Mortgage Rate Rises
- Thread starter glenimp617
- Start date
Yep, that aged pretty badly didn't it?
Out of date by the time I even replied! (I hadn't seen the comments after
)You'll have to go easy on n111ck, he's still grieving for his loss and having to cope by living in his fantasy world that nobody had any interest in some parties and a bit of cake and it was just noisy lefties with an aGeNdA that would all blow over
Brexit has obviously had some Impact. Due to it adding to the cost of import. It's probably hurting the EU too as anything we export is also adding to costs.
No one is claiming it's the sole/main driver. But to claim it isn't a driver is bizarre.
No one is claiming brexit is helping inflation.
So yes is having an effect on mortgage rates/base rate. The exact contribution is hard to pin down.
No one is claiming it's the sole/main driver. But to claim it isn't a driver is bizarre.
No one is claiming brexit is helping inflation.
So yes is having an effect on mortgage rates/base rate. The exact contribution is hard to pin down.
Soldato
I cannot see why people are still fixing for just another two years. It is this short termism that leads to some volatility. If I was still in the market for a mortgage, it would be five years at least.
even then the increased mortgage rate 'only' represents an average of 3% hit on richer home owners income - it's not an enormous rudder;
if anything it's the push through of rent increases they said yesterday that typically represent 28% of pre-tax earning that are much more painful for renting demographic.
( e: for others , and the brexit think is not supermarket prices, it is lost unrecoverable investment in the UK industry, universities )
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I suppose the gamble is you could be fixing at the top, literally no-one knows what interest rates could be in 2, 3, 4 years atm.
Caporegime
Because +£500/month fix for 2 years is already devastating and unaffordable, so fixing for 5 years at +£700/month was not an option.
We now have 2 years to pull out all the stops and clear as much debt as humanly possible.
We know rates can't go much higher.
At this point you are perilously close to major economic damage as relatively few have even been impacted by the rate rises.
BoE were too slow to get the rises started. If we had been at 4pc for months more I'm sure the impact would be much higher as more people will have been rolling onto high mortgage/loan/rent rates.
Its now looking like rate will be high even for us in 2027.
When my partner is back (as life has thrown us a curve ball) we will have a serious chat about emigration in 2027. I'm not sure she will want to. As need to know whether or not to put money into the mortgage or not
At this point you are perilously close to major economic damage as relatively few have even been impacted by the rate rises.
BoE were too slow to get the rises started. If we had been at 4pc for months more I'm sure the impact would be much higher as more people will have been rolling onto high mortgage/loan/rent rates.
Its now looking like rate will be high even for us in 2027.
When my partner is back (as life has thrown us a curve ball) we will have a serious chat about emigration in 2027. I'm not sure she will want to. As need to know whether or not to put money into the mortgage or not
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Suspended
Look at core inflation and what is driving that. People claiming its all external are clearly wrong now, interest rates will now crush that demand. The BoEs initial forecasts of a recession may well end up being correct after all
This is the problem right, the lesson from history as such.
Whatever the trigger for inflation, imported or whatever, it pretty much always rapidly becomes domestic as well.
Inflation drives inflation. Always going to be the same, so unless the initial inflation from whatever source is low and rapidly reversed then you have the spiral started off again.
Out of date by the time I even replied! (I hadn't seen the comments after
You'll have to go easy on n111ck, he's still grieving for his loss and having to cope by living in his fantasy world that nobody had any interest in some parties and a bit of cake and it was just noisy lefties with an aGeNdA that would all blow over
You keep suckling on that blame "brexit" teet and everything will be ok
Soldato
So you pay a bit more for a year or two after paying a bit less previously. It gives stability to your outgoings and some peace of mind for a longer term. Over the 25 year term it adds not a lot at all. Fixing every two years seems a lot of faff and bother. I doubt that rates will be a lot lower in two years when the next fix is due.
Unfortunately it doesn't look like it will. I've seen predictions of 4pc for 5 years!
4% interest rates for the longer term are sustainable (if somewhat painful). 6-7% are not sustainable
Suspended
Is Brexit behind the UK's inflation shock?
Some claim leaving the EU may be to blame for the UK's stubbornly high inflation, but it's a complex picture.www.bbc.co.uk
Thats actually quite a balanced and good summary.
As someone who works within the wider food industry the added costs are not disasterous.
The biggest issue for us as a nation has been the offshoring. We have 100% without any doubt lost jobs within the industry as two things have happened,
1) exports and the staff supporting them have reduced. Some has seen staff offshoring to the Eu in order to avoid the per shipment issues (charges basically) that made smaller shipments uneconomic
2) imports have simply cost more due to paperwork (now slightly simpler for many) but mainly due to carriage costs and potential delays being built into pricing.
I think that it's best that we just continue our discussion, totally unhindered, around these handful of misfits; and just completely ignore them.
I suspect that they're deliberately trying to derail this discussion in the hope that any mention of their beloved cult gets erased from the thread.
It's an obvious cope, and a very childish one at that.
I suspect that they're deliberately trying to derail this discussion in the hope that any mention of their beloved cult gets erased from the thread.
It's an obvious cope, and a very childish one at that.
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Soldato
Yep. Rent is currently 825 (going up to 900 from 1st July) - for what we need, we'd be looking at 1050+ a month for a mortgage.
Suspended
Its always been the case.
UK food is cheap.
It was part of what made me laugh about Brexit making food cheaper argument. It was hard to see how that was ever going to be the case.
But Mogg said so, so many just repeated that.
We certainly don't need 6-7.
BoE just needs to keep them where they are now. It's obvious inflation is stubborn in the core areas and no amount of rate rises is going to stop that.
Also, so many people are not affected by rate rises (in fact, gives them more cash) I fail to see why crippling the productive working population ever more is going to help.
I know they expect job losses and business failings. But without waiting for these current 4-5pc rates to filter through, more rises seem reckless.
Caporegime
I heard people saying during the pandemic when it was like 1%...just fix it for 2 years, it's been low for ages, can't see it go higher than 3%....
Hmmmmm....yeah....
If they lower the rates next year...it will undo everything the last 18 months, and inflation will spike because people will want to take advantage of it.
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