Mortgage Rate Rises

[Chihuahua7126]

Looks like we're now back in an upward trend with rates again

Money blog: Another major UK city introducing tourist tax

The pound is trading at $1.22 this morning – a level last seen in November 2023. Elsewhere in the Money blog, Edinburgh is set to introduce a tourist tax, Sky Mobile is increasing prices and we've an interview with a chef about the industry and cooking hacks.

news.sky.com

 

[tonys]

Looks like we're now back in an upward trend with rates again

Money blog: Another major UK city introducing tourist tax

The pound is trading at $1.22 this morning – a level last seen in November 2023. Elsewhere in the Money blog, Edinburgh is set to introduce a tourist tax, Sky Mobile is increasing prices and we've an interview with a chef about the industry and cooking hacks.

news.sky.com

Seems we have idiots working in the finance industry

 

[Freakbro]

Seems we have idiots working in the finance industry

Not really, they are just reacting to the swap rates increasing which is due to expectations of an early base rate cut having dampened a little.

 

[fez]

Thank god. For a minute there I thought I was going to be in the minority on a really **** rate

 

[tonys]

Not really, they are just reacting to the swap rates increasing which is due to expectations of an early base rate cut having dampened a little.

Like I said idiots, as they have seen what happens to the economy when rates increase.

 

[Freakbro]

Like I said idiots, as they have seen what happens to the economy when rates increase.

A) Yes, it slows down, which is exactly what was required to curb inflation.

b) Plus, the people setting mortgage rates aren't the ones in charge of the economy, just their own profits. The base rate is the underlying rate of the economy and if that's now not dropping as fast as expected it's still because of A)

 

[200sols]

He's not wrong though r.e idiots. The pace of the rate cut they had priced in was stupid in my opinion.

 

[Freakbro]

He's not wrong though r.e idiots. The pace of the rate cut they had priced in was stupid in my opinion.

Looks like they got a bit over excited on a rate cut yeah, but you seem to be calling them idiots for exactly the opposite reason Tony is

 

[tonys]

A) Yes, it slows down, which is exactly what was required to curb inflation.

b) Plus, the people setting mortgage rates aren't the ones in charge of the economy, just their own profits. The base rate is the underlying rate of the economy and if that's now not dropping as fast as expected it's still because of A)

There's slowing it down, stalling it or going backwards, not much difference in real terms. I have been seen the results of the recessions that we've gone through( worst one, the mortgage interest rate was 16%). The economy will recover true but at a hell of a cost

 

[413x]

He's not wrong though r.e idiots. The pace of the rate cut they had priced in was stupid in my opinion.

I was certainly surprised the how low the mortgage rates/swap rates dipped last month.

 

[200sols]

Looks like they got a bit over excited on a rate cut yeah, but you seem to be calling them idiots for exactly the opposite reason Tony is

I was certainly surprised the how low the mortgage rates/swap rates dipped last month.

I believe its mostly computer automated / AI these days.

 

[Freakbro]

There's slowing it down, stalling it or going backwards, not much difference in real terms. I have been seen the results of the recessions that we've gone through( worst one, the mortgage interest rate was 16%). The economy will recover true but at a hell of a cost

That's a cost those in charge are willing to pay

Though tbf, this "technical recession" we are in feels just about right at the minute. We aren't seeing the mass redundancies or even house repossessions of those previous recessions you are on about (I lived through those too) so if keeping the base rate at a higher rate for a little longer gets the lid firmly back on inflation then the price the country has had to pay with some higher mortgage payments for a few years has been relatively light imo.

 

[tonys]

That's a cost those in charge are willing to pay

Though tbf, this "technical recession" we are in feels just about right at the minute. We aren't seeing the mass redundancies or even house repossessions of those previous recessions you are on about (I lived through those too) so if keeping the base rate at a higher rate for a little longer gets the lid firmly back on inflation then the price the country has had to pay with some higher mortgage payments for a few years has been relatively light imo.

All this is a cycle we go through, inflation goes up, people ask for more wages, industry puts prices up, inflation goes up etc. All they need to do is to control both interest rates and wages to slow down the cycle. But what they do is knee jerk reaction or turn a blind eye

 

[413x]

That's a cost those in charge are willing to pay

Though tbf, this "technical recession" we are in feels just about right at the minute. We aren't seeing the mass redundancies or even house repossessions of those previous recessions you are on about (I lived through those too) so if keeping the base rate at a higher rate for a little longer gets the lid firmly back on inflation then the price the country has had to pay with some higher mortgage payments for a few years has been relatively light imo.

Feels like stagnation.
I'm not a fan of how the press big up "recession".

0.1pc decline a few times in a row.. Vs 2pc down once? Completely different media reaction

 

[Dirk Diggler]

Looks like we're now back in an upward trend with rates again

Money blog: Another major UK city introducing tourist tax

The pound is trading at $1.22 this morning – a level last seen in November 2023. Elsewhere in the Money blog, Edinburgh is set to introduce a tourist tax, Sky Mobile is increasing prices and we've an interview with a chef about the industry and cooking hacks.

news.sky.com

Oft, I just did my 5 year fixed with them the other day!

 

[Mercenary Keyboard Warrior]

They always go up and down a bit, it happens all the time.
Its just right now with everyone watching them its a newsworthy item.

 

[slinxy]

Jeremy Hunt draws up plans for 99% mortgage scheme

UK chancellor’s move aims to reassure voters that Conservatives represent the interests of homeowners

www.ft.com

Pulling one from the Thatcher book..

Like someone said, you’re either renting a property or renting the money to buy a property, which is true for most of us. At a 99% mortgage, you could be relying on solely the house prices going up, selling it and using the gains for the deposits on the next house. The question is will appreciation rates for houses raise faster than interest rates for this to work.

 

[Haggisman]

That's a cost those in charge are happy for the rest of us to pay

Fixed that for you

 

[DB_SamX]

Looks like we're now back in an upward trend with rates again

Money blog: Another major UK city introducing tourist tax

The pound is trading at $1.22 this morning – a level last seen in November 2023. Elsewhere in the Money blog, Edinburgh is set to introduce a tourist tax, Sky Mobile is increasing prices and we've an interview with a chef about the industry and cooking hacks.

news.sky.com

Phew. Locked in 4.64pc for 2 yr in Jan. It's now back up to 4.84pc. HSBC

 

[Jono8]

Jeremy Hunt draws up plans for 99% mortgage scheme

UK chancellor’s move aims to reassure voters that Conservatives represent the interests of homeowners

www.ft.com

Pulling one from the Thatcher book..

Like someone said, you’re either renting a property or renting the money to buy a property, which is true for most of us. At a 99% mortgage, you could be relying on solely the house prices going up, selling it and using the gains for the deposits on the next house. The question is will appreciation rates for houses raise faster than interest rates for this to work.

It's like no one has learnt from 2008. Everyone is just continuously betting on the fact that house prices will always go up and up and up at a massive rate.

Personally, I can't see how house price rises like we have seen in the last 40 years or so are in anyway sustainable. How is it possible for them to keep outpacing wage growth by a large margin, alongside rising interest rates?

I ofcourse appreciate that housing and land will always be a good investment and always hold decent value / most likely increase in value. However the rate at which they do will have to be tempered.

Funnily enough I watched 'The Big Short' again the other night and it did make me worried that we are just heading for the same precipice...