Mortgage Rate Rises

mattyprice4004 said:
The market has absolutely died here - lots of houses being dropped in price or relisted.
Very lucky to be mortgage free, so we’ll be staying here for a (very) long time I think.
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Same here in South West, almost every new listing is a reduced one on right move or a "unexpectedly back on the market again" one, but hardly surprising when sellers listing their homes for 50% more than what they paid just 4ish years ago for them
 
TheOracle said:
There's no wonder people have given up. I've noticed peoples attitudes have changed. If their wages drop in real terms, so does their output.
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I would not be surprised, whilst there is realistic aspiration to improve your life with hard work it's easy to be motivated. If it's all going down the toilet anyway the reasons to bother disappear.

Whilst you don't have a direct involvement, anyone who is still living the high life appears to just be feeding off you.
 
TheOracle said:
There's no wonder people have given up. I've noticed peoples attitudes have changed. If their wages drop in real terms, so does their output.
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My personal take is that wages are a short term motivator but a long term demotivator.

IE a big bump in wages will likely have short term motivational effect
But generally most people have had negatives involving wages that change their motivation to negative in general.
 
Mercenary Keyboard Warrior said:
My personal take is that wages are a short term motivator but a long term demotivator.

IE a big bump in wages will likely have short term motivational effect
But generally most people have had negatives involving wages that change their motivation to negative in general.
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Agree with this.
You get a pay rise. Feel. Super grateful if it's significant. Then it becomes the norm. You work as hard as you did before.


But a decrease in wages and resentment doesn't really subside. Unless it's your choice (work life balance for example)
 
Whats the general consensus at the moment?
Recently agreed a purchase on a property.
Will be a 15 year mortage with my deposit at around £271 a month on a 2 year tracker, rate is 3.49%.
Fixed 5 year is 5.14% for me at £303 per month.
Unsure at the moment, the rates 100% going up next month on the 15th December by either 0.50% or 0.75% from what Ive read, then they will again around March. How much further are they going to go up? for the sake of 1.6% ish? which works out to around £32 a month on todays tracker rate, once it goes up in December that becomes £25 ish and will just get lower and lower as the rate goes up.
From what I've read by Spring next year predicted to get to the 5-6% mark or higher anyway on trackers.

For the sake of the "small" amount of money may it be worth doing a 5 year fix just so I don't have to think about it? I can easily absorb the extra cost.
 
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MatsyLR said:
Whats the general consensus at the moment?
Recently agreed a purchase on a property.
Will be a 15 year mortage with my deposit at around £271 a month on a 2 year tracker, rate is 3.49%.
Fixed 5 year is 5.14% for me at £303 per month.
Unsure at the moment, the rates 100% going up next month on the 15th December by either 0.50% or 0.75% from what Ive read, then they will again around March. How much further are they going to go up? for the sake of 1.6% ish? which works out to around £32 a month on todays tracker rate, once it goes up in December that becomes £25 ish and will just get lower and lower as the rate goes up.
From what I've read by Spring next year predicted to get to the 5-6% mark or higher anyway on trackers.

For the sake of the "small" amount of money may it be worth doing a 5 year fix just so I don't have to think about it? I can easily absorb the extra cost.
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Would it not be worth taking a shorter term if you're only paying ~£300 a month?
 
Worthy said:
Would it not be worth taking a shorter term if you're only paying ~£300 a month?
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Not when I'm on minimum wage with around £200-300 spare each month after essentials paid for, not factoring in even further electric/gas increases going forward or anything else increasing.
May do 12/13 years.
 
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MatsyLR said:
Not when I'm on minimum wage with around £200-300 spare each month after essentials paid for, not factoring in even further electric/gas increases going forward or anything else increasing.
May do 12/13 years.
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Ahhh gotcha. I wasn’t trying to be funny it’s just as you said you could soak up the extra cost it may have been worth shortening the term and getting it out of the way.
 
Worthy said:
Ahhh gotcha. I wasn’t trying to be funny it’s just as you said you could soak up the extra cost it may have been worth shortening the term and getting it out of the way.
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Thinking over things, as a general rule of thumb this is my outgoings on a 12 year mortage.

WAGES £1,350
Savings Interest £22 per month

Mortgage £354
B&C Insurance £10
Council Tax £90
Water £20
Pet Insurance £10
Car insurance £60
Car Tax £12
Electric & Gas £120
Boiler Insurance £15
Broadband £30
Petrol £80
Phone SIM £5

Misc
Food £120
Pet Food £15
Pet litter £10

Totals around £951, say £1000 to be safe, with £350 left over. Keeping in mind I would also have £10k in the bank after deposits/fees paid and I also get comission on top of my wage (not gaurenteed) and I'm a very frugal person to begin with.

The more I think about it I think I'll do a 12 year fix at £354 for 5 and also overpay by 10% each month. Over 5 year that reduces my term by 1 year 3 months so it will look more like a 10 year fix in the end if after 5 years things have averaged around 5%
 
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I took a 2 year fixed in Sept 2021, seems like a bad idea now. Who knows what the rates will be like by Sept next year.
 
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