Mortgage Rate Rises

[delta0]

Are you trying to win a competition to be the last person standing still supporting this objectively disastrous budget?

No. We are not the only ones going through this recession, that was not a statement in support or against the budget. We have just accelerated the short term downside with the budget by forcing increased borrowing at the wrong time.

 

[jonneymendoza]

It's amazing how things can unravel so fast. It's like watching a horror film.

And its only figures and numbers now.

There will be repossessions, mass job losses, suicides and depression rampant.

Truss and Kwasi better watch out. So many people will lose everything and a big part is down to them.


I guess, how bad do things have to get before they are outed by their own party? They are directly hurting a huge chunk of their voter base. Financially secure borrowers

Sorry but the big part is not down to them. It's down to Brexit, Covid and the war.

Its not just in the UK where things are going to ****. Most of the western world are also going to have a rough ride. Some worser than others. And yes we seem to be one of the worse to be getting the hit. Make no mistake, other countries also will suffer to some degree.

Stop with this blaming on truss. It really is not her own doing...

Boris played a larger role on this and so did David Cameroon and Teresa May...

They did far more damage than you think

 

[jonneymendoza]

No. We are not the only ones going through this recession, that was not a statement in support or against the budget. We have just accelerated the short term downside with the budget by forcing increased borrowing at the wrong time.

Well said. Hit on the nail

 

[Uther]

Short term downside lol.

 

[413x]

Sorry but the big part is not down to them. It's down to Brexit, Covid and the war.

Its not just in the UK where things are going to ****. Most of the western world are also going to have a rough ride. Some worser than others. And yes we seem to be one of the worse to be getting the hit. Make no mistake, other countries also will suffer to some degree.

Stop with this blaming on truss. It really is not her own doing...

Boris played a larger role on this and so did David Cameroon and Teresa May...

They did far more damage than you think

Have you seen what's happened in the last few days?

Some of it is down to world wide factors. But truss is adding to it. You don't get statements like this from the IMF and government borrowing rates worse than Italy just after truss etc are laying out their plans by coincidence.

 

[CapitalOne]

Stop with this blaming on truss. It really is not her own doing...

Boris played a larger role on this and so did David Cameroon and Teresa May...

You are correct, the Tories since Cameron announced the Brexit vote having given in to the proto Kippers have caused all this.

I do blame Truss for doing the polar opposite of what is so blatantly required (ideology or incomepence as the motive doesn't matter). That is entirely her fault. To be fair she said she would do it and the Tories still voted her in, so it's their fault as well.

Things are never as bad as they might seem at the point of impact if you like (like now) however our impact is caused by a drunk driver and some people are still happy with that? I'm baffled.

 

[fez]

Sorry but the big part is not down to them. It's down to Brexit, Covid and the war.

Its not just in the UK where things are going to ****. Most of the western world are also going to have a rough ride. Some worser than others. And yes we seem to be one of the worse to be getting the hit. Make no mistake, other countries also will suffer to some degree.

Stop with this blaming on truss. It really is not her own doing...

Boris played a larger role on this and so did David Cameroon and Teresa May...

They did far more damage than you think

Of course its not her doing but she is responsible for making the best of a bad situation. Something which she is making a ******* mess out of. Just because you inherit a bad situation doesn't absolve you of blame when you make more subsequent bad decisions.

 

[Uther]

Stop with this blaming on truss. It really is not her own doing...

Will you still be happy with Truss if your house falls through and you need another mortgage with the new rates?
Asking for a friend.

She and her idiot chancellor have just screwed over anyone trying to get on in life, with a job, a mortgage, living costs, everything.
The people who they might expect to vote for them.

 

[Chris344]

Economist predict a max of 15% fall.

Do you have a link for this?

 

[wildman]

Plus the media are scaremongering and all mortgage websites advising to fix asap its no wonder there is panic.

I do agree with you and i think we may just sit on a variable ans see what happens!
There is already talk of a kwasi uturn on the budget! BoE are trying to get the OBR involved

highlighted part

OBR should have been involved from the start. However they weren't because Kami Kwasi and his handler Truss both knew the OBR would tear them a new one as their plan is insane.

 

[Chris344]

I wouldn’t either. There’s far too many cash buyers that will snap things up before average Joe could get a look in anyway. Hong Kong people are snapping up everything around my way.

Where is your way? What part of London?

 

[GordyR]

No. We are not the only ones going through this recession, that was not a statement in support or against the budget. We have just accelerated the short term downside with the budget by forcing increased borrowing at the wrong time.

Eh?

The recession isn't the issue... We need a recession to cool off the economy and bring down inflation.

What's unique to us is that we have a government who are working directly against that aim by simultaneously heating up the economy with inflationary policies at precisely the most breathtakingly stupid time.

It's absolutely insane and the issue we've been discussing for the last few days is entirely the result of this ludicrously damaging budget.

Trying to paint this as some kind of shared pain that all countries are going through right now is pure nonsense.

 

[jonneymendoza]

Will you still be happy with Truss if your house falls through and you need another mortgage with the new rates?
Asking for a friend.

She and her idiot chancellor have just screwed over anyone trying to get on in life, with a job, a mortgage, living costs, everything.
The people who they might expect to vote for them.

No of course not but I would blame Boris more than her for the ******* shambles we are in.

Don't kid yourself, even if truss diddnt do a mini budget, you still think that the interest rates would not have risen? Lool I would still be ****** regardless

 

[delta0]

Do you have a link for this?

It was in a lot of the paper over the last couple of days. First link I grabbed suggests 10-15% https://www.heraldscotland.com/news...prices-may-slump-much-15-interest-rates-rise/

Others like guardian say 10% https://amp.theguardian.com/busines...nsider-tax-cuts-stinging-attack-business-live

Telegraph 15% https://www.telegraph.co.uk/business/2022/09/27/house-prices-fall-much-15pc-interest-rates-hit-6pc/

 

[delta0]

Where is your way? What part of London?

North West London. On the zone 2/3 border.

 

[delta0]

Eh?

The recession isn't the issue... We need a recession to cool off the economy and bring down inflation.

What's unique to us is that we have a government who are working directly against that aim by simultaneously heating up the economy with inflationary policies at precisely the most breathtakingly stupid time.

It's absolutely insane and the issue we're discussing here is entirely the result of this ludicrously damaging budget.

Trying to paint this as some kind of shared pain that all countries are going through right now is pure nonsense.

Don’t disagree we have not done ourselves any favours. However to think we have this the worst is far from true, to state the obvious.

 

[TS7]

Generally people need a house to live in so we aren’t going to see the market flooded. It will just seize up like last time (and the time before).

I there is quite a bit of 'fat' in the market right now.

There are many, many people - especially 20s and 30s currently renting who if it came to it could comfortably move back home to their parents. There are those who may need to compromise i.e. share bedrooms back home or empty out the office room etc. but the option to exit the rental agreement and return home will be there. Even more so now, with the availability of working from home and remote jobs.

Then there are those currently living in much bigger properties than are necessary i.e. I worked with someone who rented a 3 bed detached house as a single person as a) they could comfortably afford the rent b) it gave them space for their various hobbies. However, if things get tight they could advertise for roommates (who may be coming from individual 1 bed flats) all consolidating in to one property.

It's also very fashionable for early 20s to be renting new build apartments with their partners - instagram is flooded with 'apartment design' type accounts. I'd imagine these people could hand the keys back and return home.

But I agree - the market will not be 'flooded' with properties.

 

[Haggisman]

The government needs to get on the front foot with that. The fact is that most landlords should be equity rich, therefore tenants should be protected from landlords passing on costs to this degree.

Yeah right...

 

[delta0]

I there is quite a bit of 'fat' in the market right now.

There are many, many people - especially 20s and 30s currently renting who if it came to it could comfortably move back home to their parents. There are those who may need to compromise i.e. share bedrooms back home or empty out the office room etc. but the option to exit the rental agreement and return home will be there. Even more so now, with the availability of working from home and remote jobs.

Then there are those currently living in much bigger properties than are necessary i.e. I worked with someone who rented a 3 bed detached house as a single person as a) they could comfortably afford the rent b) it gave them space for their various hobbies. However, if things get tight they could advertise for roommates (who may be coming from individual 1 bed flats) all consolidating in to one property.

It's also very fashionable for early 20s to be renting new build apartments with their partners - instagram is flooded with 'apartment design' type accounts. I'd imagine these people could hand the keys back and return home.

But I agree - the market will not be 'flooded' with properties.

Not as much fat as there has been. The changes to BTL has made it not very favourable to own multiple properties so there has been quite a lot of dumping onto the market over the last few years.

 

[SpeedFreak]

-15% from pre-covid levels seems more likely, probably 25%. The market doesn't move without first time buyers and their affordability has been crippled. Anyone previously looking at a 250k property with a 50k deposit would have expected repayments of £850 per month. At 6% their borrowing capacity reduced by 70k. They are now looking at a £180k budget. Some may stretch a little, but decreased in excess of 25% seems probable. If mortgage rates get to 7% or higher then -30% seems certain.