Mortgage Rate Rises

[Richie]

Yes it is, go back and look at the rate increases when the payments went up every month not every so many years.

Sorry but you need to let this go. Continually responding to people suffering today with the "we had it tough as well you know" attitude feels like attempts to minimise people's current issues.

You feel you had it tough and that's fine. What good does it do to current people struggling to effectively say "we had it tougher"... Is it a competition as to who had it worse under the threat of being made homeless or something?

 

[413x]

the lack of price growth in comparison to inflation (and especially wage growth) is essentially a price drop

It's much needed for FTBs

 

[lemonkettaz]

I'm just bitter because I've been on the losing end of the house buying and selling 3times in 3years maybe... I lose count

Me and the Mrs are essentially priced out of our home location even though we have had substantial pay rises in the last 7 years (when we got our first property). Making the "next step up" by getting a 3 bed house in the same location now almost impossible.

The market here went absolutely mental during covid and it's now picking up again with multiple bids pumping up "asking prices".

Some times the properties get devalued, other time people pay way over then end up cancelling because they can't afford to rectify issues that prop up on surveys.

I don't know the answers, I'm not educated enough. The world according to me though is there are more and more people looking at the same houses in this area and those selling want maximum profit as possible. Just a quick dig at the older generation you bought your house for £10 in 1980 but now want £1milliom because you worked hard...

I know it sounds like the violin has to come out

 

[dlockers]

I'm just bitter because I've been on the losing end of the house buying and selling 3times in 3years maybe... I lose count

Me and the Mrs are essentially priced out of our home location even though we have had substantial pay rises in the last 7 years (when we got our first property). Making the "next step up" by getting a 3 bed house in the same location now almost impossible.

The market here went absolutely mental during covid and it's now picking up again with multiple bids pumping up "asking prices".

Some times the properties get devalued, other time people pay way over then end up cancelling because they can't afford to rectify issues that prop up on surveys.

I don't know the answers, I'm not educated enough. The world according to me though is there are more and more people looking at the same houses in this area and those selling want maximum profit as possible. Just a quick dig at the older generation you bought your house for £10 in 1980 but now want £1milliom because you worked hard...

I know it sounds like the violin has to come out

Archiving this post for when you are selling up and give it away for a charitable price.

 

[lemonkettaz]

I never said I was going to be the hero...

But this is part of the problem. A problem like I say, I have no answers for because we are all human and want to maximise our profits but well done those who bought in 1980

 

[tamzzy]

@lemonkettaz i know your pain
where i'm living now, i looked at a property a few doors down in 2016 - £335k fully refurbed interior
when i bought my now-home in 2022, i paid £380k and it was a doer-upper needing a full refurb
so basically an extra £120k in 6 years

 

[dlockers]

I need to double my budget to get an extra bedroom where I live. First world problems.

 

[tonys]

Sorry but you need to let this go. Continually responding to people suffering today with the "we had it tough as well you know" attitude feels like attempts to minimise people's current issues.

You feel you had it tough and that's fine. What good does it do to current people struggling to effectively say "we had it tougher"... Is it a competition as to who had it worse under the threat of being made homeless or something?

Sorry, didn't realise I couldn't give an opinion.

 

[lemonkettaz]

I need to double my budget to get an extra bedroom where I live. First world problems.

I bought my house in 1963 for 50p... now I have lived my life I want £3million for my house because I need to downsize into a bungalow and walk off into retirement with full pension and about £2million profit...

We had it hard.

First world problems.

 

[tonys]

I'm just bitter because I've been on the losing end of the house buying and selling 3times in 3years maybe... I lose count

Me and the Mrs are essentially priced out of our home location even though we have had substantial pay rises in the last 7 years (when we got our first property). Making the "next step up" by getting a 3 bed house in the same location now almost impossible.

The market here went absolutely mental during covid and it's now picking up again with multiple bids pumping up "asking prices".

Some times the properties get devalued, other time people pay way over then end up cancelling because they can't afford to rectify issues that prop up on surveys.

I don't know the answers, I'm not educated enough. The world according to me though is there are more and more people looking at the same houses in this area and those selling want maximum profit as possible. Just a quick dig at the older generation you bought your house for £10 in 1980 but now want £1milliom because you worked hard...

I know it sounds like the violin has to come out

I don't want the violins but we brought our house in 81 for £12,000 and sold it 3yrs later for £36,000. We bought the next house for £46,000 and have spent probably£60,000 on an extension, kitchen etc. It's only worth about £320,000 but we won't see a benefit from it unless we move to a cheaper area or downsize to a house that needs a lot of work.

 

[tonys]

I need to double my budget to get an extra bedroom where I live. First world problems.

That why a lot of people are now putting up extensions or going into the roof because it's not just ftb who can't afford to move.
Ed. Auto correct is crap

 

[fez]

I need to double my budget to get an extra bedroom where I live. First world problems.

Just cut the one you have in half...

That why a lot of people are now putting up extensions or going into the roof because it's not just for who can't afford to move.

And now builders are charging absolutely silly money for these things and people who think they are "adding value" to their house might be disappointed when their £150k extension that took the best part of a year hasn't added that much to the house.

We were looking to buy before rates went mad but now we would be looking at about 30% extra on our monthly mortgage payment if we went for the same priced house as we were previously. Looked into going into the roof but for the added value, disruption and risk of getting cowboy builders its just not worth it.

 

[413x]

That why a lot of people are now putting up extensions or going into the roof because it's not just ftb who can't afford to move.
Ed. Auto correct is crap

Cost of extensions is ridiculous now. Barely worth it due to inflation

 

[413x]

I don't want the violins but we brought our house in 81 for £12,000 and sold it 3yrs later for £36,000. We bought the next house for £46,000 and have spent probably£60,000 on an extension, kitchen etc. It's only worth about £320,000 but we won't see a benefit from it unless we move to a cheaper area or downsize to a house that needs a lot of work.

Yeah but that's 12'000 ending up as 320'000
Not far off 30x

Call me naive. But can't see a 200k house now ending up as 6 million in 40 years.

 

[Nutty667]

Sorry but you need to let this go. Continually responding to people suffering today with the "we had it tough as well you know" attitude feels like attempts to minimise people's current issues.

You feel you had it tough and that's fine. What good does it do to current people struggling to effectively say "we had it tougher"... Is it a competition as to who had it worse under the threat of being made homeless or something?

Think he was talking about the current interest rate rising from historic lows. Not the high interest rates our parents had back in the day.

 

[Richie]

Think he was talking about the current interest rate rising from historic lows. Not the high interest rates our parents had back in the day.

Oh, believe me, he is talking about the interest rates he had back in the 80's/90's. Evidence - whenever someone brings up the state of rates today he always throws in the "well we have double digit rates when I had a mortgage" style argument.

Sorry, didn't realise I couldn't give an opinion.

I didn't say that so stop with the faux victimhood.

I don't even mind people mentioning historical rates/experiences but, where people are talking about what is happening recently, it's a poor show to have the same REPEATED rhetoric of "that's nothing, we had 15% interest rates and they changed monthly" as if to tell them they dont know what "bad" is. Its very dismissive... When someone is worrying about losing their home, it's equally bad regardless of if its now or in the 80's/90's.... Its not some form of competition as to who is the most hard done by.

 

[matt100]

Oh, believe me, he is talking about the interest rates he had back in the 80's/90's. Evidence - whenever someone brings up the state of rates today he always throws in the "well we have double digit rates when I had a mortgage" style argument.



I didn't say that so stop with the faux victimhood.

I don't even mind people mentioning historical rates/experiences but, where people are talking about what is happening recently, it's a poor show to have the same REPEATED rhetoric of "that's nothing, we had 15% interest rates and they changed monthly" as if to tell them they dont know what "bad" is. Its very dismissive... When someone is worrying about losing their home, it's equally bad regardless of if its now or in the 80's/90's.... Its not some form of competition as to who is the most hard done by.

Especially when coupled with total tone deaf rejection of any countering data points such as price to earnings ratios etc.

You're right it's not a competition, the rates going well into double digits out of the blue hurt a lot of people.

Just as house prices being impossibly high and then couple that with a sudden spike in interest rates is also hurting people.

It's not an either or so constantly dragging it back to the past when nobody is really disputing that it was hard is just.. I dunno, bitterness? Self congratulatory? Not sure tbh.

 

[tonys]

Oh, believe me, he is talking about the interest rates he had back in the 80's/90's. Evidence - whenever someone brings up the state of rates today he always throws in the "well we have double digit rates when I had a mortgage" style argument.



I didn't say that so stop with the faux victimhood.

I don't even mind people mentioning historical rates/experiences but, where people are talking about what is happening recently, it's a poor show to have the same REPEATED rhetoric of "that's nothing, we had 15% interest rates and they changed monthly" as if to tell them they dont know what "bad" is. Its very dismissive... When someone is worrying about losing their home, it's equally bad regardless of if its now or in the 80's/90's.... Its not some form of competition as to who is the most hard done by.

I only pointed out the difference in we had to pay the increase immediately not in 3 or 5 years down the road.

 

[Richie]

I only pointed out the difference in we had to pay the increase immediately not in 3 or 5 years down the road.

But it works both ways... When the BoE dropped interest rates from 5% to 0.5% in circa 6 months (Sept 2008 to March 2009), some of the people that fixed on 3 or 5 years pre-Sept were then stuck on high rates due to exorbitant early term fees and potential negative equity on their property.... If that drop happened to you, when long term fixes weren't a thing, you wouldn't have been negatively affected in the same way as the rapid drop would affect you immediately.

Some of the people that bought just before the crisis hit (circa mid 2007) had their finances devastated over the decade following it - it sucked but I rarely hear anyone moaning about it today as much as the older generation (60+) do about it nor do you hear them dismiss the younger generations with "we had it worse than you lot today so stop complaining" like the older one does.

 

[fez]

I have no idea how anyone is still genuinely arguing that things were just as hard in the past. Nothing suggests that other than anecdotes from the people who benefitted from lower house prices. Hell, I would love to go back 20 years even and buy a house. Make that 10 years. Nothing about buying a house is getting easier, better or more affordable.