Mortgage Rate Rises

[Mercenary Keyboard Warrior]

With all that cash sloshing around, I guess their is not much chance of a property downturn anytime soon.

Which TBH is a good thing for the majority
What we could really do with is decades (like 2-3 minimum) of virtually unchanging house prices.

2-3 decades would likely see a roughly halving in effective real world cost.

 

[Doobedoo]

Which TBH is a good thing for the majority
What we could really do with is decades (like 2-3 minimum) of virtually unchanging house prices.

2-3 decades would likely see a roughly halving in effective real world cost.

Not good for investments though everything seems to be about growth and more, more, more.

 

[Mercenary Keyboard Warrior]

Not good for investments though everything seems to be about growth and more, more, more.

Actually there is a place in investments for more secure holdings as well. Not all investments are about growth. They should be balanced.

Eg historically many pension funds would move towards low risk low return assets as you approached retirement

 

[Martini1991]

Seeing some of the houses for sale with current mortgage prices, an absolute joke.

Tiny houses for sale at £935 a month mortgages. Jesus Christ

 

[McBain]

A typical two-year fixed deal now has a rate of 6.53%. The choice of mortgage products also dipped slightly.

As per BBC, rates on the rise.

 

[413x]

But you miss the key, this figure includes people selling a house and buying another. So they dont have all that cash in the bank, they buy the new house funded with the sale of their current house. The actual figure of people who have cash in the bank and could buy a 2nd house outright is far lower.

True enough.
Many downsizing would fall into this

 

[purplesky]

I remember reading about a year ago Lloyd's would be buying properties to become the Uk's largest private landlord.
So I guess any defaults where they own the mortgage and those repossessions won't make it to market.

Banks aren't in business to act as landlords and neither do they need to be.

 

[purplesky]

How many have the cash to buy additional properties?

More people than what many realise. The last 2 properties my friend bought were for £800k and £700k and rents them out to reliable professionals. He could have easily have bought many more cheaper properties in other parts of the country with that same £1.5M, and indeed many other cash rich landlords do.

 

[200sols]

Banks aren't in business to act as landlords and neither do they need to be.

Lloyds Bank aiming to become giant UK landlord

The banking giant has launched a new brand which will explore buying and renting out homes to tenants.

www.bbc.co.uk

 

[purplesky]

Lloyds Bank aiming to become giant UK landlord

The banking giant has launched a new brand which will explore buying and renting out homes to tenants.

www.bbc.co.uk

But is that a significant factor when compared with profits from elsewhere? A bank's fundamental operation is to act as a bank as that's their core business.

 

[200sols]

But is that a significant factor when compared with profits from elsewhere? A bank's fundamental operation is to act as a bank as that's their core business.

Perhaps your team could analyse it?

 

[purplesky]

Perhaps your team could analyse it?

We don't deal with property.

 

[Surveyor]

'In Q3 2020, 24% of homes in Great Britain were bought with cash, slightly down from 26% during the same period last year. And this comes even though more people own their home outright than ever before. According to the English Housing Survey, 54% of homeowners in England were mortgage-free in 2019, up from 46% in 2009.'

Percentages of cash buyers has been falling for years according to the same source.

I’ll leave it to Surveyor to comment as it’s his number. However the more recent numbers have jumped up a bit as clearly people have swapped properties in the city for others outside to be mortgage free is my guess.

12ft

Lucian Cook, head of residential research at Savills, said the proportion of cash buyers in the market might have been expected to fall in the past year, since home loan rates remained at historic lows and drove demand from mortgaged buyers. But the share of cash buyers remained unchanged at about 35 per cent of the market, and the average cash buyer bought a home valued at £368,600, compared with spending of £302,500 by the average mortgaged buyer. Cash buyers include people who sell one home to buy another, without taking out a mortgage, and those who buy without a prior sale, using cash.

 

[chrcoluk]

Clip of someone on QT saying they got a 10.5% mortgage offer now and even that was due to expire if she didnt rush into it.

 

[Surveyor]

Clip of someone on QT saying they got a 10.5% mortgage offer now and even that was due to expire if she didnt rush into it.

The same clip as from nearly three weeks ago?

https://twitter.com/x/status/1575768102985498625

 

[chrcoluk]

The same clip as from nearly three weeks ago?

https://twitter.com/x/status/1575768102985498625

Thats the one, I only first seen it today.

 

[Surveyor]

Thats the one, I only first seen it today.

If you go back and read from here you'll find the discussion at the time.

 

[jon86]

I just took a mortgage to pay for my house and found out about the rate rising. I'm shocked and don't know if it's covered by my insurance. I contacted the company where I took the mortgage and I'm still waiting for their reply.

What insurance are you referring to?

 

[Goodie]

I just took a mortgage to pay for my house and found out about the rate rising. I'm shocked and don't know if it's covered by my insurance. I contacted the company where I took the mortgage and I'm still waiting for their reply.

suspicious account is suspicious

 

[AndrewNR]

Insurance against interest rates. Interesting