Mortgage Rate Rises
- Thread starter glenimp617
- Start date
There is also regional variances on housing supply and demand. So we shouldnt really be just looking at national numbers.
Caporegime
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Managed to secure mine for 2.73%. 5 year fixed.
nice you, i could not find anything fixed under 3
Soldato
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Whats the ten year rates. They get 25yr fix in USA lucky
Caporegime
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Well now u cant. i applied for it back in june, just before the 2nd to last BOE increase . i got lucky and the lender sat on the same deal whilst i had one property fall through and managed to find another one and the lender was happy to stick to the same deal!
Around 3.16 for ten years. But that's a bit long to commit for me. I am expecting a few rises and then some yoyo effect.
Even at current rates, mortgages are still far cheaper than renting. It's the renters I truly feel sorry for. They have very little rights or protection and are paying somebody else's mortgage.
To get an idea of how bad renting is, the apartment below mine, identical layout and all, just been let agreed at over double what my monthly repayments are. It's nuts. Not only has property values gone sky high, the ability to save up for first-time-buyers are vanishingly small and getting smaller by the day.
I live round the corner (literally a few streets away) from an ex-colleague who is 50+ and had his 4 bed house for a fairly long time. The rent we used to pay on our two bed flat was more than double his mortgage repayments. You'd expect repayments to go down over his/it's lifetime, but it was still pretty galling. The best bit was he literally had no idea and was flabbergasted renters paid so much. He was shocked. People over say 45+ who were lucky enough to rent for just a few years before buying, really have zero idea how expensive it is nowadays.
If I was younger and was looking for somewhere to live, rather than renting I think it would be financially better to take out an interest only mortgage, if you can get one. Just pay the interest each month with no capital payments, invest the money that would be capital, keeping some for house repairs etc. If you're lucky you'll have made some money on the increase of the house price and some on the investment. After 10 years give up the house and walk away, just like you would with renting although you may have made something on it and will have given landlords SFA.
Well, the mortgage lender is essentially your landlord, only with none of the responsibilities of one.
Effectively yes, but you're probably paying x4 less with the bank than with a landlord.
True true, I think if we did interest only on our house, it was less than £400 a month, insane.
Soldato
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But if you're going down route of interest only and you can afford the payments and get a mortgage you may as well just do that I think
10 years of mortgaging the house on interest only is enough time to make it worth doing.
I don't see the benefit of interest only here, you have to sell the property either way.
Interest only is also harder to actually get, you have to prove you are investing the cash so you could pay the balance off at the end of the mortgage on the principal.
10 years of mortgaging the house on interest only is enough time to make it worth doing.
I don't see the benefit of interest only here, you have to sell the property either way.
Interest only is also harder to actually get, you have to prove you are investing the cash so you could pay the balance off at the end of the mortgage on the principal.
Soldato
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3.16 for ten years of certainty is a gift appears to me. I know its more but its like insurance coverage is how I look at it. My reference is receiving 10% on my savings in the 90's and I could lock that rate also so 3 feels like nothing compared to how it could be. Nice to hear its still out there anyhow.
People who can pay off early prefer that idea to fixing at 3, I guess that makes even more sense if possible
It's definitely not for everyone, especially those wanting a guarantee that they'll have a home at the end of it. For those with an appetite for more risk and are good at investing it can be a great product.
However, the point I was trying to make was that it's better to have an interest only mortgage rather than renting; the outcome is the same when you leave the rental or house - you'll have nothing at the end of the term. Sadly as you say getting an interest only mortgage is difficult with some lenders requiring an LTV of 50% or lower and having a plan to clear the mortgage. I don't think saying you're not would get you the mortgage!
Associate
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Scientists don't have a good definition of what biodiversity is exactly, how are you measuring it to be able to say that England is one of the least?
Soldato
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Yes but then you can afford a mortgage and you may as well get one. No point going interest only will have similar affordability checks.