Mortgages - Help!

[imtommygunn]

Rough 

I don't know what they're going to do if it leads to mass repossessions. No winners there.

[Kidder81]

People didn't have the debt/HP in the 80s that people do now & mortgage payment was a lower % of your salary

[Milltown Row2]

Only the rich had credit cards, now someone on benefits has a credit card maxed out

[LC]

Indeed no winners re a lot of repossessions coming on to the market.  People will end up reluctantly having to go interest only or extend the life of the mortgage which is crap for them in terms of their outlay in the long term but banks will be laughing.  Can see the price of houses going forward being cheaper as affordability is now seriously impacted in that a couple who could comfortably borrow £250k a month ago based on repayments may now, for the same repayments, only able to borrow £200k.

[RedHand88]

Only the rich had credit cards, now someone on benefits has a credit card maxed out

This is exactly right. Think about all the extra bills you have now.
HP on a car, mobile phone bill, credit card, furniture/ kitchen appliances on finance,  amazon prime, netflix etc.

I really worry what is going to happen in 2023 when people living month to month now come out of fixed deals.

[RedHand88]

I think everyone knew they had to rise but its the speed which will and has caused problems. Youll have people coming out of deals in the 1s, low 2s now being faced with a deal say in the 5s as things stand. Carnage

Yeah exactly. You get idiots saying it was worse than this in the 80s. The affordability of housing was completely different and your LTV etc etc and this has been a sharp sharp rise.

They did this in a day and quite frankly probably fully intentionally because despite how they look they are not idiots.

This really annoys me. Back then you could come out of school with 2 O-Levels and buy a decent house for the equivalent of a year or 2 salary. Now it's 5-7 years salary for 3rd level educated people on good money. No extensive investigation of your finances before approval either. Here's the money away you go.

[yellowcard]

Its also a slow drip drip effect as more people come off fixed rate deals so it will take a few years before everyone on long term mortgage deals bear the full pain. If you've signed up to a medium term fixed deal in the last year then you're one of the lucky ones. It puts the whole energy price increase, which is more likely to be for the shorter term, in the shade. Insolvency practitioners will be busy in the next decade as these things can take years for the full effects to unravel. The Tories knew exactly the consequences of their actions but they still went ahead anyway which makes you think that they will use it to justify yet more spending cuts.   

[RedHand88]

I don't believe the Tories intended or expected this to happen. Putting people out of homes does not usually win you elections.

[Milltown Row2]

Only the rich had credit cards, now someone on benefits has a credit card maxed out

This is exactly right. Think about all the extra bills you have now.
HP on a car, mobile phone bill, credit card, furniture/ kitchen appliances on finance,  amazon prime, netflix etc.

I really worry what is going to happen in 2023 when people living month to month now come out of fixed deals.

I think a lot of people will just go out and find a second job to not just make ends meet, but to keep those little extras they have been so used to, moving from a Sauvignon blanc to Blue Nun won't cut the mustard with some

[clarshack]

I think everyone knew they had to rise but its the speed which will and has caused problems. Youll have people coming out of deals in the 1s, low 2s now being faced with a deal say in the 5s as things stand. Carnage

Yeah exactly. You get idiots saying it was worse than this in the 80s. The affordability of housing was completely different and your LTV etc etc and this has been a sharp sharp rise.

They did this in a day and quite frankly probably fully intentionally because despite how they look they are not idiots.

This really annoys me. Back then you could come out of school with 2 O-Levels and buy a decent house for the equivalent of a year or 2 salary. Now it's 5-7 years salary for 3rd level educated people on good money. No extensive investigation of your finances before approval either. Here's the money away you go.

Exactly, these people can't seem to grasp that you could have bought a house for 20-30k (maybe even less) back then.

[Milltown Row2]

I think everyone knew they had to rise but its the speed which will and has caused problems. Youll have people coming out of deals in the 1s, low 2s now being faced with a deal say in the 5s as things stand. Carnage

Yeah exactly. You get idiots saying it was worse than this in the 80s. The affordability of housing was completely different and your LTV etc etc and this has been a sharp sharp rise.

They did this in a day and quite frankly probably fully intentionally because despite how they look they are not idiots.

This really annoys me. Back then you could come out of school with 2 O-Levels and buy a decent house for the equivalent of a year or 2 salary. Now it's 5-7 years salary for 3rd level educated people on good money. No extensive investigation of your finances before approval either. Here's the money away you go.

Exactly, these people can't seem to grasp that you could have bought a house for 20-30k back then.

Remember looking for a house back in the day, early mid 90's and a decent house in a good area in Belfast was 35k, but I can remember thinking at the time I'm really stretching to afford this!! Would love to give my old self a good fecking slap!!

[seafoid]

High house prices were sold as affordable because rates were low. Loyal Orders get shafted again.

https://www.bbc.com/news/business-63155597

interest rate on a typical five-year fixed rate mortgage has topped 6% for the first time in 12 years

[RedHand88]

I think everyone knew they had to rise but its the speed which will and has caused problems. Youll have people coming out of deals in the 1s, low 2s now being faced with a deal say in the 5s as things stand. Carnage

Yeah exactly. You get idiots saying it was worse than this in the 80s. The affordability of housing was completely different and your LTV etc etc and this has been a sharp sharp rise.

They did this in a day and quite frankly probably fully intentionally because despite how they look they are not idiots.

This really annoys me. Back then you could come out of school with 2 O-Levels and buy a decent house for the equivalent of a year or 2 salary. Now it's 5-7 years salary for 3rd level educated people on good money. No extensive investigation of your finances before approval either. Here's the money away you go.

Exactly, these people can't seem to grasp that you could have bought a house for 20-30k back then.

Remember looking for a house back in the day, early mid 90's and a decent house in a good area in Belfast was 35k, but I can remember thinking at the time I'm really stretching to afford this!! Would love to give my old self a good fecking slap!!

And wages weren't THAT much lower back then. Lower yes, but not by a similar magnitude to what house prices were.

[clarshack]

Remember looking for a house back in the day, early mid 90's and a decent house in a good area in Belfast was 35k, but I can remember thinking at the time I'm really stretching to afford this!! Would love to give my old self a good fecking slap!!

can mind as a student walking home after a night out a few times and there'd be ones camping outside an Estate Agents in Stranmillis ready to put their deposit down as soon as it opened that morning. That was mid 90's.

[Milltown Row2]

Remember looking for a house back in the day, early mid 90's and a decent house in a good area in Belfast was 35k, but I can remember thinking at the time I'm really stretching to afford this!! Would love to give my old self a good fecking slap!!

can mind as a student walking home after a night out a few times and there'd be ones camping outside an Estate Agents in Stranmillis ready to put their deposit down as soon as it opened that morning. That was mid 90's.

That was the done thing back then, I think there were some benefits to that when a new block of housing went up, getting in at the start was crucial as the first batch was generally cheaper..

Using the knowledge you have now you couldn't give your kids that advice now as they would still not be able to afford housing.. I need to downsize to one bedroom apartment so they can't live with us otherwise they'll never leave!!