Mortgage Rate Rises

jonneymendoza said:
Not all of the mini budget had a bearing of the pound falling though?

Things such as stamp duty discounts and ir35 being reset back to how it was pre 2018 did not make the pound weaker.

The damage was already done via brexit, covid and the Ukraine war.

Please dont think that the mini budget affected this… It’s been a slow painful journey to get to where we are.
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He did give it the finishing blow though. I mean, does anyone feel any richer with these tax cuts? If not, what was the point.
This was supposed to lessen the pain through winter, all it's done is make people worry.

I agree brexit didn't help, nor did the historical handling of the economy. You can't thirve on an economy hell bent on selling everything to overseas investors.

Add covid/furlough and ukraine into the mix and you end up on life support, because the NHS has been a basket case for years, and we'd do anything than build more nuclear reactors in this country.
 
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jonneymendoza said:
Yea it does. If you buy a house, you can potentially get massive stamp duty savings that could even pay for your electric bill for a year or more.

The IR35 reforms will promote more contractual jobs , at least in my sector and you have more control of your taxes if you are outside ir35.

Im not sure what other stuff was added to the mini budget but what specific parts do you think were damaging?
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Nobody is buying a house with these interest rates
 
jonneymendoza said:
Well not anymore lol but you get what I mean?

What specific stuff from the mini budget do you think caused our market to tank? Because IMO it tanked because of the stuff i mentioned before
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The one thing I did think of during the sky new debate the other night, was mainly in the governments lack of clear communications. They said the markets were scared due to uncertainty.
What they haven't done is said how those plans will grow the economy. What they have said is that by getting rid of the 45% rate, it will attract people who will make everything better lol

You can't have the government and BOE fighting each other.

Rishi said "The british people should learn the truth" and it seems what he was saying was actually right.

In regards to your other point, yes I completely agree. This has been going downhill for years. External factors yes, but what we've done (or haven't done) have made things 10x worse.

If being open for business means selling off our assets rather than using those assets to generate revenue then imho that's the wrong strategy.

We're not alone, I think Germany is in a worse situation than we are.
 
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Diddums said:
And what do you think will happen when they either sell or increase rent?

Let's be honest, landlords are absolutely screwed. Homeowners will likely be able to ride it out by cutting back elsewhere but anyone who refers to their property as their "portfolio" is going to feel the burn from their greed over the last decade, and personally, I hope it burns like hell. Zero sympathy.
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Well personally I hope you'll be ok. If he sells, you'll have to find somewhere else surely or pay more rent. It's not good for either of you.
 
adam cool dude said:
Barclays are offering me 60% LTV 3.46% region for 3 years fixed which I think I will take. Zero fee. 7 year is 3.30%! Like you I am already with Barclays.

My payments have gone up from £460 a month to £512 which is pretty much bang on what we were paying 12 years ago as it was around 3% then.
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That's good. Barclays 7yr fixed for me is 3.49% with £999 fee. Need £70k on a £325k house.
 
Haggisman said:
Exactly. I live 20 mins walk from a station on a direct line to New Street (~12 mins travel time), and it's £64/month for a season ticket. I'm also about 5 mins drive from the M6/M42, so travel & commuting is convenient whether it's by train or car (or bus).

Sure I don't live in the nicest area, but it's not a scummy council estate full of chavs either, just an average house on an average street. It's worth quite a bit under the £275k posted earlier which will apparently get you "nothing"
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I'm confused, how are you paying £64 a month and grudas mrs is paying £500. I've missed something obvious here.

:edit: Helps if I scroll up a bit, totally different city :D
 
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OUCH!!!!!!

I've not checked rates for a few days. WTF!!!!

28th September

TheOracle said:
That's good. Barclays 7yr fixed for me is 3.49% with £999 fee. Need £70k on a £325k house.
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6th October (8 days later)

Barclays now 5.3% up from 3.49%
Santander 5.74% up from 4.24%

This country really is one big joke. I'm not going to be able to make overpayments, or reduce my term at this rate :mad:
 
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413x said:
Wow. Remortgaging today would cost nearly 4k a year more than in March on a 200k mortgage !

People will be losing thier homes. Prices will fall. It's inevitable.
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Very angry about it all, but what can you do. We've been sleep walking into it for years.
I'm no expert in economic affairs, but since we bailed the banks out, and owned a chunk in Barclays, I've no idea why we sold it back so quickly. I'm sure Osbourne said the taxpayer would get their money back once the banks started making profits again....isn't that the time you want to keep hold of it? sod getting our money back, where's our profits....at least get a decent return.

This country is nothing but sell to the highest foreign bidder.
 
Electronic Dave said:
They may come down a tiny bit, as after the mini-budget, I think the banks were expecting a possible emergency interest rate rise by the Bank Of England (knee jerk reaction?). They didn't want to get caught out (hence pulling of mortgage deals).

Also I think an interest rate forecast was cut from 6% to 5.5%. The response by the BOE was 'we are watching it'. More likely that they will rise rates on 3rd November (at next meeting). Unless of course things change again in the coming weeks.
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They went up after the mini budget, a week later they were a good 1% higher, but now another week on they've gone up loads more. Granted it's hard to keep track as things are moving so quickly.

I'm shocked. I didn't realise they were getting close to 6% now. I only checked them a few days ago.
 
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adam cool dude said:
Why worry you have made provisions so you are not stretched? It is simple risk based economics in the end. We were looking to buy a new car last year but then decided against it and kept the saving in the bank which was a wise move. In a couple of years time it will be a buyer's market for those who want to upgrade :).

There is also no point in getting angry about the government. The quicker you realise just how corrupt the world is and accept it. The better.
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Same on the car front, I cancelled our new one and will keep the works one for a bit longer. Can't complain it's a good car.
Yes, I think it's become even more obvious now how corrupt everything is.
 
R.O.S.S.I said:
Its complete crystal ball stuff atm though isnt it. You (and I) have no idea what the markets are going to be doing in 5 years time, it could be higher, could be lower. Who knows?
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I don't think mortgages will go higher than 7% will they? They are just under 6% now, and likely to gp up another 1% I reckon (who knows).....but one things for sure, 7% interest rates and we're gonna be in for one hell of a depression.

2023 is gonna be one hell of a year.
 
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