Mortgage Rate Rises

bris said:
Going to start struggling now at 4%, this is a big number compared to what it was.

People tend to buy the biggest and best house they can afford and it's usually based on the interest at the time.
Click to expand...

That is ridiculous
 
I can see people in my area listing houses they bought in 2021 for 550k say that they bought for 500k. We're talking mid terrace with one bathroom. Not sure why they think it's worth 50k more.
 
bris said:
People tend to buy the biggest and best house they can afford and it's usually based on the interest at the time.
Click to expand...
Often touted but they couldn't just 'max out' without passing the affordability and stress tests which was allowing for a 3% rise above the lenders current SVR at time of application.
 
I thought my rate of 3.41% was inconvenient (from 1.57%) when I renewed in Aug. Now it seems it was actually a decent deal.

I remember my first mortgage was circa 6% just before the 2008 crash.
 
neocon said:
I can see people in my area listing houses they bought in 2021 for 550k say that they bought for 500k. We're talking mid terrace with one bathroom. Not sure why they think it's worth 50k more.
Click to expand...
This is my old house:

cWnKFey.png

edit: this was a 630sqft 1.5 bed.

I sold it for £525k in 2022.

My neighbour bought their exact copy of the house for £460k and then tried to list it for £550k 9 months later; but it wasn't fit and finished inside as nicely as mine so he got timed out of the market and the house was delisted.
 
Last edited by a moderator:
With rates up to 4.0% as of this morning i am glad my remortgage completion was yesterday with FirstDirect at 3.09% for 5yrs.

Now waiting for saving rates to go up.....
 
200sols said:
Often touted but they couldn't just 'max out' without passing the affordability and stress tests which was allowing for a 3% rise above the lenders current SVR at time of application.
Click to expand...

And this additional rate rise has just pushed a whole bunch more people over the level that the stress test was set at.
 
McBain said:
Exactly. People still don’t get it.

“Yeah but, but, but when I bought my 30K house in 1981 the rates were 15%.”
Click to expand...

15% on 30k = 4.5k

4% on 400,000 = 16k

(crude/simplistic numbers etc I know, but gets the point across).

Like, if mortage interest rate went back up to 15% now, almost the entire country would go broke very quickly.
 
Last edited:
Jono8 said:
15% on 30k = 4.5k

4% on 400,000 = 16k

(crude/simplistic numbers etc I know, but gets the point across).

Like, if mortage interest rate went back up to 15% now, almost the entire country would go broke very quickly.
Click to expand...
Lots of people taken out interest only mortgages on some big figures.
 
dLockers said:
This is my old house:

cWnKFey.png

edit: this was a 630sqft 1.5 bed.

I sold it for £525k in 2022.

My neighbour bought their exact copy of the house for £460k and then tried to list it for £550k 9 months later; but it wasn't fit and finished inside as nicely as mine so he got timed out of the market and the house was delisted.
Click to expand...
We are nearly at 100% price rises in the past 8 years where I live. Probably at about 80-90% at the moment. My sister bought a house for £110k sold it for £199,999 and that was before they peaked.
 
I'm surprised.
I know it was much expected. But I thought it would be 0.25 max.
If only to give wiggle room later.


As others have said. This is going to add more pressure to many.

Food, stuff, utilities, Council tax,
You name it, its all going up
 
413x said:
I'm surprised.
I know it was much expected. But I thought it would be 0.25 max.
If only to give wiggle room later.


As others have said. This is going to add more pressure to many.

Food, stuff, utilities, Council tax,
You name it, its all going up
Click to expand...

Council tax hasn't gone up yet... that starts in April :( IIRC it's set below the level of inflation though at 4-5%
 
MikeTheNative said:
Been trying to explain this to older relatives but they just don't get it.
Even if they were paying 10% interest as the price was a lot less compared to their wages they were still better off.
Click to expand...
Gets tedious. Said it before in this thread. I don't understand how older generation (not all obviously) seem to relish this increase. You'd assume many would have kids etc who might be hurt by it.

"good, we had to deal with blah blah blah %"

Look what you have now! We will never have that.
 
You must log in or register to reply here.
Back
Top Bottom