Mortgage Rate Rises

slinxy said:
We have the same argument everytime there's any building plans for my village.

It's a chicken and egg situ, without the increase of people who are the potential customers and increase in freash money going around.. no business in the right mind will want to open a place near me. And at the same time, people don't want to move to an area in the middle of nowhere where there's not the local conveniences.

So all we get is hairdresses and take aways... the take aways are being caused by the shops being owned by one person who leases them out. Some idiot takes on the lease and thinks they can make a success of it, only to close down a few months later for the land lord to pocket the lease income still.

I do agree we need more of road infrastructure, in fact I have suggested it many times and some "locals" always boos it down. We have one road going into and out of the village, if anything happens to it and it often get's flooded or road works. We are trapped in our houses until it's sorted. If we get another route out, it would easy traffic for people to want to live in the village and is able to travel back and forth from work.



Yub, same here.. always asking for social housing or "affordable" housing. The local councillor is a sucker for it.. the poor ****** get's tagged in every facebook post/comment in the local group, with people moaning that a street light is out, that someone stole someone bin, that some kids dare to stand outside a shop for too long.. etc.. etc.. I couldn't afford to buy or rent a house where my parents live, so I did the adult thing and rented somewhere that I could afford. The old estate is now a dump anyway; all the kids grew up and have left.. most of the people including my parents have moved out and there's just no cash in the area anymore.

People can't understand that communities/areas evolve in cycles.. young adults move into an area, they have cash to spend on their houses and local businesses, they have kids that go to the local school... as they get older the kids all move out, the parents get older and either they stay there until they meet their maker or downsize.. eventually young adults and familys move in and the cycle begins again. It didn't help my parent's area when all the local schools got closed down, so no parents would want to live there now.

Some people don't want to leave to the village for work, they could visit every company in the village in a space of 4 hours asking to ask for work but they just post on FB that they want a job that's in the village while displaying perfectly good reasons not to hire them on their FB profile/pics. lol
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Eugh, so our 2 year fixed term ran out yesterday :( We've gone from 1.65% to 5.71% which is costing us something like at extra £530 per month.

We ended up going on a tracker as we're unfortunately stuck with Barclays & the cheapest 2 year fix was only 0.2% cheaper, so we only need 1 base rate reduction to being paying less than that. Here's hoping that it comes sooner rather than later though!
 
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El Jimben said:
Eugh, so our 2 year fixed term ran out yesterday :( We've gone from 1.65% to 5.71% which is costing us something like at extra £530 per month.

We ended up going on a tracker as we're unfortunately stuck with Barclays & the cheapest 2 year fix was only 0.2% cheaper, so we only need 1 base rate reduction to being paying less than that. Here's hoping that it comes sooner rather than later though!
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What's your LTV?
 
Captain Chaos said:
Question is when are the rates going to drop back down to sub 2%? Asking for a friend as I have paid my house off with the proceeds from exterminating queen wasps, teaching the fine art of 'Boxing Stance' and the occasion contract to poo through a letterbox.
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They shouldn’t. People with rates of 1,
2% are not normal. It sucks when you have something nice taken away such as ultra low interest rates, I get but it’s just a feeding frenzy of unsustainable debt and zero saving incentive. Then the bubble bursts…..and it always does - look at China’s economy built on it since the 2010’s.
 
El Jimben said:
Eugh, so our 2 year fixed term ran out yesterday :( We've gone from 1.65% to 5.71% which is costing us something like at extra £530 per month.

We ended up going on a tracker as we're unfortunately stuck with Barclays & the cheapest 2 year fix was only 0.2% cheaper, so we only need 1 base rate reduction to being paying less than that. Here's hoping that it comes sooner rather than later though!
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Dirk Diggler said:
What's your LTV?
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I am wondering this too! 5.71% is appalling.

Moving house soon and managed to get 4.39% with HSBC (60% LTV) for 5y fixed.
Then I noticed the rates dropped a bit and redid the application phone call (what a waste of time) to get 4.14%.
It has since risen a touch but the rates move around all the time.
 
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El Jimben said:
Eugh, so our 2 year fixed term ran out yesterday :( We've gone from 1.65% to 5.71% which is costing us something like at extra £530 per month.

We ended up going on a tracker as we're unfortunately stuck with Barclays & the cheapest 2 year fix was only 0.2% cheaper, so we only need 1 base rate reduction to being paying less than that. Here's hoping that it comes sooner rather than later though!
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That is really high. Isn't that like the peak of what fixes hit?

It looks like it's coming down slower than I thought/hoped
 
413x said:
Agreed. It's frightening
500 a month.. Every month.
6k a year gone.. With absolutely nothing to show for it.
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As much as increased interest rates are rough, it's not nothing to show for it is it? You have the house you live in and continue to increase your equity in it. Going from an extremely low rate to a rather uncompetitive rate makes it harder to accept, sure.
 
Our 5 year fixed @ 1.4% will run out in September and I am simply dreading to even look at what the uplift will be per month.

Very likely hundreds :eek:
 
Lartyconshayo said:
Through no skill whatsoever managed to bag 1.89% about 3 months before it all started moving upwards so 2027 is when I come off it. Hoping that it's a gentler landing by then.
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Yeah.. it’s pretty much luck of the draw when it comes to timing.

I managed to get 2.12%. While my niece managed 2.01% as she managed to complete hers 2 weeks earlier. But I managed to get mine a few percentage less when it came to the renewals.

you can monitor the rates like a hawk, I did it as soon as I could lock in a renewal, but it’s a lot of work filling out forms, sitting mortgage interviews etc. to shave off a few points each time. this is where a mortgage broker should be able to help, but some brokers will only work with certain lenders.

All the mortgage rates are on the comparison sites, it’s worth doing a few comparisons sites to ensure that you covered all the major mortgage lenders.

One thing is 100% guaranteed.. the more you have to borrow, the longer you have to borrow for… the more interest you have to pay.
 
EvilRob said:
As much as increased interest rates are rough, it's not nothing to show for it is it? You have the house you live in and continue to increase your equity in it. Going from an extremely low rate to a rather uncompetitive rate makes it harder to accept, sure.
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there's nothing to show for that extra 500.
You're paying off under the same term length, just paying the lender much much more for it.

Its just pure loss vs what you had 1 month prior. In the case above its 500 a month for exactly what you had before.

Its also life altering money. It's not going to leave you on the street. But 1.x to 5.x is going to put pressure on anyone who was near the limit.
Be that dropping a holiday, pension/savings, etc.
 
slinxy said:
Yeah.. it’s pretty much luck of the draw when it comes to timing.

I managed to get 2.12%. While my niece managed 2.01% as she managed to complete hers 2 weeks earlier. But I managed to get mine a few percentage less when it came to the renewals.

you can monitor the rates like a hawk, I did it as soon as I could lock in a renewal, but it’s a lot of work filling out forms, sitting mortgage interviews etc. to shave off a few points each time. this is where a mortgage broker should be able to help, but some brokers will only work with certain lenders.

All the mortgage rates are on the comparison sites, it’s worth doing a few comparisons sites to ensure that you covered all the major mortgage lenders.

One thing is 100% guaranteed.. the more you have to borrow, the longer you have to borrow for… the more interest you have to pay.
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One of my only 2 genius decisions in life was to get on the lloyds 1.9pc offer in 2022.

Without that life would be a bit different now.
Saved 1000s over the 5 years to 2027.

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Give or take, about 20k. Assuming I'd have gotten a 5-6pc rate if hadn't paid the 2k erc to break the deal I was locked into.
 
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I'm 5 years into a 10 years fixed at 2.44%....at the time 5/2 year ones were only just under 2% so I thought I would take the safety net of 10 years but thought it would end up costing me more but now clearly I think I'm a financial genius....
 
Lartyconshayo said:
Through no skill whatsoever managed to bag 1.89% about 3 months before it all started moving upwards so 2027 is when I come off it. Hoping that it's a gentler landing by then.
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One method to help would be to pay 0.5% more than you are currently paying and then increase it every year by the same 0.5% so that, when it comes to renewal, you will effectively be paying at 4%-ish making any actual increase in 2027 negligible e.g.

2024 - 2.39%
2025 - 2.89%
2026 - 3.39%
2027 - 3.89%
Renewal in 2027 is, say 4% making your payment lift only 0.11%

Between now and then, you end up overpaying your mortgage and, when renewal hits, your actual increase is manageable from your budget so you dont see much lifestyle change.
 
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