Mortgage deal ending

[Kompany Car]

They arent going to drop and certainly not like a stone, in my opinion. They will go up again, then stay at that level. Personal view

Personally think they will go up a little more, but the new normal when they do eventually fall will be around 3% to 4% with house prices stagnating or falling slightly.

Its unhealthy for an economy to have borrowing rates as low as they were previously as it really gives nowhere to go if there is a major financial crisis.

 

[Uncle Wally One Ball]

Personally think they will go up a little more, but the new normal when they do eventually fall will be around 3% to 4% with house prices stagnating or falling slightly.

Its unhealthy for an economy to have borrowing rates as low as they were previously as it really gives nowhere to go if there is a major financial crisis.

Agree. Too many folk today have only ever been used to abnormally low rates. Im all for a drop in house prices personally, they are obscene

 

[Gareth Barry Conlon]

Isn’t the issue that some lenders won’t be offering fixes if you fail stress testing?

Getting a new fix is basically applying for a new product. They will do credit check and affordability and LTV has to meet the criteria.

If you could afford your sub 2% rate 2 years ago you might not be looking so good when the rate is up over 5%.

Mine is up in October. Worst possible time I think.

 

[Corky]

Agree. Too many folk today have only ever been used to abnormally low rates. Im all for a drop in house prices personally, they are obscene

The house prices only reflect the tiny percentage that are sold, 15 years ago when they readjusted the fall in the number of sales was far more drastically , and the fall in price paid doesn't make it easier for the average household to buy this time if the cost of borrowing has risen by 150%

House prices coming down will hamstring the new builds and building cost inflation is still high and developers who constantly moan about viability may have a point for once. Therefore there will be less supply in the next few years and it won't help affordability medium to long term.

 

[bluegirl74]

Personally think they will go up a little more, but the new normal when they do eventually fall will be around 3% to 4% with house prices stagnating or falling slightly.

Its unhealthy for an economy to have borrowing rates as low as they were previously as it really gives nowhere to go if there is a major financial crisis.

Completely agree with this. It's what our economists have advised us to model at work (bank) to predict our own 2 - 5 year plans.

 

[BlueHammer85]

Over 6% for a 2 year fix

 

[Corky]

Over 6% for a 2 year fix

A first time buyer with 90% LTV on an average house price for the UK can get a bit closer to 5% for a 2 year fixed.

The average they are using is looking at everything on offer, rather than what people are getting. People generally don't have to accept the 50th best mortgage on offer which is what they seem to be using.

 

[BlueHammer85]

A first time buyer with 90% LTV on an average house price for the UK can get a bit closer to 5% for a 2 year fixed.

The average they are using is looking at everything on offer, rather than what people are getting. People generally don't have to accept the 50th best mortgage on offer which is what they seem to be using.

Mines up in November, I was going to wait nearer time but seems it just going to get worse.
Looking like a 2 year fix at whatever rate they throw me

 

[Otamendi's Beard]

Was hoping to upgrade to a bigger house (kids growing up) but house prices are so high and interest rates pretty unattractive.

My only question is whether sitting tight for 2/3 years will be beneficial?

Will prices and rates decrease or could it get even worse?

 

[mcfc_ms]

Mines due in November, but can’t fix in until 2nd July (About 2 week after the next planned BoE increases). Luckily in a way we ported 3 years so only around 60% of our mortgage is going up now, and the other in another 2 years. We also moved at the right time during the first few months of covid as house prices round here went crazy not long after. The value of ours increased by about £30-40k in less than a year, which helps with the LTV.

Looking at an increase of about £180-£200 a month, then hopefully they drop for when the 2nd Part ends in November 2025.

We started cutting back on non essentials in the last few months to prepare for the increases and contracts on phones/sky/ etc not being renewed when they finish this year