Mortgage Rate Rises

Skillmister said:
6.39% on a 2 year 90% LTV !!!!!!!!!!!!

Just checked with my figures as i'm with Nationwide on a lower LTV and right now it would bump my monthly payments from £450 to £708 :eek: I'm fixed until Jan 2024
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Yup throw in an increase in energy and pretty much everything else and the country is pretty much screwed. The vultures will be circling already
 
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Zefan said:
This sort of flies in the face of a lot of the actions people are taking within this thread then really right, in terms of taking ERCs now and fixing at a rate that the banks expect to drop over the fix period? Choosing a longer fix now is essentially insurance against an extended rise the banks don't expect to occur.
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Yes. Exactly what it is.

It was only a few months ago you could still get a 10 year sub 2% fix. The lenders aren't great at predicting the changes so everyone is making their own guesses.

A long fix now at an OK rate is quite attractive. You'll win in the short term and will have long term predictable out goings, this may cost you a bit if rates drop or save you a lot if rates don't.
 
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Minstadave said:
Yes. Exactly what it is.

It was only a few months ago you could still get a 10 year sub 2% fix. The lenders aren't great at predicting the changes so everyone is making their own guesses.

A long fix now at an OK rate is quite attractive. You'll win in the shirt term and will have long term predictable out goings, this may cost you a bit if rates drop or save you a lot if rates don't.
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Exactly you're basically paying for security.
 
kevman said:
IMF now openly slammed the mini budget - hopefully kwasi will do the decent thing and admit mistakes have been made
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Not all of the mini budget had a bearing of the pound falling though?

Things such as stamp duty discounts and ir35 being reset back to how it was pre 2018 did not make the pound weaker.

The damage was already done via brexit, covid and the Ukraine war.

Please dont think that the mini budget affected this… It’s been a slow painful journey to get to where we are.
 
Markets are now pricing in a 2% rate hike in November and a further 1%+ hike until the end of the year.

kevman said:
IMF now openly slammed the mini budget - hopefully kwasi will do the decent thing and admit mistakes have been made
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Not going to happen. Even if God comes down from heavens and the devil comes from hell to jointly tell this government that this is wrong, they won't admit any mistakes and they won't correct course.
 
jonneymendoza said:
Not all of the mini budget had a bearing of the pound falling though?

Things such as stamp duty discounts and ir35 being reset back to how it was pre 2018 did not make the pound weaker.

The damage was already done via brexit, covid and the Ukraine war.

Please dont think that the mini budget affected this… It’s been a slow painful journey to get to where we are.
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He did give it the finishing blow though. I mean, does anyone feel any richer with these tax cuts? If not, what was the point.
This was supposed to lessen the pain through winter, all it's done is make people worry.

I agree brexit didn't help, nor did the historical handling of the economy. You can't thirve on an economy hell bent on selling everything to overseas investors.

Add covid/furlough and ukraine into the mix and you end up on life support, because the NHS has been a basket case for years, and we'd do anything than build more nuclear reactors in this country.
 
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kevman said:
Exactly - there is quite a bit of smugness on here from those who have been risk adverse or conservative with house purchasing and now feel its all justified.
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Of course they do. They've watched people have a great time on cheap credit whilst they were still on a "beans and toast" lifestyle because they don't like risk.

Now they get to rub it in people's faces as if they were right all along when, in reality, that's not the case.


delta0 said:
People have short memories and can get stuck thinking the status quo will continue or last longer than expected good or bad.
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Extremely low rates lasted longer than expected... Why wouldn't some people think it would continue? This is probably more apparent in the younger generation as they have known nothing BUT low rates.

The "told you so" is generally from the older generations (30+ year olds) who have potentially had experience of higher rates.

Minstadave said:
The lenders aren't great at predicting the changes so everyone is making their own guesses.
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You can see this from the amount of mortgage deals being pulled recently... They haven't a clue what to do.

If the "experts" don't know what to do, how can you expect the average person to?
 
jonneymendoza said:
Not all of the mini budget had a bearing of the pound falling though?

Things such as stamp duty discounts and ir35 being reset back to how it was pre 2018 did not make the pound weaker.

The damage was already done via brexit, covid and the Ukraine war.

Please dont think that the mini budget affected this… It’s been a slow painful journey to get to where we are.
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Lets be generous and say it was only an accelerant. The immediate impacts are plain to see though down to the minute.
 
Zefan said:
This sort of flies in the face of a lot of the actions people are taking within this thread then really right, in terms of taking ERCs now and fixing at a rate that the banks expect to drop over the fix period? Choosing a longer fix now is essentially insurance against an extended rise the banks don't expect to occur.
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We were talking about the banks gamble. The other side of that gamble is what the homeowner is willing to risk. We have a 5 year fix that ends Feb 2024 and could pay the ERC but its about £5k I believe. Thats quite a rise in mortgage rates before that makes sense for us and I fully believe that within a few years this will be much better. I could be wrong and pay the price but thats just the other side of the coin of fixed rate mortgages. You as the buyer have to decide if you want the security of a long term mortgage vs the (usual) extra cost along with usually being locking into that mortgage if you want to move etc.
 
TheOracle said:
He did give it the finishing blow though. I mean, does anyone feel any richer with these tax cuts? If not, what was the point.
This was supposed to lessen the pain through winter, all it's done is make people worry.
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Yea it does. If you buy a house, you can potentially get massive stamp duty savings that could even pay for your electric bill for a year or more.

The IR35 reforms will promote more contractual jobs , at least in my sector and you have more control of your taxes if you are outside ir35.

Im not sure what other stuff was added to the mini budget but what specific parts do you think were damaging?
 
jonneymendoza said:
Yea it does. If you buy a house, you can potentially get massive stamp duty savings that could even pay for your electric bill for a year or more.

The IR35 reforms will promote more contractual jobs , at least in my sector and you have more control of your taxes if you are outside ir35.

Im not sure what other stuff was added to the mini budget but what specific parts do you think were damaging?
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Nobody is buying a house with these interest rates
 
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