Mortgage Rate Rises

413x said:
Would be great if houses stopped keeping up with inflation.

House prices went up??

Just looked. Seems like it's same old story. Just too many people and not enough houses. Falling prices people hold back. But soon as there's a sniff of stability.. Back to normal.


Crazy really. If what we've been through can't drop prices by 10pc I don't know what will apart from catastrophic stuff
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They went up because a number of large housing developers put sites on hold after getting numerous cancellations. I know of two housing developers whom are in negative sales right now where they got more cancelled than sold.

Instead of stock being built and prices being lowered they just don't provide stock to sell what they currently have at the current value.
 
delta0 said:
It’s fundamentally what will keep house prices rising over the long term. Supply is very low.
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Yup I'm not surprised houses prices didn't fall.

Said it before in this thread but housing supply and demand isn't as simple as number of people needing places to live Vs supply.

UK housing stock is seen as a good investment, and that includes from overseas, as houses are built or become available they are purchased as investments and sometimes not even occupied.

There are also A LOT of really wealthy landlords who have the capacity to raise liquid cash very quickly to buy up stock as it comes to market, this competition will prop prices up.

It would have to get pretty bad to have any real change, even then I'd say a modest amount.

Of course all that will happen is the poorer will suffer what the rich benefit.
 
We have an issue with our housing stock as vast swathes of it are undesirable.

You can have a 30 year difference between living standards in 2 houses next to each other.

I once saw a house that was lovely but had BT sub 100mb speeds and didn't take a punt on it because of that.
 
BUDFORCE said:
Yup I'm not surprised houses prices didn't fall.

Said it before in this thread but housing supply and demand isn't as simple as number of people needing places to live Vs supply.

UK housing stock is seen as a good investment, and that includes from overseas, as houses are built or become available they are purchased as investments and sometimes not even occupied.

There are also A LOT of really wealthy landlords who have the capacity to raise liquid cash very quickly to buy up stock as it comes to market, this competition will prop prices up.

It would have to get pretty bad to have any real change, even then I'd say a modest amount.

Of course all that will happen is the poorer will suffer what the rich benefit.
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Yeah I get the feeling this is happening a lot, similar to the btl debacle. Quite large houses coming on the market and sold pretty quickly.
 
all of the new build houses within 15 miles of me have gone up. There is one style of house listed for £375,000 last year. It's now £400,000.

If they can sell them, of course they'll keep putting the prices up.

My neighbours dad bought her a new house, and rented her old one out. That's worth £300k.
 
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TheOracle said:
all of the new build houses within 15 miles of me have gone up. There is one style of house listed for £375,000 last year. It's now £400,000.

If they can sell them, of course they'll keep putting the prices up.

My neighbours dad bought her a new house, and rented her old one out. That's worth £300k.
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I think new builds will be a hard buy at the moment with pricing and mortgage costs. I live in a new build estate, my house has gone from 184K to about 215K in 12 months.

The smaller houses that now cost more than my house have slowed to a crawl because of mortgages.
 
danlightbulb said:
Yep look what happened during COVID too when all predictions were for a fall/crash. It is just a rigged system now I think. Prices will fall at some point, but only when vested interests want it to.
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I remember being 50:50 on buying my first home. It was December 2019 and covid was coming. I was talking to my then boss and being laughed at for saying this was going to be really bad. - right in that one

I was sure it would be bad, even worse than it was. I was sure house prices would drop - I was wrong on that.


What I didn't expect was free money. And especially furlough. And even more surprised by stamp duty break.

Houses mooned and id have been fuming if I didn't buy.



I do wonder what would have happened if all that help wasn't provided. Not just in terms of house prices. But generally.

Just goes to show its very rare in recent history it's ever been a bad decision to buy 'now'
 
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It's odd how it works out, but I got my first mortgage in 2003 (was late entering the housing market) and got a 5 year fix initially with a not too bad SVR + X rate after that. Then when the fix ran out the 2008 financial crash happened and interest rates plummeted, so I never bothered to get another mortgage and have just been on SVR for the last 15 odd years.

And now the rates are going back up, the balance left is so small all the rises so far have made about £20 a month difference. And now I've moved out and renting the house, with permission from the lender on a personal mortgage, it's probably not worth the hassle of trying to get another mortgage as it'd probably have to be a BTL one.
 
krooton said:
Still a few weeks out from being able to softlock in a new rate, but the options aren't looking great.

Currently 1.28% @ £1,031/month

Options:
2 Year Tracker - 3.24% - £1,419/month
5 Year Fix - 4.33% - £1,523/month
2 Year Fix - 4.59% - £1,570/month
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Thats looks grim, I am expecting the rates to drop by the time my 1.45% deals ends in Dec 2025.
 
Freakbro said:
It's odd how it works out, but I got my first mortgage in 2003 (was late entering the housing market) and got a 5 year fix initially with a not too bad SVR + X rate after that. Then when the fix ran out the 2008 financial crash happened and interest rates plummeted, so I never bothered to get another mortgage and have just been on SVR for the last 15 odd years.
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Aren't SVRs usually 3 or 4% above the base rate? :eek:
 
Currently about to sell. The market is a bit odd but we have a benchmark sale from just before Christmas so have a reasonable idea of what to expect. Oddly the place we are looking at buying has come back towards us. 24 months ago the cost to change into it would have been £220k, now it's looking more like £140k.
 
EvilRob said:
Aren't SVRs usually 3 or 4% above the base rate? :eek:
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They can be. IIRC my first 5 yr fix was around the 5.5% mark and the SVR deal was +1.99%, so when it dropped to SVR after the Crash, I was around 2.25% which I was happy with.

The few times I looked to change, the fee's alone weren't worth changing for the slightly lower % rate, especially as my mortgage was only in the 40K range anyway.
 
Martini1991 said:
I think new builds will be a hard buy at the moment with pricing and mortgage costs. I live in a new build estate, my house has gone from 184K to about 215K in 12 months.

The smaller houses that now cost more than my house have slowed to a crawl because of mortgages.
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New builds have some key reasons they can retain their price. They are subject to more incentive schemes and then developers can pile their own incentives on too like part exchange, stamp duty paid, 'free' furnishings etc. We bought our house in 2008 and part exchange was a nice option for us in the sense that we saw it being potentially difficult to sell our house (we got £145k p/x and I saw it was resold for £130k).

Also it's a bit of a cartel scenario where the developers are in control of the supply of most of the houses in that immediate area, so they can limit supply and fix pricing. That said you will find in a dwindling market that there are more discounts to be had, even if the headline prices remain high (they can't cut the headline prices for obvious reasons as it impacts all properties of the same type and they might find some buyers willing to pay it, but you will see more incentives being offered and then more room for negotiation behind the scenes).

I'm not saying that makes new builds a better buy but I'm saying it explains why they can be resilient and attract buyers, it's like a private seller isn't going to pay your stamp duty or have some sort of equity scheme to reduce the (short term / headline) costs for buyers.
 
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