Mortgage Rate Rises

jaybee said:
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.
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We took a 3 year. Which was ideal. As it allowed me to exit last year for a 1pc ERC and jump on a 5 year 1.9pc fix.
Ours is up 20pc on zoopla i think.

Had we got a 5 year I couldn't justify that 3pc ERC.

We were living in a horrible rental before and that was also what tipped me into buying. Landlord pressuring for a new lease. Thinking of working at home in that dive during covid fills me with dread. It was a 1 bed top floor house converted into 2 flats. It was nasty!

Edit. Zoopla says its up 30pc. 260 to 340. I don't believe that myself however
 
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413x said:
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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Ah got ya. Yeah. Home improvements I feel the same a bit. When I do a job I do it properly and invest but I do draw the line on the big ticket items. Like windows for example, I know we need all new ones but ****, it's like 10k for double glazing to get done throughout. Meh
 
413x said:
We took a 3 year. Which was ideal. As it allowed me to exit last year for a 1pc ERC and jump on a 5 year 1.9pc fix.
Ours is up 20pc on zoopla i think.

Had we got a 5 year I couldn't justify that 3pc ERC.

We were living in a horrible rental before and that was also what tipped me into buying. Landlord pressuring for a new lease. Thinking of working at home in that dive during covid fills me with dread. It was a 1 bed top floor house converted into 2 flats. It was nasty!
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Well played!
We were going to do 2, then lock in longer term. I knew whatever we did it would be the wrong choice! Ah well. :(
 
jaybee said:
Ah got ya. Yeah. Home improvements I feel the same a bit. When I do a job I do it properly and invest but I do draw the line on the big ticket items. Like windows for example, I know we need all new ones but ****, it's like 10k for double glazing to get done throughout. Meh
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Yeah someone came round and asked to give a free quote. Lol. No way.
Our windows look OK. But they are 203 years old (same as house) and just badly sealed. But all neighbours have same so I assume no one has replaced.
 
413x said:
Yeah someone came round and asked to give a free quote. Lol. No way.
Our windows look OK. But they are 203 years old (same as house) and just badly sealed. But all neighbours have same so I assume no one has replaced.
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Mine are 25 year old double glazed units and also don't seal. A couple I replaced the hinges on and it did improve the seal. Some of the rubber seals have just perished and lost their spring though. I'm going to try to find the right channel/shape type and buy a load of it and replace all of our seals in prep for this winter.
 
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jaybee said:
Well played!
We were going to do 2, then lock in longer term. I knew whatever we did it would be the wrong choice! Ah well. :(
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You can't know. 5 send much more sensible. But when rates go 1pc to. 5pc in a year.. If you pick the wrong number it can absolutely screw you.

5 seems sensible. You get to pay the mortgage down more. Any drops in equity are more absorbed as you're remortgaging later.
2 seems crazy looking back now. You don't pay off much in 2 years.
I think we are paying off 560 a month (900 payment and 330 interest)

That's more than our old rent (560) but when talking about house price falls, it's not really much year on year.
 
jaybee said:
Mine are 25 year old double glazed units and also don't seal. A couple I replaced the hinges on and it did improve the seal. Some of the rubber seals have just perished and lost their spring though. I'm going to try to find the right channel/shape type and buy a load of it and replace all of our seals in prep for this winter.
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I also replaced a few hinges. It made a little difference. You could feel a draught blowing through the gap before! :D.
I planned to do the same. But I still haven't got round to it. Seems a right faff

Was this your first house too?
 
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Yeah with 2 we were always a bit paranoid that the rates could rise very quickly with COVID (just like what just happened the last year really) and swayed towards 5 year. as I always say, you can't beat yourself up for doing homework/research/getting advice and making an informed choice buy it not being the best. Just luck really.
 
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jaybee said:
Yeah with 2 we were always a bit paranoid that the rates could rise very quickly with COVID (just like what just happened the last year really) and swayed towards 5 year. as I always say, you can't beat yourself up for doing homework/research/getting advice and making an informed choice buy it not being the best. Just luck really.
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It really is. Even the BoE can't predict what's going to happen 3 months from now. What chance does anyone else have?
 
potatolord said:
This has to be bad news for new buyers/ those moving to a new deal?

www.theguardian.com

UK mortgage turmoil: Santander pulls new borrower deals as NatWest hikes rates

Move follows decision by HSBC and applies to brokers and online applications as lenders hike fixed rates
www.theguardian.com www.theguardian.com
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This isn't news as such, loads of more smaller specialist lenders have been doing this for a good few months now.

I guess Santander being as big as they are it makes the national press.

Our application numbers have tanked again and swap rates are on the up.

I reckon I'll be out of a job within 6 months at this rate, to be honest we've been called into a couple of meetings out of the blue recently, and each time we were all like "is this it?"
 
BUDFORCE said:
This isn't news as such, loads of more smaller specialist lenders have been doing this for a good few months now.

I guess Santander being as big as they are it makes the national press.

Our application numbers have tanked again and swap rates are on the up.

I reckon I'll be out of a job within 6 months at this rate, to be honest we've been called into a couple of meetings out of the blue recently, and each time we were all like "is this it?"
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I think nationwide paused new deals on Friday.

Jeez, good luck.
 
Just did a shocking bit of maths on our house now vs 2020.

2020
260k house
40k deposit
220k debt
Rates 1.8pc.
Cost per month 900

2023
340k
(assuming same 40k deposit)
300k debt
Rates 5.5pc
Cost per month 1850


Youd have 80k more of debt.
You'd have 950 pounds a month more monthly mortgage cost.
That is shocking for FTB.

This is for the very same house, only 3 years on.

Not really thought about it like that before. Particularly the lifetime debt. That truly is horrendous.
 
413x said:
Just did a shocking bit of maths on our house now vs 2020.

2020
260k house
40k deposit
220k debt
Rates 1.8pc.
Cost per month 900

2023
340k
(assuming same 40k deposit)
300k debt
Rates 5.5pc
Cost per month 1850


Youd have 80k more of debt.
You'd have 950 pounds a month more monthly mortgage cost.
That is shocking for FTB.

This is for the very same house, only 3 years on.

Not really thought about it like that before. Particularly the lifetime debt. That truly is horrendous.
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If you had bought your house in 2010 it would have more than likely looked the same as those figures vs your 2020 price and ten years is nothing in terms of wage growth.
 
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413x said:
It really is. Even the BoE can't predict what's going to happen 3 months from now. What chance does anyone else have?
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This is why domestic mortgages on the main home shouldn't be exposed to market volatility like this.

It really isn't fair to have had surging house prices for twenty years in large part due to low rates, essentially forcing many into buying at these high prices, then only to hike up the rate, doubling or trebling already large mortgage payments and destroying people financially for 30 years or more.
 
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danlightbulb said:
This is why domestic mortgages on the main home shouldn't be exposed to market volatility like this.

It really isn't fair to have had surging house prices for twenty years in large part due to low rates, essentially forcing many into buying at these high prices, then only to hike up the rate, doubling or trebling already large mortgage payments and destroying people financially for 30 years or more.
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why ?? you should have made a better choice .. bought a cheaper house ? took your time to step up on the ladder .. i know this after losing a house .. it's no ones fault but your own .. i excepted it so should you/they .. houses are like stocks if it drops it's you fault for not seeing the signs .. but if your young enough you will learn from your mistakes like i did .. i've got 30k to pay and i'm on a 10 yr fix (with 7 left) simples ...
 
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