Mortgage Rate Rises

413x said:
I applied for the 1.93 in April 2022 with my fix ending in March 2023

Held the offer until July when this mortgage started

1pc fee on a 210k mortgage (2100 fee to be exact)


Oh a nice bonus. I went direct to Lloyds and got 750 cashback! Just used money supermarket to find the lender

I spoke to a mortgage advisor in March who suggested waiting until October when could lock in with no erc. But I got spooked and got one. Glad I didn't listen
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Good on you, well done for taking the plunge with the ERCs.

My fixed term ends end of september, and I only just got an offer sorted a week or so ago at 3.25%, 5 years, no fees (40% LTV). Feel very stupid for not going after an offer earlier in the year, if I managed to get something just under 2% like you did that would amount to thousands (I don't even want to calculate) over the 5 year term. It's a fair old gut punch, especially as things are now, live and learn!
 
Fixed rate runs out in a years time, will see what rates are around then but might just pay the mortgage off if rates are mad.

Held off upsizing the main house for the past year+ due to prices, looking forward to some market volatility and hopefully significant price drops.
 
Freakbro said:
Jokingly I see it like the "what do you want in a women" Attractiveness / Intelligence / Emotionally Stable - pick two, just substitute that with Economy and Interest Rates / Inflation / Unemployment. And like with women, it doesn't matter how attractive (low unemployment) or intelligent (low interest rates) they are, if they are crazy (high inflation) you are in a world of pain :p
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Whilst it’s a good analogy, until recently this country did enjoy a couple of decades of high’ish growth, low inflation, low unemployment, low interest rates. Even through the biggest financial crisis in 50+ years. So it is possible to have it all. But it might mean putting up with a few inconveniences… like straight bananas and under powered vaccine cleaners etc.
 
Just got a agreement in principle with firstdirect........10yr fix 3.39% on 54% LTV

Currently with Leeds Building Society on 2.05% on a 5yr fix which runs out January 2023...the joys of being self-employed
 
Stretch said:
Whilst it’s a good analogy, until recently this country did enjoy a couple of decades of high’ish growth, low inflation, low unemployment, low interest rates. Even through the biggest financial crisis in 50+ years. So it is possible to have it all. But it might mean putting up with a few inconveniences… like straight bananas and under powered vaccine cleaners etc.
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And what did most people do? Spend up to the edge of their means and save almost nothing. Its OK though because credit is cheap and so are most things so its not a problem... until things aren't so good. And then everyone turns around and wants help. The people that have been indulging themselves for over a decade and suddenly are having a bit of a reality check. Not everyone but a hell of a lot of people will always live to the edge of their means no matter how liable that makes them to change. Probably because ultimately they will be OK as the government will step in if things get bad.
 
fez said:
And what did most people do? Spend up to the edge of their means and save almost nothing. Its OK though because credit is cheap and so are most things so its not a problem... until things aren't so good. And then everyone turns around and wants help. The people that have been indulging themselves for over a decade and suddenly are having a bit of a reality check. Not everyone but a hell of a lot of people will always live to the edge of their means no matter how liable that makes them to change. Probably because ultimately they will be OK as the government will step in if things get bad.
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This is my sentiment also but we are in the minority and I blame government for a lot of this. When we bought this house 25 years ago lenders would max out at 2.5 - 3* gross salary. Granted rates were a bit higher but the UK property market has been out of control with our government stimulating the wrong parts of it with SDLT concessions which have served only to drive prices and debt higher. I feel for some people who will now face a difficult time but I also can't help but worry that it is the responsible and considered few who will end up paying the price if we start to see defaults. We are in for a rough time, fortunately I'm stupidly sensible and have paid off all my debts so only have to worry about inflation eroding my savings!
 
Yep plenty of us living well within our means. People want the picket fences, the brand new shiny beemer and holidays so they can post it all over Facebook. Some just don’t earn enough full stop and everything has increased but not their wages.
 
dl8860 said:
Good on you, well done for taking the plunge with the ERCs.

My fixed term ends end of september, and I only just got an offer sorted a week or so ago at 3.25%, 5 years, no fees (40% LTV). Feel very stupid for not going after an offer earlier in the year, if I managed to get something just under 2% like you did that would amount to thousands (I don't even want to calculate) over the 5 year term. It's a fair old gut punch, especially as things are now, live and learn!
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I think I got a shock when I put into the calculators what even a 1 percent increase was. 100 a month. Or 6k over the 5 year.

Just had no idea really what 1pc meant for us. It's a shocking amount of money. Ever since I've even thought about housing for myself rates have been near zero. So never really been even a thought in my head really.

Guess that goes for most people who've owned a home for 2-10 years
 
fez said:
And what did most people do? Spend up to the edge of their means and save almost nothing. Its OK though because credit is cheap and so are most things so its not a problem... until things aren't so good. And then everyone turns around and wants help. The people that have been indulging themselves for over a decade and suddenly are having a bit of a reality check. Not everyone but a hell of a lot of people will always live to the edge of their means no matter how liable that makes them to change. Probably because ultimately they will be OK as the government will step in if things get bad.
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The only time I've felt a bit at risk/stupid is when I bought first house.

Maximum mortgage. Went down to 1-2k savings. I felt vulnerable for sure. But when houses are so expensive and moving is so expensive it's hard not to "max out".
A boiler failure would have needed credit to sort.

I certainly won't be doing it again. Aim is to only. Move once more and never have a bigger mortgage as I do now.
 
I wonder if 3 years fix will be enough at the moment? I'm currently in the 2nd year of a 5 year deal @ 1.69% with TSB. Pay £440 a month. Currently 75k left outstanding and 16 years left on the total term.

There are early repayment charges if I tried to switch now. I am allowed to pay off up to 10% of the capital per year, so I'm assuming just pay off as much as I can before the current deal ends in Nov 2025?
 
I know there was discussion earlier about savings, Shawbrook bank have moved to 1.75% easy access if anyone is interested.
 
ljt said:
I wonder if 3 years fix will be enough at the moment? I'm currently in the 2nd year of a 5 year deal @ 1.69% with TSB. Pay £440 a month. Currently 75k left outstanding and 16 years left on the total term.

There are early repayment charges if I tried to switch now. I am allowed to pay off up to 10% of the capital per year, so I'm assuming just pay off as much as I can before the current deal ends in Nov 2025?
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Yeah. You'll be taking a hit on the next deal, so you want the balance as low as possible by then.
 
ljt said:
I wonder if 3 years fix will be enough at the moment? I'm currently in the 2nd year of a 5 year deal @ 1.69% with TSB. Pay £440 a month. Currently 75k left outstanding and 16 years left on the total term.

There are early repayment charges if I tried to switch now. I am allowed to pay off up to 10% of the capital per year, so I'm assuming just pay off as much as I can before the current deal ends in Nov 2025?
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I wouldn't be worried at that level.
At the end you could pay off more anyway. You could be at such a low level by then rates won't have much of an effect.

Let's face it. If rates went up to 5pc for let's say 5 years there would be carnage
 
fez said:
And what did most people do? Spend up to the edge of their means and save almost nothing. Its OK though because credit is cheap and so are most things so its not a problem... until things aren't so good. And then everyone turns around and wants help. The people that have been indulging themselves for over a decade and suddenly are having a bit of a reality check. Not everyone but a hell of a lot of people will always live to the edge of their means no matter how liable that makes them to change. Probably because ultimately they will be OK as the government will step in if things get bad.
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I guess part of the problem is low rates and high borrowing didn’t cause inflation issues a lot sooner.

A lot of it has been masked by forever cheaper imports from places like china. Falling into that trap was also a massive mistake imo.
 
413x said:
I think I got a shock when I put into the calculators what even a 1 percent increase was. 100 a month. Or 6k over the 5 year.

Just had no idea really what 1pc meant for us. It's a shocking amount of money. Ever since I've even thought about housing for myself rates have been near zero. So never really been even a thought in my head really.

Guess that goes for most people who've owned a home for 2-10 years
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413x said:
The only time I've felt a bit at risk/stupid is when I bought first house.

Maximum mortgage. Went down to 1-2k savings. I felt vulnerable for sure. But when houses are so expensive and moving is so expensive it's hard not to "max out".
A boiler failure would have needed credit to sort.

I certainly won't be doing it again. Aim is to only. Move once more and never have a bigger mortgage as I do now.
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I am acutely aware of the risk that I am in having just committed to buy a house. But what choice do I have? Continue renting at 42 years old, paying someone elses mortgage? And to be clear, I haven't bought a house beyond my means, but EVERYTHING is expensive because of the way the market is. And I don't live beyond my means in everyday life - I have no debt.

Rates at 5% plus in 5 years time would likely mean repossession for me, wiping out the deposit it has taken me nearly 10 years to save to get a house in the first place, constantly chasing rising prices.

It really isn't right to cripple people in this way.
 
danlightbulb said:
I am acutely aware of the risk that I am in having just committed to buy a house. But what choice do I have? Continue renting at 42 years old, paying someone elses mortgage? And to be clear, I haven't bought a house beyond my means, but EVERYTHING is expensive because of the way the market is. And I don't live beyond my means in everyday life - I have no debt.

Rates at 5% plus in 5 years time would likely mean repossession for me, wiping out the deposit it has taken me nearly 10 years to save to get a house in the first place, constantly chasing rising prices.

It really isn't right to cripple people in this way.
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That's the thing. Feels like you have to. Felt same before covid. Got to bite the bullet at some point. It's really **** renting.

If renting had more protection like many places in Europe it wouldn't be so bad. But renting in the UK is horrendous. Even living in a dive is so much more Expensive than the equivalent mortgage
 
fez said:
And what did most people do? Spend up to the edge of their means and save almost nothing. Its OK though because credit is cheap and so are most things so its not a problem... until things aren't so good. And then everyone turns around and wants help. The people that have been indulging themselves for over a decade and suddenly are having a bit of a reality check. Not everyone but a hell of a lot of people will always live to the edge of their means no matter how liable that makes them to change. Probably because ultimately they will be OK as the government will step in if things get bad.
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Get off your high horse maybe. Where's your evidence of 'most people' indulgding? Ever thought that most people in this country are living on the breadline and have no say in the matter?
 
I’m a bit worried about my mortgage next year, I need to be on the SVR for six months due to porting over a mortgage when I bought my house. Reckon that’ll sting. But at least 2/3 of the total balance is fixed until Sept 23.

Doobedoo said:
Yep plenty of us living well within our means. People want the picket fences, the brand new shiny beemer and holidays so they can post it all over Facebook. Some just don’t earn enough full stop and everything has increased but not their wages.
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This hurts. I’ve literally just booked a holiday and I’m going to drive my blue BMW to the garden centre to go shopping for a picket fence (to keep my dog out my flowerbeds) on Saturday. :eek::eek:
 
Ahleckz said:
This hurts. I’ve literally just booked a holiday and I’m going to drive my blue BMW to the garden centre to go shopping for a picket fence (to keep my dog out my flowerbeds) on Saturday. :eek::eek:
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It’s just stereotypes all of us must fall under one or the others. Right.
 
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