andyhinch
Well-Known Member
Yeah, my daughter is looking to buy her first house I’m not sure how she’ll do it tbh, she’s just hoping I’ll kick the bucket :-)
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Interest rates
- Thread starter ganganvince
- Start date
blue b4 the moon
Well-Known Member
Been so low for so long I hope people haven't fallen into taking out credit here there and everywhere that's pushed in the media otherwise, these going to be repossessions by the bucket full.
When we bought our first house 1985 the rate was mad.....certainly double figures maybe 13-15%. The one good thing was that as it generally dropped over the years it was like a wage rise.
When we bought our first house 1985 the rate was mad.....certainly double figures maybe 13-15%. The one good thing was that as it generally dropped over the years it was like a wage rise.
ell
Well-Known Member
We moved house in July and as part of the mortgage application they pointed out if rates go up to a certain point (cant quite remember what %, but a figure that isn't unthinkable) how much more it would cost us and could we afford it. It was about 2.5x what we are paying now.
I'm one of those people that has only ever known relatively low interest rates but I'm not ignorant to the impact a rate rise will have.
I'm one of those people that has only ever known relatively low interest rates but I'm not ignorant to the impact a rate rise will have.
BELFAST_BLUE_BOY
Well-Known Member
I recall working in housing when rates 15%, hard times for many who lost homes got in debt - negative house prices......hopefully wont go that high again...they will go up as can not get lower!
bluetonium
Well-Known Member
Moved house recently (ish) also and fixed in for 5 years. We're hanging on doing up the new house to see what happens, as a severe impact on interest rates means our savings go to that instead of home improvement.
But the builders have a good 3 to 6 month wait anyway it seems, so all will become clear in time.
A lot of people have invested heavily in homes and mortgages this past few months. As an example we bid on 9 houses in our search, 7 of which we lost out on, 5 of which were first time buyers offering no chain and jumping in a level above on the chain, where we wanted to be after over a decade in our first home. Family homes as opposed to first homes, if you like. But they were enabled to do that, by the banks and by the process. The bank wanted to offer us up to another £150k in mortgage borrowings, but I think you have to take a stand and show some reasoning. It's not free money, it's a level of debt most people will have around their necks for decades.
We know of one house near where we used to live that went for over half a million to a first time buyer. Now, if you have the income and the savings then fair play, but the sheer potential exposure and damage long term to your ability to live and have some comfort is frightening and we are not the kind of people to ever do that.
In fact the house we eventually got was put back on the market several weeks after the offer was accepted, as the bank refused to lend the original buyer that sum of money as he'd offered well above asking to secure it, and then had trouble proving his funding. There was a definite change in attitude from most banks between the start of the year too in how much they'd lend and to who.
We may be relatively slow and steady when spending our money compared to some, but I personally couldn't rest easy with such exposure.
But the builders have a good 3 to 6 month wait anyway it seems, so all will become clear in time.
A lot of people have invested heavily in homes and mortgages this past few months. As an example we bid on 9 houses in our search, 7 of which we lost out on, 5 of which were first time buyers offering no chain and jumping in a level above on the chain, where we wanted to be after over a decade in our first home. Family homes as opposed to first homes, if you like. But they were enabled to do that, by the banks and by the process. The bank wanted to offer us up to another £150k in mortgage borrowings, but I think you have to take a stand and show some reasoning. It's not free money, it's a level of debt most people will have around their necks for decades.
We know of one house near where we used to live that went for over half a million to a first time buyer. Now, if you have the income and the savings then fair play, but the sheer potential exposure and damage long term to your ability to live and have some comfort is frightening and we are not the kind of people to ever do that.
In fact the house we eventually got was put back on the market several weeks after the offer was accepted, as the bank refused to lend the original buyer that sum of money as he'd offered well above asking to secure it, and then had trouble proving his funding. There was a definite change in attitude from most banks between the start of the year too in how much they'd lend and to who.
We may be relatively slow and steady when spending our money compared to some, but I personally couldn't rest easy with such exposure.
tolmie's hairdoo
Well-Known Member
Think it'll stay low until July?
My current deal ends then
You can make your application in February, six months before any mortgage deal is set to expire.
Check with your lender first, as they will usually offer you a rate swap free of charge and get the offer locked in.
Then you may also save on arrangements charges, brokerage fees, etc.
metalblue
Well-Known Member
No chance.
They’ll go up before new year.
That would go against what they said last time out. It’s still not currently clear how much the inflation is transitory and being driven by supply shocks. I think BoE will want to get a bead on that before moving, they look at inflation in the medium term not short term. 25bps rise in the new year, possibly as late as Q2 if they want to see if inflation can ease off on its own. The market has priced in a 25bps rise this time around but the old adage of “you buy the rumour and sell the fact” is about spot on for me here.
Manc in London
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- 6 Aug 2008
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Combined income for a couple of £66-75K.
When we bought our first house in 2006, we were only allowed 2.75x salary. Seems they have since made borrowing a little easier.
denislawsbackheel
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- 28 May 2008
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- We went to Rotherham…
Even in 2006 they were allowing couples multiples of the main plus the partner.
Manc in London
Well-Known Member
- Joined
- 6 Aug 2008
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- 8,169
We decided to spread the risk so we have a fixed rate (1.45%) and a tracker (0.49% above base rate) from our first purchase. Only about 16 years to go! A rise by a couple of percentage points could increase our monthly payments by around £500. The joys of having a mortgage in London.