Mortgage Rate Rises

Slam62 · 26 Sep 2022 at 20:18

LabR@t said:
People who haven't already bought.

All us boomers, lovely jubly

neocon · 26 Sep 2022 at 20:18

Doobedoo said:
Who will end up buying all those cheap houses though….

Cash buyers and then they'll let them out.

Doobedoo · 26 Sep 2022 at 20:18

LabR@t said:
People who haven't already bought.

It’ll be those that come out of all this multiple times richer.

Slam62 · 26 Sep 2022 at 20:19

neocon said:
Cash buyers and then they'll let them out.

It's me pension innit

Doobedoo · 26 Sep 2022 at 20:20

I’m not sure how this is all going to pan out. I decided to take a 10 year fix before the interest rates started climbing. I’m shielded from interest rate rises but who knows what state the economy will be in.

Stu999 · 26 Sep 2022 at 20:21

Doobedoo said:
It’ll be those that come out of all this multiple times richer.

People bought BTL in recent years because there was no decent return on cash unless you’re willing to trade stocks. If savings rates improve they’ll go for a risk free return.

Who wants to earn 5% on a BTL when a tenant could smash it up or not pay while you struggle for a year+ to evict them?

Richie · 26 Sep 2022 at 20:21

purplesky said:
I think a whole load of people are going to discover that it is the Fed who sets the price of money.

The FED take advice and direction off your team though, right?

wildman · 26 Sep 2022 at 20:22

Doobedoo said:
It’ll be those that come out of all this multiple times richer.

Tory donors then................

JamesH85 · 26 Sep 2022 at 20:23

Doobedoo said:
I’m not sure how this is all going to pan out. I decided to take a 10 year fix before the interest rates started climbing. I’m shielded from interest rate rises but who knows what state the economy will be in.

That's what I wish I did.

purplesky · 26 Sep 2022 at 20:25

Richie said:
The FED take advice and direction off your team though, right?

No, but my team do indeed take advice and direction off the Fed.

Slam62 · 26 Sep 2022 at 20:25

Winners and losers and opportunities

Slam62 · 26 Sep 2022 at 20:26

purplesky said:
No, but my team do indeed take advice and direction off the Fed.

Are you Donald Trump

Surveyor · 26 Sep 2022 at 20:39

LabR@t said:
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

Of course you were going to pay but you were going to drastically reduce your usage by turning off the heating. Daddy we're cold; well kids, that's life.

LabR@t · 26 Sep 2022 at 20:48

LabR@t said:
People who haven't already bought.

Surveyor said:
Of course you were going to pay but you were going to drastically reduce your usage by turning off the heating. Daddy we're cold; well kids, that's life.

No only my gas, I will use my wood stove the heating is only on 4 hours a day m, this year it will be 2 or 3.
I have already bought a tonne of fuel. But I was using 3000kwh in those 4 hours a day mind you.

But from sky news.

For instance, while headline interest rates might have been just over 11% in 1988, adjust that for the fact that mortgage holders these days are considerably more indebted, with lower incomes vs their repayments, and that's equivalent to about 4.6% in today's market. An interest rate of 6% today is about the same as experienced in the housing market in 1989, when headline interest rates were nearly 14%.

kona786 · 26 Sep 2022 at 21:10

Mrwong said:
You forget like many she will not get to keep your home, she would need to sell it to pay IHT.

Not if its worth less than £650k.

That is the tax free threshold if I'm not mistaken.

Surveyor · 26 Sep 2022 at 21:19

Mrwong said:
You forget like many she will not get to keep your home, she would need to sell it to pay IHT.

kona786 said:

Not if its worth less than £650k.

That is the tax free threshold if I'm not mistaken.

Click to expand...

Up to £1 million with two lots of tax-free allowance and two lots of main residence allowance.

Inheritance tax

Legal inheritance tax planning is one of the easiest and biggest ways to save money possible - learn more about IHT planning and saving on death duties.

www.moneysavingexpert.com

kona786 · 26 Sep 2022 at 21:23

Surveyor said:
Up to £1 million with two lots of tax-free allowance and two lots of main residence allowance.

Inheritance tax

Legal inheritance tax planning is one of the easiest and biggest ways to save money possible - learn more about IHT planning and saving on death duties.

www.moneysavingexpert.com

So plenty then right.

Just the usual Mr Wong waffle then.

Mrwong · 26 Sep 2022 at 22:06

kona786 said:
So plenty then right.

Just the usual Mr Wong waffle then.

That's if you plan and what if you own a London home. Homes that postman's used to buy in the 80s and 90s are worth over 1.5 million now.
The cheapest 1 bed flat in my area is 600k min.

what about people that suddenly die etc... it is not that simple.

jonneymendoza · 26 Sep 2022 at 23:10

TheOracle said:
Well at least you thought about 5-6% rates. Some people didn't, and can't afford it.

I thought about max 5 percent and we can still afford that but I didn't look beyond that tbh.

Maybe stretching it.

With recession coming within in next week or two, is it stupid to now be doing renovations and extensions on a owned property? Is that money wasted and best saved up for hard times that's coming?

lookitsjonno · 26 Sep 2022 at 23:20

Doobedoo said:
I’m not sure how this is all going to pan out. I decided to take a 10 year fix before the interest rates started climbing. I’m shielded from interest rate rises but who knows what state the economy will be in.

That's looking like a really smart move, can't see it going back down any time quickly. 22 months left on mine and I'm already sweating