Mortgage Rate Rises

neocon said:
When you see some people's costs laid bare you really wonder what this is going to do to the rest of the economy. Who's going to be eating out and going in holiday?
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I work in the luxury travel sector, and this was my concern, however our agencies have found that across most surveys, just over half the surveyed people states they felt comfortable in their current financial standing, so it looks like 50/50 screwed and fine.

Thankfully, our core audience is looking to be less impacted by all the crap going on, so my job should be relatively safe as a result.
 
Doobedoo said:
Well we live in different circles because not once did profitability come into my decision making. Some value a roof over their heads more than making a profit.
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Its not profitability.
Its getting 1 extra bedroom, or a bigger garden. It's not maxing out for profit. It's to cut down the number of times you move.

If moving wasn't so expensive there might not be so much of a draw to max out. Social mobility is an issue for jobs and a whole lot more.

We maxed out for our first mortgage. It was shaky ground for sure. But 9 times (years) out of 10 its the best decision.
 
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413x said:
Its not profitability.
Its getting 1 extra bedroom, or a bigger garden. It's not maxing out for profit. It's to cut down the number of times you move.

If moving wasn't so expensive there might not be so much of a draw to max out. Social mobility is an issue for jobs and a whole lot more.
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You mentioned profit. You don’t have to move several times that’s a choice and yes that choice comes with a cost as do most choices.
 
Mercenary Keyboard Warrior said:
What they almost certainly did was ask you some questions on risk and income and income expectations etc

If you think your mortgage was mis-sold then you can consider taking it up. But I bet the IFA covered their bases you just didn't realise that's what they were doing.
People tend to skip over stuff like ERC since they are all excited and not really paying attention to the boring financial part apart from if they can get the mortgage and the £££ pre month its going to cost them

Unfortunately most people will take the lowest cost mortgage that's a short term fix.
They wont be able to really consider the pros and cons in a balanced way.

You had people like Psyco Sonny or whatever his name was who would go on and on and on about people taking 2 year fixes and how the LTV could be affected and save them money.
Where as I would always argue the key should be for many people how they could deal with affordability at the end of that fix with the assumption a deal thats not as good is all thats available.
It will cost you more usually taking the safest approach, its a risk reward balance.
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I don't think it was mis sold. I think the affordability criteria is much too loose. No way should rules allow us to borrow 300. Not when inflation was already kicking in.

It would be OK if mortgage rates alone went to 7pc.

But with food, energy, and basically everything up double digits except wages... Affordability needs a rethink
 
413x said:
Its not profitability.
Its getting 1 extra bedroom, or a bigger garden. It's not maxing out for profit. It's to cut down the number of times you move.

If moving wasn't so expensive there might not be so much of a draw to max out. Social mobility is an issue for jobs and a whole lot more.

We maxed out for our first mortgage. It was shaky ground for sure. But 9 times (years) out of 10 its the best decision.
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My cost of moving last year with stamp duty, solicitor and estate agent fees were close to £25,000 - dead money I will never see again. Of course people will try and minimise the number of times they want to move
 
krooton said:
I work in the luxury travel sector, and this was my concern, however our agencies have found that across most surveys, just over half the surveyed people states they felt comfortable in their current financial standing, so it looks like 50/50 screwed and fine.

Thankfully, our core audience is looking to be less impacted by all the crap going on, so my job should be relatively safe as a result.
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Interesting....for me holidays is the first impact - not because of free cash but where I want to go just doesn't feel very good value at the moment.

e.g.

I would usually pay 4-5k pp for 7 nights business class to Antigua - now it's 7k for the same time/resort. I am assuming that's a combo of fuel and dollar. The only place that looks reasonable longish is either Dubai or Mexico (and I think we've done Dubai to death over the years).

So instead of getting some February sun i'll stick to budget and go somewhere in Europe instead after May.

To be direct - anywhere you can recommend? :D
 
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Doobedoo said:
You mentioned profit. You don’t have to move several times that’s a choice and yes that choice comes with a cost as do most choices.
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But most do. Most people don't want to live in thier first home/flat. Especially if you want a family etc.

In this case, profitable = efficiency.
Its much more efficient to get best you can.. When life is running smoothly.
 
ci_newman said:
My cost of moving last year with stamp duty, solicitor and estate agent fees were close to £25,000 - dead money I will never see again. Of course people will try and minimise the number of times they want to move
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Its terrible really. And that's before you calculate stress etc.

Moving home shouldn't be such a financial hit.

If you inherit 200k,you can jump all that cost just getting that forever home. But for the average person, you will move up. And there are so many hurdles. It's why at 35 I skipped out the starter home. Felt I was too old and too close to being able to get that "second home" it would have been a waste to buy then move a few years later.
 
413x said:
But most do. Most people don't want to live in thier first home/flat. Especially if you want a family etc.

In this case, profitable = efficiency.
Its much more efficient to get best you can.. When life is running smoothly.
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Ok fair enough but then you also have to accept that you are far more vulnerable to external circumstances as we are seeing. That’s life.
 
CapitalOne said:
Interesting....for me holidays is the first impact - not because of free cash but where I want to go just doesn't feel very good value at the moment.

e.g.

I would usually pay 4-5k pp for 7 nights business class to Antigua - now it's 7k for the same time/resort. I am assuming that's a combo of fuel and dollar. The only place that looks reasonable longish is either Dubai or Mexico (and I think we've done Dubai to death over the years).

So instead of getting some February sun i'll stick to budget and go somewhere in Europe instead after May.

To be direct - anywhere you can recommend? :D
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I work in the floating petri dish area, so probably not what you are looking for xD

Though I would love to do some of our new 2024 cruises around Japan.
 
I can't fathom why anyone would fix at 6%

Safety in numbers and all that- just go with a tracker, which will see you paying around 4-4.5% right now, and probably around 6% toward the end of next year before coming back down, you've seen the lengths modern Tory party has gone to to avoid mass layoffs etc during covid (massive borrowing). To a degree this is the counter swing and I fear it can only be worse in future if they do it again to combat the current situation... They won't let rates get that high (sadly lol)
 
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