Mortgage Rate Rises

[robgmun]

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.

The repayment of the Help-to-buy loan is based on the % of the value of the house at the time you pay any part of it.

We bought it at 2017. And we borrowed it at 40% of the value. If the house price goes up. The more actual money we owe, if it goes down, the less money we owe. If it goes down to £1, we owe 40p

 

[jaybee]

Ah yes I remember help to buy now. I looked into it with some optimism years ago, only to realise it's only for new builds, which round my way would mean over half a mil for the size we needed. Plus having to actually live in a new build. That was the end of that.

 

[fez]

They could have slowed down properly values. What ALL governments did since labour, they kept promoting property.

This is the thing that stings. They 100% know that the decisions they make will inflate an already ridiculous property market. They do it knowingly and willingly. The stamp duty holiday that saves no one any money, costs most people huge sums and kills tax income on house sales. I genuinely struggle to see how that was even considered.

the 70s were a sheltered generation?? or did i read that wrong? everyone seems to be a victim of some sort in todays generation. Im sure it was just as hard back then but in different ways. Travel abroad was very rare for the majority of familys until the early 90s

One of the big issues is that fundamentally the current generation has been raised in a time of massive prosperity, great technology and a very easy life. Thats what they expect. They go from being pampered by their parents to having to fend for themselves and the step down is quite large. Our parents generation had a way harder time of things than we do now but they had one massive advantage. House prices. Thats all a lot of people see. I have said this before on here but my upbringing would be considered absolute poverty by todays standards. It was absolutely fine. We just didn't spend any money on anything that wasn't a necessity outside a holiday every year. Peoples expectations are massively different now and thats not entirely unreasonable.

The old generation who didn't have very much see todays youth frittering away money on all sorts of things and unsurprisingly their sympathy is somewhat lacking. Would I want to be going into the work force now? No. Thats for a lot of different reasons. The biggest issue is purely house/rental prices. Outside of that the youth of today have it much easier. They wouldn't agree because obviously everything is horrible and someone said a mean thing online to them and they just can't but realistically we all still have very nice lifestyles for the most part.

 

[413x]

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.

I genuinely can't see a state pension for myself. Look at the rate it's going up.
I think it will be means tested by then.

What I hope is an expansion of equity release. Where maybe I can unlock 90pc of my home to find myself.


But means tested state pension means for many people it would be beneficial to "get poor". Burn everything you have to get that means tested pension. So maybe it isn't possible.



For me this is the biggest factor where you can say "boomers have a better hand". It's later life where its noticeable.
Paid of mortgages, a state pension, and often lucrative private (workplace or personal) pensions.

Even millenials aren't going to have this. No idea about kids now. No pension? And no chance to pay off mortgage? And no NHS?

Good luck! One of many reasons I don't want kids.

 

[BUDFORCE]

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.

Unfortunately I cannot see it going any other way either.

 

[413x]

Unfortunately I cannot see it going any other way either.

I think at end of the day money is funneling out of the UK and into very wealthy individuals.

We all know you can't magic money up from nothing.


What I feel its the real big issue. The money is there, I'm the mega corps, share holders etc. But we can't get it. You tax a individual. They can leave the UK.
We can't (due to many reasons, but I don't really understand it) tax these off shore companies. Because they are based offshore. Doesn't amazon pay a ridiculously low tax bill to the UK (for example) ? This is broken.


If the world, as a whole, doesn't sort out a way to stop mega corps giving money to share holders, it's never going to stop. And no one seems to really address it.


The world can't keep racing to the bottom with attracting countries to thier shores by lowering corporate tax. It's just making things worse.

 

[adam cool dude]

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.

This is pretty much how a lot of families live on the continent. Greece in particular are like this. Ever wondered why the houses have bits of rebar sticking out of the top? It is all down to a planning loophole so they can build on top of their house when the children grow up so they can live there and is common practice for many generations of family to live together. In a way Greece who were the global centre of the world is how I see the UK ending up. Just without the good weather and Tzatziki.

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 will be honest I am of a similar ethos but in the right context. Whilst I do not want people to suffer. I do believe people who debt themselves up to their eyeballs and are one error away from catastrophe because they are living way beyond their means need to learn a valuable life lesson. It is people of this nature why we are in all this mess. It doesn't help when our country is ran in a similar way and has been for decades.

I scrimp and save to the best of my ability whilst still enjoying life but when the time comes I am safe and actually in a good position to take advantage of the situation.

 

[flibbage0]

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 can sort of see it, especially for those that have been told to save through their late teens and early to mid 20's. We followed the supposed rule book of:

Don't go on fancy holidays
Don't buy cars on finance
Buy cheap stuff and be frugal

And still they cannot get on the property ladder without substantial help from parents/grandparents. I don't want to see people get burnt but those that have been financially irresponsible for the last 10+ years need to be held accountable at some stage. Those that have followed the above steps in the 70's 80's and 90's and even 00's have either taken early retirement or they are financially free. Not the case anymore.

For instance if I was born 5-10 years earlier I would be on my 4th or 5th house by now quite easily.

 

[Mrwong]

One of the big issues is that fundamentally the current generation has been raised in a time of massive prosperity, great technology and a very easy life. Thats what they expect. They go from being pampered by their parents to having to fend for themselves and the step down is quite large. Our parents generation had a way harder time of things than we do now but they had one massive advantage. House prices. Thats all a lot of people see. I have said this before on here but my upbringing would be considered absolute poverty by todays standards. It was absolutely fine. We just didn't spend any money on anything that wasn't a necessity outside a holiday every year. Peoples expectations are massively different now and thats not entirely unreasonable.

.

the boomers say the young of today have it better ... iPhones etc...

The boomers back in the 60s had a better life than their parents. They were technology more advanced than their parents. They meet up in cafes etc..

Boomers always said 60s 79s 80s were great times, suddenly now they it was hard times.

In the 80s they had package holidays to cater for the disposable wealth. The 80s was the yuppie age, greed is good era. Gym memberships exploded, wine bars popping up, pony tails lol.
Flying to the US for weekends the pound was stronger back then $4 or $5 dollars to the pound.

£150 flight to the USA back then, it's 4 times that now.

 

[FishThrower]

This is the thing that stings. They 100% know that the decisions they make will inflate an already ridiculous property market. They do it knowingly and willingly. The stamp duty holiday that saves no one any money, costs most people huge sums and kills tax income on house sales. I genuinely struggle to see how that was even considered.



One of the big issues is that fundamentally the current generation has been raised in a time of massive prosperity, great technology and a very easy life. Thats what they expect. They go from being pampered by their parents to having to fend for themselves and the step down is quite large. Our parents generation had a way harder time of things than we do now but they had one massive advantage. House prices. Thats all a lot of people see. I have said this before on here but my upbringing would be considered absolute poverty by todays standards. It was absolutely fine. We just didn't spend any money on anything that wasn't a necessity outside a holiday every year. Peoples expectations are massively different now and thats not entirely unreasonable.

The old generation who didn't have very much see todays youth frittering away money on all sorts of things and unsurprisingly their sympathy is somewhat lacking. Would I want to be going into the work force now? No. Thats for a lot of different reasons. The biggest issue is purely house/rental prices. Outside of that the youth of today have it much easier. They wouldn't agree because obviously everything is horrible and someone said a mean thing online to them and they just can't but realistically we all still have very nice lifestyles for the most part.

that is a very good point and view. One of the advantages of life in the 70s \ 80s (I am too young to personally experience this), is that there were always jobs available for low skilled workers, which also reduced crime . Europe giving manufacturing to China had a huge negative impact on this and was the start of mass importing cheap goods. It was very common for people in manufacturing to leave a job on a friday, and to have multiple offers the following week. This is how my dad and his friends explained to me. Manufacturing also provided a lot of mid skilled jobs, and was a great sector to be in. Most decent money jobs now are desk jobs, which doesn't suit everyone

Todays generation, getting a decent job is more difficult, people are more interested in making lots of money fast with minimal effort (who can blame them?), most kids and a lot of adults now want to be "social media content creators" or some crap which is really concerning. I do also think that a lot of todays generation has unrealistic expectations in life, its amazing speaking to different people who "have it hard", only to find that the reason why they "have it hard", is mainly due to not having the correct attitude.

Anyway, I went totally off topic

 

[Zefan]

I have no doubt at all that my kids are going to have a VERY tough ride when they reach adulthood.

In hindsight, had I known all this was coming I probably would have chosen to stay child free (for their benefit, not mine). They are my world, but I have brought them into a very destructive environment.

Man, what an utterly hopeless and depressing attitude to have. They're your world but you say that you should have not had them? I'm amazed humanity got this far with this sort of mindset surviving.

 

[gazref]

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.

These Norman's are not so shy these days, used to be they'd think this but not say it out loud but thankfully the conservative mindset is dying out as reality bites. Partake in society until personally ok then wants to go lone wolf. Probably expects people to thank him just for paying taxes too, sad really.

 

[Richie]

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.

You should find out how he managed this so quickly... Did he have an inheritance or financial help from something?

I genuinely can't see a state pension for myself. Look at the rate it's going up.

I've said it a few times. If they pull the state pension, I would be looking for compensation of some kind back... Sod the argument of "you aren't paying into a pot, your paying current pensioners pensions so there's nothing to pay back"... Crap, I've paid into a contract, I expect a return.

Even more so once I have contributed the full 35 years.

You've got to laugh though - the very people that would vote to pull the state pension would saunter off with an MPs pension and care not a jot.

 

[413x]

You should find out how he managed this so quickly... Did he have an inheritance or financial help from something?



I've said it a few times. If they pull the state pension, I would be looking for compensation of some kind back... Sod the argument of "you aren't paying into a pot, your paying current pensioners pensions so there's nothing to pay back"... Crap, I've paid into a contract, I expect a return.

Even more so once I have contributed the full 35 years.

You've got to laugh though - the very people that would vote to pull the state pension would saunter off with an MPs pension and care not a jot.

If they can't pay the pension you won't be getting any compensation.


Maybe they will just move it up and up until you're lucky you get it. Technically there is one. But good luck making it there.

We aren't paying our pension. We are paying those pesky boomer inflation adjusted pensions!

 

[turbot1984]

My 5 yr fixed ends Feb 2024,whats predictions long term?. No doubt i'm in for a good goosing lol.

 

[413x]

My 5 yr fixed ends Feb 2024,whats predictions long term?. No doubt i'm in for a good goosing lol.

Long term? Amazon subscribe and save, amazon basics extra lubey lube.

 

[Hutchy]

My 5 yr fixed ends Feb 2024,whats predictions long term?. No doubt i'm in for a good goosing lol.

I'm going to predict 5% for Feb 2024 after it goes up and then down a little, then I'm going to come back to this post in Feb 2024 also and laugh at how wrong my prediction was.

 

[HungryHippos]

My 5 yr fixed ends Feb 2024,whats predictions long term?. No doubt i'm in for a good goosing lol.

Raining sideways!

 

[Mercenary Keyboard Warrior]

I've said it before. I cannot see how any UK government reverses the state pension.

Its not the sort of thing you can do on a whim since many would immediately be starving if you did. Civil disorder of monumental level would follow within days.
If you put a longer term strategy in place to do so your almost certain to be hammered at the next general election.

The other thing it would do is to crystalise the wealthy, and everyone else. The wealthy would probably save for a pension since the state is irrelevant.
Everyone else wouldn't bother, just spend it all now and the government will HAVE to give me a standard of living anyway.
Call it welfare if you want, but its state money by another name.
Potentially making the situation worse than paying a state one and people topping up their own.

Some semblance of means testing could happen, but again its as likely to cost money as save it. Getting the point right and not immediately discouraging people to save for themselves is a really tricky balance to strike.

Of course all the above assumes we don't see work houses type things returning. Work till you die environment.

 

[Mrwong]

Man, what an utterly hopeless and depressing attitude to have. They're your world but you say that you should have not had them? I'm amazed humanity got this far with this sort of mindset surviving.

Dont worry, it might get worse. London to morocco in 20 hours lol.

undersea tunnel could one day connect Europe's high-speed rail network to north Africa under plans revived by the Spanish and Moroccan governments.

High-speed rail tunnel to link Europe to Africa gets EU funding

The Spanish government on Friday confirmed funding for a study looking at a link to Morocco

www.independent.co.uk