month. Many many people in this situation, and even with a smaller mortgage the problems still exist because they tend to be on lower salaries.
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Yep, some will smugly sit on the sidelines commenting that people shouldn't have maxxed out on their borrowed amount, but the reality is many people have, so the increases still hit people relatively the same regardless of mortgage size.
 
Had our mortgage approved last week and have already seen lower rates haha. Not sure it is worth the rigmarole of trying to go with a different lender now (or even trying to get our current product changed with existing lender) when we are so close to completing. However 4.89% vs 5.39% is an extra £70 per month in our back pocket. Argh, annoying.

I think Nationwide have only reduced the fee on our product to £0 now instead of £999 but they do have a slightly lower 5.24% product available for the same fee. What to do, what to do.
 
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krooton said:
Yep, some will smugly sit on the sidelines commenting that people shouldn't have maxxed out on their borrowed amount, but the reality is many people have, so the increases still hit people relatively the same regardless of mortgage size.
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Exactly, unless your wages have risen at a similar rate then an extra 50% is an extra 50%, regardless of whether that's £200 or £800.

Considering how expensive it is to move (looking at £10k+ when everything is included) then it makes sense to do it as little as possible by trying to get the "right" house first time if you can afford it - obviously that does then come with the risk of rates going up as they are doing so currently :(
 
Tbf though the writing has been on the wall for 6+ months now. Not trying to be smug because I’m far from a financial guru but the signs were there enough to want to get some security and lock down a long term fix.
 
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