Mortgage Rate Rises

Pretty much everyone I know is now saying similar things.

Cutting back on enjoying life just to pay the bills, some of these people are on decent wages too. But I'm not even sure what constitutes as a decent wage now.

I guess the old and bold will still say our generation are lucky. As an 80s child, I'm struggling to see the positives considering my working life age started around the financial crash. Been an absolute dream ever since
 
lemonkettaz said:
Pretty much everyone I know is now saying similar things.

Cutting back on enjoying life just to pay the bills, some of these people are on decent wages too. But I'm not even sure what constitutes as a decent wage now.

I guess the old and bold will still say our generation are lucky. As an 80s child, I'm struggling to see the positives considering my working life age started around the financial crash. Been an absolute dream ever since
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A decent wage doesn't seem to exist.
A decent amount of free cash at the end of the month is.

I look at my parents house, and many like them. And I wonder who in my generation will
-be able to afford a morton that
-would want the upkeep on that
-can afford the bills for that.

I certainly wouldn't want that burden!


Too many big cavernous expensive houses and not enough buyers. I feel that's coming.
 
413x said:
A decent wage doesn't seem to exist.
A decent amount of free cash at the end of the month is.

I look at my parents house, and many like them. And I wonder who in my generation will
-be able to afford a morton that
-would want the upkeep on that
-can afford the bills for that.

I certainly wouldn't want that burden!


Too many big cavernous expensive houses and not enough buyers. I feel that's coming.
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Dooom doooom doooom :cry:
 
lemonkettaz said:
Must be a worrying time coming up for many people who are recently buying property.

I am in the market for a place, but refuse to go mental, but unfortunately it seems every house that is selling now is going well past the asking price. So either there is a lot of people with plenty spare savings, a lot of people getting more pay rises that the media suggest, or people are pushing the boundaries in their finances.

Be interesting to see in the next 3-5yr time when a lot of these fixed rates end and there is a big hike in monthly payments. Hopefully people get a few more pay rises in the meantime.
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The majority of people aren't getting proper pay rises nor will they be for a very long time. Also any signs of major pay rises would see the BOfE drastically raise interest rates so it wouldn't benefit them. With the upcoming recession, there's a far greater chance of redundancy if anything.

There is a lot of people with a lot of money out there. Far more than most people think. We only ever hear from the same people moaning about the cost of everything with very little balance on the other part of the trade so-to-speak.

I think what we're really seeing is some people who were considered middle class have now slipped into working class. This of course will only get worse when they are finally let go and need to go on benefits.
 
If they do climb to say 12% in the next 3 years it'll be interesting to see if the house prices crash or if some magical free money falls out of big Rish's phat hat
 
purplesky said:
The majority of people aren't getting proper pay rises nor will they be for a very long time. Also any signs of major pay rises would see the BOfE drastically raise interest rates so it wouldn't benefit them. With the upcoming recession, there's a far greater chance of redundancy if anything.

There is a lot of people with a lot of money out there. Far more than most people think. We only ever hear from the same people moaning about the cost of everything with very little balance on the other part of the trade so-to-speak.

I think what we're really seeing is some people who were considered middle class have now slipped into working class. This of course will only get worse when they are finally let go and need to go on benefits.
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I think you are totally wrong on the class point. It’s irrelevant. What we’re really seeing is people considered Middle Income slipping into Lower Income, or maybe more precisely relatively well off slipping into skint.
 
CapitalOne said:
I think you are totally wrong on the class point. It’s irrelevant. What we’re really seeing is people considered Middle Income slipping into Lower Income, or maybe more precisely relatively well off slipping into skint.
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I don't think it is to do with income at all. Those mainly affected have simply took on too much debt and haven't provisioned for higher rates. They were never really middle income to begin with, but were more lured into a false sense of security through ultra low interest rates.
 
purplesky said:
I don't think it is to do with income at all. Those mainly affected have simply took on too much debt and haven't provisioned for higher rates. They were never really middle income to begin with, but were more lured into a false sense of security through ultra low interest rates.
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Ok so we’re agreed it’s nothing to do with class then. We also agree some (i.e. lots) people who used to have spare money regardless of source won’t have that spare money any more. Those over-leveraged are going to have a harder time than those who aren’t (who are still going to have a hard time because of inflation). It’s still a bile biscuit for them all…
 
fez said:
I imagine that its the people whos mortgages are up in the next year or so that might have issues. Ours is up in 18 months and we will be fine but I really hope that interest rates go down again. Otherwise we will hope the market tanks and we can buy our next house at a cut price.
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I'm in a similar position, current fix ends in April 2024. Hoping that it's on the way down to some degree by then and doesn't hold.
 
CapitalOne said:
Ok so we’re agreed it’s nothing to do with class then. We also agree some (i.e. lots) people who used to have spare money regardless of source won’t have that spare money any more. Those over-leveraged are going to have a harder time than those who aren’t (who are still going to have a hard time because of inflation). It’s still a bile biscuit for them all…
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I think the point I'm trying to make is that those who used to have spare money wouldn't have ordinarily had it to begin with. Many of them probably identified themselves as middle class, but are now being exposed.
 
I'm hearing about quite a few lenders now that are suspending lending.

Smaller specialist lenders mainly BTL, just like the one I work for lol.

We'll see......

The problem is when banks/lendees/investment traders etc etc stop lending to each other = 2008 all over again.

However...... The regulators in the UK anyway, have a lot more... I can't remember the term used, but are more robust, and lending has been generally better over the last 15 years.

It will be an interesting 6 months.
 
purplesky said:
I don't think it is to do with income at all. Those mainly affected have simply took on too much debt and haven't provisioned for higher rates. They were never really middle income to begin with, but were more lured into a false sense of security through ultra low interest rates.
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I think for the vast majority of people, debt is an unavoidable reality.

However, I agree that the cost of borrowing has been so low for so long that a lot of people are going to get caught out, particularly if we see another 80’s style interest rate hike.

For me personally, my borrowing has been for good reasons rather than frivolity but I became uncomfortable with my disposable income usage and so steered a new path to ultimately free up as much extra disposable income as possible to help weather the coming storm (and that’s not to be melodramatic, I genuinely think a storm is coming).

Some will be fortunate and be in a position to get their affairs in order before everything goes sideways. Others may be able to fall back on savings but I suspect those who cannot do either are in for a really tough couple of years ahead.

Borrowing is a calculated risk (or it should be) but I do fear for those who sign up for debt without really grasping the gravity of it. The sad part is it is likely the folk who are just trying to get on in life and are maybe a little naive who will get hit the hardest and lose the most.

I suspect there are going to be some heartbreaking and life changing lessons ahead for those folk, sadly.
 
413x said:
Yeah as in all events like this. There will be a big expansion of the rich poor divide.
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thats the point i am poor and will do something about it .. i earn 29k a yr and i'm 56 .. 2 houses will allow me to retire ..am i wrong to want that ?
Kill_Phil said:
Smiley really necessary? Let's hope you never fall on tough times eh
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been there done that ..many yrs ago it was a case of who ate .. as long as the kids where fed and the mortgage paid i'd have a jam butty for tea .. lost almost everything in the late 2000's but pick myself up and started again ..
 
flea.rider said:
thats the point i am poor and will do something about it .. i earn 29k a yr and i'm 56 .. 2 houses will allow me to retire ..am i wrong to want that ?

been there done that ..many yrs ago it was a case of who ate .. as long as the kids where fed and the mortgage paid i'd have a jam butty for tea .. lost almost everything in the late 2000's but pick myself up and started again ..
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And theres nothing wrong and fair play for coming out the other side. If anything you should have a bit more empathy.
 
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