Mortgage Rate Rises

Hagar said:
@Jono8 In 1980 you had to be a customer of a building society for them to lend you money. Have an account in good standing and probably save into it for a good while first.
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In '95, at the bottom of the market, I had to change banks. I'd been a NatWest customer for 15 years, my wages went in there, I had my savings there (I was always a saver not a spender) so they had my complete track record from being a teenager. Manager (not computer) said nope. I had two interviews with the Woolwich branch manager three doors away, during which he made me feel like dirt on the bottom of his shoe and completely untrustworthy, but in the end they allowed me to borrow 35k for my nasty little knackered, negative equity, forced seller flat on the condition I put 5k deposit down and took out their expensive mortgage protection scheme. Which, later, I realised I could have reclaimed in the miss-selling scandal. I didn't, but only because I remortgaged to an offset mortgage as soon as I could and couldn't face the paperwork in later years. Worked hard to pay that mortgage off ASAP (on about 16-18k a year wages) because I never forgot how they made me "beg" and swore I'd never have to do it again.

All political parties have failed to tackle housing as an issue since council housing sell-offs began. I was in the last generation of low paid workers who could aspire to home ownership (if only, as in my case, to get away from an awful landlord). The chickens of weak leadership (New Labour and Conservative) are coming home to roost and... and it's a crying shame. However we get what we vote for. I fear it's the old "soft times make soft people" thing all over again.
 
jaybee said:
I agree. I don't think it's rose tinted specs looking back. I think those times (80s, 90s) were a lovely time in the UK for too many reasons to go into. There was hope to the future. Improving not just bettering oneself but as a country. Technology and the internet hadn't changed the world yet and things were I guess more simple. We were pleased and content with less. Almost like a virus, we now consume at levels like an addict and compare ourselves to others more because "others" are in our faces as a constant reminder to how the richer live with the rise of worldwide internet/social media/tv etc. We are more well aware of influencers and youtubers living it large and it hurts more these days as we see and hear of it more.



Totally. It's why as a parent I am in a constant battle with myself mentally as to how to guide my intelligent son, who is doing well at school and could easily do A levels etc, who is talking about going down a trade route. Will trades still be a good long term selection as a career in 20 years time as they are now, or are they over inflated currently and will go back down? I would think they will if anything become even more valued since AI cannot affect human crafted jobs. Robots that can re-wire a house or crawl into a loft and do some plumbing are surely decades off and that's if we even want/trust them? iRobot anyone? ;)
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I think you will see far more automation in building, 3d printed buildings etc, that means there is the opportunity to do at least first fix also via machine.
Second fix not sure you would see that quickly. I mean its possible but IMO less likely.

Rewire a house though, that is another significant step up.

Unless they develop a way to 3d print wiring in place.

Sparks is probably the trade I see most difficulty to implement robotics/AI type stuff.

You can 3d print most of the hard materials in effect, you could move to 3d print a wooden type pulp in place, so skirtings, door frames, maybe stairs (could be going too far)etc
Painting, well thats simple. Plastering could be interesting, its slightly more "artisan" for want of a better word but if you can control the temps well then its easy to see a robot being able to spray on plaster and comb it at set intervals.

Again all those are potentially a lot more difficult in an already built environment than a new build however.

The problem with trades jobs historically was always a boom or bust scenario. If there is active residential and commercial building then there will be good times.
If that slows down a lot then bad times roll, not enough work, people fighting for the work there is pushing down prices etc.
There seems to be little middle ground. If course whilst I say there are low barriers to entry, historically time was one, normally they were apprenticeships and that meant that the supply of new people would tend to also follow the demand spike but delayed.
We have seen quite a long up for trades so I expect quite a hard hit for many who haven't seen this down before.
 
jonneymendoza said:
But if people stopped buying those sort of stuff then those companies will lose money and the staff get sacked and many become jobless.

Remind me why do we need to stop people from spending money?
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Well, sometimes you have to take from one hand to pay the other! It comes down to what is really important to you.
 
Hagar said:
Most people went from school to work. 10% went to university. Gap years were never a thing. Holidays if you could go abroad were caravan to France or fly to Spain, Italy was a bit posh. Forget long haul.
When we moved in to our own house we had no phone, no television for a year or so, no car, no freezer. Furniture was all second hand except for a bed. Relatives helped there.
I was motivated to provide all this stuff. I worked in my day job as a design draughtsman (before CAD) and at nights in a pub. We took a holiday every three years or so.

Now I am mortgage free but it took 30 years and it was grafting all along.
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You're talking 40-50 years ago though.

We had all those things 30 years ago.

Hell, Sky TV launched in 1989.
 
The post Covid home improvements boom is still going on, it wont last forever and painters on £60k will be a thing of the past.
 
koolpc said:
Well, sometimes you have to take from one hand to pay the other! It comes down to what is really important to you.
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But if you worked in a car dealership to pay your bills, how are you going to pay your bills when customers no longer buy from you?

See where I am getting at?

I don't think you understood me quite well.

These so called pointless items have actual human beings working and earning money to guess what? Helping to pay for food etc..
 
I'm guilty of generalising in this thread today too, to be honest you can't blame either boomers (those who did well) for doing well or people today dealing with the situation they find themselves in today, it's nonsense and mean spirited in both directions. It's arrogant of the older ones to think "the youth of today" blah blah netflix blah blah lease just as it's arrogant of the younger generation to think either every boomer had a gold plated pension, cheap house and knowingly pulled the ladder up.

Generalisations are just that, for every 20 something with an audi they can't really afford there's another that just wants to work and have a house and has literally zero hope of it just as for every final salary boomer there's another who lost their dream of a job for life in the 70s/80s industrial transformations.

The main difference and the reason we're in this thread I suspect is because plainly house prices are totally out of control.

For example, I bought my first flat about 25 years ago, it was £40k. I was an assistant manager in a phone shop and probably earned under £20k.

25 years later my eldest is a teaching assistant, earns about what I did back then.. literally, not adjusted.. and that same flat is worth probably 5x as much.

how on earth are those sums supposed to add up? No amount of financial prudence/not having holidays/not having netflix/not buying a latte etc is going to square that away.
 
I wish I had done a trade job.
No student debt.
Safer from AI.
Work for Yourself.
Hands on.

But at school if you were academic, you were shuffled along to uni. It my biggest regret doing the course I did. Waste of time, waste of Money
 
"Buy things!"

"No wait, don't buy things!"

"Buy houses!"

"No wait, don't buy houses!"

"Borrow money!"

"No wait, don't borrow money!"

"Try and get higher wages!"

"No wait, don't try and get higher wages!"

Capitalism, lol.
 
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jonneymendoza said:
But if you worked in a car dealership to pay your bills, how are you going to pay your bills when customers no longer buy from you?

See where I am getting at?

I don't think you understood me quite well.

These so called pointless items have actual human beings working and earning money to guess what? Helping to pay for food etc..
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Keeping a roof over ones head is more important. Paying the mortgage is the priority. Especially when you have a family. All the 'entertainment' stuff is just that, 'stuff'.
 
koolpc said:
Keeping a roof over ones head is more important. Paying the mortgage is the priority. Especially when you have a family. All the 'entertainment' stuff is just that, 'stuff'.
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I'd be much more anxious if I had kids. No matter what happens I'm an adult. And if the **** really hits the fan I can just leave and go teach English in some east Asian country or Something. But the stress of losing home etc when you have real responsibility, I can't imagine losing your job in a dire economy with hefty bills. It's a mental health nightmare
 
He's gripping it...and you should all be thankful. 12 month firebreak before reposession. You can just build up your arrears instead.

news.sky.com

Mortgage holders to get 12-month grace period before repossessions amid interest rate hike

Jeremy Hunt met with banking bosses in Downing Street, where it was agreed what action would be taken to help mortgage holders as interest rates keep going up. Some of the measures are similar to what was put in place during the pandemic.
news.sky.com news.sky.com
 
413x said:
I'd be much more anxious if I had kids. No matter what happens I'm an adult. And if the **** really hits the fan I can just leave and go teach English in some east Asian country or Something. But the stress of losing home etc when you have real responsibility, I can't imagine losing your job in a dire economy with hefty bills. It's a mental health nightmare
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Meh, it is what it is. The stress is the same, you don't feel 'more stress'. Serenity prayer kicks in, cest la vie...
 
CapitalOne said:
He's gripping it...and you should all be thankful. 12 month firebreak before reposession. You can just build up your arrears instead.

news.sky.com

Mortgage holders to get 12-month grace period before repossessions amid interest rate hike

Jeremy Hunt met with banking bosses in Downing Street, where it was agreed what action would be taken to help mortgage holders as interest rates keep going up. Some of the measures are similar to what was put in place during the pandemic.
news.sky.com news.sky.com
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Will read later.
The important bit is.. Will it mean so much damage to you're credit file you can't get a mortgage later?


This was part of the problem in covid right? It wasnt clear to people who didn't absolutely need it. It felt like a breather. But it really damaged the credit file.

Fine if you're on a 10 year mortgage. Not if you're on a 5 or less.
 
413x said:
Will read later.
The important bit is.. Will it mean so much damage to you're credit file you can't get a mortgage later?


This was part of the problem in covid right? It wasnt clear to people who didn't absolutely need it. It felt like a breather. But it really damaged the credit file.

Fine if you're on a 10 year mortgage. Not if you're on a 5 or less.
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"
Also approved in the Downing Street summit was an option for people to go to their banks or lenders and speak about their options, if they are struggling with repayments, without it having an impact on their credit rating.


And speaking this morning, Mr Hunt said that people who change the length of their repayment term or go on to interest-only plans can reverse their decision within six months without it impacting their credit rating.

But there was no announcement of support for people who rent, who are facing landlords hiking prices or selling properties from under them due to rising mortgage costs."
 
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