Mortgage Rate Rises

dLockers said:
Don't forget retirement is 66 for the vast majority. This is a lot longer than it used to be and for those that can't afford to live without income prior to 66 makes longer mortgages a bit of a rounding error. They'll be working anyway...
Click to expand...
State Pension age is 67 or 68 for the vast majority of those currently in work.
 
DanTheMan said:
35 year terms (or more) are far more common nowadays, which probably explains why house prices have continued to rise.

A lot of people look at the monthly figure and anything else is irrelevant. I think this is overlooked, and goes some way to explaining why house prices have continued to rise, even whilst the cost of living has gone up massively.

People we know would rather sacrifice less in terms of space / size, and pay a mortgage for years longer. I can't blame them in some respects.
Click to expand...

We did a 35 year term to keep the committed monthly payment down, we then over pay this by 50%. The term is really only relevant if you stick to paying the exact monthly amount. We should be able to knock about 15 years off our term if we continue with our overpayments.

malachi said:
If you are lucky!

Born after the 1980's and a pension will be a privilege.
Click to expand...

It does raise a point though that those born in the 80s/90s are likely to have a state pension age of at least 70. Assuming you started work after college/uni and without any significant gaps in employment, you'll have worked around 50 years. A 35 year term seems rather short in comparison.
 
EvilRob said:
Check a broker like London and Country.
Also, don't wait. You can apply and lock in a rate with another lender usually up to 6 months in advance. As long as you have your mortgage offer, you are good. I did this in December and then waited to complete until my fix expired last month (now locked in for 5 yrs at 1.27%).
Click to expand...

who was that with if you don't mind me asking? The reason I ask is that I was looking last year and couldn't find anything close to 1.27%

I'm missing a trick here
 
dLockers said:
I think rate rises have been priced in for a while. The thing is folks are recognising that 'move often' is out of the window with most houses attracting stamp duty. Also, the covid effect has driven up demand significantly for sufficient bedrooms PLUS an office/workspace or garden big enough. Houses with driveways are also tipping the scales because of EVs.
Click to expand...
Depends where you are looking?

i imagine its easier to find a property cheaply outside of London that is also not that close to a station.
 
dLockers said:
Well yeah and that also adds a mega premium. What I'm saying is though, people are a lot more picky and will be happy to pay the premium.
Click to expand...
Yea i know and tbh when buying a bloody house, you should be PICKY!!!

its the biggest purchase someone will ever make in there lifetime.

I wish we was able to do 2nd viewings but most places gets napped up within 48hours of first viewings…

How the hell are people supposed to make such a large and important purchase off of a single 20-30min viewing?

Back in my parents day, they would do multiple viewings and even bring a surveyor to take a look too before putting down a offer
 
TheOracle said:
who was that with if you don't mind me asking? The reason I ask is that I was looking last year and couldn't find anything close to 1.27%

I'm missing a trick here
Click to expand...
It is with Barclays and there was also a £1k fee. There were plenty of similar offers around at 60% or better LTV in Dec. I did look myself but ended up going with L&C as I have done with my last 3 mortgages.
 
jonneymendoza said:
I have a private one
Click to expand...

Everyone should now have a private pension by law. That's not so much the issue, it's whether people are paying enough into their private pension that they're not reliant on a state pension that may well not exist by 2050/2060.

jonneymendoza said:
Yea i know and tbh when buying a bloody house, you should be PICKY!!!

its the biggest purchase someone will ever make in there lifetime.

I wish we was able to do 2nd viewings but most places gets napped up within 48hours of first viewings…

How the hell are people supposed to make such a large and important purchase off of a single 20-30min viewing?

Back in my parents day, they would do multiple viewings and even bring a surveyor to take a look too before putting down a offer
Click to expand...

That's a sign of the times I'm afraid. As the saying goes, you snooze you lose. You can always back out of an offer after doing a bit more research etc.
 
jonneymendoza said:
Yea i know and tbh when buying a bloody house, you should be PICKY!!!

its the biggest purchase someone will ever make in there lifetime.

I wish we was able to do 2nd viewings but most places gets napped up within 48hours of first viewings…

How the hell are people supposed to make such a large and important purchase off of a single 20-30min viewing?

Back in my parents day, they would do multiple viewings and even bring a surveyor to take a look too before putting down a offer
Click to expand...
Like I said, I think it's folk being really picky, and when the right house comes up - bang, throw every bit of cash you have at it. I know dozens of folk who have dumped PCPs on cars (£300-700/mo 'new money'), made profit on selling PCPs (+£10k in some instances), stopped their season ticket rail card (£3k-£9k). Essentially some folk are "same same" but now a grand or two a month better off. May as well spank it into a place to live - if you are certain it is ticking all the boxes.
 
jonneymendoza said:
Back in my parents day, they would do multiple viewings and even bring a surveyor to take a look too before putting down a offer
Click to expand...

Back in my day (3.5 years ago) the market was quite hot but you still had time to look around a house probably twice. Some places went quite quickly but it wasn't the madness we see now.
 
fez said:
Back in my day (3.5 years ago) the market was quite hot but you still had time to look around a house probably twice. Some places went quite quickly but it wasn't the madness we see now.
Click to expand...
COVID really changed the "must haves" and "would haves" big time though. Like home office space, outdoor space (hence 1 beds in London getting battered), room for an outdoor office etc etc...

My house has only increased a measly £75k since 2019 because the second room is tiny - the place we are buying increased £120k and it is in considerably worse shape...
 
dLockers said:
COVID really changed the "must haves" and "would haves" big time though. Like home office space, outdoor space (hence 1 beds in London getting battered), room for an outdoor office etc etc...

My house has only increased a measly £75k since 2019 because the second room is tiny - the place we are buying increased £120k and it is in considerably worse shape...
Click to expand...

When we sold our flat (roughly 3.5 years ago) the flat market was already cooling somewhat. If we had sold a few months earlier we probably would have got another 5-7% more than we sold for.

COVID has indeed changed peoples priorities though. It must have been horrible for people in small flats and I am so thankful we had a house when COVID struck. Houses and gardens are now a non-negotiable now for many thus driving prices up even more.
 
Semple said:
We did a 35 year term to keep the committed monthly payment down, we then over pay this by 50%. The term is really only relevant if you stick to paying the exact monthly amount. We should be able to knock about 15 years off our term if we continue with our overpayments.
Click to expand...

That's an absolutely sensible way of doing things. It's definitely not the reason why most people we know set the term to 35 years though!

It also requires a level of financial discipline that not many people have. It's easy to miss that overpayment 1 month if you've got a holiday coming up or an unexpected bill.
 
dLockers said:
COVID really changed the "must haves" and "would haves" big time though. Like home office space, outdoor space (hence 1 beds in London getting battered), room for an outdoor office etc etc...

My house has only increased a measly £75k since 2019 because the second room is tiny - the place we are buying increased £120k and it is in considerably worse shape...
Click to expand...

In percentage terms those increases are about the same.
 
You must log in or register to reply here.
Back
Top Bottom