Mortgage Rate Rises

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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The boomer attitude up the thread is rooted in the privilege of buying houses in a time when the AVERAGE house price wasn't more than 9x MEDIAN salary.

You simply have to risk it, or otherwise you'll never get the chance to live even a normal stable family life.
 
Mine is up in October and gonna be an extra £200 a month at least it seems I was on 1.28 :(

I have always had 2 year fixes, not sure if to go 5 this time ?
 
_Jimlad_ said:
Mine is up in October and gonna be an extra £200 a month at least it seems I was on 1.28 :(

I have always had 2 year fixes, not sure if to go 5 this time ?
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Remember to look 4-6 months in advance next time

You can get the rate this far in advance. Which right now makes a significant difference
 
The forecasts for energy being high are until 2024. Which basically means.. For the foreseeable future.

If I was picking random numbers out of the sky I'd be hoping rates max out at 3pc and that they last 3-4 years at peak.

One things for sure. With high energy and high Bank rates for 3-4 years with the peak unknown (duration and intensity) its going to be grim.


So many businesses will fail. So many repossessions. Because job losses are guaranteed.
 
413x said:
The forecasts for energy being high are until 2024. Which basically means.. For the foreseeable future.

If I was picking random numbers out of the sky I'd be hoping rates max out at 3pc and that they last 3-4 years at peak.

One things for sure. With high energy and high Bank rates for 3-4 years with the peak unknown (duration and intensity) its going to be grim.


So many businesses will fail. So many repossessions. Because job losses are guaranteed.
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This winter is going to be utter **** for so many people. Energy bills for the average house will be £200/month higher than they were before prices started going crazy. And that is averaged over the year: for the winter months it'll be more like £300/month.

Alongside other cost increases (fuel, food, rent/mortgage etc), you're looking at the entire bottom 30%-40% of households being in trouble.

And that's before job losses.
 
cheesyboy said:
This winter is going to be utter **** for so many people. Energy bills for the average house will be £200/month higher than they were before prices started going crazy. And that is averaged over the year: for the winter months it'll be more like £300/month.

Alongside other cost increases (fuel, food, rent/mortgage etc), you're looking at the entire bottom 30%-40% of households being in trouble.

And that's before job losses.
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Try telling folks over at the 4000 series Nvidia thread that energy consumption is a issue.. Lol
 
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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Wasn't in this very same thread or the exchange contracts thread where I question whether buying a house now is the right choice?

Tdlr the best time you should have bought a house was yesterday.... Ie there is not a lot if any reason to not buy a house ASAP
 
People have been predicting things like this happening for some time. Thing is it never came (until now). It should have happened sooner but the lag is years and years.
 
413x said:
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
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It might not sound much, but £440 is still a lot for me, it's about 25% of what I get a month! And then my fuel bill is rising to £500 come October, and who knows how much come January next year! So even a small rise in mortgage will be felt, especially if energy costs don't ever drop.
 
Kill_Phil said:
Maybe not in sunny Hampshire they're not. Inflation, mortgage rates and everything going is absolutely going to massively increase poverty in this country.

This was the state before any of this happened

https://ifs.org.uk/publications/16124
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Poor people don't exist in Hampshire? I can assure you they do. But even so your report doesn't say *most* people in this country are on the breadline.
 
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