All that base rate cut hype has started unwinding already. Feb is way too early. (IMO)
Mortgage Rate Rises
- Thread starter glenimp617
- Start date
Yes it will drop anyway but would need the bank to lower their standard rate before my new mortgage commences in order to take advantage. Coming from 0.79% above base the 1.44% above is a further kick to the nads.
Last edited:
Deleted User 298457
Deleted User 298457
FT article this morning that all bets are off for 1.5% cut; 1% cut still priced in.
I'd bet my house we dont see a 1% cut from the BOE in Feb.
Last edited:
Deleted User 298457
Deleted User 298457
I'd bet my house - like some kind of reverse lottery if it were to pan out. Enjoy that 675k of debt!
I see your article is for 2024 as a whole, not a single cut. Large cuts signal panic and everyone knows it, you'll need a massive financial crisis to see it aka 2008.
Last edited:
Deleted User 298457
Deleted User 298457
Yes fair - I guess my point was, optimism has dropped already, and we are only 8 days in
Nobody believes in traders anyway, they'll say anything to win.Yes fair - I guess my point was, optimism has dropped already, and we are only 8 days in
The pros to owning a house come later.
1) Your mortgage goes down over time. Your rent goes up
2) you control when you move not a land lord
3) if you rent forever you very much depend on the state. And the way population decline is going, it's more likely we'll end up like America than Europe. With dwindling support where you can just die if you can't afford medical care.
4) gains. Your house will probably go up, you can use this when your older/pass on to kids.
For me.. If you can pay off a mortgage, it's good choice.
If you can barely make ends meet? That's different.
For me I will have the mortgage paid off, so my rent/mortgage will be 0 rather than what could be 1000s in 20 years for the same house...a month to rent.
I can unlock equity and perhaps have 100k-200k available to me.
Put it this way. I've owned since 2020. Put down a deposit of 40k and now have an equity of 100k (Conservative) - 140k (generous) just through capital gains.
It would seem crazy to me to not buy if you can
Last edited:
I sort of look at it that way too. If I completely take away the main reason to purchase a house of having a home, which is of course the reason we should all have housing, then purely on a numbers basis it stacks up in my head.
- When I bought my first house in 1998 £1 then is worth £1.85 now so 85% more.
- In the 25 and a bit years since then I have moved, upsized, extended mortgages, overpaid when I could etc. like many people do on life's journey. And am now at the point of becoming mortgage free in a house I'm unlikely to want to upsize from (the forever home if you will)
- If I total up all the mortgage payments (both capital and interest), all the purchase/sales costs you don't have if you rent (stamp duties, legal fees etc.) I think roughly I have forked out about 60% of the value of my current mortgage free house. So my house is worth (1-0.6) / 0.6 = 67% more
Of course that's massively over simplified but it's a lens through which to ponder whether to buy or not. For example, it also doesn't factor in that if I'd kept the money in some financial instrument that did keep pace with inflation I'd have forked out hundreds of thousands in rent. I also didn't have 60% of my current house price to tuck into a financial instrument 25 years ago either. And conversely there are lots of maintenance things I've not accounted for that would be included in any rent if I had rented over the same period
I don't know how old you are or your circumstances but purely on a financial basis let's consider this:
You currently pay £875 a month. Say this goes up a very modest £15 each year on average.
Assuming you are 30 years old, you rent for the next 40 years up until 70 years old.
You would have paid £560,400 in rent.
You then retire as you can't work anymore at 70. I hope you have a nice big pension to keep paying the rent as it's now £1460 per month, plus bills and cost of living which will also be higher.
If you could have got a mortgage for that same 40 year period, even at slightly more per month overall, you then entire retirement with a house and more options.
There are also loads of other benefits of owning your own home already mentioned.
I say this as someone that has previously rented for nearly 20 years and paid a couple of hundred grand in rent.
It's depressing when you do the figures!
The amount of cash your giving to a landlord to pay their mortgage and retirement plan while you have nothing.
A landlord bought a house I had an offer on outright (I was the first viewer) was perfect but the landlord paid cash. Was on a rental website within weeks sigh
The amount of cash your giving to a landlord to pay their mortgage and retirement plan while you have nothing.
A landlord bought a house I had an offer on outright (I was the first viewer) was perfect but the landlord paid cash. Was on a rental website within weeks sigh
Last edited:
Deleted User 298457
Deleted User 298457
Guys, guys, guys - stop berating the guy.
Maybe he has one of the 1-in-a-billion landlords we have surplus of on the forum who aren't in it for money at all and will never raise rents?
Maybe he has one of the 1-in-a-billion landlords we have surplus of on the forum who aren't in it for money at all and will never raise rents?
Last edited by a moderator:
Soldato
- Joined
- 2 Feb 2010
- Posts
- 11,138
- Location
- Crowmarsh
Renting should only ever be a temporary arrangement.
As you pay your mortgage off, the monthly payments generally go down (interest rates permitting of course).
With rental, thanks to inflation, your monthly payments will only ever go up.
Add to that your mortgage ends and you own a house. With rental, it never ends.
As you pay your mortgage off, the monthly payments generally go down (interest rates permitting of course).
With rental, thanks to inflation, your monthly payments will only ever go up.
Add to that your mortgage ends and you own a house. With rental, it never ends.
Something to consider in the renting vs mortgage debate is your future family needs. With buying it's easier to step up the bigger property ladder every ten or so years as hopefully you'll have some collateral behind you with the previous property. With renting you just have to ***** up a lot more cash and that's if the larger properties you are looking for or need are available.
But have we convinced him yet?
But have we convinced him yet?
There are only a very few scenarios I can see where you'd not want to own if you can. Very few.
I guess most people don't see the future when thinking about it if they don't fall into one of the former few reasons.
They see "a mortgage is more than my rent right now plus maintaining costs"
They don't see "my mortgage will be zero later, I'll have assets worth 100s of k, and I won't be paying for my landlord."
Not that rent could be multiple times current rent in future. I mean look at how inflation in a few years has ballooned it.
You would absolutely need the state to pay for much of your costs if you plan to keep renting forever
Do you really want this level of volatility?
I guess most people don't see the future when thinking about it if they don't fall into one of the former few reasons.
They see "a mortgage is more than my rent right now plus maintaining costs"
They don't see "my mortgage will be zero later, I'll have assets worth 100s of k, and I won't be paying for my landlord."
Not that rent could be multiple times current rent in future. I mean look at how inflation in a few years has ballooned it.
You would absolutely need the state to pay for much of your costs if you plan to keep renting forever
Do you really want this level of volatility?
Last edited:
Do these people look further then the need to save for a large deposit? My mortgage has always been significantly less then the rent. The problem being the significant sum saved up and then the amount I needed to spend to make it my home.
That's kind of why I say "if you can".
Ie, you can outsave the ever rising bar.
Yes. My mortgage (ignoring the deposit) was a 300 more than my rent (nice house.. **** rental)
Of course, to rent here.. Would be 300 more than my mortgage (in 2020..now it'd be worse.)
Permabanned
- Joined
- 7 Aug 2017
- Posts
- 2,141
- Location
- by the tower the one up north ..
thats what my lad did saved hard still left home at 30 ... lol .. but 30k deposit
thats what my lad did saved hard still left home at 30 ... lol .. but 30k deposit
This will probably become more common. I dread the thought of my kids living at home into their thirties. I moved out at 20. I also could not imagine what my life would have been like living at home until 30. I mean the amount I did in my 20s... I would not want to be at home. There in lies the problem...people want to have a life, not plan for retirement at the cost of not having a life whilst young.
With the exception of the very first 2-3 years after I moved out, I could have afforded monthly mortgage payments. I could just never raise a deposit.
It's not feasible to raise 20, 30, 40, 50k deposits once you get into the rent trap.