Caporegime
Percentage of the interest vs how much you are borrowing, in relation to your salary.
Mortgage Rate Rises
- Thread starter glenimp617
- Start date
Percentage of the interest vs how much you are borrowing, in relation to your salary.
I can't help but feel the same sometimes for my children. I want them to have happy lives.
It's why I am trying to train myself to prepare for the future where they are most likely going to have to stay living at home until significantly later in life than one might expect to.Show me (in film star voice)
Soldato
The other thing I worry about are pensions.
The generation that have or just about to retire, particularly those in civil service are retiring on good pensions. I mean fair enough I have nothing against that.
But I feel we are paying into something that will be worth nothing in 25-30 years to come, I have been paying into a pension for maybe 10 years, admittedly I was a bit late to start but another thing is how many different jobs already chopping and changing which hasn't helped.
Anyway, seeing the pension value and more concerning how it performed last year (made a loss) I am getting concerned.
The generation that have or just about to retire, particularly those in civil service are retiring on good pensions. I mean fair enough I have nothing against that.
But I feel we are paying into something that will be worth nothing in 25-30 years to come, I have been paying into a pension for maybe 10 years, admittedly I was a bit late to start but another thing is how many different jobs already chopping and changing which hasn't helped.
Anyway, seeing the pension value and more concerning how it performed last year (made a loss) I am getting concerned.
I've got a colleague at work who likes to see the misery many are suffering with and revels in conversations where mortgages come up. He's got a 2 bed flat in London and is the very definition of "I'm alright Jack". He barely has to turn his heating on as it's a very well insulated flat. Had his mortgage paid off years ago. Wants rates to rise so his thousands in the bank grow and wants to see the country burn. Has no sympathy for anyone struggling. Finds it funny.
I find this mindset interesting if anything. I don't understand fully how people can become like that. Why so much hatred for others just trying to live.
I find this mindset interesting if anything. I don't understand fully how people can become like that. Why so much hatred for others just trying to live.
I think that's a thread in its own pensions. I've always kept it simple and paid as much as I could afford in (which is **** all) in every job. I've probably got about 5 or 6 different pots from over the years of jobs and changes in pensions. I was always told not to combine them as you lose out. But then recently found that this is potentially poor advice. I know little about it all as have not had time to truly look into it.
Suspended
It depends on the type.
Generally DC schemes (which most from last 20 years will be) can be combined fine, in fact you may see lower fees from doing so if for example you get a discount on fees for a current scheme.
DB generally are best left behind unless absolutely tiny. Transfers in will be generally on worse terms, and you never want to take a DB out and put it in a DC unless you have such a high transfer value that you could be potentially retiring and doing draw down.
Treat above as very generalised non-advice. But its the sort of direction you can use in order to view if you might want to consider consolidating.
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Associate
Just had to remortgage today. Monthly payments will be going up 33% in November. The best deal we could find was 4.39% on a 5 year fix. It stings but we can afford it although we won't be saving any money now each month.
The thing that shocked me the most as someone who doesn't pay much attention to house prices is the house we bought in 2018 for £142k is now valued at £191k. That is crazy. Just shy of £10k a year increase. My 7 year old daughter is going to be screwed when it is her turn to buy a house. It's disgusting.
The thing that shocked me the most as someone who doesn't pay much attention to house prices is the house we bought in 2018 for £142k is now valued at £191k. That is crazy. Just shy of £10k a year increase. My 7 year old daughter is going to be screwed when it is her turn to buy a house. It's disgusting.
It's fairly simple to calculate average wage versus average loan price for then versus now, most analysis' begins there and then expands to account for various other factors.
If you follow around the twitter thread I linked to in this post you'll get some more complete explanations of the more common methodology:
Mortgage Rate Rises
Said everyone in the 80s, 90s, 00s, 10s, 20s and yet here we are. There's been multiple corrections over that time frame, and each time they have taken around 2 years to unfold. Why do some people seem to think that when others are discussing the likelihood of average house prices trending...
forums.overclockers.co.uk
I can't help but feel the same sometimes for my children. I want them to have happy lives.
That was one of the leading factors in stretching our affordability when we moved house in 2021. We bought a place where four adults could comfortably live (and maybe more if they have partners) with a view that we could stay here 10-15 years (and more if we needed to).
Our old 3-bed, 1 bath (and only one toilet) was completely impractical for four adults and there was no scope to extend either.
Soldato
I've got a colleague at work who likes to see the misery many are suffering with and revels in conversations where mortgages come up. He's got a 2 bed flat in London and is the very definition of "I'm alright Jack". He barely has to turn his heating on as it's a very well insulated flat. Had his mortgage paid off years ago. Wants rates to rise so his thousands in the bank grow and wants to see the country burn. Has no sympathy for anyone struggling. Finds it funny.
I find this mindset interesting if anything. I don't understand fully how people can become like that. Why so much hatred for others just trying to live.
Because the majority of people do not understand economics or causality, the situation becomes worse while the wrong thing is blamed etc.
The only option is to understand, then exploit it. All of the communists on here, every policy they can dream up with would simply make poor people poorer.
The eventual end to that ideology is to simply seize assets from the rich, but unfortunately, that doesn't help either.
That's what is driving us to look at upsizing in a year or two as even though ours are very young it is not looking likely that they are going to be able to get out and setup their own home possibly into their 30s so we want to get into a forever home that we could all occupy and if feasible move it into a trust to possibly mitigate some of the IHT for after we have gone so they ultimately have a home no matter what is going on. At least that's the hope.
I've got a colleague at work who likes to see the misery many are suffering with and revels in conversations where mortgages come up. He's got a 2 bed flat in London and is the very definition of "I'm alright Jack". He barely has to turn his heating on as it's a very well insulated flat. Had his mortgage paid off years ago. Wants rates to rise so his thousands in the bank grow and wants to see the country burn. Has no sympathy for anyone struggling. Finds it funny.
I find this mindset interesting if anything. I don't understand fully how people can become like that. Why so much hatred for others just trying to live.
He needs to learn some empathy. But it is easy to feel a sense of relief when you're in a good position and an even better one if it goes to pot. I've 4 years left of a 5-year fix term at 2% for half the value of the house. I'm also on a Help-to-buy loan which was at 40% of the value of the home. We just paid off a big chuck of that so now we have a loan that's worth 23% or so. The price of our house only rose 5% or so in the last 6-years
The kicker is, if there a big house price crash, we actually benefit because the actual monetary amount we owe reduces, and the bigger the crash, the less we owe. If there is a house price crash and we go into negative equity and time it to pay off the rest of the loan at the lowest point, we actually MAKE money off the loan because we owe less money than we actually borrowed!
We're not looking to move as this is our forever home unless we win the lottery or some other such luck so we're not stuck or anything.
But after saying all that, i certainly don't want to see others suffering, we've had our fair share of a difficult life so we understand
How does that work then? it sounds like you are saying that if the house became worth £1 overnight, you'd only owe pence and the loan is written off? Can't be.
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I'm pretty sure that the amount you owe with a government equity loan (Help to buy) is tied to the value of your house.
So if you borrowed say £100k from the government in order to decrease the size of your mortgage, and the value of your house fell by 50%, then you would only owe the government £50k.
So in 30 years when your house has quadrupled in value?
You would remortgage and pay it off. Your loan would be £400k but your house would be worth four times more too.
I doubt it would be wise to wait 30 years though, I think they're only interest free for the first five.
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Caporegime
Yep, repayment of the Help To Buy loan is based on the value of the property at the time you make the payment. It's essentially a secondary, interest-only mortgage, with the capital repayment being linked to the value of your property.
This is why I did 2x 2 year fixes, as I wanted to staircase some of the HTB loan before we started having to pay interest on it, and in the end this was a bad move due to the interest rate hike.
The west is absolutely declining.
Maybe less so in the USA. As thier focus on capitalism means those in USA doing well have got themselves to the top of the pyramid.
But then America is a very selfish (even by western standards) society. So if you have it good? You have it great. If you have it bad? It's dire.
But UK is heading that way anyway. Public services are falling apart, and I'm sorry, for all the pledges of about and tories, they don't have the money to fix it. Or at least.. The money isn't available. Locked up in international businesses and very wealthy individuals who can always escape it.
So we will end up like America, where if you're you're poor, you die younger and younger. And if you're rich life is great.
We endlessly kick the can down the road and more subsequent generations will have it worse and worse.
I don't believe any government can alter this. It's natural pressures playing out. We simply will need to accept that we are in decline. We simply cannot consume at this rate.
Only curve ball is future technology progress. It could either make things very much worse or better. Probably, overall, it will accelerate the funnelling of wealth to a smaller number of companies and individuals to a point where governments are even more so at mercy of corps.
Without inheritance, no, if she's average, she will unlikely pay off a mortgage.
Probably no pension either. And no nhs.
Good luck to the future generation who will be able(more so than most of us) to tell us we had it easier than them. It will be harder to argue than boomer vs millenial