Mortgage Rate Rises

adam cool dude said:
I hope it happens even if I went into negative equity. It cannot carry on like this. It is an absolute joke.

My daughter is 15 and unless she gets some super duper top paying job or marries and millionaire she has to wait for us to die to get on the ladder which just isn't right.
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You forget like many she will not get to keep your home, she would need to sell it to pay IHT.
 
TheOracle said:
people will happily take on huge levels of debt, if the bank lets them

I've long struggled to understand how the young members of my team have been able to buy the houses they have. They are worried sick about the rates going up.
It simply doesn't enter peoples minds to budget for a rate rise. They are maxed out, so when their fixes end they have nowhere to go. They can't afford a penny more.

I think banks will have to switch everyone onto interest only mortgages, where they are technically renting from the banks.

What confuses me is that after the 2007/2008 crash I thought banks had to have tighter lending criteria. How then, has my cousin who earns below UK average, and his wife who earns minimum wage part-time been able to buy a 5 bed detached house?
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Oh they did do. When we bought in 2010 we needed to put down 25% to get anything decent rate wise and they wouldn't lend for love not money unless you put in big. That soon went out the window.

In a way it spurred us on and we were saving 2 grand a month living on beans on toast and basics.
 
adam cool dude said:
Oh they did do. When we bought in 2010 we needed to put down 25% to get anything decent rate wise and they wouldn't lend for love not money unless you put in big. That soon went out the window.

In a way it spurred us on and we were saving 2 grand a month living on beans on toast and basics.
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The problem is cutbacks, like free universities, more and more what used to be placed on the back of the government has been transferred to people. Yet the taxes still rise, and then you have things like fiscal drag that really hurt the economy.
One major problem ( there are a few) is opening up our property to those outside of the UK, this means we are all competing with not only our own population but those from other countries. Same theory as inflation when it comes to money, the speed in which money flows, and more people chasing a limited amount.
 
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sigma said:
Says the person who essentially has no mortgage.
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It does, negative equity is the only downside if your house is a home and not an investment what is the problem?

Lower prices will mean ownership becomes easier for all? What's the downside?
I pretty much own my home as you have stated I don't care if it drops in value as it's all relative, if you go into negative equity no big deal if you can keep up with the payments it's not a problem, if you can't then yes it's going to be an issue but that's life.
 
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LabR@t said:
It does, negative equity is the only downside if your house is a home and not an investment what is the problem?

Lower prices will mean ownership becomes easier for all? What's the downside?
I pretty much own my home as you have stated I don't care if it drops in value as it's all relative, if you go into negative equity no big deal if you can keep up with the payments it's not a problem, if you can't then yes it's going to be an issue but that's life.
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Where was your "that's life" attitude when you were having a meltdown about energy prices?
 
Surveyor said:
Where was your "that's life" attitude when you were having a meltdown about energy price
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I was going to pay the energy costs I was making the point it sucks.
Life isn't fair

Tbh lots here have been banging on about house prices being to high now they are not happy it's going to happen, lol
 
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danlightbulb said:
BoE are about to screw over millions and will say their hands are tied.
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Well no, people have screwed themselves over. If people were too stupid to not realise that rates can go up and haven't been planning for such events, that is on them.

I think a whole load of people are going to discover that it is the Fed who sets the price of money.
 
LabR@t said:
It does, negative equity is the only downside if your house is a home and not an investment what is the problem?

Lower prices will mean ownership becomes easier for all? What's the downside?
I pretty much own my home as you have stated I don't care if it drops in value as it's all relative, if you go into negative equity no big deal if you can keep up with the payments it's not a problem, if you can't then yes it's going to be an issue but that's life.
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Who will end up buying all those cheap houses though….
 
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