Mortgage Rate Rises

malachi · 31 May 2023 at 15:41

matt100 said:
And racists, they did very well with racists of late.

All helps rising the cost of living for everyone else!!!

flea.rider · 31 May 2023 at 16:34

dLockers said:
Right, but don't pat yourself too firmly on the back when it isn't down to 'just' your hard work.

dude harsh ..

Mrwong · 31 May 2023 at 16:36

Doobedoo said:
I decided to end early to fix for 10 too. Safety first.

10 year fix is a long time and very costly.

Mrwong · 31 May 2023 at 16:39

413x said:
Short term yes.
Long term no.

Pushing people to work and not have a family (due to having to work) drives down your working population.

You can plug it with immigration. But you have to be attractive to immigration for that.

Removing AI from the equation. These world wide western declining birth rates are going to end up with countries clambering over each other for skilled migrants.

That's what these huge cost of living, mortgages, food etc exacerbate.

Great for those of us wanting to emigrate. Australia is sucking people up. Higher wages, better standard of living.

It will it get worse.

a1ex2001 · 31 May 2023 at 16:44

Mrwong said:
10 year fix is a long time and very costly.

There are some pretty reasonable deals out there for 10 year fixed mortgages if you have a reasonable LTV and for some people the security of knowing exactly what they will be paying potentially until the end of their mortgage is worth the extra cost it takes a massive risk and pressure out of peoples lives I wish we'd gone 10 year in Jan 2022 it would have appeared financially silly at the time but would have removed a lot of worry from my life now!

Doobedoo · 31 May 2023 at 16:49

a1ex2001 said:
There are some pretty reasonable deals out there for 10 year fixed mortgages if you have a reasonable LTV and for some people the security of knowing exactly what they will be paying potentially until the end of their mortgage is worth the extra cost it takes a massive risk and pressure out of peoples lives I wish we'd gone 10 year in Jan 2022 it would have appeared financially silly at the time but would have removed a lot of worry from my life now!

Exactly this. I’m not into gambling and I can’t be arsed to spend hours and hours of my life following markets and interest rates ect.

Spook187 · 31 May 2023 at 16:49

ProStreet said:
My 10 rules to financial success

No pcp / lease
Car maximum 3% of net worth, paid for in cash
Mortgage maximum 25% of net income, with maximum 15yr term
No designer clothes, max spend £400 a year
No credit cards, chop them up if so
No leasehold / fleecehold only FREEHOLD
No crypto currency or gambling
No friends
No kids
Be in the top 1% of earners

No friends you sound a right barrel of laughs.

Maccy · 31 May 2023 at 18:01

Mrwong said:
10 year fix is a long time and very costly.

How can you make such a statement without knowing the details? What an odd comment.

Goodie · 31 May 2023 at 18:05

Maccy said:
How can you make such a statement without knowing the details? What an odd comment.

They don’t call him MrWrong for nothing.

bainbridge · 31 May 2023 at 19:28

Please can someone get their crystal ball out and advise what sort of interest rate we'll be looking at in May 2025 when our 5 year fix comes to an end?

Thanks

PS I'll come back to this thread when the time comes and whoever guesses the closest rate will be the winner.

glenimp617 · 31 May 2023 at 19:31

bainbridge said:
Please can someone get their crystal ball out and advise what sort of interest rate we'll be looking at in May 2025 when our 5 year fix comes to an end?

Thanks

PS I'll come back to this thread when the time comes and whoever guesses the closest rate will be the winner.

4.5%

200sols · 31 May 2023 at 19:37

bainbridge said:
Please can someone get their crystal ball out and advise what sort of interest rate we'll be looking at in May 2025 when our 5 year fix comes to an end?

Thanks

PS I'll come back to this thread when the time comes and whoever guesses the closest rate will be the winner.

Base rate of 3.75%. Mortgage rate will depend your circumstances.

My crystal ball is very good.

dlockers · 31 May 2023 at 19:40

bainbridge said:
Please can someone get their crystal ball out and advise what sort of interest rate we'll be looking at in May 2025 when our 5 year fix comes to an end?

Thanks

PS I'll come back to this thread when the time comes and whoever guesses the closest rate will be the winner.

In May 2025 your mortgage rate will be 5.75%, but it'll be OK, because we'll be splitting the bills by two families.

I'll be moving in with you after my brief homeless period/foreclosure in late '24/early '25.

flea.rider · 31 May 2023 at 19:57

bainbridge said:
Please can someone get their crystal ball out and advise what sort of interest rate we'll be looking at in May 2025 when our 5 year fix comes to an end?

Thanks

PS I'll come back to this thread when the time comes and whoever guesses the closest rate will be the winner.

5.25% but it will be on the way down then ..

so you'll get a 4.85 ish

mattx4 · 31 May 2023 at 20:02

bainbridge said:
Please can someone get their crystal ball out and advise what sort of interest rate we'll be looking at in May 2025 when our 5 year fix comes to an end?

Thanks

PS I'll come back to this thread when the time comes and whoever guesses the closest rate will be the winner.

The rate will be 11.50%, as the BoE cedes control to an AI late in 2024 and it goes on a rate raising spree it also manages to gain control of the nukes and the UK is powerless to stop it from its primary objective to bring inflation back down to 2%

ProStreet · 31 May 2023 at 20:22

If interest rates went to 10%, house prices would plummet. I think 6% is probably the max people could bear. Too many people take the maximum amount the bank will lend, its foolish and not giving you any wiggle room.

GordyR · 31 May 2023 at 21:34

ProStreet said:
If interest rates went to 10%, house prices would plummet. I think 6% is probably the max people could bear. Too many people take the maximum amount the bank will lend, its foolish and not giving you any wiggle room.

I know it seems to be an unpopular opinion here, but personally I think that the data suggests that a not insignificant correction has already begun. The lag in reporting is an easy 9-12 months in reality.

I think the next 2 years will surprise a fair few people.

platypus · 31 May 2023 at 22:02

ProStreet said:
If interest rates went to 10%, house prices would plummet. I think 6% is probably the max people could bear. Too many people take the maximum amount the bank will lend, its foolish and not giving you any wiggle room.

It's often born out of desperation though, and whilst I'd never do it myself I can fully understand why many do.

Whitewater · 31 May 2023 at 22:22

bainbridge said:
Please can someone get their crystal ball out and advise what sort of interest rate we'll be looking at in May 2025 when our 5 year fix comes to an end?

Thanks

PS I'll come back to this thread when the time comes and whoever guesses the closest rate will be the winner.

It’s 2025, post war Britain is a grim place. Your bank’s head office was destroyed in The Blast. You’ve built yourself a lovely mud hut. Enjoy.

dlockers · 31 May 2023 at 22:47

GordyR said:
I know it seems to be an unpopular opinion here, but personally I think that the data suggests that a not insignificant correction has already begun. The lag in reporting is an easy 9-12 months in reality.

I think the next 2 years will surprise a fair few people.

Some areas maybe, but UK is still an easy market for Americans.