Mortgage Rate Rises

Yea there's a difference between a decent dev and a **** one and the majority are ****.

So when I mean by lack of developers I mean lack of decent 5/10 score rating devs.

Am not even talking about rock star devs

I think that applies to most of the IT industry! Full of wanna-be's :D

Yeah, it’s not laziness / not wanting the job. I’m poor at maths / mathematical logic. I could waste my time and the employers by struggling to just about comprehend how to do it or I could let someone else more naturally gifted (or at least with the aptitude to learn) do a much better job than I could ever do.

A couple of books and self studying programming will sort that out. Don't need mathematics to do programming, its just one of those artificial requirements recruiters put in.
 
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I consider myself very fortunate to have bought our house in October 2021, when we qualified for 2.875% APR on a 30 year fixed mortgage, and paid some $0000s to bring the rate down to 2.5%. Some friends recently bought a house and they got a 5.25% APR 15 year mortgage. They're counting on being able to refinance their house in a year or two.

From MSN today:
The average 30-year fixed mortgage interest rate is 6.43%, which is a growth of 24 basis points compared to one week ago. (A basis point is equivalent to 0.01%.) The most common loan term is a 30-year fixed mortgage.

The average rate for a 15-year, fixed mortgage is 5.66%, which is an increase of 15 basis points from the same time last week.

A 5/1 adjustable-rate mortgage has an average rate of 4.84%, a rise of 21 basis points from the same time last week. With an adjustable-rate mortgage, you'll typically get a lower interest rate than a 30-year fixed mortgage for the first five years. However, shifts in the market may cause your interest rate to increase after that time, as detailed in the terms of your loan. For borrowers who plan to sell or refinance their house before the rate changes, an adjustable-rate mortgage could be a good option. If not, shifts in the market could significantly increase your interest rate.

Wowzers. 6.43% is more than double the rate that we qualified for.
 
We moved house around this time last year and opted for a 2 year fix because things were still uncertain after COVID and it felt like a reasonable amount of time to see how things were looking in the economy. It’s crazy how quickly things have shifted. Fortunately one of our sub accounts renewed earlier this year and we took a 5 year fix but still a 1.5% increase.

Weighing up whether to pay the ERC on the other one and take a longer fix now with our existing provider because I can’t imagine things will be any better in a year’s time, and likely worse. Running the sums isn’t easy though.

Our current LTV is around 76%. Is there any advantage to overpaying to put it below 75% in terms of offers?
 
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Our current LTV is around 76%. Is there any advantage to overpaying to put it below 75% in terms of offers?
If there's a better rate for 75% (afaik there usually is) then sure, speak to them to check. Probably worth going to 60% too asap.
Also speak to them to make sure overpayments actually improve your LTV. For example: Nationwide put your overpayment into an "overpayment reserve" and that doesn't count towards your LTV. You can move it from overpayment reserve to mortgage balance with a phone call, but there's no reason why you'd realise it works this way, very sneaky.
 
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If you CAN get to 60% I would without doubt. no one can tell where this is going to go, but looking historically rates will only go up for the next 1-2 years, then there is the point of stability and they will hope the inflation rides back down to 2% ish. If it doesn't I wouldn't like to think we could ever get back to the 80's/90's but never say never.....

I have a 5 year fix and my main priority will be to over pay the 10% I am allowed every year, if there is a possibility we could be at 6-7% mortgages still then.
 
So relieved we got a five year fix at 1.82% when we bought 2 years ago. Although only 3 years to go and probably a big jump. The plan is to try and save enough in that time to pay most of it off. Cost of living crisis is going to make it tricky though.
 
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Property market will be hit hard I suspect. 7% is not unheard of, rates were >10% previously. I remember as a kid my parents talking about people having their houses repossessed.

Interestingly, the high interest rates of the 80's were mentioned on the news last night. I missed a bit of what they were saying, so I don't know exactly how they made the calculation but I think it was comparing how much of your income went to paying the mortgage, since the rate was higher than now but the price of houses much lower and of course income being lower. So when inflation adjusted the conclusion was the high interest then compared to about a 3% interest rate today.

So now we're heading higher than that, it's probably going to be more painful than previously
 
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I suspect the government will try to prop up the market but eventually its going to feel the hit. If mortgages aren't affordable at current prices no one will be able to sell.

Yep, think that's at least 12 month down the line though. Gov will do it's best to ensure they don't drop too far. However with the current wage Vs inflation and the ratio of national AVG wage Vs AVG national house price, it's already extremely hard to get onto the market.
 
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