Mortgage Rate Rises

[adam cool dude]

So long as Londeners and high earners aren't involved to push the price up

I see it a lot more now on local groups. "Hey I have just moved up here from down south and need to ask questions". Houses prices have gone up quite a bit since COVID but have dropped down this year so I think they are starting to level off now.

 

[413x]

The point I was trying to make is there are plenty of places where buying a house is still a huge possibility. Pretty much anywhere Peterborough and up really.

But you do have to live in Peterborough.
Go a bit further and Grantham is peanuts vs the average.. But.. Grantham.

 

[tonys]

But you do have to live in Peterborough.
Go a bit further and Grantham is peanuts vs the average.. But.. Grantham.

Can't be picky if you can't afford to buy much, as we found out all those years ago.

 

[Will Gill]

Did you budget for an increase when you took out the 5yr term and save some of the money you would have been paying on a higher rate?

lol no, never saved a penny in my life, I just roll with things

 

[tonys]

lol no, never saved a penny in my life, I just roll with things

How much extra are you looking at? Always better to start out high and benefit when it's lower.

 

[Will Gill]

I'm effectively now paying less as I chucked a £200k windfall at my mortgage last year so the payments have changed dramatically, but my previous payment was £1125 and now I pay £635 but the same payment on the old rate would have been around 500 quid

 

[tonys]

I'm effectively now paying less as I chucked a £200k windfall at my mortgage last year so the payments have changed dramatically, but my previous payment was £1125 and now I pay £635 but the same payment on the old rate would have been around 500 quid

That was a massive chunk to take off, well done

 

[Will Gill]

Thanks, I was/am very lucky, it was an early chunk of cash from my parents with a view to avoiding inheritance tax.

They were never wildly wealthy but the house they bought in London for ~£100k sold for north of a million so that was nice

 

[TNA]

Thanks, I was/am very lucky, it was an early chunk of cash from my parents with a view to avoiding inheritance tax.

They were never wildly wealthy but the house they bought in London for ~£100k sold for north of a million so that was nice

What year did they buy it?

 

[tonys]

Thanks, I was/am very lucky, it was an early chunk of cash from my parents with a view to avoiding inheritance tax.

They were never wildly wealthy but the house they bought in London for ~£100k sold for north of a million so that was nice

I keep saying it's the Londoners fault
You're lucky, the wife and our two kids benefitted from the mother in law only because we had to sell her house to pay for her care. Unfortunately she died after only a couple of years.

 

[adam cool dude]

But you do have to live in Peterborough.
Go a bit further and Grantham is peanuts vs the average.. But.. Grantham.

Grantham is fantastic. It is a really beautiful area. It has its good and bad bits like most towns all over the country but its location and infrastructure is really good. My daughter is starting college there in September. Direct access to the A1 and direct route to Kings Cross with the train station. The A52 bypass will be complete in 2 years reducing the majority of traffic going through it. You also have direct route to East Midlands Airport in under an hour.

Location for jobs is becoming a thing of the past as is location for amenities as the world of online has basically destroyed the need.

If I had the choice of living in say Hemel, Hatfield and Harlow or living in Grantham I would take Grantham every time.

 

[413x]

Grantham is fantastic. It is a really beautiful area. It has its good and bad bits like most towns all over the country but its location and infrastructure is really good. My daughter is starting college there in September. Direct access to the A1 and direct route to Kings Cross with the train station. The A52 bypass will be complete in 2 years reducing the majority of traffic going through it. You also have direct route to East Midlands Airport in under an hour.

Location for jobs is becoming a thing of the past as is location for amenities as the world of online has basically destroyed the need.

If I had the choice of living in say Hemel, Hatfield and Harlow or living in Grantham I would take Grantham every time.

For me WFH has been the most important thing. If it came to it I'd take a chunky pay cut to keep FT WFH.

Even 1 day a week in office means you are location bound.

You can save so much and actually live somewhere you like.

I lived in Peterborough/Stamford for so long. And it's a big regret as it was just "for a job".
Eneded up getting stuck there through passiveness. I just need to keep WFH!

 

[jaybee]

The thing that constantly eats away at me is that I know a lot of people that are about roughly ten years older than me and the wife. This is mainly because we had kids very young and then met them all through "schools" of our kids. The majority of them (literally the majority) have completely different lives to us in terms of disposable income. This is all because they got on the ladder way before us. In most cases as well, our joint household income is up there with the best of them, probably surpassing more than half of them. They all mostly have mortgages nearly or fully paid off, have upsized, have 2 x new financed cars on the drive, go abroad to nice holidays at least once a year... etc. They all got a "jump" on the UK rat race just by being older and hence buying earlier. I know...get the violins out...

I think this breeds a lot of resentment generationally, because the landscape gets worse and worse each time. I mean I don't know what my kids will do. Rent for life presumably. It's not achievable for even the top earners and that's living at home until your into your thirties. I'm sure they don't want to live at home until then. I don't want them to either ideally! It's no wonder that a lot of young people are not motivated to work or map out career paths. With the impending doom of AI vs jobs....it's pretty doom and gloom for them. Not the most joyful thoughts but reality of the UK.

 

[jaybee]

Thanks, I was/am very lucky, it was an early chunk of cash from my parents with a view to avoiding inheritance tax.

They were never wildly wealthy but the house they bought in London for ~£100k sold for north of a million so that was nice

I think about the future and what we may inherit, but doesn't it all mostly just go on care for your parents when they reach the end years? I suppose if they are able to stay in their own home right up until the end we may inherit but, I don't make any plans based on inheriting anything. I expect and plan for zero. Anything we would get, we would probably be almost retired ourselves and would pass down to our kids anyway.

 

[413x]

The thing that constantly eats away at me is that I know a lot of people that are about roughly ten years older than me and the wife. This is mainly because we had kids very young and then met them all through "schools" of our kids. The majority of them (literally the majority) have completely different lives to us in terms of disposable income. This is all because they got on the ladder way before us. In most cases as well, our joint household income is up there with the best of them, probably surpassing more than half of them. They all mostly have mortgages nearly or fully paid off, have upsized, have 2 x new financed cars on the drive, go abroad to nice holidays at least once a year... etc. They all got a "jump" on the UK rat race just by being older and hence buying earlier. I know...get the violins out...

I think this breeds a lot of resentment generationally, because the landscape gets worse and worse each time. I mean I don't know what my kids will do. Rent for life presumably. It's not achievable for even the top earners and that's living at home until your into your thirties. I'm sure they don't want to live at home until then. I don't want them to either ideally! It's no wonder that a lot of young people are not motivated to work or map out career paths. With the impending doom of AI vs jobs....it's pretty doom and gloom for them. Not the most joyful thoughts but reality of the UK.

Itll be retirement (or lack of) in the young now that differentiates the before millennial and after.

My boomer parents had modest very average jobs and will/have retired rich. Raised a family etc.
Now you have to significantly over earn average to get that. Or forgo something that was a given before. (kids or big house).

Then throw in pension age increase and rotting nhs. Its no wonder kids are living for now when you know you'll never get to retire

 

[413x]

I think about the future and what we may inherit, but doesn't it all mostly just go on care for your parents when they reach the end years? I suppose if they are able to stay in their own home right up until the end we may inherit but, I don't make any plans based on inheriting anything. I expect and plan for zero. Anything we would get, we would probably be almost retired ourselves and would pass down to our kids anyway.

If my parents don't need care I'd be on for a good whack.
Ie mortgage gone and some left over.
But you can't and shouldn't bank on it. But it would be nice to be able to not have to save so much into pension now and live even more.
Gf could get even more.

If we knew we were getting max could probably either retire early or not even worry about saving.

 

[jaybee]

Why do people need to be able to afford a house? There's rental for those that cannot afford to buy.

If your question is "Why do people want to buy?" then put simply, buying is by far the superior long term option in terms of living in the UK. Given that the majority of people living in the UK plan to stay living in the UK, people should always want to buy asap.
If your question is more "Why does the UK economy/interest rates have to be manipulated into allowing people to continue to be able to afford to buy" then that's a different question entirely.

 

[adam cool dude]

The thing that constantly eats away at me is that I know a lot of people that are about roughly ten years older than me and the wife. This is mainly because we had kids very young and then met them all through "schools" of our kids. The majority of them (literally the majority) have completely different lives to us in terms of disposable income. This is all because they got on the ladder way before us. In most cases as well, our joint household income is up there with the best of them, probably surpassing more than half of them. They all mostly have mortgages nearly or fully paid off, have upsized, have 2 x new financed cars on the drive, go abroad to nice holidays at least once a year... etc. They all got a "jump" on the UK rat race just by being older and hence buying earlier. I know...get the violins out...

I think this breeds a lot of resentment generationally, because the landscape gets worse and worse each time. I mean I don't know what my kids will do. Rent for life presumably. It's not achievable for even the top earners and that's living at home until your into your thirties. I'm sure they don't want to live at home until then. I don't want them to either ideally! It's no wonder that a lot of young people are not motivated to work or map out career paths. With the impending doom of AI vs jobs....it's pretty doom and gloom for them. Not the most joyful thoughts but reality of the UK.

I had to work full time from the age of 20 due to the death of my father. I had no income and the house had to get sold. We also had our first child at 21. We bought our house at 23 and now not far away from being mortgage free in our early 40's. I never went further than 6th form.

Kids living at home today could quite easily get on the property ladder if they have the luxury of being able to live at home with parents but they get into that 9-5 job which pays pants but gives them plenty of disposable income to enjoy life. They then end up saving nothing and before you know it they are fast approaching 40 whilst still living at home.

Even for the least academic people you can get onto apprenticeships that will net 40-50k a year salaries in their early 20's. A little over 3k a month take home. Living at home you could quite easily save 2k a month and have over 50k for a deposit on a house before you hit 25 years old. It really isn't that difficult.

It is the people that go to uni do absolutely pointless degree's come out with debt to their eyeballs and get into a job that pays 30k a year that will struggle.

 

[413x]

I had to work full time from the age of 20 due to the death of my father. I had no income and the house had to get sold. We also had our first child at 21. We bought our house at 23 and now not far away from being mortgage free in our early 40's. I never went further than 6th form.

Kids living at home today could quite easily get on the property ladder if they have the luxury of being able to live at home with parents but they get into that 9-5 job which pays pants but gives them plenty of disposable income to enjoy life. They then end up saving nothing and before you know it they are fast approaching 40 whilst still living at home.

Even for the least academic people you can get onto apprenticeships that will net 40-50k a year salaries in their early 20's. A little over 3k a month take home. Living at home you could quite easily save 2k a month and have over 50k for a deposit on a house before you hit 25 years old. It really isn't that difficult.

It is the people that go to uni do absolutely pointless degree's come out with debt to their eyeballs and get into a job that pays 30k a year that will struggle.

At long as you can live at home rent free/low rent.
I couldn't and I left as I had the burden of living under my parents shadow, lack of jobs and paying since rent.

Definitely agree about uni though. Will always be my biggest regret. Think I'd be mortgage free now if I didn't go. Or very close.

 

[jaybee]

I had to work full time from the age of 20 due to the death of my father. I had no income and the house had to get sold. We also had our first child at 21. We bought our house at 23 and now not far away from being mortgage free in our early 40's. I never went further than 6th form.

Fair play. I worked full time from 18. First kid at 20, then more followed, fell into a rent trap for 15+ years!

Kids living at home today could quite easily get on the property ladder if they have the luxury of being able to live at home with parents but they get into that 9-5 job which pays pants but gives them plenty of disposable income to enjoy life. They then end up saving nothing and before you know it they are fast approaching 40 whilst still living at home.

Even for the least academic people you can get onto apprenticeships that will net 40-50k a year salaries in their early 20's. A little over 3k a month take home. Living at home you could quite easily save 2k a month and have over 50k for a deposit on a house before you hit 25 years old. It really isn't that difficult.

People want lives though. If I lived at home through my twenties I'd probably have lived a totally different **** life without freedom of my own place. For me I had kids so it wasn't even an option anyway.
What apprenticeships pay that? I'm interested for my kids.

It is the people that go to uni do absolutely pointless degree's come out with debt to their eyeballs and get into a job that pays 30k a year that will struggle.

Sadly yes. One of mine is going to be this person. I really worry about it. All I could do as a parent was advise and warn. It's the path they chose. I hope they prove me wrong. It's a Business Degree.