Mortgage Rate Rises

adam cool dude said:
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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Lots don’t understand the costs and the simple logic. This is why this country is in a mess, a big mess.

Look at what you get now and look at what they got in the 70s and 80s. People pay more in taxes now but get less back.

They have been selling off assets wasting the funds.

What really makes me laugh, they have tricked 90% of the population.

I keep telling people, that your home will need to be sold to pay of inheritance tax. Inheritance tax has not really kept up with house prices, eventually everyone will need to sell, and pay the tax. Only the clever ones will find the loophole.

Then they want intergenerational mortgages lol. So if the equity in the property is greater than the iht free rate then you will need to pay 40% of that. So you will need to get a mortgage to cover it. So if it continues in theory you will end up with less ownership share and a bigger mortgage.

Don’t get me started on fiscal drag and corporate welfare.

Reality is this country is drowning in debt but I’d really like to know who really owns it.
 
Add in the fact that house prices have rised faster than the reasonable person can save…

My home has gone up £115k, being 21%, in 18 months.

My wife and I are both ‘higher rate’ earners - but how the Jeff would would we be able to save for that if the increase meant we needed to add the same amount to our deposit (although I appreciate the increases might not be so savage on a typical ‘first home’ - but I’m only in a semi detached, not a castle).

Persons just getting onto the ladder are so disadvantaged it’s unbelievable.
 
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Nitefly said:
Add in the fact that house prices have rised faster than the reasonable person can save…

My home has gone up £115k, being 21%, in 18 months.

My wife and I are both ‘higher rate’ earners - but how the Jeff would would we be able to save for that if the increase meant we needed to add the same amount to our deposit (although I appreciate the increases might not be so savage on a typical ‘first home’ - but I’m only on a semi detached, not a castle).

Persons just getting onto the ladder are so disadvantaged it’s unbelievable.
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You want the country to be competitive, it can't if house prices are high, problem this country is run by landowners and the policies are arranged for them.
 
Nitefly said:
Add in the fact that house prices have rised faster than the reasonable person can save…

My home has gone up £115k, being 21%, in 18 months.

My wife and I are both ‘higher rate’ earners - but how the Jeff would would we be able to save for that if the increase meant we needed to add the same amount to our deposit (although I appreciate the increases might not be so savage on a typical ‘first home’ - but I’m only on a semi detached, not a castle).

Persons just getting onto the ladder are so disadvantaged it’s unbelievable.
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You want the country to be competitive, it can't if house prices are high, problem this country is run by landowners and the policies are arranged for them.
 
Mrwong said:
Dec 1960, GBP = USD 2.81
Dec 1970, GBP = USD 2.39
Dec 1980, GBP = USD 2.39
Dec 1990, GBP = USD 1.93
Dec 2000, GBP = USD 1.50
Dec 2010, GBP = USD 1.57
Dec 2015, GBP = USD 1.48
Dec 2020, GBP = USD 1.36
Today = USD 1.09

See the trend.
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Time to use that second passport and get the hell out of dodge I think :P
 
Mrwong said:
Dec 1960, GBP = USD 2.81
Dec 1970, GBP = USD 2.39
Dec 1980, GBP = USD 2.39
Dec 1990, GBP = USD 1.93
Dec 2000, GBP = USD 1.50
Dec 2010, GBP = USD 1.57
Dec 2015, GBP = USD 1.48
Dec 2020, GBP = USD 1.36
Today = USD 1.09

See the trend.
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If the USA wants to move manufacturing out of China, we will be looking like a safe bet
 
Mrwong said:
Dec 1960, GBP = USD 2.81
Dec 1970, GBP = USD 2.39
Dec 1980, GBP = USD 2.39
Dec 1990, GBP = USD 1.93
Dec 2000, GBP = USD 1.50
Dec 2010, GBP = USD 1.57
Dec 2015, GBP = USD 1.48
Dec 2020, GBP = USD 1.36
Today = USD 1.09

See the trend.
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That's not a very useful trend & not really something that indicates the UK being doomed. USD may have strengthened against all world currencies in that period.

How does GBP look vs Euro, Yen etc?
 
neocon said:
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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Are you sure inflation wasn't caused by covid shut downs here and around the world leading to a shortage on the supply side. Then as that is getting sorted out, the cost of energy rising due to Russia playing silly buggers.

This partly the reason why raising interest rates doesn't help that much, as the rising energy prices are affecting essentials.
 
englishpremier said:
Are you sure inflation wasn't caused by covid shut downs here and around the world leading to a shortage on the supply side. Then as that is getting sorted out, the cost of energy rising due to Russia playing silly buggers.

This partly the reason why raising interest rates doesn't help that much, as the rising energy prices are affecting essentials.
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Yes, the borrowing for furlough was done via QE wasn't it? That has pushed lots of cash into the economy.
 
neocon said:
Yes, the borrowing for furlough was done via QE wasn't it? That has pushed lots of cash into the economy.
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Which isn't the problem. The mainreason prices are rising now. During covid the problem was on the supply side. Now the problem It's mostly due to the rising cost of energy. It hasn't been on the demand side despite the extra cash in the economy.

The price of a mars bar hasn't increased because there is now double the demand due to more money in the economy. It has increased because the engergy costs to produce it and transport it have increased.
 
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englishpremier said:
Which isn't the problem. The mainreason prices are rising now. During covid the problem was on the supply side. Now the problem It's mostly due to the rising cost of energy. It hasn't been on the demand side despite the extra cash in the economy.

The price of a mars bar hasn't increased because there is now double the demand due to more money in the economy. It has increased because the engergy costs to produce it and transport it have increased.
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That and shareholders expect annual growth in profits.
 
Exactly. There is no 'Stamp Duty' by name like what England and Scotland have, it is called land transaction tax here which is an equivalent tax and is more expensive overall
 
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To be perfectly honest, stamp duty as a tax should be totally abolished. It makes no sense. Given how much profit home owners have made when selling in the last few decades it makes much more sense that those profits are taxed. But hey...
 
R.O.S.S.I said:
Exactly. There is no 'Stamp Duty' by name like what England and Scotland have, it is called land transaction tax here which is an equivalent tax and is more expensive overall
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Scotland don't have Stamp Duty either. It's Land and Business Transaction Tax or LBTT.
 
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