Mortgage Rate Rises

Not sure about this market. We had a dozen viewings in two days and have an offer at asking already. We were competitively priced, but it seems in some areas demand is still there. A bit surprising really.
 
I can only speak of 6 months ago, friends trying to (first time) buy were trying to offer £10k over asking in most cases, but things were being sold left right and centre... took them a while to finally get something.
 
AndyCr15 said:
I can only speak of 6 months ago, friends trying to (first time) buy were trying to offer £10k over asking in most cases, but things were being sold left right and centre... took them a while to finally get something.
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Hope they got a 5 year fix/had a big deposit!
 
I don't think 6+ percent is outside the realms of possibility, historically at least.

It's going to be tough for a lot of people, but if property prices are to move substantially supply needs to exceed demand so something has to give.
 
I think the shear number of BTLs -- who will almost entirely be interest only -- will be a factor in rates (or mortgages at least) staying fairly manageable. Renters are going to have to launch a coup otherwise.
 
dLockers said:
I think the shear number of BTLs -- who will almost entirely be interest only -- will be a factor in rates (or mortgages at least) staying fairly manageable. Renters are going to have to launch a coup otherwise.
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There's a certain point above which renters simply can't afford the rent. Then you look at people moving back in with family, renting rooms or otherwise finding less attractive alternatives that might take the bottom out of the rental market and lead to more BTL properties being sold and help bring prices down.
When it's remortgage time for my BTL, I simply don't think I could charge enough rent to make a useful profit after 40%+ tax, mortgage interest and other expenses and that's at ~50% LTV. That said I haven't raised the rent for 6 years, so I could probably be doing better than I am currently.
 
adam cool dude said:
House prices dropped for the 4th month in a row. Should be the beginning of a housing crash. Sucks if you just bought a house. A friend didn't get into positive equity untill nearly 10 years after the 08 crash. Some people are predicting up to 20pc which even still would only take you back to 2021 levels.
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If you dont treat the house as a financial asset (its a place to live) and can afford the mortgage, then its a case of just carry on and ride it out, historically drops in value are always temporary.
 
chrcoluk said:
If you dont treat the house as a financial asset (its a place to live) and can afford the mortgage, then its a case of just carry on and ride it out, historically drops in value are always temporary.
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Thats the current issue "can afford the mortgage", with the interest rate rises and the cost of heating been up 200+ a month many people simply wont be able to afford the mortgage any more when they come to the end of their fixed terms, if they bought fairly recently they coudl likely be in negative equity aswell so a lot of repossessions are going to happen.
We are potentially in that position, we started the process of buying our property in september 2021, imediately after we completed on it the world went to ****. When we come to renew at the end of our fixed them the mortgage is looking like it will be over 300+ a month more for us, the heating bills are also currently over 200 a month more that they were when we decided on purchasing the house.
 
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Bit of advice needed here. Family member has had an offer accepted on a house. Been offered a tracker mortgage or fixed...what would be all your recommendations currently?
 
LOL!

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