Mortgage Rate Rises

LabR@t said:
Lol no one likes wasting money;)
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You were talking like your world was about to end, I don't get it!

I'm sure there are people with no mortgages in an even better position, but most here would envy your situation.

Should definitely count your blessings where you find them, but you will barely feel the pain of this interest rate change going on. £15K is a very achievable pay off within a year or two goal.
 
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Stu999 said:
I guess they hope it will stoke demand and therefore spending so the economy looks functional. In reality, BoE will probably have to increase interest rates dramatically to quell inflation, exacerbating the problems even more.
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That’s precisely what’s about to happen.

Anyone with an economics degree knows what’s coming as a result of this budget.

This is textbook.

No one expected anyone to ever be dumb enough to do go all Barber Boom again, but here we are.
 
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GordyR said:
That’s precisely what’s about to happen.

Anyone with an economics degree knows what’s coming as a result of this budget.

This is textbook.

No one expected anyone to ever be dumb enough to do go all Berber Boom again, but here we are.
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The BofE will need to raise rates to try and save the pound before they waste any more effort trying to control inflation that is being driven by external sources!
 
Next the tories will go for the BoE.
Wouldn't put it past them to remove their independence
 
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GordyR said:
That’s precisely what’s about to happen.

Anyone with an economics degree knows what’s coming as a result of this budget.

This is textbook.

No one expected anyone to ever be dumb enough to do go all Berber Boom again, but here we are.
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The stimulating the housing market I understand, help the FTBs get onto the ladder

The company tax 25 > 19% and the higher tax band removal is lost on me tbh

Trickle down economics just doesn't work, look at all the strikes recently!
 
413x said:
Next the tories will go for the BoE.
Wouldn't put it past them to remove their independence
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if they do that then we are all ******. BoE is going to have to hike interest rates up quickly to counter todays madness. I could see them going for 4.5 / 5% before the end of this year. In about 12 months time country will be on its knees and what will then follow is massive ammounts of deregulation under the pretence of "growth inducement". For anyone not already in a union i strongly suggest you sign up now, your working weeks are going to get jacked up to insane hours, again under the guise of more productivity for less.
 
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HungryHippos said:
I believe if you're changing lender you can apply up to 6 months ahead of time.

Speak to broker about it, they can get an application going, add the product fees to the mortgage, then you cancel it later if things don't look so good nearer the time.

I recommend checking out Nationwide, they're usually competitive and haven't had any issues with them. They have a calc you can use online to get a feel for figures as of today: https://tools.mortgages.nationwide.co.uk/product-rates/find-rates

It's worth noting that it's expected for interest rates to climb another 1% or so this year, and possibly some more early next year, so I would be looking at getting your new application in as near to the 6 month mark as possible.
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Just had a look on nationwide. Put in my details value of house, what I owe, continued from where I am in mortgage length, 4.4% by the looks for fixed deals 2 year and 2.7% for a tracker


And this will go up again? Surely I can get lower than that
 
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DJMK4 said:
Just had a look on nationwide. Put in my details value of house, what I owe, continued from where I am in mortgage length, 4.4% by the looks for fixed deals 2 year and 2.7% for a tracker


And this will go up again? Surely I can get lower than that
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Not much less I doubt.
My ltv is 65-75%

Last time I did a comparison it was 3.8pc

And yes. It will be going up. Possibly quite a lot. 6pc is very possible
 
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LabR@t said:
£15k I took it out in 2000 and .25% above base rate life time tracker and since the 2008 I have been over paying like crazy. The credit crunch was the best think that ever happened to me personally.
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So you got yourself on the housing market whilst houses were still affordable in relation to wages, have profited out of the financial crash and you feel you are able to berate recent house buyers for "over leveraging themselves" when, realistically these people haven't really a choice given the state of house prices Vs wages in the last 15 years?

I always try and grasp a person's circumstances when they are arguing a point as this often explains thier POV. In your case, it really does - you had the luck of buying a house in 2000 before the big pricing boom followed by the "luck".of the financial crisis to help you pay for it.... Everyone else after it should just suck it up and suffer...

Have I got that right?
 
Richie said:
So you got yourself on the housing market whilst houses were still affordable in relation to wages, have profited out of the financial crash and you feel you are able to berate recent house buyers for "over leveraging themselves" when, realistically these people haven't really a choice given the state of house prices Vs wages in the last 15 years?

I always try and grasp a person's circumstances when they are arguing a point as this often explains thier POV. In your case, it really does - you had the luck of buying a house in 2000 before the big pricing boom followed by the "luck".of the financial crisis to help you pay for it.... Everyone else after it should just suck it up and suffer...

Have I got that right?
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Problem is even if their property rises, it really hasn't benefited them. The only way it does if they sell up and move to a cheaper country.

Increase in house prices does not benefit the homeowner. If they want to trade up the gap between the trade up gets larger, or if they inherit property they pay more and lose out more.

It is a conned unless you own a large portfolio.
 
£10k left on my mortgage and have just seen my excellent rate of 0.85% go to 2.5% in a few short months :(

I'm shopping around for the best loan deals as it looks like this rise may continue. 3.1% for a £10k bank loan - it's getting close!
 
If you've recently purchased, and have a fixed term of 5 years. Overpay as much as you can yearly without paying a fee, once you come out the other end God knows what the.percentage is going to be.

After yesterday I'm fearful we've been put in a hole that we're falling down close to the 80's/90's.

What a mess!!!
 
I'm just praying me and the Mrs stay in our jobs. On reasonable pay at the moment and with good saving over the next few years, should be able to pay off a big chunk of the mortgage when the fixed period ends.

The whole landscape at the moment is pretty scary. Do not want a mortgage any longer than I absolutely have to.
 
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HungryHippos said:
You were talking like your world was about to end, I don't get it!

I'm sure there are people with no mortgages in an even better position, but most here would envy your situation.

Should definitely count your blessings where you find them, but you will barely feel the pain of this interest rate change going on. £15K is a very achievable pay off within a year or two goal.
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Single wage, children, don't assume there is there is lots of spare income. I know we have been fortunate and was just suggesting restraint is needed when borrowing, I would like to have moved to a nicer house but have not as I don't want to stretch my finances so we make do we what I have. I need a new car but won't I will make do with what I have ( still owe money on that)

So don't make too many assumption
 
Mrwong said:
Problem is even if their property rises, it really hasn't benefited them. The only way it does if they sell up and move to a cheaper country.

Increase in house prices does not benefit the homeowner. If they want to trade up the gap between the trade up gets larger, or if they inherit property they pay more and lose out more.

It is a conned unless you own a large portfolio.
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Pretty much this. We were looking to move last year and the gap would have meant another 50k on the mortgage whereas to do the same now would cost 100k. It is not that our house is small. We were just getting greedy. Decided I would much rather be mortgage free at 40 than still paying close to 60.

I also feel for FTB buyers as eluded to above I got extremely lucky buying in 2010 when house prices had slumped and repo's were everywhere. 12 years later and my house has basically doubled so instead of a 20 year mortgage I would have more than likely needed 35.

As horrible as it sounds I am somewhat hoping for a housing crash and repo's as we could most likely sell and upgrade a lot cheaper than now.
 
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JamesH85 said:
If you've recently purchased, and have a fixed term of 5 years. Overpay as much as you can yearly without paying a fee, once you come out the other end God knows what the.percentage is going to be.

After yesterday I'm fearful we've been put in a hole that we're falling down close to the 80's/90's.

What a mess!!!
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Pray that in the intervening 5 years, the rates go up and come down to a sensible level.

It's not like the war in Ukraine can last indefinitely. Although I understand the inflation was caused QE.
 
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