Mortgage Rate Rises

Richie said:
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.
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Yes it does work both ways, I'm quite aware of that. Just like any other house owner we've had to go through the good and bad times just like those now.
The in laws were astonished at us having to pay out £12,000 on a terraced house in 81 because their first house bought about 50-53 (detached house with land for two other properties to be built years later) was £800 on a private loan with about £100 put down from an inheritance. It must be worth £450,000 now plus add in what they got for selling the land.

Sorry it sounds like they still owned it. They sold it in 60 for £3,000 and they bought a semidetached house which was sold for £140,000 about 6yrs ago to pay for the mother-in-laws care. Father in law had already died.

Just looked at Zoopla and the in laws house was sold for £200,000 in 19 after some modernisation was done then again in 22 for £208,000
 
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fez said:
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.
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Some places had lower prices to be sure but our prices were going up because of the influx of Londoners, pricing quite a few locals out. We were lucky to buy just at the start of the gazumping cycle.
 
In Manchester, two bed room houses are like hen’s teeth. You either get a two bedroom apartment, an old build three or four bedroom ex council or just go further a field.

I choice the latter and still had to buy for surveys on three different houses as all three was over priced and the first two wasn’t prepared to lower the prices. Some people just don’t understand that if the bank sends a surveyor to value the house and area, that’s likely to be the same local surveyor that all the mortgage lenders are going to send, and that’s the maximum that they are willing to lend for the house. They just hope that buyers are desperate enough to pay the difference.

The estate agents are a pain in the backside around here too, trying to get you to sign up for their paid house finding schemes, refusing to take offers without them having a copy of your bank statements first. I just plainly refused as they had my mortgage in principal offer from the bank, in most cases was a lot more than I was offering for the house.

There was one estate agents that had a house up for offers above 140k. So I straight up over 140k for it, they refused to take the offer to the owner and I had to remind them of their responsibilities. The offer got refused but a few months later, I got a call asking if I was still interested in the house and that the asking price dropped to 125k.

I would have most likely would have moved again if it wasn’t such a PITA experience. If I do move, I’m most likely aim for one of the villages in Warrington.
 
slinxy said:
There was one estate agents that had a house up for offers above 140k. So I straight up over 140k for it, they refused to take the offer to the owner and I had to remind them of their responsibilities. The offer got refused but a few months later, I got a call asking if I was still interested in the house and that the asking price dropped to 125k.

I would have most likely would have moved again if it wasn’t such a PITA experience. If I do move, I’m most likely aim for one of the villages in Warrington.
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Should have countered with 110k :D
 
tonys said:
Yes it does work both ways, I'm quite aware of that. Just like any other house owner we've had to go through the good and bad times just like those now.
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I'm not arguing there... Perhaps my explanation hasn't been very clear. The issue I have is this:

Whenever the younger make issue with higher interest rates or housing prices, the older generation (who have generally paid their mortgage off) automatically respond with “well we had it tough with 15%+ interest rates” or "its all those Costas and Netflix you buy". Whether its intentional or not, they are completely dismissing the younger generations experiences as if its irrelevant and not worth hearing.

They just seem to be unwilling or unable to show empathy

Here's a question for @tonys, and anyone from the same generation who bought their house in the times of 15% interest, to ask themselves - Do you think you could currently afford to buy AND KEEP the same house today that you managed to buy back then? If not, why not?
 
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Richie said:
I'm not arguing there... Perhaps my explanation hasn't been very clear. The issue I have is this:

Whenever the younger make issue with higher interest rates or housing prices, the older generation (who have generally paid their mortgage off) automatically respond with “well we had it tough with 15%+ interest rates” or "its all those Costas and Netflix you buy". Whether its intentional or not, they are completely dismissing the younger generations experiences as if its irrelevant and not worth hearing.

They just seem to be unwilling or unable to show empathy

Here's a question for @tonys, and anyone from the same generation who bought their house in the times of 15% interest, to ask themselves - Do you think you could currently afford to buy AND KEEP the same house today that you managed to buy back then? If not, why not?
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We do buy a load of junk these days.

We had one TV in our living room and one in the kitchen. When I got older I managed to get one in my bedroom for my birthday. I had a Mega drive and some toys.

Fast forward today and we have a TV in every room, several consoles, several computers, tablets etc. I do believe people are far more wasteful myself included.
 
adam cool dude said:
We do buy a load of junk these days.

We had one TV in our living room and one in the kitchen. When I got older I managed to get one in my bedroom for my birthday. I had a Mega drive and some toys.

Fast forward today and we have a TV in every room, several consoles, several computers, tablets etc. I do believe people are far more wasteful myself included.
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I mean, I only started to have a TV in most rooms AFTER I got my own place, not like I would do that when I was sharing a house with people :)
 
Richie said:
I'm not arguing there... Perhaps my explanation hasn't been very clear. The issue I have is this:

Whenever the younger make issue with higher interest rates or housing prices, the older generation (who have generally paid their mortgage off) automatically respond with “well we had it tough with 15%+ interest rates” or "its all those Costas and Netflix you buy". Whether its intentional or not, they are completely dismissing the younger generations experiences as if its irrelevant and not worth hearing.

They just seem to be unwilling or unable to show empathy

Here's a question for @tonys, and anyone from the same generation who bought their house in the times of 15% interest, to ask themselves - Do you think you could currently afford to buy AND KEEP the same house today that you managed to buy back then? If not, why not?
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Sorry to not reply sooner.
I don't know without trying to figure out what I and the wife would be earning now and look for a recent price for a similar house. Considering I've not had to look at mortgages and such for over 20yrs how can I say.
I'll have a look to see if I can find something out.
From what people are saying on here the answer is probably not or we would struggle.
 
adam cool dude said:
We do buy a load of junk these days.

We had one TV in our living room and one in the kitchen. When I got older I managed to get one in my bedroom for my birthday. I had a Mega drive and some toys.

Fast forward today and we have a TV in every room, several consoles, several computers, tablets etc. I do believe people are far more wasteful myself included.
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You're denying reality mate.

4 TVs = £2,000
Netflix = 200yr
Pc = 2000
2 tablets = 400

Great now you're only 270k short of that house.

I grew up in a council house , on school dinners, went on summer holidays to Europe and I had a hand me down TV /SNES in my room. Council wanted 18k for the house. Same house is now 190k and wages haven't gone up 10x.

Without a leg up it's hard going for most these days.
 
tonys said:
Sorry to not reply sooner.
I don't know without trying to figure out what I and the wife would be earning now and look for a recent price for a similar house. Considering I've not had to look at mortgages and such for over 20yrs how can I say.
I'll have a look to see if I can find something out.
From what people are saying on here the answer is probably not or we would struggle.
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I have two points related to this Tony.

The first is that I appreciate your honesty in this answer.

The second is slightly less favourable to you. :p

Don’t you think that’s probably something you should look into and have a firm grasp on before rushing to point out to younger people who can’t ever dream of owning a house today, that you struggled too?

Not to dig at you, we’ve had this conversation before, but it’s why people that drool over data like myself like to post affordability and income versus average house price charts rather than over-simplify with headline rate comparisons that are largely meaningless in isolation.
 
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GordyR said:
I have two points related to this Tony.

The first is that I appreciate your honesty in this answer.

The second is slightly less favourable to you. :p

Don’t you think that’s probably something you should look into and have a firm grasp on before rushing to point out to younger people who can’t ever dream of owning a house today, that you struggled too?

Not to dig at you, we’ve had this conversation before, but it’s why people that drool over data like myself like to post affordability and income versus average house price charts rather than over-simplify with headline rate comparisons that are largely meaningless in isolation.
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Not a problem, I am probably being more reactionary than I should, having as I say been out of the loop for so long. I have a son and daughter both buying their own house's with their partners ( bought 2017 and 2019). The son hasn't had to have any help as he doesn't spend money, but we did help the daughter by letting them stay with us, so they could save up the deposit.
 
Times have changed and the general "cost of living" is a lot different between each of the decades.

People didn't have TVs in each rooms until the 2010-ish, because they used to cost loads and take up loads of space having a CRT TV in room but it did double up nicely as a heater. Now you can pickup a decent flat screen TV for under £400 let alone all the rubblish ones people tend to buy on black friday from the supermarkets.

The megadrive cost £189.99 in 1990 when it first came out, that's £451.60 in todays money which is roughly a modern day console.
Video games haven't really increassed in price at all and now are the equivalent of people buying a music album LP in the 80s for entertainment.

That tablet has replaced the daily subscription to the local newspaper.. the mobile phone has replaced the house phone and the ability to pop down the street to see your friend.

People used to go to the pub then to the football match and have pie and chips on a regular bases in the 80s. I would hate to figure out how much that would cost me in todays money. Even going to the local and having a few pints, at over 6 pounds a pint to watch the game is so expensive, if I want to go to a pub as an Arsenal fan to watch a game in manchester and make it out alive. So it's cheaper for people to sit at home and pay for skyTV drinking a few cans from the supermarket.

Even the buying a coffee in the morning, doesn't stack up... in the 80s people would work more locally. Now a days, if you want to earn a good amount.. you're likely working in a city that will charge you an arm and leg for parking; IF you are allowed to park nearby. So you get public transport that takes over an hour or so, some people need that morning coffee.

Generally speaking a lot of things have just become cheaper but they just don't last as long as they did... items that haven't changed much like houses, cars, holidaying in the uk and child care have just become much more expensive.

Not saying the cost of living wasn't hard back in the days, just that the expenses in living now a days is different... before people could afford to have kids now having a child is a luxury and privillege that all of the family pay for... the whole capitalism system is designed to keep you working until you drop.
 
Goodie said:
Get out of this thread the two of you!
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I’m locked in until 2029 on a pre-covid 2.4% 10 year fix. When we fixed, rates were creeping up and a 10 year was not substantially more expensive than a 5 year fix. Rates only needed to go up 0.5% within 5 years for us to be quids in over 10 at the time.

We would now be getting rinsed if we only went for a 5 year deal in 2019 which was the conventional wisdom at the time.
 
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413x said:
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.
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You've missed the fact that I sold the first house for £36,000 and bought the second for £46,000, that is now worth about £320,000 so only 7x.
The first house is worth about £180,000-£200,000 so about16x.
 
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