Mortgage Rate Rises

[Rai200]

£900 a month more.
Absolutely crazy

We recently found out our landlord wasn't renewing our lease, he waited until the last possible day to legally notify us which was nice.

We were paying £1050 a month, the new place is £1920 and that's just the going rate here for a basic 3 bed. It's unreal.

 

[Raymond Lin]

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?

You live in a different world of travel than me but I see your point.

I almost didn't book a ticket to Japan for next year because flights (even economy) has gone up by 40-50%. I did book however because hotels prices are (or were at the time of booking) down like 30-40%. So overall I am not paying that much over the normal pre-pandemic rate with flight/accommodation combined.

Spending money....also really good at the moment too £1 is 165yen vs £1 to 125 yen a few years ago. It all ended up evens out may be even a bit better than before as I found a prem-econ ticket for only £200 more than 2017 ticket price.

I don't think I would have booked had the hotel prices gone up instead of down.

 

[Doobedoo]

We recently found out our landlord wasn't renewing our lease, he waited until the last possible day to legally notify us which was nice.

We were paying £1050 a month, the new place is £1920 and that's just the going rate here for a basic 3 bed. It's unreal.

That’s more than I earn! That would be me on the streets.

 

[Mercenary Keyboard Warrior]

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

Sorry I disagree

You should be able to borrow what you can afford to repay.

People have different views on whats important and what living is.
Lenders see hard £.

My affordability will differ to yours in many ways even if we had the same salary.

 

[Hagar]

Affordability and risk profile

 

[413x]

Sorry I disagree

You should be able to borrow what you can afford to repay.

People have different views on whats important and what living is.
Lenders see hard £.

My affordability will differ to yours in many ways even if we had the same salary.

My technical affordability is high. No kids, no debts, not even a TV licence. But since I live relatively cheaply (at a core cost cost basis) there's less wiggle room when things get unpleasant.

But yes, we will have to disagree. I think lenders are able to lend too much.

 

[Rai200]

That’s more than I earn! That would be me on the streets.

Thankfully it's between three of us, but we are looking at £850 each inc. bills.

 

[matt100]

My technical affordability is high. No kids, no debts, not even a TV licence. But since I live relatively cheaply (at a core cost cost basis) there's less wiggle room when things get unpleasant.

But yes, we will have to disagree. I think lenders are able to lend too much.

That was all drastically reprogrammed in the '08 crash.

I'm not saying it's right or wrong but if the affordability criteria has to be changed to price in a 2 month PM stint by a lunatic we'll probably crash the economy again.

For whatever someone wants to borrow to buy there is someone also wanting to sell. If they can't sell at the price they need to in order to move on or even worse would end up in negative equity and stuck then the whole thing topples over.

It's really not good we're where we are but nuking everything on a principal hardly helps.

 

[Haggisman]

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.

But then what are the alternatives?

If you stick with going cheap and gradually climbing the ladder, you have to accept that you're losing a huge chunk of money each time. Either that or resign yourself to being stuck in a 1 bed flat and never having a family.

 

[neocon]

Why did you move?

Move closer to my dad, better school area and get a bigger house.

 

[Kill_Phil]

Move closer to my dad, better school area and get a bigger house.

Eh be careful. You'll get criticised by GD for trying to better yourself and your families lives; be expected to be told to sell up and go live in a van ha

 

[Hagar]

But then what are the alternatives?

If you stick with going cheap and gradually climbing the ladder, you have to accept that you're losing a huge chunk of money each time. Either that or resign yourself to being stuck in a 1 bed flat and never having a family.

You get practiced in the property market. The big chunk of costs is stamp duty, we are buying a three bed semi this time downsizing and the total move cost is under 10k incl. stamp duty, so some people are well up in the 400k region with the figures quoted. Not a first and only house.
Also you move maybe every ten years or so max, so annually it is not huge. My story is terrace house, semi bungalow, semi house, renting, new build four bed detached, renting and now semi house again with family having left.

 

[krooton]

You get practiced in the property market. The big chunk of costs is stamp duty, we are buying a three bed semi this time downsizing and the total move cost is under 10k incl. stamp duty, so some people are well up in the 400k region with the figures quoted. Not a first and only house.
Also you move maybe every ten years or so max, so annually it is not huge. My story is terrace house, semi bungalow, semi house, renting, new build four bed detached, renting and now semi house again with family having left.

I went 1-bed flat, renting, 2-bed flat, 3-bed detached new build.

We went all in on the house as it is a forever-home, finding detached houses in Greater London, walking distance from a station, and within (our admittedly tight) budget, is rare.

 

[Doobedoo]

Eh be careful. You'll get criticised by GD for trying to better yourself and your families lives; be expected to be told to sell up and go live in a van ha

Not quite but If £25k is the cost to do it then that is a choice you make. Some people can’t even get on the ladder in the first place so it’s a privileged position to be in.

 

[413x]

I've only gone from rent to 3 bed detached.
Due to moving around a lot and not feeling settled I'm very late to the expensive party.


But I moved around a lot renting. 5 places in 5 years. Filling in last 3 years of addresses was always a chore for financial things.

 

[krooton]

I've only gone from rent to 3 bed detached.
Due to moving around a lot and not feeling settled I'm very late to the expensive party.


But I moved around a lot renting. 5 places in 5 years. Filling in last 3 years of addresses was always a chore for financial things.

Amateur hour, I did 5 addresses within a 12 month period back around 2015 xD

 

[413x]

Amateur hour, I did 5 addresses within a 12 month period back around 2015 xD

Damn! That's brutal!

Each move I had more crap to move.
Try not to buy more junk. And still have a garage to properly sort!

 

[a1ex2001]

We recently found out our landlord wasn't renewing our lease, he waited until the last possible day to legally notify us which was nice.

We were paying £1050 a month, the new place is £1920 and that's just the going rate here for a basic 3 bed. It's unreal.

an awful lot of buy to let landlords max out the mortgages at each renewal so they can build the portflio, the mortgages are interest only and have been cheap as chips for years now put the mortgage rate uo to 6% and for them to make a return that is sensible they have to slam the rents up, being a renter is probably going to be tougher than being a home owner in the next 12-18 months I expect rents to rocket and availability to plummet as a lot of landlords sell up.

 

[Rai200]

an awful lot of buy to let landlords max out the mortgages at each renewal so they can build the portflio, the mortgages are interest only and have been cheap as chips for years now put the mortgage rate uo to 6% and for them to make a return that is sensible they have to slam the rents up, being a renter is probably going to be tougher than being a home owner in the next 12-18 months I expect rents to rocket and availability to plummet as a lot of landlords sell up.

The property we are in is owned by the landlords Mum, but she is 92 so he deals with it.

She has owned it outright for 30+ years and has barely carried out any work in that time (proper 70s fittings everywhere). The landlord will only allow contact through the agency via post, not phone or email and he took 17 months to repair water damage caused by one of the old fittings.

He's just a **** that wants an excuse to kick us out, so he can slap on some paint, maybe a new carpet and put it on the market for 60% more a month instead of increasing our rent the max of 8%.

You're right as to the reason of price increases and it's already happening. The property we have managed to get would have been no more than £1450 6 months ago. Not that £1450 is exactly a bargain.

 

[Huggie86]

Just been catching up on the current deals just out of curiosity, its nuts at these rises. We're still locked in till March 2026 at 1.44%
Should be able to clear it all by the time the fix ends. Feel lucky to have lucked out with that rate at the right time.