Mortgage Rate Rises

kona786 said:
Starter and middle step home will be the forever homes if these rates continue. And even if they don't, houses are just too expensive now. People should fix and look after their houses instead of kicking the can down the road.
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Not if you're on the ladder already. It isn't so much of a price increase for us. It's just this isn't our forever home. (it can't be we are only 7m above sea level!)

And home improvements cost 1000s.
1000s that's basically burnt if you're not staying long term when the current situation is "OK".


If we were planning on staying 10 years, that would be different. But aim is 2-3 years. So any projects into the 1000s are off the table.
 
413x said:
But it's not worth it. It doesn't do enough for the house price. For us it's particularly bad.
Our boiler is ancient, our windows leak like a sieve. But it's a only ever planned to be a 5 year home. Even more since covid, cost of these major works is never going to get a return.
Same goes for stuff like solar. Unless there's clear evidence these things bump. Up the house price, people can't/won't commit.

So all these starter and middle step homes just get no attention. Where the forever homes do.
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Which is why there is such a glut of poor housing stock. When you don't fix things as you see them and leave it to the next owners surveyor to pick up problems and the next owner gets the price reduction but in turn does **** all and kicks the can down the road again.

Eventually you live in a slum, get sick, and moan about poor housing quality. The aim is not to maximise a profit to the detriment of the property but to make a reasonable return on a house you would be proud to own and also to sell on when the time is right.

Surely.
 
That's all society has become. Maximise profit at the expense of taking pride in ownership.

Not really the populations fault, rather we have such limited disposable income thanks to the rigged financial system.
 
HangTime said:
Some of that but it's mostly just standard planning cycles and phased builds. There's a lot more to building houses than just building houses, if that makes sense - roads, schools, community centres, playparks, green spaces and all the legislation associated with these. To put things in context a primary school here (part of the design for a new local development) was opened 3 years later than originally planned. Similarly some of the roads are several years late in construction. The planning horizon for these developments can easily stretch to a decade.
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Yeah a development went up near us and this bridge they are meant to be building into it, has had all number of issues with going ahead, changes, rescheduled etc etc. I notice generally round my way though, that there is ZERO (and I mean zero) improvement in infrastructure, schools, doctors etc for the new builds going up. ZERO. With the exception of the actual roads required directly as new ones into said developments. Otherwise it just brings an already over subscribed area more pain with more people. Just too many people in the UK frankly.
 
Those who fixed on super cheap rates coming off later this year will be in for a shock I think.

Rates are averaging around the mid 4s at the minute which is bad enough, anything over 5 is very painful.

We were never lucky enough to secure a 1. something, and have a fairly low amount of borrowing....still a decent amount mind. Going from 2.2 to 3.9 was enough of a blow!

I wish I could put a healthy amount into overpayments each month, but we are desperate for a new bathroom and kitchen :(
 
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jaybee said:
:(
Suggesting rates of 6% fixed being the norm from Wednesday.

Latest calculator reckons my payments would go up more than 50% to over 2k a month. :O
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Yeesh. 6% is going to hurt a lot of people.

It's the uncertainty that's the real kicker. We're actually looking to buy currently. We're fortunate enough that these rates, whilst unpleasant, aren't ruinous, but I don't feel like it's worth progressing at this stage. Trying to buy and sell a house is stressful enough, but trying to do it in the current climate must be complete hell. People getting declines forward mortgages, puling out because they thinks house prices are going to tank, etc.
 
Hagar said:
Which is why there is such a glut of poor housing stock. When you don't fix things as you see them and leave it to the next owners surveyor to pick up problems and the next owner gets the price reduction but in turn does **** all and kicks the can down the road again.

Eventually you live in a slum, get sick, and moan about poor housing quality. The aim is not to maximise a profit to the detriment of the property but to make a reasonable return on a house you would be proud to own and also to sell on when the time is right.

Surely.
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Agreed this is why it happens. But it's just so expensive. You're talking 3k for the boiler, who knows how much for the windows, and the kitchen? Got a quote.. Nope.
Even a front door was nearly 2k.
Solar? 10k again?
You're talking 10-20k as a minimum for a few things.


When you are burdened by a 200k mortgage and a country in decline, who knows where job market will be next year, spending 1000s to effectively gift your buyers a better home seems... Silly.
10k-20k+ is 5-10 years of holidays. It could stop you needing a second mortgage when you move.

If it doesn't need doing.. Its not getting done. It is sad. But if buyers truly valued these improvements it would get done. But it doesn't work like that.. Or at least it doesn't seem to.
 
NotAGolf said:
Yeesh. 6% is going to hurt a lot of people.

It's the uncertainty that's the real kicker. We're actually looking to buy currently. We're fortunate enough that these rates, whilst unpleasant, aren't ruinous, but I don't feel like it's worth progressing at this stage. Trying to buy and sell a house is stressful enough, but trying to do it in the current climate must be complete hell. People getting declines forward mortgages, puling out because they thinks house prices are going to tank, etc.
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We bought for the first time during summer of COVID 2020 when everyone - including me to my wife - was saying not to buy, we are about to see the big crash. I don't regret buying and getting on the ladder then despite that rates have risen. The rule today I think still stands, that if you can buy, you buy. Over time it's generally beneficial for many reasons. In terms of moving house right now, depends on the fees you would incur. If you can port your current deal, might not effect you as much.
 
jaybee said:
We bought for the first time during summer of COVID 2020 when everyone - including me to my wife - was saying not to buy, we are about to see the big crash. I don't regret buying and getting on the ladder then despite that rates have risen. The rule today I think still stands, that if you can buy, you buy. Over time it's generally beneficial for many reasons. In terms of moving house right now, depends on the fees you would incur. If you can port your current deal, might not effect you as much.
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I remember making lots of posts at this time in the house buying threads about to buy or not.
I was convinced, like you, house prices were going to collapse. To be fair, I think if the government hadn't propped up everything with furlough it probably would have.

I was 50/50 on buy or not due to the size of our mortgage and the fear of negative equity.



Fast forward and that 260k house is now valued at 320 (probably set to fall). But just goes to show. You really can't predict these things. That said, buying now, I'd be in the same predicament. Probably even more so as the rise in covid could be reversed. Fine for us. We bought before it all. But 10+pc now? That would be hell come remortgage.


One thing I advised my sister (who bought not long ago) was take out a long mortgage. Doing a 2 year, house prices fall, rates go up? It could be a disaster!
 
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413x said:
Agreed this is why it happens. But it's just so expensive. You're talking 3k for the boiler, who knows how much for the windows, and the kitchen? Got a quote.. Nope.
Even a front door was nearly 2k.
Solar? 10k again?
You're talking 10-20k as a minimum for a few things.


When you are burdened by a 200k mortgage and a country in decline, who knows where job market will be next year, spending 1000s to effectively gift your buyers a better home seems... Silly.
10k-20k+ is 5-10 years of holidays. It could stop you needing a second mortgage when you move.

If it doesn't need doing.. Its not getting done. It is sad. But if buyers truly valued these improvements it would get done. But it doesn't work like that.. Or at least it doesn't seem to.
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3k for a boiler? Is it? I thought you could get one installed for about 1.5k? Is that not the case anymore?
Funny you say about holidays. 10-20k worth can be like only 2/3 holidays if you go long haul all inclusive 4star+ with a family/kids. Soon gets eaten up if you have to go during school hols where prices are higher.
 
413x said:
I remember making lots of posts at this time in the house buying threads about to buy or not.
I was convinced, like you, house prices were going to collapse. To be fair, I think if the government hadn't propped up everything with furlough it probably would have.

I was 50/50 on buy or not due to the size of our mortgage and the fear of negative equity.



Fast forward and that 260k house is. Now valued at 320 (probably set to fall). But just goes to show. You really can't predict these things.
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Yeah same story here. House gone up in value supposedly about 10% since 2020.
At the time the choice was easier for us in that we literally had no house and had been kicked out of rental due to landlord divorce and forced sale. Choosing to continue living with parents split across two households or buying and massively stretching with every penny seemed an easier choice then in some ways. So we went all in so to speak. I knew rates would only rise but we couldn't get a 10 year fix. Only 5.
 
jaybee said:
Yeah a development went up near us and this bridge they are meant to be building into it, has had all number of issues with going ahead, changes, rescheduled etc etc. I notice generally round my way though, that there is ZERO (and I mean zero) improvement in infrastructure, schools, doctors etc for the new builds going up. ZERO. With the exception of the actual roads required directly as new ones into said developments. Otherwise it just brings an already over subscribed area more pain with more people. Just too many people in the UK frankly.
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Yea same in the nearest town.

They have over the last few years developed a lot of housing on an old US air base and some brown sites around old industrial units.

Fair enough for not building on green belts, but.....I got my youngest son into the primary school there year before last, one class per year, there were 26 in the class.

I heard from the school this year they have something like 82 people wanting places.

The school has room the expand on a plot of land, however planning permission for small plot of new build was agreed in its place, despite the local school and residents protesting it.

The new builds are being developed by a company associated with a local MP, that is also linked to another company that attempted to put 8 new build houses in our village. The developer went bankrupt half way through the development, after failing a building reg inspection, after people had paid deposits.

Those 8 houses are still sitting there half built and rotting over a year later.

Our local doctors surgery is so over subscribed and they are ******* useless, loose blood test results etc, but literally all the time, not just one offs.

I have an approx 6 mile drive to drop my son off at school, because of the development, I have, literally with the exception of the odd week,, not been able to drive him there without at least 1 set of temporary lights, if not more, or a complete road closure this year. This causes lengthy diversions due to living in a rural area, yet the quality of our roads is abysmal. We went on holiday recently and driving up around the north Yorkshire moors on single track roads, and the quality of those roads were far better.
 
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jaybee said:
3k for a boiler? Is it? I thought you could get one installed for about 1.5k? Is that not the case anymore?
Funny you say about holidays. 10-20k worth can be like only 2/3 holidays if you go long haul all inclusive 4star+ with a family/kids. Soon gets eaten up if you have to go during school hols where prices are higher.
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Its is a old tank system. So would need so much work for a new condenser.


When I talk about holiday I'm talking per person. My last was 2k. For me alone.
 
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