Mortgage Rate Rises

[Martini1991]

OK, but that 20% privately rented will either be mortgaged or owned outright by the landlord (or housing association I guess).

Can't the 32.6 statistic include houses owned but rented out? It says "32.6 per cent of dwellings were owned outright", someone who rents it out still owns it.

We have private companies who will have business mortgages (Commercial mortgage?) on houses in that 20% like the one in my example house above.

 

[Martini1991]

Exactly, and if people are suffering at 4.5% base rate it's yet more proof that lender controls & stress tests are insufficient.

I imagine it's much more to do with how quickly it's happened, and then the price of the houses, the ratio from house prices to wages is completely out of whack.
And then poor wage growth
And then everything else going up

 

[danlightbulb]

Interest rates reduce demand on those with savings by stopping them spending. Its two pronged.

Anyway I am out now since yet again we are into another what benefits Dan scenario. Like the last 20 times or whatever the count is upto now.

Lol so we can never have any discussion about any of the hundreds of possible policies that I might benefit from...sensible.

Why do you ignore the fact that anything I benefit from, so do millions of other people?

You are stifling discussion on a key area of policy by doing this and failing to see the importance of not screwing over millions of mortgage holders into financial ruin.

I rented for years, can we never talk about rent protections either? Or do you assume that now I'm a mortgage holder that I no longer would support rent reforms?

You're the problem here not me.

 

[danlightbulb]

So when you were basking on your 1% interest rate and older people on fixed incomes and reliant on their savings interest were getting 0.05 to 0.1% returns, I don't suppose you even considered that or even thought about it..

Not sure of your point. Before I bought a house last year I had £35k savings that I'd been saving for about 10 years. That was sitting earning barely any interest whilst house prices accelerated away from me by further each day.

The thing with someone with a healthy amount of savings is that whilst that money might not be earning much, those people are not poor or getting their income battered by rising mortgage costs. Someone with tens of thousands in savings will be better off by raising rates, but they were ok before too. And I can't see raising rates doing much to dampen their demand either.

 

[flea.rider]

And there it is, the typical 'move to another area' response that fails to recognise that 99% of people have circumstances that means they can't just up sticks and move to the other side of the country.

What should someone do who is already in a cheap area and will still get battered by trebling rates?

why so many excuses ? anyone can do anything ? there is not one circumstance that means you have to stay anywhere ..your home is 250k that would get you a detached 4 bed round here and unless your job is hands on you could work from home ?
why does this generation blame everyone but themselves ?

 

[Hagar]

Not sure of your point. Before I bought a house last year I had £35k savings that I'd been saving for about 10 years. That was sitting earning barely any interest whilst house prices accelerated away from me by further each day.

The thing with someone with a healthy amount of savings is that whilst that money might not be earning much, those people are not poor or getting their income battered by rising mortgage costs. Someone with tens of thousands in savings will be better off by raising rates, but they were ok before too. And I can't see raising rates doing much to dampen their demand either.

No but when your sole income is 9.5k pension plus savings interest as is the case with many older people without much pension from employment, a drop to 0.1% from 3 or 4% is significant. Once again you are thinking of one side of the coin. Your income getting bashed but nobody else's? Also the rich pensioner trope.
Households with mortgages are a significant number but still a minority, as are other groupings in society. What makes yours so special?

 

[potatolord]

Not sure of your point. Before I bought a house last year I had £35k savings that I'd been saving for about 10 years. That was sitting earning barely any interest whilst house prices accelerated away from me by further each day.

The thing with someone with a healthy amount of savings is that whilst that money might not be earning much, those people are not poor or getting their income battered by rising mortgage costs. Someone with tens of thousands in savings will be better off by raising rates, but they were ok before too. And I can't see raising rates doing much to dampen their demand either.

First, sorry to hear about how difficult things are for you.

The only thing I can say is you need to cut costs and hang on. It's going to be horrible and it's not your fault, but you have little choice.

I spent years with no furniture, other than a bed, to pay a mortgage I couldn't really afford. I had to live in a bedsit after losing most of my house equity in a divorce. The next house I got was furnished mostly from charity shops.

It was bad at the time, but things did improve.

You just have to suck up the pain and look to the future. It's not your fault, but it is your problem.

 

[413x]

Very low interest rates are better in general now we have gotten into excessive house price rises.
If you have substantial savings, and you're retired, you probably are mortgage free too. So I don't have much sympathy for those with savings having poor returns.

If you're young and have a mortgage, those low interest rates are going to be more important and life changing than a bit of interest for the wealthy retirees.


Remember. The more pain the young have the worse it will be for that demographic later in life. And even worse for the next generation.


Not only is the state pension getting worse, the nhs getting worse, and people are going to end up poorer when they are older.

 

[Angst]

why so many excuses ? anyone can do anything ? there is not one circumstance that means you have to stay anywhere ..your home is 250k that would get you a detached 4 bed round here and unless your job is hands on you could work from home ?
why does this generation blame everyone but themselves ?

Anyone can do anything but why should a terrible housing market in the uk mean that they should be FORCED to up sticks and leave their freinds and familly behind just so they can afford to live? Ive moved about the uk a fair bit but its not for everybody and just expecting that everyone should be able or happy to do it because of circumstances out of their control is ignorant.

 

[flea.rider]

Anyone can do anything but why should a terrible housing market in the uk mean that they should be FORCED to up sticks and leave their freinds and familly behind just so they can afford to live? Ive moved about the uk a fair bit but its not for everybody and just expecting that everyone should be able or happy to do it because of circumstances out of their control is ignorant.

LOL should and happy ?? no your right they should just sit still lose there house and be happy about it .. options are just that otherwise stop complaining and get on with your life ..if you can't do one thing then do another .. but forced when your backs against a wall is maybe the better option ..

 

[danlightbulb]

Once again you are thinking of one side of the coin. Your income getting bashed but nobody else's? Also the rich pensioner trope.
Households with mortgages are a significant number but still a minority, as are other groupings in society. What makes yours so special?

I am not just thinking of one side as you put it.

It is all about equality.

Mortgage holders shouldn't get battered by rising rates to fix economic problems not of their making.
Renters shouldn't get battered by the above either, or via terrible landlords or by property shortages.
People who can't afford to buy or private rent shouldn't get battered either by the lack of social housing.

I don't only care about mortgage holders now that I am one. What I care about is that housing is an essential thing and all groups should have protection for stability, no matter what their type of housing.

The groups that shouldn't get any protection are those who have created these problems in the first place. Greedy investors, shareholders, wealthy pensioners (note there are lots of poor pensioners too).

Cant you see that all this what is happening right now is going to cause tonnes of pain for normal people, but enrich the wealthiest even more?

 

[flea.rider]

I am not just thinking of one side as you put it.

It is all about equality.

Mortgage holders shouldn't get battered by rising rates to fix economic problems not of their making.
Renters shouldn't get battered by the above either, or via terrible landlords or by property shortages.
People who can't afford to buy or private rent shouldn't get battered either by the lack of social housing.

I don't only care about mortgage holders now that I am one. What I care about is that housing is an essential thing and all groups should have protection for stability, no matter what their type of housing.

The groups that shouldn't get any protection are those who have created these problems in the first place. Greedy investors, shareholders, wealthy pensioners (note there are lots of poor pensioners too).

Cant you see that all this what is happening right now is going to cause tonnes of pain for normal people, but enrich the wealthiest even more?

wow what a perfect world you spin .. there is nothing equal in this world ..there are tho plenty of people on low wages doing just fine as others are not ..i'm not a high earner 28-30k (depending on overtime ) my wifes on less ..the only debt we have are the house a car and my 125..
it's what you do with what you have and how you do it ..

 

[Cadder]

My fixed deal ending next January feels like it's going to be perfectly timed for the highest rates, the way things are going

 

[Mercenary Keyboard Warrior]

I am not just thinking of one side as you put it.

It is all about equality.

Mortgage holders shouldn't get battered by rising rates to fix economic problems not of their making.
Renters shouldn't get battered by the above either, or via terrible landlords or by property shortages.
People who can't afford to buy or private rent shouldn't get battered either by the lack of social housing.

I don't only care about mortgage holders now that I am one. What I care about is that housing is an essential thing and all groups should have protection for stability, no matter what their type of housing.

The groups that shouldn't get any protection are those who have created these problems in the first place. Greedy investors, shareholders, wealthy pensioners (note there are lots of poor pensioners too).

Cant you see that all this what is happening right now is going to cause tonnes of pain for normal people, but enrich the wealthiest even more?

Mentions equality then proceeds to suggest he doesn't want equality at all.

You want some kind of uber socialist scenario. Its just never going to happen in the UK. If anything we are moving further away from what you want.

For clarity : "To summarize: Equality means that the law and government treats everyone the same, irrespective of their status or identity. Equity means that, in some circumstances, people need to be treated differently in order to provide meaningful equality of opportunity."

Greedy investors, shareholders, wealthy pensioners. Jesus get a grip man.
Is every investor greedy? So people investing in wind turbines etc are greedy? Shareholders, what you mean like 80% of the UK citizens, including yourself if you have any form of pension for starters, wealthy pensioners;
The vast majority of wealthy pensioners are people who worked hard all their life, we should not help them simply because they worked hard? Its the same envy we see too often, talk about trying to dis-incentivise working hard, planning for your future...

 

[BongoHunter]

I'm thinking about getting a lodger, I could use the income to overpay until renewal, and then post renewal use it to help make up the increase in mortgage costs anyone here have a lodger? It's tax free right?

 

[squerble]

I'm thinking about getting a lodger, I could use the income to overpay until renewal, and then post renewal use it to help make up the increase in mortgage costs anyone here have a lodger? It's tax free right?

Check that your mortgage agreement allows letting/lodgers before you go any further; they often strictly prohibit it.

 

[Raymond Lin]

I'm thinking about getting a lodger, I could use the income to overpay until renewal, and then post renewal use it to help make up the increase in mortgage costs anyone here have a lodger? It's tax free right?

And there is a limit of £7,500 per year. That's £625 a month max.

 

[Angst]

LOL should and happy ?? no your right they should just sit still lose there house and be happy about it .. options are just that otherwise stop complaining and get on with your life ..if you can't do one thing then do another .. but forced when your backs against a wall is maybe the better option ..

Im not denying those options are valid in the current situation if you cant afford the area you currently live in. What im arguing is that its wrong that housing market in the uk was already ****** and that combined with the bank of englands choice to pointlessly raise interest rates rapidly and to such high levels where it is now to the point that it is legititimately peoples only option to sell and move.
"why so many excuses ?" "

"why so many excuses ?" "stop complaining and get on with your life"

Stop acting like people that are potentially forced to make that choice should just be in position to accept it and move house and not blame the external forces that are creating that situation for them. Of course they are blaming others for this issue, they dont control bank interest rates, they dont control inflation or stagnant wages, they dont control the over inflated housing market. People will get on with their lives and do what they need to but dont make it sound like its an acceptable solution that they shouldnt be angry at.

 

[danlightbulb]

Greedy investors, shareholders, wealthy pensioners. Jesus get a grip man.
Is every investor greedy? So people investing in wind turbines etc are greedy? Shareholders, what you mean like 80% of the UK citizens, including yourself if you have any form of pension for starters, wealthy pensioners;

It is simply about helping people who need the help, I don't understand your aversion to it.

Lots of people were helped during Covid, which was external circumstances. Almost everyone was helped with energy bill crisis, which was external circumstances. Why shouldn't mortgage holders (and renters, if rates effect their rent amount) be helped when external circumstances have rapidly driven up interest rates?

If inflation is a problem, why did the Government hand out money to everyone to support rising energy bills? Those trebled energy bills would have driven down other spending if the Government support didn't occur. An extra £2k a year on energy could be dwarfed by the extra on mortgages for many people. Why is it ok for that to happen but not for energy bills to rise?

Interest rates disproportionately effect housing costs. So what is happening is one (albeit very large) group of people are the ones expected to cut back and solve the inflation problem. Why?

 

[flea.rider]

Im not denying those options are valid in the current situation if you cant afford the area you currently live in. What im arguing is that its wrong that housing market in the uk was already ****** and that combined with the bank of englands choice to pointlessly raise interest rates rapidly and to such high levels where it is now to the point that it is legititimately peoples only option to sell and move.
"why so many excuses ?" "

Stop acting like people that are potentially forced to make that choice should just be in position to accept it and move house and not blame the external forces that are creating that situation for them. Of course they are blaming others for this issue, they dont control bank interest rates, they dont control inflation or stagnant wages, they dont control the over inflated housing market. People will get on with their lives and do what they need to but dont make it sound like its an acceptable solution that they shouldnt be angry at.

but they did make a choice to take out a mortgage and everything that comes with it .. again and again you hear it's not my fault ?? who's is it then ? the housing market was only ever going up ..so would the interest rates at some point ..now i'll admit because off Ukraine things did move faster but there was loads of time to lock into a 10 yr even if it did cost you in the short run .. being angry is fine when we lost ours i was very angry but excepted it was my fault and so should they ..