How's the view up there from that horse?
Mortgage Rate Rises
- Thread starter glenimp617
- Start date
Soldato
I was a bit shocked when we were doing our mortgage how much they would lend us. We lent £180,000 ish in the end but the bank would have given us £280,000. Dread to think how much the rate increase would cost us then.
Same. I was surprised too. I even said to the advisor.. "that seems a bit too much"
Soldato
- Joined
- 28 Nov 2005
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- 12,999
Still looking for our next move up in the North East. Been ongoing for over a year now, previous places falling through, being constantly outbidded etc etc.
The rates increase put a halt to our looking for a few month in between on the hope people would be a bit more realistic about their house valuations....
Hasn't happened, still seems to be overpriced properties being put up. People keep telling us house prices are due to drop... will this actually happen I just can't see it tbh. Luckily we still have our flat.
The rates increase put a halt to our looking for a few month in between on the hope people would be a bit more realistic about their house valuations....
Hasn't happened, still seems to be overpriced properties being put up. People keep telling us house prices are due to drop... will this actually happen I just can't see it tbh. Luckily we still have our flat.
Just been looking at the local market for interest sake and noticed a fair few properties saying "offers above xxx"
Is this a thing now? I thought it was like that in Scotland, but never really seen it around here before.
Is this a thing now? I thought it was like that in Scotland, but never really seen it around here before.
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There is nowhere to put the cash at the moment.
It's been like that for years, OIEO. Generally I think people use it when they want to appear in searches for a certain arbitrary threshold amount (say £300k) but equally they want to avoid being talked down from that number. So rather than advertise at £310k but willing to accept £300k hey will go for OIEO £300k so it appears in people looking at £300k max, but they don't want to put £300k and get offers at £285k, they are trying to set expectations for the negotiation early. Alternatively I guess there may be properties that are tough to value (not much similar locally) and they want to leave the door open a bit to a bidding war, or maybe not in a rush to sell. So they don't want to put a £300k pricetag and then just accept a £300k offer if someone else might have gone to £310k.
Changing the subject, I was out for dinner with some work colleagues a couple of weeks ago who are nearly all younger than me by around 10-15 years and as one is in the process of buying a house the subject turned to that. They were talking with incredulity about how 'crazy' the interest rates were now and saying with certainty that they had to 'drop back to normal'. Basically they've lived their whole adult life after the 2008 financial crisis and perhaps understandably to some extent are completely oblivious to the fact that interest rates are in fact still quite low by the standards of the past 60 years. Of course there's an argument that there's a new normal and maybe we should be expecting decades ahead of sub-5% rates, but it was a bit of eye opener for me. I also think the sort of blinkered view of history is a bit different though for that generation though, I mean I wasn't alive in the 70s and was pre-teen in the 80s but I'm still aware of the idea of double-digit interest rates.
Not entirely sure what point I'm making other than it reinforces the message that different generations will have different perceptions, but it does worry me a bit of people are just seeing rates of ~4% as some sort of temporary surge that's guarenteed to go away and see a return of cheap credit soon and for the forseeable.
Yeah, but just ignore it. Offer what you want to offer.
Spoke
Update on my rate switch is that it seems to be a quick process. The brokers inform the lenders and also notify the solicitors so I will be on the v slight lower 3.95% rate rather than 4.15%. my completion will be in July . Hoping for another drop with the lender I'm going with before I go to complete on a 5 year fix but I'm not holding my breath. Quick to put rates up but slow for them to come down and all that.
Update on my rate switch is that it seems to be a quick process. The brokers inform the lenders and also notify the solicitors so I will be on the v slight lower 3.95% rate rather than 4.15%. my completion will be in July . Hoping for another drop with the lender I'm going with before I go to complete on a 5 year fix but I'm not holding my breath. Quick to put rates up but slow for them to come down and all that.
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1.54% until 2026 here. And to think we didn't accept the offer of 1.89% which would have taken us until 2031. Anyone got a time machine?
Soldato
Yes that's what happened. They borrowed too much is the only explanation as to why they are struggling
gg
A lot definitely did though. I was told to consider affordability in a worst case scenario should rates reach 5-6% when we got our mortgage at 1.59%. That was in 2015 and although we only got a modest and affordable mortgage I must admit there was a temptation to max out.
When we remortgaged last I luckily went 1.54% for 5years which runs out in 2026.
I do have a smaller mortgage we took for renovations that is due to change from 2.89% in August and if I don't act it will jump to 7.5%. But nationwide are currently offering 4.04% on that for 2 or 5yrs. I'll likely just go 2 years in that cos its only a smallish amount.
1.54% until 2026 here. And to think we didn't accept the offer of 1.89% which would have taken us until 2031. Anyone got a time machine?
Imagine having the wisdom to take that 2031 deal
We should have. We were only planning to stay here ~5 years, but we could have always ported and borrowed any extra for a move.Imagine having the wisdom to take that 2031 deal
Soldato
- Joined
- 14 Mar 2011
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- 5,436
We're on a good deal, 1.something % for at least 2 or 3 more years, but have had a big jump in earnings and kind of hate the area we live in (it's not awful but just not what we like)...
Am I right in thinking if we were taking out a new and bigger mortgage (and obviously at a worse rate) but stay with the same lender they would possibly be willing to waive any early repayment charges? My thinking is they might, given they are locking us into a deal which is much better for them, or would they just be greedy and say it's tough?
Am I right in thinking if we were taking out a new and bigger mortgage (and obviously at a worse rate) but stay with the same lender they would possibly be willing to waive any early repayment charges? My thinking is they might, given they are locking us into a deal which is much better for them, or would they just be greedy and say it's tough?
You can possibly port the mortgage and borrow the extra on a new rate.
Associate
Hi All,
After a bit of advice, our mortgage with Santander is up in June, we are currently only on a 2.4% rate and pay £531 per month.
Is it too risky still to go on the tracker rate or should we bite the bullet and tie in on a 2 year fixed at 4.4% ?
After a bit of advice, our mortgage with Santander is up in June, we are currently only on a 2.4% rate and pay £531 per month.
Is it too risky still to go on the tracker rate or should we bite the bullet and tie in on a 2 year fixed at 4.4% ?
Soldato
True but Smug McSmugerson, after posting how oh so clever he was, decided to then crap all over everyone that may be struggling with the sole reason that everyone that IS struggling is because they took out too much of a mortgage
Never mind that Divorce and Breakup Rates spiked during and after COVID.
Never mind the employment downturn that happened during and post COVID where people were laid off and have had to take lower paid jobs just to try and keep the roof over their families head.
Never mind that it wasn't just rate rises that have left people struggling but rampant inflation covering life's necessities (food, fuel and energy hit hardest) all at once.
No, no, its simply because they took out too big a mortgage.
Permabanned
yep got mine at 1.85% till 2030 .. soooo glad i did .. will be paid off 6 months after that1.54% until 2026 here. And to think we didn't accept the offer of 1.89% which would have taken us until 2031. Anyone got a time machine?
Permabanned
all of this is true ... but people did over extend they did think it would last forever ..good life lesson been thru it survived .. so shall they and be stronger and wiser for it ...