Mortgage Rate Rises

Felon · 23 Jun 2023 at 13:22

matt100 said:
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.

Nothing adds up anymore, things have gotten silly, which is why this is happening I guess..

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.

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

So basically, they're just creating a gigantic great tin can that can be kicked down the road, where people can run up insane amounts of arrears, to prevent a reposession crisis which would obviously insta-gib the Tory government at the next GE?

413x · 23 Jun 2023 at 13:22

Raymond Lin said:
"
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."

Hmm.
So you can "talk" about it without it hurting you're file.
And if you back track it won't.

I don't like it. I think if you get the 12 months help and come out of it OK, it still shouldn't impact your file.

CapitalOne · 23 Jun 2023 at 13:22

Screeeech said:
Nothing adds up anymore, things have gotten silly, which is why this is happening I guess..

So basically, they're just creating a gigantic great tin can that can be kicked down the road, where people can run up insane amounts of arrears, to prevent a reposession crisis which would obviously insta-gib the Tory government at the next GE?

I think "kicking the can down the road" is the perfect way of putting it.

413x · 23 Jun 2023 at 13:24

CapitalOne said:
I think "kicking the can down the road" is the perfect way of putting it.

Yeah it really is.

You can't manage now?
Well. If you can struggle on for 12 months.. We will make you unmortgageable on renewal. And we'll take your house then.

Or, you'll be stuck struggling on SVR. Oh yeah. Rates will probably still be 4pc+ then.

Glad to help.

Signed.. Tories

Raymond Lin · 23 Jun 2023 at 13:25

413x said:
Hmm.
So you can "talk" about it without it hurting you're file.
And if you back track it won't.

I don't like it. I think if you get the 12 months help and come out of it OK, it still shouldn't impact your file.

Yes, they are saying it vs they are doing it are 2 separate things.

Or....we don't have the option entirely.

jaybee · 23 Jun 2023 at 13:26

The chancellor said: "There are two groups of people that we're particularly worried about.

"The first are people who are at real risk of losing their homes because they fall behind in their mortgage payments.

"And the second are people who are having to change their mortgage because their fixed rate comes to an end, and they're worried about the impact on their family finances have higher mortgage rates."

Nice of him to recognize people who rent in his statement. :O

flibbage0 · 23 Jun 2023 at 13:33

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.

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

This is getting ridiculous, if they actually gave this amount of support towards R&D and engineering in this country we would not be in the mess that we're in. Clear to see where their priorities lie first the stamp duty holiday which was not needed at all, now this.

adam cool dude · 23 Jun 2023 at 13:56

flibbage0 said:
This is getting ridiculous, if they actually gave this amount of support towards R&D and engineering in this country we would not be in the mess that we're in. Clear to see where their priorities lie first the stamp duty holiday which was not needed at all, now this.

If we didn't privatise and sell off everything in the 80's we would be an oil super power now

.

Tories kicking the can down the road with mortgage help is just stupid. They will do everything they can to keep the housing bubble going.

Uther · 23 Jun 2023 at 14:00

Obviously they think people who rent vote Labour so **** 'em.

Murphy · 23 Jun 2023 at 14:02

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.

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

Probably someone else's problem by then.

delta0 · 23 Jun 2023 at 14:03

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.

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

This will likely prevent the possibility of a collapse in the housing market and people out on the streets. It does mean the BoE can be more aggressive with interest rate rises if needed and hold them higher for longer as they are trying to reduce inflation not collapse the market.

stuie · 23 Jun 2023 at 14:05

Im good till January, fortunatly Ive been over paying the mortgage while rates were low, so even when it goes up I can extend it a little, il be down to about 70k left by then so I'm on the right side of it now anyway

Martynt74 · 23 Jun 2023 at 14:06

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.

Don't forget it's just deferring the interest i believe, so you still have to pay it. It just eases current cashflow slightly.

The article does suggest that it shouldn't impact the credit file for 6 months. Maybe if it fully pauses the interest, i can do it for 6 months, keep the payments at their current level and just wipe down the balance

EDIT - Dammit - Misread so it's just a case of only paying interest.

fez · 23 Jun 2023 at 14:06

Gotta keep that property market propped up.

matt100 · 23 Jun 2023 at 14:07

delta0 said:
This will likely prevent the possibility of a collapse in the housing market and people out on the streets. It does mean the BoE can be more aggressive with interest rate rises if needed and hold them higher for longer as they are trying to reduce inflation not collapse the market.

Is the cat not out of the bag though?

like the market is finally being exposed as as fragile as some feared?

CapitalOne · 23 Jun 2023 at 14:07

I would just like to make sure we all realise the Government aren't actually doing anything here or coming up with ideas, they are just saying out loud what they know the lenders can do anyway and hope some glitter rubs off on them. I bet this is thrown back at us all as something the Tories have "delivered"

OpenToSuggestions · 23 Jun 2023 at 14:11

I'm not surprised at the hike to 5%.
I think everyone saw it coming even as far back as 12m ago.

My primary concern is where it will peak.

stuie · 23 Jun 2023 at 14:12

fez said:
Gotta keep that property market propped up.

To a degree yes.
people who live on the street dont pay the same amount of taxes which is a problem.

delta0 · 23 Jun 2023 at 14:13

matt100 said:
Is the cat not out of the bag though?

like the market is finally being exposed as as fragile as some feared?

The market isn’t that fragile. Since the changes to LTV and other lending rules came in it has been much more robust. We are talking about 30% of households (50% of owner occupied) that have a mortgage (ONS 2022) so a lot of people aren’t exposed. However there will be people that may be unfairly hit by interest rates for their home when the aim of the base rate changes is to curb spending rather than cause people to lose their home. I know there are people that really want a housing market crash so will be hating this news but it’s going to hurt the most vulnerable and poorest in society if we let it happen.

fez · 23 Jun 2023 at 14:13

matt100 said:
Is the cat not out of the bag though?

like the market is finally being exposed as as fragile as some feared?

Is it fragile though? It will be propped up at the first true sign of proper struggles.