My mortgage is up next month.
A jump from 1.64%
2yr fixed 4.55%
5yr fixed 3.86%
I cant see interest rates coming down drastically in 5 years time, and a expected increase announcement this week from the BoE
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My mortgage is up next month.
A jump from 1.64%
2yr fixed 4.55%
5yr fixed 3.86%
I cant see interest rates coming down drastically in 5 years time, and a expected increase announcement this week from the BoE
Was always going to happen post Covid due to supply and demand factors, causing a surge in inflationQuote:
Originally Posted by WJ99mobile
https://www.economicshelp.org/blog/1...gh%20inflation.
Quote:
Originally Posted by WJ99mobile
Because of the uncertainty they try and factor in a bit of extra profit from fixed-rate deals in a rising market, if it was me I would consider a tracker rate if you can get a good one, I think you would gain on a five-year, two year probably there won't be much in it either way?
Harder decision than usual at the moment.
Thanks to your matesQuote:
Originally Posted by North Cardiff Blue
Less any mortgage payer forgets I will give you 2 names:Quote:
Originally Posted by Pedro de la Rosa
Kwasi Kwarteng
Liz Truss
Interest rates have risen by 3.25% in the eurozone since last Sept when the budget was. In the US by 2.75% In the UK they have risen by 2.5%Quote:
Originally Posted by Former Labour leader
I've just gomne through this process. I would lock in at a five year fixed. It'll likely be a better rate and whilst interest rates may fall, I can't imagine it will be by a huge amount - if it is, then it will be because of some huge economic issue that will likely trump any concern over paying a stable mortgage price
I remember my first house and thinking 9,% was normal.
Today's world is as a result of another Bank of England feck up they kept intrest rates to low for too long after the recession giving folk the wrong perception that they could buy property, grab loans that were probably way out of their league.
Many could end up with difficult decisions now as the payback rises .
Forgetting the mad Truss era, if anyone thought the rates would stay that low forever, they were bonkers or badly advised it's been coming for years.
I see the European and USA banks are also under fire.. for simalair poor decision making, and the madness of their quantative easing policy... Which simply masked the debts.
When I first bought my flat in 1979, rates were double figures.
When I moved to Cardiff in '87, I got a fixed 10" - and rates jumped to 16% in the following years.
I remortgaged in 92(?) after Black Wednesday when rates plummeted.
I got really lucky. I bought my current house at exactly the right time and I refinanced at 2.75%. I don't think I'm going to ever get better than that. Although, I'm pretty sure I'll be dead before it's paid off. Sorry wife and children.
While the pair of them made a right mess of things you have to deal with the facts not political dogma. There's not a huge difference between the UK and elsewhere in Europe. Interest rates in Europe for example are expected to rise to 4% against current UK rates of 4.25% (possibly rising again in the UK later this month) but falling to an expected 2.3% in 2024. Current mortgage rates in the USA are 6.91%Quote:
Originally Posted by Former leader
I took a 2 year fixed deal in January, Probably now saving myself £250+ a month. Have a plan to get my mortgage paid off in 2 years times when deal ends. It's become a goal and one that will lift the pressure of work away knowing we are sat on a mortgage free property.
Interest rates historically have always hovered around 5% havent they? Seem to remember much higher in the mid 80’s like 15%?
Best feeling ever to get mortgage free……:thumbup:
Our first mortgage rate was a capped deal at 7.95%. I remember at the time (late 90s) the broker saying he was in a fixed deal with a rate of about 10 or 11.
I've set myself a goal of paying off my mortgage by the time i'm 55 (9 years to go). The thought of having a mortgage free property and saving £1200 a month appeals greatly.Quote:
Originally Posted by Michael Morris
Pretty sure my first mortgage was at 16%, could only afford it as I had cash back from Barrats for first 2 years and a tapered payment schedule for endowment. Was paying over twice as much per month on £40k than I do now for £70k, but now owe less than £10k so not really an issue.Quote:
Originally Posted by bobh
I pay more than double what my parents ever paid for their mortgage repayments, on a house that is worth half as much.
OK Boomer. You could probably still afford family holidays and all the trimming with just 1 income per family working in a factory or a supermarket.Quote:
Originally Posted by bobh
I’ve managed to pay off two mortgages, it’s hard though and takes commitment but worth it.Quote:
Originally Posted by goats
For those struggling, perhaps they could consider a cheaper area or location ?
Or pull up their boot straps! Why aren't working family's rich, lazy ****ers!Quote:
Originally Posted by TWGL1
Huh, it was just a suggestion, and I know a few who have done it , or downsized and it’s the best thing they have done.Quote:
Originally Posted by OurManFlint II
Each to their own though of course , and I’d be very careful to judge somebody’s background on a messageboard post if that’s what you’re implying..
You're way off the truth.Quote:
Originally Posted by OurManFlint II
I guess it’s much harder these days. I bought a house in Heath for 52k in 1998, think I was earning about 23/25k then, one of the lowest in the IT office I worked in. Had a 10 yr mortgage but paid it off a bit earlier….house twice salary.Quote:
Originally Posted by TWGL1
If you doubled the payments of a 25 year mortgage in the 90's you were able to repay it in 7 years, mad but even then not many people could afford to double the mortgage payments.
In the last year alone, house prices have risen by 14% while earnings have FALLEN by 1%.Quote:
Originally Posted by TWGL1
It is incredibly hard to get onto the housing ladder. The average house price in the UK is 294k. The average salary is around £26k. It has got insane but it's OK, because young people just need to work harder :hehe:
A lot of older people appear to have completely lost touch about the reality of house prices in the UK, they in turn vote for politicians who won't do anything about it.Quote:
Originally Posted by Pedro de la Rosa
I see we're not using era in its truest sense hereQuote:
Originally Posted by life on mars
the average salary is more than £26k.Quote:
Originally Posted by Pedro de la Rosa
But yes, your point is valid. There is a disconnect between average house prices and average earnings.
I can't find it at the moment, but there's a clip of Jeremy Vine illustrating on his TV show how the market has changed in the last 20 years or so.
I may be slightly out with my figures but back then an average property would cost about 4x the average salary, whereas now the figure is about 10x.
It doesn't just affect the ability to afford a mortgage, but also the ability for a renter to save for a deposit.
Because the renter is paying some other guys mortgage, who then brags he owns two homes with no mortgage.Quote:
Originally Posted by The Bloop
Buy-to-let landlords are parasites. Incredible to think that they were enabled by a Labour chancellor.Quote:
Originally Posted by OurManFlint II
True, but the sorry state of housing can be traced back to the right-to-buy of council houses over 4 decades ago.Quote:
Originally Posted by LeningradCowboy
The problem is due to house prices increasing because interest rates were so low. Now interest rates are higher repayments on mortgages to fund the higher house prices have become unsustainable.
Property prices almost globally been going up, since time began, only 1 inevitably in life! Sure some bumps but only 1 trend on that graph no matter how you dress it. Regardless of interest rates!Quote:
Originally Posted by Vindec
Same with buy to let, not a unique UK issue, global.
Why?Quote:
Originally Posted by bobh
A million houses flogged off and not replacedQuote:
Originally Posted by LeningradCowboy
That's why
So a 'million' households bought the house they were renting. How does that push prices up ?Quote:
Originally Posted by SLUDGE FACTORY
A million houses taken out of public ownershipQuote:
Originally Posted by A Quiet Monkfish
Increasing the pressure on housing across all tenures
The Tories try to twist the whole policy as a win win but for those working in housing , especially at the front end the results were a disaster and things have never recovered
Those renting out housing were of course quids in as Thatcher and her housing policy meant that was the only option left
It was made more attractive by the removal of protected rents and short term contracts
Recently things have backfired which is a shame for the decent landlords out there as you know
But that's what happens when the free market gets involved
One thing that tends to get overlooked is that there is always a demand for social housing for a variety of reasons. If someone dies in social housing, that property gets used by someone else who needs it. If they've bought it, it won't be.Quote:
Originally Posted by SLUDGE FACTORY
Social housing is that scarce that it's easier for those who need it to claim housing benefit and rent from any unscrupulous landlord (and let's not forget the government voted against making it law that all rented properties should be properly habitable). Those with money buy up more and more property and rent it. The economic divide continues to widen.
I admire old folks who refused to buy council properties but give it back for others to have a homeQuote:
Originally Posted by Eric the Half a Bee
Now if for every council home sold a new one was built to replace it then that would be great ......but it never happened
It was a great way of bribing the voters and also weakening the economic base of local councils ....for the Conservative party it was win win
2015 Conservative manifesto - reintroducing 'right to buy', promising to replace every social house sold.Quote:
Originally Posted by SLUDGE FACTORY
Guess how many were replaced...