Mortgage Rate Rises

Minstadave said:
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.
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No need to suspect that, that is exactly what they are doing with stamp duty cuts etc. It doesn't seem sustainable, but then people have been saying this for many years now and they always manage to find another way to prop up the market.
 
They have to let housing prices correct.
They are too high. They have grown ridiculously in last 24 months.

But its the ultimate tory vote loser. And I expect the way truss is, the tories will do all they can to prop it up... Ie. stamp duty cut
 
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200sols said:
No need to suspect that, that is exactly what they are doing with stamp duty cuts etc. It doesn't seem sustainable, but then people have been saying this for many years now and they always manage to find another way to prop up the market.
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I remember a friend of mine "cashing out" at the peak in the late 90's because of the imminent House price cash, he's still renting now...
 
Freakbro said:
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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Yup this is what most people forget when looking back at historic interest rates. Most households used to get by on 1 source of income, which is a near impossibility for most families these days
 
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Freakbro said:
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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Interesting and makes sense.
 
jon86 said:
Wowzers. 6.43% is more than double the rate that we qualified for.
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I think that must be the average rates in USA? We don't really have an equivalent to a 30 year fixed rate over here. Most mainstream lenders offer 10 year fixes as a maximum and even then 2 year or 5 year fixed rates are much more common.

edit: nevermind, just spotted that you're in USA. Ignore me :)
 
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BBC:
The chancellor announces a cut to the Stamp Duty tax in England and Northern Ireland.

The cut raises the threshold of how much a property has to cost before stamp duty is paid to £250,000.

First time buyers currently pay no stamp duty on the first £300,000, that will be raised to £425,000.

"And we’re going to increase the value of the property on which first-time buyers can claim relief, from £500,000 to £625,000," he says. "The steps we’ve taken today mean 200,000 more people will be taken out of paying stamp duty altogether. This is a permanent cut to stamp duty, effective from today."
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jonneymendoza said:
When does this go to affect and do you have a link?
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Itchytrigg said:
Nope. Says effective from today.

This has just saved me a £5k stamp duty bill that I’d be paying next week
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www.gov.uk

Stamp Duty Land Tax

You pay Stamp Duty Land Tax (SDLT) when you buy houses, flats and other land and buildings over a certain price in the UK.
www.gov.uk www.gov.uk
No mention of it here yet.

Has the calculator from the above been updated?
 
jonneymendoza said:
www.gov.uk

Stamp Duty Land Tax

You pay Stamp Duty Land Tax (SDLT) when you buy houses, flats and other land and buildings over a certain price in the UK.
www.gov.uk www.gov.uk
No mention of it here yet.

Has the calculator from the above been updated?
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They’ve not edited the calculator yet but there’s a statement on the change with the details and some examples here
 
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