Mortgage Rate Rises

Martini1991 said:
My fix ends December 2023 so there's a bit of time.

And then I'd have 28 years left on the term.

Don't really want to extend the term to be honest, but if we have to then we'll do it.
Click to expand...
It might only be temporary though, you can always reduce the term back down after.
 
SpeedFreak said:
Waste of time really. Let the market correct. I'm sorry, but if you borrowed at 2% but couldn't afford 6% then that is on you. The lack of self stress testing is what enabled you to outbid somebody who was potentially more prudent in their bid. A stamp duty holiday just increases purchasing power and prices go up to compensate. This benefits owners and not first time buyers which feels wrong.
Click to expand...

Are you currently mortgaged or renting... Or do you own your home(s) outright?
 
SpeedFreak said:
Waste of time really. Let the market correct. I'm sorry, but if you borrowed at 2% but couldn't afford 6% then that is on you. The lack of self stress testing is what enabled you to outbid somebody who was potentially more prudent in their bid. A stamp duty holiday just increases purchasing power and prices go up to compensate. This benefits owners and not first time buyers which feels wrong.
Click to expand...

I completely agree, unfortunately people don't self stress test themselves financially and will rely on the bare statutory minimum and borrow as much as they can for as long as they can, 50 year mortgages are now on the horizon, people will still take them out, if the banks start lending out 20 times income, people will still borrow the maximum, and then will blame everyone else when prices start to go up, they have made an important financial decision at the time and if they haven't done their homework with regards to the market then I'm afraid no sympathy from me. Buying at record low interest rates and then borrowing as much as you can and putting down every last penny is just stupid. But many have done it and are now complaining.

Plenty of people would have not taken on so much financial risk when buying when others have done so and in some cases recklessly and now spouting out they they had no choice and but could have continued renting, when many people have stuck to renting when they could have brought. I suspect those will now buy over the next year or two
 
Just done a quick check online and it looks like 3.45% on a 5 year fix from Barclays is the best about for me atm. I imagine that will be goners for me after this week though.
 
R.O.S.S.I said:
Just done a quick check online and it looks like 3.45% on a 5 year fix from Barclays is the best about for me atm. I imagine that will be goners for me after this week though.
Click to expand...

I'd lock that in ASAP.

I said in a few pages back i locked mine in for 3.58% for 2 years, which seems high for recent figures but not after day. I am glad it's done now rather than waiting until next month when my current rate finishes.
 
We've not even put any offers in yet. We are only going to be able to start looking properly once my house sale goes through (at the start of October sometime).

At that stage i'd be inclined to knock the house hunt it on the head until the New Year as the market tends to slow down quite considerably as you get towards Xmas with people not wanting to have the stress of moving over that time, but not sure I fancy waiting for 3+ months of further rate rises to potentially happen. Our tenancy is up at the end of Jan but luckily our landlord is a family friend so will be super flexible for us.

How often are rates scheduled to go up? Is it monthly at this stage?
 
I'm glad I got a five year fixed when I bought in August last year. I locked in at 3.38% on a 90% LTV. Looking at the same deal now the cheapest is 3.93% and an extra £130 a month.

Rates are going to be fairly nasty for the foreseeable but probably necessary given the loose fiscal policy inbound.
 
Rates go up significantly to support the GBP. Over-stretched debt donkeys lose their house

Or

Rates don't increase, the GBP collapses, and everyone eventually loses everything.

Which is it?
 
You must log in or register to reply here.
Back
Top Bottom