| Feels like there is a lot of pain coming with increasing mortgage rates... 13:34 - Oct 19 with 4247 views | tractorboy1978 |
Someone that fixed for 5 years in Dec 2021 would have been getting a rate of under 2.5% - now looking at around the 6% mark. People/couples having to find an extra £500-£800 a month. And it's not just that - the cost of everything has shot up massively during that time period too. Petrol and diesel up 30-50p a litre. Average heating bill up £50 a month. Food cost inflation at 30%+.
Minimum wage has increased by approx 42% in that time. Positive - but realistically not enough. And for those that were not on minimum wage, many will have barely seen payrises above 2-3% per annum over the past 5 years.
It's tough out there. I am sure we all know plenty of people that earn what I would consider to be well that are seriously feeling the pinch. Let alone those that are earning below the national average. [Post edited 19 Oct 13:40]
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| Feels like there is a lot of pain coming with increasing mortgage rates... on 13:46 - Oct 19 | J2BLUE |
I locked in for 7 years in Dec 2021 at 1.49%
I would like to move really but seems a no brainer to stay here while it's so low. |  | | |
| Feels like there is a lot of pain coming with increasing mortgage rates... on 13:48 - Oct 19 | Steve_M |
Yes, and it's difficult to see energy prices in particular coming down anytime soon as neither the US or Iran are lead by people with any desire to find a solution to the current war. We could very much do with another mild Winter. |  |
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| Feels like there is a lot of pain coming with increasing mortgage rates... on 14:00 - Oct 19 | Illinoisblue |
| Feels like there is a lot of pain coming with increasing mortgage rates... on 13:46 - Oct 19 by J2BLUE |
I locked in for 7 years in Dec 2021 at 1.49%
I would like to move really but seems a no brainer to stay here while it's so low. |
1.49% is an incredible rate! I locked in at 3.625% back in 2013. Can only imagine the pain for first time buyers having to deal with interest rates at 6% or 7%. And of course people locked in at low rates are much less likely to move which stagnates the housing market even more. |  |
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| Feels like there is a lot of pain coming with increasing mortgage rates... on 14:05 - Oct 19 | J2BLUE |
| Feels like there is a lot of pain coming with increasing mortgage rates... on 14:00 - Oct 19 by Illinoisblue |
1.49% is an incredible rate! I locked in at 3.625% back in 2013. Can only imagine the pain for first time buyers having to deal with interest rates at 6% or 7%. And of course people locked in at low rates are much less likely to move which stagnates the housing market even more. |
Just double checked, it's 1.59% not 1.49% but still ridiculously low.
I remember thinking it was a no brainer as rates were only going to go one way. I didn't expect they would get back to current levels but I did think there's no way a bank is going to offer a mortgage rate below that any time in the next decade. | | | |
| Feels like there is a lot of pain coming with increasing mortgage rates... on 14:09 - Oct 19 | Bangor31 |
| Feels like there is a lot of pain coming with increasing mortgage rates... on 14:05 - Oct 19 by J2BLUE |
Just double checked, it's 1.59% not 1.49% but still ridiculously low.
I remember thinking it was a no brainer as rates were only going to go one way. I didn't expect they would get back to current levels but I did think there's no way a bank is going to offer a mortgage rate below that any time in the next decade. |
that is genuinely mega. we had an option for 10 years at 1.6-1.7 but the wife, who is in banking, said we should for the 5 year at 1.2%. we're at 37% LTV and we might get into the 4's for a 2 year but could well be 5's still according to the broker. | | | |
| Feels like there is a lot of pain coming with increasing mortgage rates... on 14:21 - Oct 19 | tractorboy1978 |
| Feels like there is a lot of pain coming with increasing mortgage rates... on 14:00 - Oct 19 by Illinoisblue |
1.49% is an incredible rate! I locked in at 3.625% back in 2013. Can only imagine the pain for first time buyers having to deal with interest rates at 6% or 7%. And of course people locked in at low rates are much less likely to move which stagnates the housing market even more. |
There are a lot of deluded sellers and estate agents out there at the moment too who are vastly overvaluing properties in the current market. We've been looking to move over the last year or so and seen several properties that have been reduced 3/4 times. | | | |
| Feels like there is a lot of pain coming with increasing mortgage rates... on 14:41 - Oct 19 | Steve_M |
| Feels like there is a lot of pain coming with increasing mortgage rates... on 14:09 - Oct 19 by Bangor31 |
that is genuinely mega. we had an option for 10 years at 1.6-1.7 but the wife, who is in banking, said we should for the 5 year at 1.2%. we're at 37% LTV and we might get into the 4's for a 2 year but could well be 5's still according to the broker. |
Even a year ago, it looked like fixing for two years rather than five made sense - which is what we did. Fortunately our LTV was similar to yours at the time so whatever comes in a year will be manageable. | |
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| Feels like there is a lot of pain coming with increasing mortgage rates... on 14:44 - Oct 19 | ITFC_Essex |
I am on minimum wage, and don't own my own property, or a thing tbh! I used to be derided for it, but I think I lucked out not having to cripple myself to pay a bank to live. We've gone from one family member being able to afford the mortgage, to two people needing several jobs in some cases.
It's madness! |  |
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| Feels like there is a lot of pain coming with increasing mortgage rates... on 14:46 - Oct 19 | Gary_Knows |
My 5 year 1.41% mortgage has just come to an end - which has now risen to 4.8% from 1st November.
An extra £350 a month for us… |  |
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| Feels like there is a lot of pain coming with increasing mortgage rates... on 14:53 - Oct 19 | Zx1988 |
| Feels like there is a lot of pain coming with increasing mortgage rates... on 14:21 - Oct 19 by tractorboy1978 |
There are a lot of deluded sellers and estate agents out there at the moment too who are vastly overvaluing properties in the current market. We've been looking to move over the last year or so and seen several properties that have been reduced 3/4 times. |
I certainly see this a lot with some of the newer or less experienced agents, who know nothing of selling/valuing in a challenging market.
Pre-Truss they could just work on the basis of "stick a number on it, and see how much in excess of said number we can get".
That strategy has completely fallen by the wayside, and the less-experienced staff seem to have forgotten what their job title of 'negotiator' actually means. | |
| Not a prophet, or a stone-age man; just a mortal with potential of a superman. | | Poll: | Worst Ginger? |
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| Feels like there is a lot of pain coming with increasing mortgage rates... on 15:10 - Oct 19 | tractorboy1978 |
| Feels like there is a lot of pain coming with increasing mortgage rates... on 14:53 - Oct 19 by Zx1988 |
I certainly see this a lot with some of the newer or less experienced agents, who know nothing of selling/valuing in a challenging market.
Pre-Truss they could just work on the basis of "stick a number on it, and see how much in excess of said number we can get".
That strategy has completely fallen by the wayside, and the less-experienced staff seem to have forgotten what their job title of 'negotiator' actually means. |
Yes - and the new 'trick' seems to be dropping the price by £xk and then sticking 'offers in excess of' in front it when it is abunduntly clear the seller hasn't even had an offer close to the level of the new price. | | | |
| Feels like there is a lot of pain coming with increasing mortgage rates... on 15:20 - Oct 19 | victorysquad |
The biggest issue is landlords selling up. All that will happen is the reduced rental stock will go up in price as demand increases. | |
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| Feels like there is a lot of pain coming with increasing mortgage rates... on 15:28 - Oct 19 | ThatMuhrenCross |
I'm fixed on 4.01% until May 2028. No idea if that's a good thing or not. Feels like a good thing. Not a great rate, but by the looks of things currently, could be a lot worse too... |  |
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| Feels like there is a lot of pain coming with increasing mortgage rates... on 15:34 - Oct 19 | SailorBlue |
| Feels like there is a lot of pain coming with increasing mortgage rates... on 14:46 - Oct 19 by Gary_Knows |
My 5 year 1.41% mortgage has just come to an end - which has now risen to 4.8% from 1st November.
An extra £350 a month for us… |
Similar here too, our 5 year 0.99% is coming to an end, best is around 4.8% think I'll fix three years though tempted by two.
Surely the various wars/invasions will be sorted by then won't they.....won't they.....! | | | |
| Feels like there is a lot of pain coming with increasing mortgage rates... on 15:37 - Oct 19 | tractorboy1978 |
| Feels like there is a lot of pain coming with increasing mortgage rates... on 15:20 - Oct 19 by victorysquad |
The biggest issue is landlords selling up. All that will happen is the reduced rental stock will go up in price as demand increases. |
If that happens en masse then yes. But I think there are more landlords that would like to sell than are able to at the moment. Or certainly able to for what they want. | | | |
| Feels like there is a lot of pain coming with increasing mortgage rates... on 15:37 - Oct 19 | Dubtractor |
| Feels like there is a lot of pain coming with increasing mortgage rates... on 14:46 - Oct 19 by Gary_Knows |
My 5 year 1.41% mortgage has just come to an end - which has now risen to 4.8% from 1st November.
An extra £350 a month for us… |
We've actually gone the other way over the last few years.
Moved house after truss screwed the economy, but our mortgage rate (now fixed) has dropped by £300 from the peak rate when we moved. We chanced it and went on a tracker when we moved as assumed (hoped!) rates would come down.
We were stitched up by truss though, as had a previous mortgage offer for a purchase that fell through that was £400 less than we ended up paying.
On the point of the OP though, it's going to be a hell of a financial shock for people needing to remortgage from the lower rates. |  |
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| Feels like there is a lot of pain coming with increasing mortgage rates... on 15:39 - Oct 19 | baxterbasics |
| Feels like there is a lot of pain coming with increasing mortgage rates... on 15:20 - Oct 19 by victorysquad |
The biggest issue is landlords selling up. All that will happen is the reduced rental stock will go up in price as demand increases. |
Happened to us earlier this year. Thankfully the timing worked out - just as we were served notice I received some inheritance which was enough for a deposit on the house we'd been renting for 12 years already.
As for the topic of this thread - in June we got a 2-year fix at 5.03%, the Iran business had just triggered a rise (thanks Trump). The initial monthly is already £900 more than what our rent was and it runs until I am 73.
My instinct at the time was a five year fix might have been the better option to take. Am hoping I won't be proven right. |  |
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| Feels like there is a lot of pain coming with increasing mortgage rates... on 15:46 - Oct 19 | victorysquad |
| Feels like there is a lot of pain coming with increasing mortgage rates... on 15:39 - Oct 19 by baxterbasics |
Happened to us earlier this year. Thankfully the timing worked out - just as we were served notice I received some inheritance which was enough for a deposit on the house we'd been renting for 12 years already.
As for the topic of this thread - in June we got a 2-year fix at 5.03%, the Iran business had just triggered a rise (thanks Trump). The initial monthly is already £900 more than what our rent was and it runs until I am 73.
My instinct at the time was a five year fix might have been the better option to take. Am hoping I won't be proven right. |
It would be a lot better if we joined the Euro (properly), and ideally had the ECB set rates rather than the bank of england.
The ECB rates are always lower and more stable.
Bank of England whack up interest rates to control inflation we are not even causing! | |
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| Feels like there is a lot of pain coming with increasing mortgage rates... on 15:48 - Oct 19 | TwoKnightsInIpswich |
Ive just paid off my mortgage. I'm 53 and mortgage free. As a family and a couple we made lots of sacrifices during the course of our mortgage and the highest rate we paid was 4.9%.
I fear for my children attempting to get on property ladder for, for now, I'm enjoying being mortgage free. |  |
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| Feels like there is a lot of pain coming with increasing mortgage rates... on 16:09 - Oct 19 | floridablue |
I've just looked at my recent mortgage statement and my interest rate is 6.875% till next October 2 years ago it was 7.375%. I've been retired now for 5 years and my mortgage runs for another 7 years. I'm dooomed! | | | |
| Feels like there is a lot of pain coming with increasing mortgage rates... on 16:39 - Oct 19 | bsw72 |
Depends if you want fixed or variable tracker - we have historically been fixed but recently swicthed to a tracker so get BOE base rate plus .21%, so currently 3.96% with the option to move to a fixed should we wish in the future - made more sense financially as while we were in the fortunate position to pay the fixed rate, we would rather overpay each month to the same amount and reduvce mortgage quicker - knwing we have the headroom to handle an increase of ~2% in coming months worse case. |  | | |
| Feels like there is a lot of pain coming with increasing mortgage rates... on 16:44 - Oct 19 | swede |
| Feels like there is a lot of pain coming with increasing mortgage rates... on 16:09 - Oct 19 by floridablue |
I've just looked at my recent mortgage statement and my interest rate is 6.875% till next October 2 years ago it was 7.375%. I've been retired now for 5 years and my mortgage runs for another 7 years. I'm dooomed! |
I am old enough to remember mortgage rates of 14% back in 1984. They were absolutely crippling and we had to have a period of paying interest only. There wasn't a minimum wage back in those days, but if there was, I would have been on it.
My expected date of being mortgage free gradually rose from 2006 to eventually paying it off completely in 2023. Admittedly that was also due to a divorce and almost starting over again.
I genuinely feel for young families today (my children included) who have to take out eye-watering loans if they want to own property. | | | |
| Feels like there is a lot of pain coming with increasing mortgage rates... on 16:50 - Oct 19 | _CliveBaker_ |
Yep, I've got 12 months left at my current rate (not an especially good one, only fixed it 2 years ago) but its looking likely to go up by £300+ a month. In some respects the timing could be worse for me as my youngest starts school in September and I can stop paying nursery fees, but was rather hoping that would be extra money rather than spending it covering interest. |  | | |
| Feels like there is a lot of pain coming with increasing mortgage rates... on 17:01 - Oct 19 | greyhound |
| Feels like there is a lot of pain coming with increasing mortgage rates... on 13:46 - Oct 19 by J2BLUE |
I locked in for 7 years in Dec 2021 at 1.49%
I would like to move really but seems a no brainer to stay here while it's so low. |
Most mortgages are portable meaning you can still move and retain your rate. You just top up with a new deal for any extra money you need and make sure your aware of what the future commitments would be. An extreme version of this will be shown in your mortgage key facts illustration which will illustrate all of you new total lending if it were to revert to the base mortgage rate.
Don't know if anyone else in the thread has given this advice apologies if so, I used to be a mortgage adviser for about 9 years and it was common misconception that once in a deal you couldn't move, you absolutely can, your just tied to the same lender so your mortgage broker may be much less interested in you as your not a walking commission whale like remortgage customers are.
My other advice is we wanted to move house for about 5 years in truth and weren't happy with where we were, we finally took the plunge to commit to solicitors, cardboard boxes, surveys and stupid government taxes for 6 months 2 years ago nearly to the day. Was the best thing I've done as an adult. We certainly got to comfortable with a small mortgage and a local location. Turns out I don't need to eat out five nights a week and be 2 minutes from a town centre to live my best life after all! | | | |
| Feels like there is a lot of pain coming with increasing mortgage rates... on 17:10 - Oct 19 | tonybied |
| Feels like there is a lot of pain coming with increasing mortgage rates... on 14:41 - Oct 19 by Steve_M |
Even a year ago, it looked like fixing for two years rather than five made sense - which is what we did. Fortunately our LTV was similar to yours at the time so whatever comes in a year will be manageable. |
That's exactly what we did as first time buyers. I'm rather regretting that, with how things currently stand! Hoping for some better news from around the world in the next 6 months to bring rates back into line in time for our next deal. I think that's wasted hope and unlikely to happen though. I think our best hope is that not much changes and rates do t get even worse. |  | | |
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