Mortgage Rate Rises

Richie said:
I agree - anyone coming off a fix over the next 6-12 months and unable to lock in due to time till the end of the current deal or are unable to afford the ERC are potentially in for pain.

The un-empathetic out there state they only have themselves to blame and seem completely unaware or uncaring that a lot of these people have only ever known low rates since their early/mid-teens and therefore why would they think they would raise so much so quickly.

They all shout about how they "seen it coming a mile off".... Its doubtful that they seen the 2008 financial crash "coming a mile off" or that interest rate would be kept so low for so long but now, suddenly, they're the next Michael Burry.

TBH, it's not actually the un-empathetic people that irk me, it's the people that go one further and appear to take glee in other peoples hardships... Schadenfreude as the Germans call it.... I can think of another, more fitting 4 letter word.
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I've never known High interest rates. Obviously I know that rates are very low but have never really thought when buying the house "what if rates go to 5 percent?"

We are used to looking at the difference t between 1.5 and 2.
Not 1.5 and 5!

And what can you do? Not buy at these ridiculous prices?
And not everyone can afford their erc.


See a lot on tabloid comment sections really brutal comments about "can't wait for my savings rate to go up, this week 3 teach those entitled millennials what it was like in my day"


As said, no one can really know until its too late. Otherwise what do you do? Never buy a house? Wait 10 years because "a crash is coming?"

I'm fairly switched on with finance stuff but even a few months ago I was very doubtful of what I should do with erc pay or wait.
Many people simply haven't a clue. And it's going to be quite common for a 30 something new on the property ladder to see their mortgage bill jump 2-300 at same time as energy is.


Grim!
 
413x said:
I've never known High interest rates. Obviously I know that rates are very low but have never really thought when buying the house "what if rates go to 5 percent?"

We are used to looking at the difference t between 1.5 and 2.
Not 1.5 and 5!

And what can you do? Not buy at these ridiculous prices?
And not everyone can afford their erc.


See a lot on tabloid comment sections really brutal comments about "can't wait for my savings rate to go up, this week 3 teach those entitled millennials what it was like in my day"


As said, no one can really know until its too late. Otherwise what do you do? Never buy a house? Wait 10 years because "a crash is coming?"

I'm fairly switched on with finance stuff but even a few months ago I was very doubtful of what I should do with erc pay or wait.
Many people simply haven't a clue. And it's going to be quite common for a 30 something new on the property ladder to see their mortgage bill jump 2-300 at same time as energy is.


Grim!
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Really grinds me when the same people talk about how high rates were in ‘their day’, even those in the relatively recent past of the naughties before rates dropped after the 2008 crash managed to get housing and a cheaper cost to wage rate and then enjoyed the low rates there on after until most of the value was wiped.
 
413x said:
I know that rates are very low but have never really thought when buying the house "what if rates go to 5 percent?"
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Well you should have and you would have been stress tested a level at least 3 percentage points above your mortgage rate as well.
 
photoshop said:
Is 3.09% over 5 yr fix a good deal in the current climate?
LTV of 53%
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Not bad at all. I've been tentatively looking at what I'd be offered when my current deal is up in April next year and with a LTV of approx 15% if I stick with nationwide I'm only getting about 3.5 at best
 
3% for 5 years is pretty good, it's more about locking in that certainty I think at the moment, rates could come down again, but they could also go up further, so it's going to more or less be down to your comfort riding out the waves, or locking in for peace of mind.

Short term I think rates are only going up, where they will be in 5 years is not certain for any but those with the best crystal balls.
 
I can't honstly see rates coming down. Hope I'm wrong, but the economy is ruined.

When my fixed rate comes to an end next year, I'm locking in anything lower than 4% but don't think I'll be that lucky. I think it will be between 5% and 6%.
 
TheOracle said:
I can't honstly see rates coming down. Hope I'm wrong, but the economy is ruined.

When my fixed rate comes to an end next year, I'm locking in anything lower than 4% but don't think I'll be that lucky. I think it will be between 5% and 6%.
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Maybe the banks know something we do not know?

My current rates that are being offered by Barclays are 3.39% 5 year fixed, 3.46 3 year fixed, 3.53 2 year fixed, which is strange as the longer the fixed term the cheaper it is. These are all 60% LTV with zero fee.

2 year tracker is 2.75%.
 
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adam cool dude said:
Maybe the banks know something we do not know?

My current rates that are being offered by Barclays are 3.39% 5 year fixed, 3.46 3 year fixed, 3.53 2 year fixed, which is strange as the longer the fixed term the cheaper it is. These are all 60% LTV with zero fee.

2 year tracker is 2.75%.
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5 year seems to be cheaper than both longer and shorter terms.

Could be lenders wanting to lock customers in for a longer period for a guaranteed income over a longer period because of potential uncertainty?
 
Goodie said:
Really grinds me when the same people talk about how high rates were in ‘their day’, even those in the relatively recent past of the naughties before rates dropped after the 2008 crash managed to get housing and a cheaper cost to wage rate and then enjoyed the low rates there on after until most of the value was wiped.
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My folks do this - harp on about how they saw interest rates of 15% on their 20k mortgage which they fully paid off within a few years whilst they were earning a combined total of double that per year. I'd take 15% on 20k verses 5% on 300k.
 
Yeah it's a none argument.. You could buy a detached house with a double garage in the 70's for about 50k...in a nice area as well.. Oh the pain! Lol
 
its a tough one, as the world is a bit of a mass inflation, yet a ton of jobs going.

i am thinking 2 year tracker at the moment, but will see what mortgage advisor says.
 
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