Mortgage Rate Rises

jaybee said:
It's never happened, what is different this time so far? Also define massive....2008 "massive"? That wasn't massive, despite that people claim it was.
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It did crash, average was around 20% iirc

But the reason for the crash was basically liquidity and once that was resolved in many places (not all) prices quickly recovered.

I still kick myself, I was given the opportunity to buy a house from the guy who was our landlord at the time (he needed cash). I said no as we planned to move soon.
A year later it had gained 20% from what he offered it to me at.
 
Martynt74 said:
Makes me feel lucky i'm on Base + 0.75%!

I'll now be up to £1585 :(
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Ouch!

Mine might just top £200 with this latest interest rate rise, its gone up a whopping £30 so far :p

I should just pay it off, but I'm losing my main job in a couple of months so I'm going to hold on to the cash for now. My mate and I have run a specialist motorsport hospitality company for 17 yrs, just survived Covid by the skin of our teeth but this CoL crisis, food inflation and now drop in attendees is the final nail in the coffin and we're calling it a day.
 
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Agree, it depends on how long rates stay at or near these levels.

The 2008 drops were barely noticeable to me, now back in 1990 they were more significant but even that level would not be enough to change affordability.

Prices for houses are crazy high, the real problem is BTL, some of them are leveraged to high levels and they just don't make money anymore.
 
oof

Last night we finally decided to lock in a 2 year fix at 5.29% just in case things were extra bad today.

Felt stupid as we could have done under 5% a week ago or so.

Now Natwest are offering 6.23% :eek:

Not looking forward to the extra cost, but 6.23% would have given me sleepless nights so I'll count myself lucky.
 
jaybee said:
It's never happened, what is different this time so far? Also define massive....2008 "massive"? That wasn't massive, despite that people claim it was.
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It did happen though, peoples experiences will be different depending where they live though. But average prices peaked in late 2007 and didnt return to that level for 5/6 years.
 
jaybee said:
It's never happened
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There's been multiple corrections over the last 35 years; over a long enough time period they're fairly common.

jaybee said:
what is different this time so far?
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Average mortgage affordability versus average wages is at levels last seen just before the house price crash of 1989, and if rates end up going above around 6%, then that could put mortgaged homeowners at a level of financial burden not seen since the 1800's.

Landlords are selling up at a rate of knots, which is only adding to supply, and the governments of developed nations have no wiggle room to perform any more QE.

A decade's worth of ultra cheap debt is currently priced into the housing market, and that cheap debt has just been pulled away.

In my opinion there's only so many ways to balance that equation.

jaybee said:
Also define massive....2008 "massive"? That wasn't massive, despite that people claim it was.
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I've been saying for the last 6-8 months in this thread that I think that it's fairly likely that the 20%+ Covid house price bubble is going to unwind slowly over the next couple of years, and events over the last 2-3 weeks have further solidified that position for me.

So far the data seems to be pretty supportive of that forecast, and I actually now wouldn't be completely surprised if we saw some regional drops that exceed that peak to trough.

Hey ho... I know it's an unpopular opinion. But it's just what my interpretation of the data suggests.
 
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neocon said:
If you're retired and own your home, can't you just carry on spending?
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We hardly spend anything except food and bills. Not been away this year, decorating.

However the washing machine, ten years old, is making bearing type expensive noises I expect a large bill or a new machine incoming.
 
lol :cry:


www.thisismoney.co.uk

Hard-hit UK homeowners reveal how mortgage crisis is affecting them

Mortgage holders today faced more pain after the Bank of England unexpectedly pushed up interest rates to 5 per cent, the highest level in almost 15 years.
www.thisismoney.co.uk www.thisismoney.co.uk


Now what is wrong with this statement, if you are going to forego fix rates, you pay off more than £6000 in 2 years. There are two of them one uses his entire wage to pay of the mortgage, the other uses the wage for living if there is any left over that goes to the mortgage. They could have paid of £30 to 40K, but I guess they wanted good times.


"Katie and her partner, who is a project engineer, took out a £90,000 mortgage together in November 2021 and since then they have paid it down to around £6,000."

"We are on a tracker we went on it so we could over repay because obviously on other mortgages you are very limited in terms of how much you can over repay"

"
The pair switched in November 2021 when the interest rate was 1.84 per cent.

They are now paying 6.24 per cent and their monthly mortgages costs have gone from £500 and to £740."
 
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