Mortgage Rate Rises

BUDFORCE · 15 Dec 2022 at 11:49

So just had an update with the CEO today, didn't sound very happy, but hopefully things will improve.

For the first time in a long time they are starting to see an increase in arrears.

But due to interest/swap rates, even though we wrote more mortgages in 2022 over 2021, the 2021 book was more profitable.

But basically said at the moment we are intentionally not looking looking to lend, spoke to an ex-collegue and the lender she works for the same thing.

All I will say in the short term is its great, doing about an hour work a day, which is two hours less then normal then make dinner, shower, PUBG, Star Trek:Voyager to fill out my time lol.

kevman · 15 Dec 2022 at 11:55

BUDFORCE said:
So just had an update with the CEO today, didn't sound very happy, but hopefully things will improve.

For the first time in a long time they are starting to see an increase in arrears.

But due to interest/swap rates, even though we wrote more mortgages in 2022 over 2021, the 2021 book was more profitable.

But basically said at the moment we are intentionally not looking looking to lend, spoke to an ex-collegue and the lender she works for the same thing.

All I will say in the short term is its great, doing about an hour work a day, which is two hours less then normal then make dinner, shower, PUBG, Star Trek:Voyager to fill out my time lol.

Unsuprising i guess since everyone was stuck at home in 2021 with loads of disposible income.
Be interesting to know if arrears would have gone up anyway because of cost of living crisis even without all the shenanigans around interest rates

Chris344 · 15 Dec 2022 at 12:01

0.50%

Troop · 15 Dec 2022 at 12:02

up 0.5%

Slam62 · 15 Dec 2022 at 12:02

Least they could do tbh, I bet the 3 against wanted higher

413x · 15 Dec 2022 at 12:05

Slam62 said:
Least they could do tbh, I bet the 3 against wanted higher

No way. I'd say they wanted lower

Freakbro · 15 Dec 2022 at 12:21

I think I heard the news say 2 voted for no change

200sols · 15 Dec 2022 at 12:29

Yes 2 voted no change, 7 voted hike.

Of the 7, 6 voted for 50bp, 1 voted for 75bp.

MatsyLR · 15 Dec 2022 at 12:32

Does the 0.5 increase mean for example trackers at 3.65% would go up to 4.15%, or is that simplifiying things to much?

413x · 15 Dec 2022 at 12:43

MatsyLR said:
Does the 0.5 increase mean for example trackers at 3.65% would go up to 4.15%, or is that simplifiying things to much?

I guess if its base rate + X% then yes. The lenders usually update quite quickly. (obviously!

)

Martynt74 · 15 Dec 2022 at 12:47

413x said:
I guess if its base rate + X% then yes. The lenders usually update quite quickly. (obviously! )

Yeah, mine tends to update about a month ahead, so i'd assume my Feb payment will be up to 4.25%

Slam62 · 15 Dec 2022 at 12:50

413x said:
No way. I'd say they wanted lower

With inflation at 10.7% you've got to be kidding

Mercenary Keyboard Warrior · 15 Dec 2022 at 13:02

Slam62 said:
With inflation at 10.7% you've got to be kidding

Well technically he was right
Of the three, two voted no change :eek:

neocon · 15 Dec 2022 at 13:52

Interest rates are ideally higher than inflation, that's what Farage and Schiff were saying.

413x · 15 Dec 2022 at 14:07

Slam62 said:
With inflation at 10.7% you've got to be kidding

No way any of them were going to vote for 0.75
I was expecting a split between 0.25 and 0.5. But looks like some voted no change.

HungryHippos · 15 Dec 2022 at 15:41

Welp I was wrong with my 0.25 guess!

sihartley25 · 15 Dec 2022 at 15:52

My 2 year fixed comes to an end in sept next year is there any thing that i can do now to prepare?

ci_newman · 15 Dec 2022 at 15:55

sihartley25 said:
My 2 year fixed comes to an end in sept next year is there any thing that i can do now to prepare?

Overpay (or save) as much as you can between now and then

Raymond Lin · 15 Dec 2022 at 15:57

sihartley25 said:
My 2 year fixed comes to an end in sept next year is there any thing that i can do now to prepare?

Overpay as much as you can to bring the balance down would be the 1st thing I'd do. This will make the biggest difference to your monthly repayments come September.

Depends how the market plans out and when the peak is, you can "lock" it with a quote from March/April time if you want as a backup plan and watch the market. Either use it or not come September.

ChrisD. · 15 Dec 2022 at 16:45

Don't overpay, put those overpayments into a high interest savings account. Then make a decision when the fix is over after keeping an eye on the market.