Mortgage Rate Rises

glenimp617 · 11 Oct 2022 at 19:43

Raymond Lin said:
If BoE raises interest rates again...it's very very much on the cards.

The highest rates I've ever paid was 6.4% for my very first house 22 years ago. Crazy times for sure!

glenimp617 · 14 Oct 2022 at 09:43

Chrisc said:
Might have to get the mrs to start selling feet pics at this rate.

That £130k debt will be gone in six months

glenimp617 · 14 Oct 2022 at 09:46

I'm sure this has been mentioned before, but for those who's fixed rate is coming to an end, check out the banks SVR follow on rate.

Santanders 5yr fixed is higher than their SVR. Depends what your views are long term, but it's food for thought.

I'm not sure I like the idea of fixing at 5.74% for 5yrs when I can roll on to the SVR at 5.5% without any ERC penalties. It gives you a lot more options, but the obvious risk is rates shooting up even higher.

Maybe good for those with smaller mortgages who want/can overpay by a healthy amount.

glenimp617 · 2 Nov 2022 at 09:45

as a home owner myself, house prices need to come down. The gap between wages and houses is far too big.

glenimp617 · 2 Nov 2022 at 10:10

413x said:
30pc would be significant.

It would leave so many on svr which would lead to even more repossessions which would lead to even bigger falls (I assume)

What might svr be next year? 8-9pc?

Santanders SVR is the same rate as their 5yr fixed

glenimp617 · 3 Nov 2022 at 09:32

neocon said:
If it does drop, it'll be those FTBs that did join recently that get most burnt.

Only when they come to renew their mortgage product. If they are in negative equity, or very high LTV they'll be hit with the higher rates.....although, there doesn't seem to be much difference in the rates between bands at the minute.

glenimp617 · 3 Nov 2022 at 09:58

neocon said:
If they've bought a flat say and their plan was to sell and move up the ladder to house after 5 years or so, not uncommon, they may not be able to sell for what they paid.

There's an oversupply of flats and not enough family homes. Obviously better situation than paying rent though.

No they won't, but whatever they are buying will be cheaper. The biggest issue is that they will have probably lost their deposit and any equity, so will need to roll that 'loss' into the new property. Could mean they won't be offered a mortgage at all. It just depends how well they planned prior to the purchase, although more often than not, it's down to pure luck. I say luck, as 15yrs ago we bought a house right on the limit of what we could afford. Luckily prices went up, and we built up a lot of equity but could have gone the other way.

Some people will be trapped and won't be able to move. They'll just need to stay put for a bit longer. We have to, I'd love to move house but just can't. The biggest losers will be those who are forced to sell, like a divorce.

One thing needs to happen for sure. Wages need to go up, or houses need to come down.

glenimp617 · 5 Nov 2022 at 12:15

adam cool dude said:
If she was of my generation she would more than likely be on the streets or living on the bread line. Her current partner who she has been with for 20 years has parents who are worth a million at least so she has that coming her way as well.

Amazing how things can change so quickly from one generation to the next.

You'd like to think so, but don't be too sure. Doesn't matter what generation you are, some people (and I wish I knew how) know how to play the system to get everything they want, without having to do anything. Makes me sick!

Run up a massive amount of debt with cars, clothes, holidays, gadgets....don't worry, there's plenty of people who will help you out to write it all off.

I'll let you into a little secret. Do you know you can steal thousands of pounds off someone and it NOT be illegal? Well you can. I'll make a detailed post about it when I can.

The VAST majority of people in this country don't give a crap about anyone but themselves. My advice is to look after yourself!

glenimp617 · 5 Nov 2022 at 13:18

krooton said:
People selfishly looking after themselves makes you sick, so you advise everyone to look after themselves?

No, look after yourself but don't take advantage of anyone. Maybe a better word would have been to protect yourself. Basically don't assume everyone has the same morale compass as you, because more often than not they don't.

glenimp617 · 12 Nov 2022 at 11:47

Santander just increased their SVR from 5.5% to 6.25%

glenimp617 · 17 Nov 2022 at 10:36

Simmz said:
Looks like council tax hikes next just to add more pain to everyone.

There's no wonder people have given up. I've noticed peoples attitudes have changed. If their wages drop in real terms, so does their output.

glenimp617 · 29 Nov 2022 at 16:24

413x said:
Very similar position.
And similar outlook.

I'm now at point where more money might come with managerial responsibility. And entering the upper tax bracket means even less returns for responsibility.

I didn't get over the 1k =1year of life until 32. But that's Accelerated until now.

Now I value more time. If 8 could work 9 months rather than 12 and get the same yearly cash? That's the next goal.

Ii certainly don't want 100k a year and no time. I'd rather have 50k and lots of time.

I used to think £20k a year was something amazing, then £30...£40...£50...£60... It isn't, the more you earn, the more you are taxed. My standard of living is the same it was 20 years ago just with a lot more stress.

glenimp617 · 29 Nov 2022 at 19:17

Richie said:
I can't fathom how your standard of living hasn't increased when your salary has tripled.... Do you just save it all?

Inflation I assume

I'm certainly not eating steak every night

glenimp617 · 29 Nov 2022 at 20:55

Goksly said:
Were you 20 years ago? No way can someone say standard of living hasn't increased. Something (public services etc) have got worse, but everyone has access to better food, drink, entertainment, holidays etc.

I think there's been a misunderstanding.

The point I was making (rather badly) was regarding my standard of living compared to what I expected it to be at this salary.

60k 20yrs ago would give a better standard of living than 60k today due to inflation and house prices. House prices more than anything.

I remember my boss back then earning 50k and had a BMW, lotus, fireblade and a nice cottage in the countryside.

That aside, is it generally better, worse or about the same?

glenimp617 · 30 Nov 2022 at 08:08

EvilRob said:
Why would you think 60k 20 years ago would give you a similar lifestyle as 60k today? A 60k job 20 years ago does not pay 60k today.

because unlike my username suggests, I can't actually see into the future :cry:

glenimp617 · 30 Nov 2022 at 08:14

delta0 said:
This is quite a good calculator to convert the value of money https://www.bankofengland.co.uk/monetary-policy/inflation/inflation-calculator

18k 18 years ago is 30k today. 60k 20 years ago is 101k today. However of course the amount of tax being paid goes up a lot so reality is that 101k needs to be 120k to get the same after tax.

That's a great link, so basically 20yrs ago I should have been aiming for £100k a year not £50k lol I think I'd have given up if I'd have known.

glenimp617 · 30 Nov 2022 at 08:40

413x said:
It's been very very rare I've ever got any decent pay rise staying in the same job.

My old boss said they don't get inflationary pay rises and my wage wasn't far off his. Despite him being much more skilled.

My sector suffered from a government scheme (scam) 10yrs ago when they moved us out of the public sector and into private, re-classified as a charity. No payrises for 10yrs!!!

They are bringing us back in now though within the next 2yrs. I'm not sure where the moneys coming from.

glenimp617 · 30 Nov 2022 at 09:19

Martini1991 said:
You work in FE by any chance?

for all my sins :cry:

glenimp617 · 2 Dec 2022 at 11:44

I've rates don't come down, I'll probably get a tracker

glenimp617 · 6 Dec 2022 at 08:35

jonneymendoza said:
I'd just pay the whole lot if it was that low

That's a decent savings pot you have. I'm trying myself, slightly higher mortgage than that but I can save a good amount each month (although, with the way things are going, it's not as much as I'd like).

I can't wait to get my mortgage paid. I'm even sacrificing having a new bathroom, kitchen and garden which are all dreadful. Think we can manage a bit longer.