Mortgage Rate Rises
- Thread starter glenimp617
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Yep, 20 years ago houses were far far far far cheaper, it's not even a rational debate to have. The gap between income and housing values were far smaller back then. Single people could afford houses back then. Now they would struggle to get a flat.
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Rates are returning to quite historically recent levels. Thats all. 
Congratulations but we haven’t got it as easy as you had it. Times have changed.Rates are returning to quite historically recent levels. Thats all.
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Congratulations but we haven’t got it as easy as you had it. Times have changed.
It was a 100% mortgage as well, circa 3x salary at the time.
It was a 100% mortgage as well, circa 3x salary at the time.
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You are simply reading too much into the statement.
It does actually. Pretty sure my first mortgage I took out showed that over the 25 years I was going to pay more in interest than the house cost, quite a lot more.
Its only in recent years have people seen that it is less.
It was a 100% mortgage as well, circa 3x salary at the time.
When I worked for Mortgage Express (part of Bradford & Bingley) between 2006-2008 we did something called a "max 130" - it's okay though, because we actually checked the income for that one......
Just been into my local estate agents and I walked in with the ladies there mid conversation about the amount of reduction on properties this week in my local area.
They seemed to think coupled with the interest rate rises, we are right on the edge of a small crash.
They seemed to think coupled with the interest rate rises, we are right on the edge of a small crash.
What were the figures?
The rate only needs to be about 6.5% for an average mortgage to cost more in interest than you borrowed. We've had much higher rates than that in the past.
(using avg mortgage being £252000 over 25 years)
It's much higher today.
...which perfectly illustrates the point of how good we've had it recently with very low rates?
Low rates arent good, they helped create bubbles and now the market cant correct because it is deemed too painful so mortgage length increases to compensate.
But...
25 years.
£281000 total cost £543k
£75000 total cost £144k
You’re still not getting it. The total cost will still outweigh on a mortgage today at 3% or 6%
Only benefits for ordinary people are downsizing or selling/dying to pass it down as inheritance