gaaboard.com

Non GAA Discussion => General discussion => Topic started by: Tony Baloney on May 20, 2008, 05:55:48 PM

Title: Mortgages - Help!
Post by: Tony Baloney on May 20, 2008, 05:55:48 PM
In the process of changing the mortgage on the house and cannot decide to go for a 3 year or 5 year fix (little price difference in them).

Anyone any ideas?

I read the other day in the Sunday Times that brokers reckon a 3 year fix is a good bet as the credit crunch may impact on the market for the next 2-3 years and after this it should stabilise. So if I took a 5 year fix I could be paying over the odds for 2 years if interest rates go down. However, if I only go for 3 year fix and come out of that into higher rates than now I'll regret the decision!

Anyone got a crystal ball...
Title: Re: Mortgages - Help!
Post by: screenexile on May 20, 2008, 06:08:26 PM
Haha join the club boss! Everyone is in the same boat so you're best bet is mystic meg! My opinion would be to stay with the 3 year fixed (2 year would be better) though as you don't want to be tied in for too long and end up paying a high rate when everyone is on a lower one.
Title: Re: Mortgages - Help!
Post by: mylestheslasher on May 20, 2008, 09:28:25 PM
Not sure what juristiction you are in but in the South I would advise you to go with  a variable tracker and not fix. That is unless you are tight to pay the monthly repayments. If you are switching in the south u should take a look at NIBs LTV mortgages.
Title: Re: Mortgages - Help!
Post by: Apple Top on May 20, 2008, 10:25:13 PM
Last 15 years - 5 working with building society fixed 4% - next 5 left job 5.75 - in 3rd or 5 now 5.55 - depends what you like - i like to know every month what comes out - no big frighteners!!!
Title: Re: Mortgages - Help!
Post by: new devil on May 20, 2008, 10:46:54 PM
If you aren't living in ireland can you still get a mortgage?
Title: Re: Mortgages - Help!
Post by: Apple Top on May 20, 2008, 10:53:26 PM
Quote from: new devil on May 20, 2008, 10:46:54 PM
If you aren't living in ireland can you still get a mortgage?
No mortages are a concept to Ireland only!!!!
Title: Re: Mortgages - Help!
Post by: new devil on May 20, 2008, 10:56:44 PM
 :D :D sorry let me rephrase that

can you still get a mortgage IN Ireland if you are living somewere else
Title: Re: Mortgages - Help!
Post by: Apple Top on May 20, 2008, 11:10:01 PM
Quote from: new devil on May 20, 2008, 10:56:44 PM
:D :D sorry let me rephrase that

can you still get a mortgage IN Ireland if you are living somewere else

Think there is a concept called the European Union  :P
Title: Re: Mortgages - Help!
Post by: new devil on May 20, 2008, 11:18:21 PM
last time i checked America wasn't in the EU....anyone ELSE no anything?
Title: Re: Mortgages - Help!
Post by: Apple Top on May 20, 2008, 11:20:17 PM
Quote from: new devil on May 20, 2008, 11:18:21 PM
last time i checked America wasn't in the EU....anyone ELSE no anything?

OMG - calling all mind readers.  ::)
Title: Re: Mortgages - Help!
Post by: Hound on May 21, 2008, 09:22:39 AM
Quote from: Tony Baloney on May 20, 2008, 05:55:48 PM
In the process of changing the mortgage on the house and cannot decide to go for a 3 year or 5 year fix (little price difference in them).

Anyone any ideas?

I read the other day in the Sunday Times that brokers reckon a 3 year fix is a good bet as the credit crunch may impact on the market for the next 2-3 years and after this it should stabilise. So if I took a 5 year fix I could be paying over the odds for 2 years if interest rates go down. However, if I only go for 3 year fix and come out of that into higher rates than now I'll regret the decision!

Anyone got a crystal ball...
I always split my mortgage in two - half variable and half fixed, so no matter what happens I'll always be a little ahead and a little behind!

If there is any chance of you selling your house within 5 years, then don't fix it for 5 years.
If there is any chance of you selling the house within 3 years, then don't fix it at all.

If you're sure you are going to stay put for more than 5 years, and you are happy that you can afford the repayments based on the fixed 5 year rate, then go for that. Then you should totally ignore interest rate movements for the next 5 years, because they will not affect your repayments. Thinking about how much you lost or gained because of fixing would be an exercise in pure futility.
Title: Re: Mortgages - Help!
Post by: Donagh on May 21, 2008, 09:25:26 AM
Quote from: Hound on May 21, 2008, 09:22:39 AM

I always split my mortgage in two - half variable and half fixed, so no matter what happens I'll always be a little ahead and a little behind!


Do the same myself. Also means you can make overpayments if you come into a bit of spare cash.
Title: Re: Mortgages - Help!
Post by: Hound on May 21, 2008, 09:28:55 AM
Quote from: new devil on May 20, 2008, 10:56:44 PM
:D :D sorry let me rephrase that

can you still get a mortgage IN Ireland if you are living somewere else
The answer is yes, if you're talking about an Irish property.

Although the bank would want to be very sure of their security. Little chance of a 90% mortgage. My guess is you'd be looking at max 70%-75% - but different banks may differ. Obviously you'll need to satisfy the bank that you can make the repayments and have something in place to get the money to the Irish bank (shouldnt be a major issue).

QuoteDo the same myself. Also means you can make overpayments if you come into a bit of spare cash.
Absolutely. The one big advantage variable loans have over fixed is you can, at any time, take a chunk off the loan or increase your repayments without any penalty, thus reducing your long term interest payments.
Title: Re: Mortgages - Help!
Post by: khabilli on May 21, 2008, 09:31:44 AM
newdevil, I have been living and working outside Ireland for almost ten years and yes, I managed to get a mortgage in Ireland from an Irish bank. It was a bit of a struggle at first, but I went to a mortgage broker and she sorted it out for me. You need to have all your documentation ready, ie letter/ contract from employer, bank statements etc. Good luck!
Title: Re: Mortgages - Help!
Post by: youbetterbelieveit on September 24, 2008, 11:19:25 AM
Right Lads, resurrecting this thread, as I am thinking of making a purchase, where best to start looking for a decent mortgage. (NI purchase).
Title: Re: Mortgages - Help!
Post by: Uladh on September 24, 2008, 11:25:35 AM

Whats happening with the housing market at home anyway? is it as bad as the media make out or is there still buying and selling going on? how much has property dropped?
Title: Re: Mortgages - Help!
Post by: Candyman on September 24, 2008, 11:39:03 AM
Quote from: youbetterbelieveit on September 24, 2008, 11:19:25 AM
Right Lads, resurrecting this thread, as I am thinking of making a purchase, where best to start looking for a decent mortgage. (NI purchase).

Use an Independant Broker as they can source from the whole of the market. If you use say a bank of specific building society they can only offer you their products which might not be the best!!! It'll save time also running about different banks etc as the broker can view ALL lenders automatically....
Title: Re: Mortgages - Help!
Post by: Minder on September 24, 2008, 11:41:21 AM
Quote from: Candyman on September 24, 2008, 11:39:03 AM
Quote from: youbetterbelieveit on September 24, 2008, 11:19:25 AM
Right Lads, resurrecting this thread, as I am thinking of making a purchase, where best to start looking for a decent mortgage. (NI purchase).

Use an Independant Broker as they can source from the whole of the market. If you use say a bank of specific building society they can only offer you their products which might not be the best!!! It'll save time also running about different banks etc as the broker can view ALL lenders automatically....

Do they not just end up selling you a Halifax mortgage for instance with their own fee on top?
Title: Re: Mortgages - Help!
Post by: screenexile on September 24, 2008, 11:46:34 AM
Best find a broker who won't charge you a fee! I am working in a mortgage brokers at present but we deal mainly in Sub Prime lending so we would use Sub Prime companies which charge people an arm and a leg and give us a good whack of commission. We also charge a Broker Fee of between 1-2% as well so best stay away from people like us.

I would say go to the Mortgage Shop as I've heard they are very good with the customer service and have a good range in the market.

Also I think that now for the next 3 months or so will be a good time to buy as I can't see house prices dropping much further than at present, I'm also a firm believer that if you see something which you think is a good deal you should go for it as you could be waiting for years for house prices to drop this low again and it may  never happen so if you're comfortable with a place and can make the mortgage payments comfortably then go for it!
Title: Re: Mortgages - Help!
Post by: maxpower on September 24, 2008, 11:50:40 AM
Quote from: youbetterbelieveit on September 24, 2008, 11:19:25 AM
Right Lads, resurrecting this thread, as I am thinking of making a purchase, where best to start looking for a decent mortgage. (NI purchase).

Where abouts you based, i'm in Financial Services myself so i could point you in the direction of a few good mortgage brokers.  
Title: Re: Mortgages - Help!
Post by: passedit on September 24, 2008, 12:01:55 PM
Quote from: screenexile on September 24, 2008, 11:46:34 AM
I can't see house prices dropping much further than at present

Based on what exactly Screen?

Prices in NI are only starting to fall, the banks are shit scared to lend especially in NI as it has the highest earnings to house price ratio outside of London. Estate agents are moving one property a week if they're lucky.
Title: Re: Mortgages - Help!
Post by: Canalman on September 24, 2008, 12:06:24 PM
Would personally hold off buying until the New Year at least. Work in a property related field in Dublin and can tell you the market is imo WAY WORSE than is being reported in the media. Still alot of Vendors living in cuckooland expecting the big sale price and wiil eventually have to lower the asking price.
Only good news is the "panic selling" by investors has not yet started as in London in the 90s.

Stay well away from apartments.
Title: Re: Mortgages - Help!
Post by: Candyman on September 24, 2008, 12:10:34 PM
Quote from: Canalman on September 24, 2008, 12:06:24 PM
Would personally hold off buying until the New Year at least. Work in a property related field in Dublin and can tell you the market is imo WAY WORSE than is being reported in the media. Still alot of Vendors living in cuckooland expecting the big sale price and wiil eventually have to lower the asking price.
Only good news is the "panic selling" by investors has not yet started as in London in the 90s.

Stay well away from apartments.

Best piece of advice on here....  So many have had their fingers burnt even before the market collapsed!!!!
Title: Re: Mortgages - Help!
Post by: blast05 on September 24, 2008, 12:36:28 PM
QuoteUse an Independant Broker as they can source from the whole of the market. If you use say a bank of specific building society they can only offer you their products which might not be the best!!! It'll save time also running about different banks etc as the broker can view ALL lenders automatically....

I'm sorry , but why anyone goes near a broker is beyond me.
It takes about 15 minutes of research on the web to find out what rates are available in all companies that provide mortgages in Ireland.
Add to that, once you talk directly to the banks you are more likely to get an even better deal. For example, i was in AIB last Monday looking to switch a mortgage from my 'principal primary residence' to a holiday home which i may rent out for a week here or there. If i had gone through a brokers, this would have been considered as an investment property ( i checked this before when i was moving mortgage 2 years ago) ... however the guy i was dealing with said there would be no problem with the home owners rate ("once you are straight up with the revenue if you rent it but thats your own business"). The difference in rates is 5.95% versus 5.2%.
Title: Re: Mortgages - Help!
Post by: Candyman on September 24, 2008, 12:40:05 PM
Quote from: blast05 on September 24, 2008, 12:36:28 PM
QuoteUse an Independant Broker as they can source from the whole of the market. If you use say a bank of specific building society they can only offer you their products which might not be the best!!! It'll save time also running about different banks etc as the broker can view ALL lenders automatically....

I'm sorry , but why anyone goes near a broker is beyond me.
It takes about 15 minutes of research on the web to find out what rates are available in all companies that provide mortgages in Ireland.
Add to that, once you talk directly to the banks you are more likely to get an even better deal. For example, i was in AIB last Monday looking to switch a mortgage from my 'principal primary residence' to a holiday home which i may rent out for a week here or there. If i had gone through a brokers, this would have been considered as an investment property ( i checked this before when i was moving mortgage 2 years ago) ... however the guy i was dealing with said there would be no problem with the home owners rate ("once you are straight up with the revenue if you rent it but thats your own business"). The difference in rates is 5.95% versus 5.2%.

not all...  ;)
Title: Re: Mortgages - Help!
Post by: Abble on September 24, 2008, 12:51:50 PM
Quote from: passedit on September 24, 2008, 12:01:55 PM
Quote from: screenexile on September 24, 2008, 11:46:34 AM
I can't see house prices dropping much further than at present

Based on what exactly Screen?

Prices in NI are only starting to fall, the banks are shit scared to lend especially in NI as it has the highest earnings to house price ratio outside of London. Estate agents are moving one property a week if they're lucky.

i'd say that drop off in buying started approx sept 07.....then gradually until start of '08 everyone was starting to cop on there was aproblem and since that we've seen the huge reductions in apartments and houses...few of us regularly drive by a huge hoarding advertising new build houses....
end of 07 (when developer was praying there wouldnt be a crash)these houses were being sold at over 200k
during the summer 08.....down to about 160k
now this week we see 138k

and this is now coming back some close to pre-boom figures for new build decent housing in my opinion....this of course may not be the same in all areas but i'm pretty sure there could be a v slight further fall but nothing mammoth. all that really needs sorted is the fecking interest rates/mortgage fees !!!

Title: Re: Mortgages - Help!
Post by: Arthur_Friend on September 24, 2008, 01:20:04 PM
Get a fixed for three years and get used to paying that amount and then forget about it.
Title: Re: Mortgages - Help!
Post by: passedit on September 24, 2008, 01:30:14 PM
Watch the first ten minutes of this program. Pay particular attention to what the fp says about NI. Also please note that my avatar was changed before this program went out.

http://www.itv.com/News/tonight/episodes/Crunchtime/default.html (http://www.itv.com/News/tonight/episodes/Crunchtime/default.html)

Then go to this site

http://www.nationwide.co.uk/hpi/historical.htm (http://www.nationwide.co.uk/hpi/historical.htm)

pick the FTB HPI option at bottom. This data is three months old, don't even think about buying anything until the NI HPI hits 4.


Abble, anecdotal evidence is just that. I've been looking to buy for about 9 months now. One of the houses i was looking at dropped it's advertised price by £100,000 on monday. I still wouldn't touch it with a barge pole at this time. Banks can't lend at previous multiples so no one can afford to get on the ladder, so there is no impetus to push further up the ladder.

EDIT the guy in the clip above contributes to this website. A bit depressing (in more ways than one) but still worth a look.

http://www.housepricecrash.co.uk/index.php (http://www.housepricecrash.co.uk/index.php)
Title: Re: Mortgages - Help!
Post by: Sideshow Bob on September 24, 2008, 01:48:17 PM
http://www.channel4.com/video/the-price-of-property/catchup.html  is well worth a look. Anyone who is thinking of buying at the minute needs their head examined. Prices are going to drop much much more.

Edited to add, watch this weeks programme (22nd). Some crazy decisions, some people are losing a lot of money.
Title: Re: Mortgages - Help!
Post by: Canalman on September 24, 2008, 01:53:49 PM
Absolutely correct Passedit. If the banks won't lend as much, then the prices will fall. This "correction".... ahem has imo alot more to go.

On the positive side we don't have to listen to people waffling on about their "property portfolios" or their apartments in Spain, Romania etc. The old "interest only" mges are being converted big time by the banks and people in Dublin are finding it alot harder to get tenants when renting out.

Watch holiday homes bomb out in the next 6 mths...mark my words.

Still galls me to still hear these "Chief Economists" on the radio spouting off.......clowns one and all.
Title: Re: Mortgages - Help!
Post by: Minder on September 24, 2008, 02:51:40 PM
Another plus point is not having to listen to the dumb b*tches in our office checking property prices in their area on a daily basis, ignoring the fact they had overpaid on their house by 80-100%..........
Title: Re: Mortgages - Help!
Post by: Sideshow Bob on September 24, 2008, 05:26:39 PM
Quote from: Uladh on September 24, 2008, 11:25:35 AM

Whats happening with the housing market at home anyway? is it as bad as the media make out or is there still buying and selling going on? how much has property dropped?

from breakingnews.ie

House prices are falling globally and Ireland is near the bottom of the pile, new research showed today.

During the year to the end of June, the cost of property fell in 21 of the 33 countries across the world for which there is reliable data, according to property research group The Global Property Guide.

Ireland has seen a slide of 13.72% in inflation-adjusted house prices in the last year, the third-worst performer in the survey.

The group said the Baltic states, the United States (18.93%), the UK (9.77%) are also doing badly.

House prices have dived by 33% in real terms in Latvia's capital Riga, during the period, while in Estonia's Tallinn they have fallen by 14%.

The group said quarterly data suggested the situation was getting worse, with inflation-adjusted house prices dropping in all but nine of the 33 countries during the second quarter of the year.

The Global Property Guide said: "Since last year, there has been a dramatic turn-around in the world's housing markets.

"Only five countries out of 33, at this stage last year, had seen year-on-year declines in house prices in real terms. This year's total is 21."

It said that even in countries that continued to record house price rises during the past year, such as China, transaction volumes had fallen sharply, suggesting that buyers were now nervous.

The group added that while property markets in some regions, such as the Middle East, apparently remained in boom, it was hard to confirm this by reliable data.

Spain has recorded house price falls of just 2.49% for the year to the end of June, despite widespread reports of the problems the country's housing market faces.

However, The Global Property Guide said Spain's official housing statistics were widely believed to understate the problem.
Title: Re: Mortgages - Help!
Post by: pintsofguinness on September 24, 2008, 08:48:35 PM
Quote from: blast05 on September 24, 2008, 12:36:28 PM
QuoteUse an Independant Broker as they can source from the whole of the market. If you use say a bank of specific building society they can only offer you their products which might not be the best!!! It'll save time also running about different banks etc as the broker can view ALL lenders automatically....

I'm sorry , but why anyone goes near a broker is beyond me.
It takes about 15 minutes of research on the web to find out what rates are available in all companies that provide mortgages in Ireland.
Add to that, once you talk directly to the banks you are more likely to get an even better deal. For example, i was in AIB last Monday looking to switch a mortgage from my 'principal primary residence' to a holiday home which i may rent out for a week here or there. If i had gone through a brokers, this would have been considered as an investment property ( i checked this before when i was moving mortgage 2 years ago) ... however the guy i was dealing with said there would be no problem with the home owners rate ("once you are straight up with the revenue if you rent it but thats your own business"). The difference in rates is 5.95% versus 5.2%.
That's alright if you have the brains to do that yourself blast but a lot of people dont and f**k it up.
Title: Re: Mortgages - Help!
Post by: passedit on September 29, 2008, 02:11:50 PM
http://news.bbc.co.uk/1/hi/business/7641535.stm (http://news.bbc.co.uk/1/hi/business/7641535.stm)


Mortgage lending slumps says Bank
Houses for sale
The property market hit an unprecedented slump in August

New mortgage lending collapsed in August, according to the latest figures from the Bank of England.

Banks and building societies lent an extra £143m in home loans last month, just 5% of July's lending figure and only 2% of the lending in August 2007.

August is traditionally the quietest month for house sales.

But house buyers may have been put off buying properties because of the continued fall in prices and widespread predictions of an imminent recession.

"The dire Bank of England mortgage data shows that housing market activity is being decimated by the highly damaging combination of stretched buyer affordability and tight lending practices," said Howard Archer, of Global Insight.

The Bank's figures mean that for the first time since records began in 1993, the nation's mortgage debt actually fell, from £1,216,728m to £1,216,330m.

Higher mortgage rates

The Bank of England's data shows that 32,000 new mortgages were approved in August, a new record low and 70% fewer than a year ago.

This suggests that the fall in sales and prices will continue into next year.

"It is significant that net mortgage lending during the month actually stagnated, reflecting the recent precipitous decline in approvals," said Simon Rubinsohn of the Royal Institution of Chartered Surveyors.

"Subsequent turmoil in the financial markets is already having a direct impact in raising some mortgage rates," he added.

This was seen in the actions of several of the biggest lenders.

Lloyds TSB, which includes the Cheltenham & Gloucester brand, has pushed up the cost of its two- and three-year fixed rate deals by up to 0.26% from this evening.

Northern Rock will raise the cost of its entire range of residential fixed and tracker rate deals tonight.

On Friday HBOS, which includes the Halifax, withdrew its entire mortgage range for borrowers and replaced it with more expensive deals.

"Borrowers now need a 25% deposit to access virtually all its fixed and tracker products," said Aaron Strutt of mortgage brokers Chase de Vere.

Low demand

Within the mortgage industry, building societies saw their lending shrink for the third month in a row.

   
It is hardly surprising that demand for mortgages is so low
Andrew Gall, BSA

The Building Societies Association (BSA) said in August its members' customers repaid £38m more than they borrowed.

"Activity in the housing market remains depressed," said Andrew Gall, of the BSA.

"With the Land Registry data showing a 4.6% annual drop in property prices, and with BSA's own property tracker survey showing that more than half of people consider the prospect of future falls in house prices a barrier to house purchase, it is hardly surprising that demand for mortgages is so low," he added.
Title: Re: Mortgages - Help!
Post by: passedit on October 02, 2008, 01:53:34 PM
From the Nationwide

Average house price in Northern Ireland now back below national average

"Northern Ireland continues to show by far the steepest correction in house prices across the UK. Prices in the Province were down another 10.8% from the previous quarter, leaving them almost 30% lower than a year ago. Even with this large fall, the price of a typical property in Northern Ireland is still only back to where it was in the third quarter of 2006. Between the end of 2005 and the end of 2007, house prices in Northern Ireland increased by nearly 80%, compared to only 17% for the UK as a whole. This meteoric rise clearly left prices in Northern Ireland even more vulnerable to a correction, and this is the context within which the recent price fall should be viewed. At their peak, house prices in the Province were above the average house price in England and 24% above the UK average house price. After the recent fall, the price of a typical property in Northern Ireland is 3% below the UK average. Confirmation that the neighbouring Republic of Ireland's economy is now in recession has certainly also not helped the property market in the Province.   

First Time Buyer House Price Earnings Ratios

Northern   Yorks & H   North West   East Mids   West Mids   East Anglia   Outer SE   Outer Met   London   South West   Wales   Scotland   N Ireland   UK

2004 Q4   4.1   4.4   4.4   4.7   4.9   5.0   5.3   5.3   6.2   5.6   4.8   3.4   4.1   4.8
2005 Q1   3.8   4.4   4.4   4.6   4.9   4.9   5.3   5.3   6.1   5.6   5.0   3.4   4.1   4.8
2005 Q2   4.0   4.4   4.4   4.6   4.9   4.9   5.4   5.3   6.2   5.6   4.9   3.3   4.3   4.8
2005 Q3   4.3   4.5   4.4   4.6   4.9   4.8   5.3   5.3   6.2   5.6   4.9   3.3   4.3   4.8
2005 Q4   3.9   4.3   4.3   4.5   4.7   4.8   5.2   5.2   6.1   5.6   4.6   3.3   4.5   4.7
2006 Q1   4.1   4.5   4.4   4.6   4.9   4.8   5.3   5.3   6.1   5.6   4.9   3.4   4.6   4.8
2006 Q2   4.2   4.5   4.4   4.6   4.9   5.0   5.4   5.3   6.2   5.6   4.9   3.6   5.2   4.9
2006 Q3   4.2   4.5   4.4   4.6   4.9   5.0   5.4   5.4   6.4   5.7   4.9   3.8   5.7   4.9
2006 Q4   4.3   4.6   4.5   4.6   4.9   5.1   5.5   5.5   6.5   5.8   5.0   3.8   6.2   5.0
2007 Q1   4.3   4.6   4.5   4.7   5.0   5.2   5.6   5.6   6.8   6.0   5.1   3.9   7.1   5.1
2007 Q2   4.4   4.6   4.6   4.8   5.0   5.2   5.7   5.8   6.9   6.0   5.2   4.2   7.7   5.4
2007 Q3   4.2   4.6   4.5   4.7   4.9   5.1   5.8   5.8   7.2   6.0   5.0   4.1   7.9   5.4
2007 Q4   4.3   4.6   4.4   4.6   4.9   5.1   5.7   5.8   7.2   6.0   5.0   4.1   7.5   5.4
2008 Q1   4.2   4.5   4.3   4.5   4.8   5.0   5.5   5.6   7.0   5.7   4.9   4.0   6.5   5.2
2008 Q2   4.1   4.2   4.1   4.2   4.6   4.7   5.3   5.4   6.6   5.5   4.6   3.9   5.7   5.0
2008 Q3   3.8   4.0   3.9   4.0   4.4   4.3   5.0   5.0   6.5   5.1   4.4   3.7   5.3   4.7
Title: Re: Mortgages - Help!
Post by: fred the red on October 02, 2008, 01:54:41 PM
weres the best place in the world to buy property at the minute?
Title: Re: Mortgages - Help!
Post by: illdecide on October 02, 2008, 03:20:42 PM
Quote from: fred the red on October 02, 2008, 01:54:41 PM
weres the best place in the world to buy property at the minute?

Kenya
Title: Re: Mortgages - Help!
Post by: Doohicky on October 02, 2008, 04:32:39 PM
I'm actually quite happy about the way my house price is falling.
I bought through Co-Ownership and only bought 40% of my house. Renting the rest.
This put me in a position where I am paying well below what I can afford as I didn't want to risk something happening wher I was short ofn payments.

Now, with the falling house prices I am going to be able to (hopefully) increase the share in my house for much cheaper than I would have before.
Hopefully with the price I am buying at the increased mortgage costs will be weighted out by the decrease in rental costs. Before, buying more off my house at the original cost would have meant a steep rise in how much I have to pay each month. With it's new cost it will hopefully be a tiny rise, if a rise at all!  ;D
Title: Re: Mortgages - Help!
Post by: Sideshow Bob on October 03, 2008, 06:11:04 PM
Will the owners of the other 60% of your house want to sell it to you at a reduced rate?
Title: Re: Mortgages - Help!
Post by: pintsofguinness on October 03, 2008, 07:08:57 PM
Quote from: Doohicky on October 02, 2008, 04:32:39 PM
I'm actually quite happy about the way my house price is falling.
I bought through Co-Ownership and only bought 40% of my house. Renting the rest.
This put me in a position where I am paying well below what I can afford as I didn't want to risk something happening wher I was short ofn payments.

Now, with the falling house prices I am going to be able to (hopefully) increase the share in my house for much cheaper than I would have before.
Hopefully with the price I am buying at the increased mortgage costs will be weighted out by the decrease in rental costs. Before, buying more off my house at the original cost would have meant a steep rise in how much I have to pay each month. With it's new cost it will hopefully be a tiny rise, if a rise at all!  ;D

Ah Doohicky that shared ownership is a mugs game, try and get out of that.
Title: Re: Mortgages - Help!
Post by: passedit on October 30, 2008, 09:45:23 AM
Quote
Auctions point to steeper fall in house prices


The average price of a property sold at auction dropped nearly 30% over the past 12 months leading analysts to predict that house prices in the general market have a lot further to fall.

The average price of the 4,796 homes sold at auction over the past quarter was £123,209, 29.6% below the average price of £172,470 in the same quarter last year, according to figures compiled by the property auction group EIG.

"House prices are falling much faster than the published house price indices suggest," said the Liberal Democrat Treasury spokesman, Lord Oakeshott. "Auctions are the real market where contracts are exchanged and a 10% deposit paid as soon as the hammer falls.

"The Halifax and Nationwide indices are well behind the average fall in house prices, because they include houses approved for a mortgage. With mortgage lending down to a trickle, the 28.6% average price fall of homes sold at auction gives a true picture."

The futures market also predicted further falls. A properties derivative price report by Tradition Property showed that prices are likely to fall by a further 23.5% over the next year and 32.5% over the next two years, with 10 years to wait before prices get back to today's levels.

Bank of England data out yesterday showed that mortgage approvals for September rose for the first time in a year. Several analysts believe that they may have hit bottom but could stay there for many months to come.

The Bank of England said that lenders approved 33,000 mortgages for new purchases last month, slightly up from 32,000 in August. They were still 67% lower than a year earlier and almost a quarter of their peak in late 2006.

Remortgages accounted for half of all new loans and, at 72,000, were 30% lower than a year earlier.

"Approvals are likely to remain close to rock-bottom levels for many months yet," said Seema Shah at consultants Capital Economics. "The sharp rise in unemployment that we expect, the contraction in economic activity, as well as the continued tightening in lending criteria, will all curtail housing market activity. In turn, this will bear down further on house prices. We expect house prices to have fallen by 35% by the end of next year."

Net mortgage lending was £2.2bn in September, well below the £3.5bn monthly average for the previous six months. August's mortgage lending figure was revised to show a net repayment of £691m - the first repayment since the series started in April 1993.

The Bank added that consumer lending through personal loans and credit cards increased by £0.3bn, the weakest rise since 1993.
Title: Re: Mortgages - Help!
Post by: youbetterbelieveit on December 04, 2008, 01:01:43 PM
Bank of England have made another 1% cut in interest rates, down to 2% lowest since 1951.

The ECB have cut their's by 0.75%. so it so its down to 2.5%

Big changes, and good news for homeowners before xmas.
Title: Re: Mortgages - Help!
Post by: saffron sam2 on March 05, 2009, 01:39:08 PM
Mortgage out of idscounted period at the end of the month.

What's the best option now then experts?
Title: Re: Mortgages - Help!
Post by: Donagh on March 05, 2009, 02:02:59 PM
Same here. Standard Variable for my lender is 4.85%
Title: Re: Mortgages - Help!
Post by: saffron sam2 on March 06, 2009, 08:18:43 AM
Best I have seen so far is this.

Northern Bank have a base rate tracker 1.49% above their base rate for the life time of the loan - (depending on your loan to value.) with an arrangement fee of £799.

http://www.northernbank.co.uk/en-gb/Personal/mortgages/Pages/mortgages.aspx (http://www.northernbank.co.uk/en-gb/Personal/mortgages/Pages/mortgages.aspx)

Title: Re: Mortgages - Help!
Post by: Norf Tyrone on March 06, 2009, 09:09:27 AM
Quote from: saffron sam2 on March 05, 2009, 01:39:08 PM
Mortgage out of idscounted period at the end of the month.

What's the best option now then experts?
Check what rate you go on to. I had £1000 put aside as I was coming out of my fixed deal there, and thought I would have to go negotiate somewhere. However my A+L mortgage has reverted to 0.99 above BOE base rate for life.
Title: Re: Mortgages - Help!
Post by: maxpower on March 06, 2009, 09:31:31 AM
The fact that it is a discounted deal means that it is a rate lower than the lenders own Standard Variable Rate, it will go up based on that, however it may still be the best deal available to you
Title: Re: Mortgages - Help!
Post by: the Deel Rover on March 06, 2009, 09:38:37 AM
Quote from: Donagh on March 05, 2009, 02:02:59 PM
Same here. Standard Variable for my lender is 4.85%

Thats sounds like a right rip off donagh considering BANK Of England has reduced the rate tO .5%
Title: Re: Mortgages - Help!
Post by: khabilli on March 07, 2009, 09:00:26 PM
Is there any way of getting out of a fixed rate? I fixed mine a while back when rates were rising and am now paying way over the odds; granted, I did'nt have a crystal ball at the time and thought it was a good move but its still a bitter pill to swallow compared to what I could be paying every month. Anyone in the same boat?
Title: Re: Mortgages - Help!
Post by: clarshack on March 07, 2009, 09:51:51 PM
Quote from: the Deel Rover on March 06, 2009, 09:38:37 AM
Quote from: Donagh on March 05, 2009, 02:02:59 PM
Same here. Standard Variable for my lender is 4.85%

Thats sounds like a right rip off donagh considering BANK Of England has reduced the rate tO .5%

my mortgage with nationwide has just come out of a fixed rate of 4.95%. was advised to go onto the variable rate at 3% and that was before the latest interest rate cut. 4.85% seems quite high.
Title: Re: Mortgages - Help!
Post by: clarshack on March 07, 2009, 09:54:56 PM
Quote from: khabilli on March 07, 2009, 09:00:26 PM
Is there any way of getting out of a fixed rate?

i think you can get out of it but the penalty they hit you with means it probably isnt worthwhile.
Title: Re: Mortgages - Help!
Post by: nrico2006 on June 15, 2010, 09:58:03 AM
Does anyone know of the best place to go to if a first time buyer at the moment?  Will 100% mortgages return in the near future?
Title: Re: Mortgages - Help!
Post by: Alco Pup on June 15, 2010, 10:13:52 AM
I think there are still some places that will offer 100% mortgages, but they are rare and hard to get!

To be fair you would be better off stayin away from them - you will end up paying higher lending charges as well as higher interest rates.

IMO in the long run you would be better off holding fire until you have saved up enough for a deposit before buying your first house.  :)
Title: Re: Mortgages - Help!
Post by: joebloggs on June 15, 2010, 11:43:31 AM
Anyone got a self build mortgage in the north lately? Have tried loads of places but they will only give one if you already own the site and can't get planning permission on my own land.
Title: Re: Mortgages - Help!
Post by: mackers on June 15, 2010, 01:35:54 PM
You can get a mortgage if you don't own the site yet, however you must have started the process of getting the deeds transferred into your name. If you haven't got planning permission you're wasting your time. You'll not get a mortgage until you've got that.


Title: Re: Mortgages - Help!
Post by: seafoid on June 15, 2010, 01:51:06 PM
Some of those posts from Sept 08 were really on the money
Title: Re: Mortgages - Help!
Post by: magickingdom on June 15, 2010, 06:49:49 PM
Quote from: seafoid on June 15, 2010, 01:51:06 PM
Some of those posts from Sept 08 were really on the money

sept 08 was a bit late sept 06 would have been good
Title: Re: Mortgages - Help!
Post by: nrico2006 on July 27, 2010, 11:10:22 AM
I am thinking about buying a house and I have been to a mortgage advisor who has gave me advice on the best option for me (no deposit saved).  He has recommended the Co-ownership scheme - has anyone any experience with it?
Title: Re: Mortgages - Help!
Post by: maxpower on July 27, 2010, 02:00:33 PM
Quote from: mackers on June 15, 2010, 01:35:54 PM
You can get a mortgage if you don't own the site yet, however you must have started the process of getting the deeds transferred into your name. If you haven't got planning permission you're wasting your time. You'll not get a mortgage until you've got that.

you can get a self build mortgage to purchase the site and then build on it, 75% purchase of price and 75% of build costs on a stage release basis,

Quote from: nrico2006 on July 27, 2010, 11:10:22 AM
I am thinking about buying a house and I have been to a mortgage advisor who has gave me advice on the best option for me (no deposit saved).  He has recommended the Co-ownership scheme - has anyone any experience with it?

Co ownership is a bollocks to go through, be in no rush to complete but works well for some, bit of a lotto system for acceptance
Title: Re: Mortgages - Help!
Post by: Muzz on July 27, 2010, 02:03:59 PM
Co-Ownership can be quite hard to get on to - its a bit of a lottery.  There are only so many deals done per month and normally the waiting list can be quite high.  You could be waiting few months or more before being selected for Co-Ownership.

On some occasions a personal loan to secure the deposit is worth looking at.  The monthly repayments you pay on the personal loan could be less than the difference off a 100% mortgage and an 85% mortgage.  You could also go Interest Only Repayment for the first while to pay off the loan.

Worth a look into...
Title: Re: Mortgages - Help!
Post by: pintsofguinness on July 27, 2010, 06:46:02 PM
You're talking months and months to go down the co ownership route - months to get selected and if you do months for the legal stuff to go through.
Personally I would never consider it. Why don't you just rent for now.
Title: Re: Mortgages - Help!
Post by: flantheman82 on July 27, 2010, 08:37:50 PM
Myself and the wife went through co-ownership 3 years ago as first time buyers and no deposit. Found the mortgage side of things harder to sort out than the co-ownership.
Only thing is now we're completely tied into it for the foreseeable future as our apartment is valued about 50% lower than what we paid for it so we couldn't afford the loss on the mortgage side of things.
If however, we had the money, we would only be required to pay back the same percentage of the sale price as we borrowed from them. I.e. If we bought a £200,000 house with 50% mortgage, then if we sold for £100,000, we'd only have to pay £50,000 to co-ownership. Therefore instead of us losing out on £100,000 it'd only be half that.
Confused? I am!
Title: Re: Mortgages - Help!
Post by: pintsofguinness on July 27, 2010, 08:43:42 PM
Quote from: flantheman82 on July 27, 2010, 08:37:50 PM
Myself and the wife went through co-ownership 3 years ago as first time buyers and no deposit. Found the mortgage side of things harder to sort out than the co-ownership.
Only thing is now we're completely tied into it for the foreseeable future as our apartment is valued about 50% lower than what we paid for it so we couldn't afford the loss on the mortgage side of things.
If however, we had the money, we would only be required to pay back the same percentage of the sale price as we borrowed from them. I.e. If we bought a £200,000 house with 50% mortgage, then if we sold for £100,000, we'd only have to pay £50,000 to co-ownership. Therefore instead of us losing out on £100,000 it'd only be half that.
Confused? I am!
You didnt borrow the money - they own the precentage of the house - if you go to sell they get the house valued, same way you would and if the value has dropped they also take a hit, just like you as a part owner.
Title: Re: Mortgages - Help!
Post by: Minder on July 27, 2010, 09:44:51 PM
Quote from: All of a Sludden on July 27, 2010, 09:40:35 PM
Quote from: nrico2006 on July 27, 2010, 11:10:22 AM
I am thinking about buying a house and I have been to a mortgage advisor who has gave me advice on the best option for me (no deposit saved).  He has recommended the Co-ownership scheme - has anyone any experience with it?

If you cannot save a deposit you really should be asking if you can afford to buy at all. Avoid co-ownership at all costs.

Obviously saving a substantial amount of money like that teaches you certain discipline but just because someone is not able to save £20k in a short period of time does not mean they can't service a mortgage.
Title: Re: Mortgages - Help!
Post by: delboy on July 28, 2010, 07:54:40 PM
Quote from: pintsofguinness on July 27, 2010, 08:43:42 PM
Quote from: flantheman82 on July 27, 2010, 08:37:50 PM
Myself and the wife went through co-ownership 3 years ago as first time buyers and no deposit. Found the mortgage side of things harder to sort out than the co-ownership.
Only thing is now we're completely tied into it for the foreseeable future as our apartment is valued about 50% lower than what we paid for it so we couldn't afford the loss on the mortgage side of things.
If however, we had the money, we would only be required to pay back the same percentage of the sale price as we borrowed from them. I.e. If we bought a £200,000 house with 50% mortgage, then if we sold for £100,000, we'd only have to pay £50,000 to co-ownership. Therefore instead of us losing out on £100,000 it'd only be half that.
Confused? I am!
You didnt borrow the money - they own the precentage of the house - if you go to sell they get the house valued, same way you would and if the value has dropped they also take a hit, just like you as a part owner.

I think the rub is though that they value the house 'independently' of you so you might for instance be prepared to sell for an offer of 100K but if their valuer puts its value at say 140K they'll be holding their hand out for 50 % of 140K ie 70k and not 50 % of the lower figure (I presume its to stop the owner selling it cheap and taking a backhander).
I think quite a few people have found themselves caught out by this and are now effectively trapped in a co-ownership house which is valued by the co-own people much higher than the current market.
Title: Re: Mortgages - Help!
Post by: Milltown Row2 on July 28, 2010, 08:11:25 PM
We-ve been with nationwide on a tracker morgage for past 6 years. with the intrest rates down we are saving a third off what we had 4 years ago
Title: Re: Mortgages - Help!
Post by: Shortso79 on July 29, 2010, 08:55:21 PM
Quote from: nrico2006 on July 27, 2010, 11:10:22 AM
I am thinking about buying a house and I have been to a mortgage advisor who has gave me advice on the best option for me (no deposit saved).  He has recommended the Co-ownership scheme - has anyone any experience with it?

My friend works in Co-Ownership - he would highly recommend it - banks are reluctant to lend at moment but are more likely with co-ownership behind you - yes its taking more time these days to complete but thats a sign of the times - more checks by both banks and solicitors
Title: Re: Mortgages - Help!
Post by: Shortso79 on July 29, 2010, 08:57:13 PM
came out of a fixed rate mortgage there with Halifax

now on Standard Variable Rate 3.5% (thats 3% above base)

but seems the best option at the moment until rates start going up
Title: Re: Mortgages - Help!
Post by: Newbridge Exile on July 29, 2010, 09:33:28 PM
We came out of our 5 year fixed last October and went onto the nationwide base mortage  rate of 2.5% which we are going to stick with until rates start taking a hike again
Title: Re: Mortgages - Help!
Post by: Square Ball on July 29, 2010, 09:41:28 PM
I was on a fixed rate with the A&L for 5 years which finishes in Dec, after that I will be on the B.O.E base rate + 1% for a year, hope to get a good fixed rate to see out the final 5 years after that
Title: Re: Mortgages - Help!
Post by: Hereiam on July 29, 2010, 10:17:08 PM
If interest rates start going up do people really believe the banks will not put up the their intrest rate anyway even though you are on a 5 yr fixed rate. One thing to learn from this recent banking mess up is that they can do what they want and are not to be trussed.
Title: Re: Mortgages - Help!
Post by: STREET FIGHTER on January 25, 2011, 04:11:47 PM
What are the best mortgage deals out there at the minute?

Any competitve rates to be had?
Title: Re: Mortgages - Help!
Post by: quit yo jibbajabba on January 25, 2011, 04:19:31 PM
depends what youre at chap; you buyin, remortgaging etc....
Title: Re: Mortgages - Help!
Post by: Muzz on January 25, 2011, 04:21:27 PM
Street Fighter - I dont know a while pile about Mortgages but was searching for one.  After going through Mortgage Shop they were taking too long and decided to look some up myself.  Went ahead with one and they failed me on the very last step.

I was given a number for a completely independant guy in Belfast - Called him and had a better rate and Mortgage signed within a week.  Sorted Insurance and everything for me.

I know this guy is in it for himself i.e. hes getting commision on what he sells but basically he talked to the guys first gave them all the details made sure that the mortgage would go through and then got me to sign my papers.  I cant fault the service.  Top notch and kept me informed the full way through.

If you are in Belfast and fancy meeting with him give me a PM and I'll forward the contact details.  Worth a chat anyways - would do no harm.

Muzz
Title: Re: Mortgages - Help!
Post by: STREET FIGHTER on January 25, 2011, 04:22:09 PM
Quote from: quit yo jibbajabba on January 25, 2011, 04:19:31 PM
depends what youre at chap; you buyin, remortgaging etc....

Considering buying lad. 

First time buyer.

Trying to pull together a deposit. 

Tough stuff.

Just wondering if anyone is in the same boat or has any useful advice.
Title: Re: Mortgages - Help!
Post by: Muzz on January 25, 2011, 04:24:23 PM
I was first time buyer and had 10% deposit.  Defintely think you are best speaking to someone and a few people at that.
Title: Re: Mortgages - Help!
Post by: STREET FIGHTER on January 25, 2011, 04:26:35 PM
Quote from: Muzz on January 25, 2011, 04:21:27 PM
Street Fighter - I dont know a while pile about Mortgages but was searching for one.  After going through Mortgage Shop they were taking too long and decided to look some up myself.  Went ahead with one and they failed me on the very last step.

I was given a number for a completely independant guy in Belfast - Called him and had a better rate and Mortgage signed within a week.  Sorted Insurance and everything for me.

I know this guy is in it for himself i.e. hes getting commision on what he sells but basically he talked to the guys first gave them all the details made sure that the mortgage would go through and then got me to sign my papers.  I cant fault the service.  Top notch and kept me informed the full way through.

If you are in Belfast and fancy meeting with him give me a PM and I'll forward the contact details.  Worth a chat anyways - would do no harm.

Muzz

Excellant stuff Muzz.

Will do no harm to pm me the details anyway.

Without asking you too much about your private affairs had you a good enough deposit set aside for the property?

Is it really a buyers market for 1st time buyers with a good deposit and a some level of job security? 
Title: Re: Mortgages - Help!
Post by: Hereiam on March 29, 2012, 10:31:13 PM
Was in with the bank today about our self build mortage and I was just wondering did the people on this board who have mortgages take out payment protection insurance. I'm in two minds about this one.
Title: Re: Mortgages - Help!
Post by: HiMucker on October 23, 2013, 10:51:50 PM
Does anyone know if any banks still offer a sterling mortgage for a property in the south or is that a no go these days?
Title: Re: Mortgages - Help!
Post by: muppet on October 23, 2013, 11:04:26 PM
Quote from: Hereiam on March 29, 2012, 10:31:13 PM
Was in with the bank today about our self build mortage and I was just wondering did the people on this board who have mortgages take out payment protection insurance. I'm in two minds about this one.

You can take it out for a percentage of your income (e.g. only insure 50% or whatever) and if you have a wife and kids it can give you piece of mind. However if you already have any similar type of income protection insurance or early pension coverage (ill-health etc) it might be a waste of money as they will not be paid cumulatively. Better get independent advice (i.e. not from the bank offering the mortgage).
Title: Re: Mortgages - Help!
Post by: DennistheMenace on August 05, 2016, 08:46:39 AM
Anyone got a mortgage recently or looking about one, now is a good time with interest rates at record low? What rate are people currently on?
Title: Re: Mortgages - Help!
Post by: ziggy90 on August 05, 2016, 10:42:48 AM
Quote from: Hereiam on March 29, 2012, 10:31:13 PM
Was in with the bank today about our self build mortage and I was just wondering did the people on this board who have mortgages take out payment protection insurance. I'm in two minds about this one.

If you take out this insurance make sure you tell them to contact your doctor for your full medical history. Failure to disclose even the smallest ailment can, and usually will, lead to your policy been invalid.
The greatest shower of shysters I've ever encountered.
Title: Re: Mortgages - Help!
Post by: TabClear on August 05, 2016, 10:52:00 AM
Hoping for some advice here.  I have a mortgage with Ulster Bank. I'm on the svr  >:( as the house is in negative equity of probably £30K and so can't move away. I ve heard of some banks offering products for negative equity customers but ub in the north don't seem to do it ? Anyone aware of any options I might have to reduce my rate?
Title: Re: Mortgages - Help!
Post by: imtommygunn on August 05, 2016, 11:03:27 AM
Quote from: DennistheMenace on August 05, 2016, 08:46:39 AM
Anyone got a mortgage recently or looking about one, now is a good time with interest rates at record low? What rate are people currently on?

On 2. something(maybe .49) and up for renewal end of next month. Hoping to go below 2 this month. I looked last night and saw a few at that rate. If you look at money supermarket and the like you'll find out handy enough the good rates.
Title: Re: Mortgages - Help!
Post by: trueblue1234 on September 01, 2016, 10:56:23 PM
Just wondering does anyone know what stages roughly you can drawn down your instalments for a self build?
Title: Re: Mortgages - Help!
Post by: quit yo jibbajabba on September 01, 2016, 11:30:55 PM
First floor level, roofed, plastered and completed. Tho there can be flexibilty depending on lender
Title: Re: Mortgages - Help!
Post by: Boycey on February 20, 2017, 01:47:53 PM
Any of you good folk switched your mortgage lender? Specifically in the south... I stuck my details into one of them comparison yokes last week and it looked to me as if I could save a right few quid. I just wondering if there are any pitfalls or hidden costs to doing it and is it a ballache to do. Thanks in advance..
Title: Re: Mortgages - Help!
Post by: Milltown Row2 on February 20, 2017, 03:02:17 PM
Changed to Santander recently, we use a guy who looks after all that stuff, so never really take any notice of best deals but they must have had an change over offer as we got £3000 cheque from changing it, I thought we'd have to put it into the mortgage but the broker guy said nope thats yours!!

£150 quid well spent using someone who knows what they are doing, as they can save you money and let you know of the pitfalls and hidden costs
Title: Re: Mortgages - Help!
Post by: Tubberman on February 20, 2017, 04:17:10 PM
Quote from: Boycey on February 20, 2017, 01:47:53 PM
Any of you good folk switched your mortgage lender? Specifically in the south... I stuck my details into one of them comparison yokes last week and it looked to me as if I could save a right few quid. I just wondering if there are any pitfalls or hidden costs to doing it and is it a ballache to do. Thanks in advance..

Didn't switch mortgage provider, but switched to a 3 year fixed-rate at 3.1% with BofI.
That's down from 3.75% which in turn was down from starting rate of 4.5% !!
Title: Re: Mortgages - Help!
Post by: Boycey on November 09, 2017, 04:37:44 PM
Ha I see I'm not rushing into anything as I asked this back in Feb...

BOI have offered to fix my mortgage at 3.0% for 1,2,3 or 5 years, down from 4.35% or at 3.3% for 10 years. Is longer or shorter the best option?
Title: Re: Mortgages - Help!
Post by: brokencrossbar1 on November 09, 2017, 05:24:02 PM
Quote from: Boycey on November 09, 2017, 04:37:44 PM
Ha I see I'm not rushing into anything as I asked this back in Feb...

BOI have offered to fix my mortgage at 3.0% for 1,2,3 or 5 years, down from 4.35% or at 3.3% for 10 years. Is longer or shorter the best option?

I think best advice is to speak to a financial adviser rather than a crowd of halfwits in here😂
Title: Re: Mortgages - Help!
Post by: Boycey on November 09, 2017, 05:50:51 PM
Quote from: brokencrossbar1 on November 09, 2017, 05:24:02 PM
Quote from: Boycey on November 09, 2017, 04:37:44 PM
Ha I see I'm not rushing into anything as I asked this back in Feb...

BOI have offered to fix my mortgage at 3.0% for 1,2,3 or 5 years, down from 4.35% or at 3.3% for 10 years. Is longer or shorter the best option?

I think best advice is to speak to a financial adviser rather than a crowd of halfwits in here😂

Along with spouting shite on here, maybe just maybe one of these boyos is a hotshot financial adviser... They can't be all wasters or teachers ;)
Title: Re: Mortgages - Help!
Post by: Sweeper 123 on November 09, 2017, 06:00:43 PM
3.3 fixed for 10yrs looks very good ; we just have had a base rate increase and by all accounts in long term there may be further hikes; but for u if the fixed rate amount fits with your budget then your on to a winner, but if boo r offering this u can b sure some other bank will have something better
Title: Re: Mortgages - Help!
Post by: Sweeper 123 on November 09, 2017, 06:06:19 PM
Just looked there and there are 10yr deals at 2.49% depending o ltv so best to shop around HSBC  / barclays or ssntander
Title: Re: Mortgages - Help!
Post by: Maroon Manc on November 09, 2017, 06:31:39 PM
Considering their offering to give you a 1 year deal at 3.0% then 3.3% for a 10 year fix is a great deal.

Title: Re: Mortgages - Help!
Post by: Minder on November 09, 2017, 08:04:55 PM
I have just done this today with Halifax, fixed again for two years @ 1.89%. Was gonna fix for longer but the way I look at it is when fixed term is up your loan to value will be better and you will be eligible for the better deals again. Obviously people are looking to fix for longer now with interest rates on the rise but I'm gonna take that chance.
Title: Re: Mortgages - Help!
Post by: Hereiam on November 09, 2017, 09:41:55 PM
I with you minder
Title: Re: Mortgages - Help!
Post by: bennydorano on November 10, 2017, 08:06:20 AM
I fixed for 5 years this week
Title: Re: Mortgages - Help!
Post by: Link on November 10, 2017, 09:15:12 AM
Quote from: Milltown Row2 on February 20, 2017, 03:02:17 PM
Changed to Santander recently, we use a guy who looks after all that stuff, so never really take any notice of best deals but they must have had an change over offer as we got £3000 cheque from changing it, I thought we'd have to put it into the mortgage but the broker guy said nope thats yours!!

£150 quid well spent using someone who knows what they are doing, as they can save you money and let you know of the pitfalls and hidden costs

Was this a cashback offer MR?

Danske Bank had a similiar offer of £1200/£1500 cashback for first time buyers. They didn't offer the best rate but the cashback made it the best deal. I will probably change provider next renewal and first direct looks the best to me at the moment.
Title: Re: Mortgages - Help!
Post by: Minder on November 10, 2017, 09:24:22 AM
Quote from: Link on November 10, 2017, 09:15:12 AM
Quote from: Milltown Row2 on February 20, 2017, 03:02:17 PM
Changed to Santander recently, we use a guy who looks after all that stuff, so never really take any notice of best deals but they must have had an change over offer as we got £3000 cheque from changing it, I thought we'd have to put it into the mortgage but the broker guy said nope thats yours!!

£150 quid well spent using someone who knows what they are doing, as they can save you money and let you know of the pitfalls and hidden costs

Was this a cashback offer MR?

Danske Bank had a similiar offer of £1200/£1500 cashback for first time buyers. They didn't offer the best rate but the cashback made it the best deal. I will probably change provider next renewal and first direct looks the best to me at the moment.

Was also for remortgaging to them, I called into a branch last week and they where supposed to ring me back but never bothered. Handy thing with Halifax is you can switch it online, don't have to speak to any bullshitters, as long as you know what you want.
Title: Re: Mortgages - Help!
Post by: giveherlong on April 27, 2018, 03:23:52 PM
What's the thoughts on this one considering potential interest rates increases and Brexit impact etc?

2 options:

0.99% variable for 2 years (discount off standard variable)

Or

1.89% fixed for 2 years
Title: Re: Mortgages - Help!
Post by: Insane Bolt on April 27, 2018, 03:48:36 PM
Quote from: giveherlong on April 27, 2018, 03:23:52 PM
What's the thoughts on this one considering potential interest rates increases and Brexit impact etc?

2 options:

0.99% variable for 2 years (discount off standard variable)

Or

1.89% fixed for 2 years

If the SVR is 3% then I would think going with the fixed is best....i.e. the 3% - 0.99 discount is still higher than the fixed 1.89......or am I missing something.
Title: Re: Mortgages - Help!
Post by: giveherlong on April 27, 2018, 05:58:00 PM
The 0.99% is the rate you pay which is a discount of standard variable:

1 Lender could increase their standard variable rate or
2 Bank of England could put up base rate
Title: Re: Mortgages - Help!
Post by: Insane Bolt on April 27, 2018, 07:40:24 PM
Quote from: giveherlong on April 27, 2018, 05:58:00 PM
The 0.99% is the rate you pay which is a discount of standard variable:

1 Lender could increase their standard variable rate or
2 Bank of England could put up base rate

I don't think the SVR will rise by more than 1% in next two years
Title: Re: Mortgages - Help!
Post by: awideisneverasgood on April 29, 2018, 08:58:22 PM
You need to beware of the longer term deals if there is a chance you need to get out of the deal early. We fixed for 5 years a couple of years ago but need to switch providers now as we are putting on a large extension and our current bank don't offer finance for this.  Its costing almost 5k to get out of the deal.
Title: Re: Mortgages - Help!
Post by: TabClear on April 30, 2018, 01:07:42 PM
Quote from: awideisneverasgood on April 29, 2018, 08:58:22 PM
You need to beware of the longer term deals if there is a chance you need to get out of the deal early. We fixed for 5 years a couple of years ago but need to switch providers now as we are putting on a large extension and our current bank don't offer finance for this.  Its costing almost 5k to get out of the deal.

I take it a personal loan with your existing bank is not an option for 5 years say for the extension? I assume the extra £5k is getting rolled into the remortgage and repayable over a longer period but it is a serious amount of dough to payout to break the deal, especially if there is only 3 years remaining.
Title: Re: Mortgages - Help!
Post by: awideisneverasgood on April 30, 2018, 05:18:07 PM
No, the extension is quite sizable so we basically need a self build mortgage for it.  When we took out the 5 year fixed, our plan was to move and port the mortgage if needs be but things changed.
Title: Re: Mortgages - Help!
Post by: TabClear on April 30, 2018, 06:42:10 PM
Quote from: awideisneverasgood on April 30, 2018, 05:18:07 PM
No, the extension is quite sizable so we basically need a self build mortgage for it.  When we took out the 5 year fixed, our plan was to move and port the mortgage if needs be but things changed.

Ah right, thought that after I wrote that that the loan option only works for a relatively small amount. Same thing happened me a few years ago, a plan to move turned into an extension for a playroom!  :D
Title: Re: Mortgages - Help!
Post by: Kidder81 on August 10, 2022, 01:00:22 PM
So folks what do we reckon about 10 year fixed deals, a lot cheaper/lower interest rates than previously. Very little difference in 5 year/10 year fixed deals. Where do we think interest rates are going? Obviously going up now but hard to tell how far and how soon
Title: Re: Mortgages - Help!
Post by: clarshack on August 10, 2022, 01:10:00 PM
Quote from: Kidder81 on August 10, 2022, 01:00:22 PM
So folks what do we reckon about 10 year fixed deals, a lot cheaper/lower interest rates than previously. Very little difference in 5 year/10 year fixed deals. Where do we think interest rates are going? Obviously going up now but hard to tell how far and how soon

get 10 year fixed if you know you won't be getting divorced or have to sell your house for some other reason as it will really cost you to come out of the deal.
Title: Re: Mortgages - Help!
Post by: Kidder81 on August 10, 2022, 01:12:16 PM
Quote from: clarshack on August 10, 2022, 01:10:00 PM
Quote from: Kidder81 on August 10, 2022, 01:00:22 PM
So folks what do we reckon about 10 year fixed deals, a lot cheaper/lower interest rates than previously. Very little difference in 5 year/10 year fixed deals. Where do we think interest rates are going? Obviously going up now but hard to tell how far and how soon

get 10 year fixed if you know you won't be getting divorced or have to sell your house for some other reason as it will really cost you to come out of the deal.

Yeah won't be moving or paying it off in that time period, hopefully not divorced either  :P
Title: Re: Mortgages - Help!
Post by: trailer on August 10, 2022, 02:11:04 PM
Quote from: Kidder81 on August 10, 2022, 01:12:16 PM
Quote from: clarshack on August 10, 2022, 01:10:00 PM
Quote from: Kidder81 on August 10, 2022, 01:00:22 PM
So folks what do we reckon about 10 year fixed deals, a lot cheaper/lower interest rates than previously. Very little difference in 5 year/10 year fixed deals. Where do we think interest rates are going? Obviously going up now but hard to tell how far and how soon

get 10 year fixed if you know you won't be getting divorced or have to sell your house for some other reason as it will really cost you to come out of the deal.

Yeah won't be moving or paying it off in that time period, hopefully not divorced either  :P

I think fixing is a safe bet at the minute.
Title: Re: Mortgages - Help!
Post by: Kidder81 on August 10, 2022, 02:16:33 PM
Quote from: trailer on August 10, 2022, 02:11:04 PM
Quote from: Kidder81 on August 10, 2022, 01:12:16 PM
Quote from: clarshack on August 10, 2022, 01:10:00 PM
Quote from: Kidder81 on August 10, 2022, 01:00:22 PM
So folks what do we reckon about 10 year fixed deals, a lot cheaper/lower interest rates than previously. Very little difference in 5 year/10 year fixed deals. Where do we think interest rates are going? Obviously going up now but hard to tell how far and how soon

get 10 year fixed if you know you won't be getting divorced or have to sell your house for some other reason as it will really cost you to come out of the deal.

Yeah won't be moving or paying it off in that time period, hopefully not divorced either  :P

I think fixing is a safe bet at the minute.

Yeah I'm gonna fix, just a question of 5 or 10 years
Title: Re: Mortgages - Help!
Post by: trailer on August 10, 2022, 02:31:29 PM
Quote from: Kidder81 on August 10, 2022, 02:16:33 PM
Quote from: trailer on August 10, 2022, 02:11:04 PM
Quote from: Kidder81 on August 10, 2022, 01:12:16 PM
Quote from: clarshack on August 10, 2022, 01:10:00 PM
Quote from: Kidder81 on August 10, 2022, 01:00:22 PM
So folks what do we reckon about 10 year fixed deals, a lot cheaper/lower interest rates than previously. Very little difference in 5 year/10 year fixed deals. Where do we think interest rates are going? Obviously going up now but hard to tell how far and how soon

get 10 year fixed if you know you won't be getting divorced or have to sell your house for some other reason as it will really cost you to come out of the deal.

Yeah won't be moving or paying it off in that time period, hopefully not divorced either  :P

I think fixing is a safe bet at the minute.

Yeah I'm gonna fix, just a question of 5 or 10 years

10 seems a very long time. But could be a smart move.
Title: Re: Mortgages - Help!
Post by: gallsman on August 10, 2022, 03:35:45 PM
Took out my mortgage over here last year. Fixed for first year at 1.79% and then Euribor + 0.89 after that. As recently as March I'd have been saving 200e a month. In the end my new rate works out at 1.73% and I'm saving a whopping 5e a month  ;D

There's a bank offer here that will fix for 5 years at 0.95 and then move to Euribor + 0.69. Am strongly considering it even though I'd have penalties for early amortization in the first two years.
Title: Re: Mortgages - Help!
Post by: markl121 on August 10, 2022, 05:00:27 PM
I fixed mine last month at 2% for the next five years. I figured it's worth the extra 0.1% or whatever it was compared to doing 2-3 years and ending up with a shite rate down the road
Title: Re: Mortgages - Help!
Post by: marty34 on August 10, 2022, 09:05:09 PM
Rates will have to go up a good bit if they want to curb inflation....a good bit.

So a good idea to fix.

Title: Re: Mortgages - Help!
Post by: Hound on August 11, 2022, 09:03:20 AM
Many banks will really screw you if you decide to sell before the end of the fixed term, so that's the big thing to think about if fixing long term. Otherwise it would seem sensible to fix now if you can get a good rate.

In my mortgage getting days, I fixed half of it and variable for the other half, so whatever happened to interest rates I was always half right and half wrong! I also liked to have the option of using some of my bonus to make an extra payment on the mortgage - which you can do with a variable but not with a fixed.
Title: Re: Mortgages - Help!
Post by: brokencrossbar1 on August 11, 2022, 09:13:08 AM
We have just over a year left on a 5 year fixed rate. We were thinking of rebroking with the bank early but will cost a few thousand in redemption charges. Do people thinks rates will change that much over the next 12 months?
Title: Re: Mortgages - Help!
Post by: RedHand88 on August 11, 2022, 09:19:48 AM
Quote from: brokencrossbar1 on August 11, 2022, 09:13:08 AM
We have just over a year left on a 5 year fixed rate. We were thinking of rebroking with the bank early but will cost a few thousand in redemption charges. Do people thinks rates will change that much over the next 12 months?

Have read bank of england base rate will probably be 3% by early next year, it's 1.75% at the moment.
Title: Re: Mortgages - Help!
Post by: trueblue1234 on August 11, 2022, 10:09:53 PM
Quote from: Hound on August 11, 2022, 09:03:20 AM
Many banks will really screw you if you decide to sell before the end of the fixed term, so that's the big thing to think about if fixing long term. Otherwise it would seem sensible to fix now if you can get a good rate.

In my mortgage getting days, I fixed half of it and variable for the other half, so whatever happened to interest rates I was always half right and half wrong! I also liked to have the option of using some of my bonus to make an extra payment on the mortgage - which you can do with a variable but not with a fixed.

We've been in fixed mortgages and was always allowed to pay off up to 10% in a single year. We had a few tough years trying to do it, but the difference it makes is unreal!!
Title: Re: Mortgages - Help!
Post by: Kidder81 on August 11, 2022, 10:12:13 PM
Yeah you can overpay up to 10% of your outstanding balance in a year
Title: Re: Mortgages - Help!
Post by: RedHand88 on August 30, 2022, 05:04:41 PM
Whatis the % interest rate on the variable at the minute?

I'll get back to you later this evening with my thoughts. I'm in the exact same boat as yourself.
Title: Re: Mortgages - Help!
Post by: screenexile on August 30, 2022, 05:32:04 PM
Quote from: RedHand88 on August 30, 2022, 05:04:41 PM
Whatis the % interest rate on the variable at the minute?

I'll get back to you later this evening with my thoughts. I'm in the exact same boat as yourself.

SVR with Santander is currently 4.91% rising to 5.99% in September

BOI is 5.24%

HSBC 4.54% currently not sure about September

Found this online not sure it'll help nobody really knows what way it'll go I'm just glad I'm tied in for another 3 years so I don't have to think about it!



Quote
The bottom line
Analysts forecast that the BoE will continue to hike rates at least until December this year to cool expected rising inflation before taking a pause as high interest rates start to affect economic growth rate.

The BoE estimated the interest rate to peak at 3% in the third quarter 2023 before cutting it to 2.5% and 2.2% in the third quarter of 2024 and 2025, respectively.

Remember that analysts' predictions can be wrong. You should always conduct your own due diligence before trading. And never invest or trade money you cannot afford to lose.
Title: Re: Mortgages - Help!
Post by: LeoMc on August 30, 2022, 06:55:57 PM
Quote from: 1884 on August 30, 2022, 04:44:28 PM
:-\ Decisions!!

Looking at my mortgage here on the back of a self build in the North.

I did not take the full amount the bank offered me but have plenty of work to do outside the house. So I am still able to take 30k without going about the 60% ATV.

If I took the 30k extra on the discounted variable rate monthly payments are
£752 on a 2 year variable

If I went down the fixed route plus still taking 30k payments are
£916 for a 2 year fixed
Or
£961 for a 5 year fixed

To not take anything further on a 2 year fixed is £775 per month.

How much is the interest rate due to rise? I'd be happy with the 752 on the variable rate at the minute but worried in case that would rise a lot over the next while.

Anyone any advice? Be greatly appreciated.

It's obv subjective and unpredictable - just interested to hear people's thoughts rather than coming on here to make my final decision.

Are there no online calculators that would show you what a .25%, a .5% and a .75% increase would do to your £752?  I can't imagine the first 2 would bring you anywhere near the £961 a fixed deal would cost you.
Title: Re: Mortgages - Help!
Post by: seafoid on August 30, 2022, 07:09:36 PM
If you look at estimates of gas prices in  Q1 and Q2 they were way off.
Inflation won't be fixed until interest rates are greater than inflation.
That won't be at 3%
Title: Re: Mortgages - Help!
Post by: RedHand88 on August 30, 2022, 07:13:26 PM
1-1.5% of a rise by end of 2023 has been proved into the market, which would take you to £850-900.

Some are predicting 2-2.5% of an increase though,  which would take you past your fixed rate price.
https://www.google.com/amp/s/amp.theguardian.com/business/2022/aug/23/bank-of-england-may-be-forced-to-raise-interest-rates-to-4-per-cent-2023-inflation  (https://www.google.com/amp/s/amp.theguardian.com/business/2022/aug/23/bank-of-england-may-be-forced-to-raise-interest-rates-to-4-per-cent-2023-inflation)
However, you would like to think it will only be at that level for a while before coming down.

Personally, I'm someone who likes consistency and stability and likes to know what I'll be paying each month for the next 2 or 5 years. However, the money that can be saved on variable, especially early on in the term if taken out now, is tempting.
Title: Re: Mortgages - Help!
Post by: tbrick18 on September 26, 2022, 04:41:33 PM
Given the recent interest rate rise, and seemingly another emergency rate increase by BoE looming, is it time to start looking at re-mortgaging even if tied into a fixed rate deal?

Where do we think the interest rate is going to land in 1/2/3 years from now?

There's a real risk, I think, of coming out of a fixed deal and suddenly having a mortgage payment increase by hundreds a month.

I personally fixed my mortgage for 2 years and am about a year into it.
Any mortgage advisors on here? What would the advice be right now?
Title: Re: Mortgages - Help!
Post by: markl121 on September 26, 2022, 05:07:42 PM
Quote from: tbrick18 on September 26, 2022, 04:41:33 PM
Given the recent interest rate rise, and seemingly another emergency rate increase by BoE looming, is it time to start looking at re-mortgaging even if tied into a fixed rate deal?

Where do we think the interest rate is going to land in 1/2/3 years from now?

There's a real risk, I think, of coming out of a fixed deal and suddenly having a mortgage payment increase by hundreds a month.

I personally fixed my mortgage for 2 years and am about a year into it.
Any mortgage advisors on here? What would the advice be right now?
Mine was up this year and took a five year at 2.04%. very glad to have done it now. Are you able to renegotiate with a year left?
Title: Re: Mortgages - Help!
Post by: redzone on September 26, 2022, 05:22:02 PM
Moneysavingexpert.com has a good online calculator for morgage repayments
Title: Re: Mortgages - Help!
Post by: bennydorano on September 26, 2022, 05:51:47 PM
I've had fixed rates all my mortgage life, current 3 year one ending in January and i cant go early without penalties, such shite timing. From things I've been reading rates will be going up to next Summer and coming down again after that, but like the petrol on the forecourt it takes rate reductions longer to kick in than increases. I'll be looking a 2 year deal.
Title: Re: Mortgages - Help!
Post by: Tubberman on September 26, 2022, 05:55:29 PM
Quote from: bennydorano on September 26, 2022, 05:51:47 PM
I've had fixed rates all my mortgage life, current 3 year one ending in January and i cant go early without penalties, such shite timing. From things I've been reading rates will be going up to next Summer and coming down again after that, but like the petrol on the forecourt it takes rate reductions longer to kick in than increases. I'll be looking a 2 year deal.

check with bank what the penalty would be - might not be much at all
Title: Re: Mortgages - Help!
Post by: quit yo jibbajabba on September 26, 2022, 06:09:31 PM
Quote from: tbrick18 on September 26, 2022, 04:41:33 PM
Given the recent interest rate rise, and seemingly another emergency rate increase by BoE looming, is it time to start looking at re-mortgaging even if tied into a fixed rate deal?

Where do we think the interest rate is going to land in 1/2/3 years from now?

There's a real risk, I think, of coming out of a fixed deal and suddenly having a mortgage payment increase by hundreds a month.

I personally fixed my mortgage for 2 years and am about a year into it.
Any mortgage advisors on here? What would the advice be right now?

Check what the penalty is, with a year to go hopefully 1% of the outstanding amount. Ask them what rates are on offer then go do your sums/see what hit yer prepared to take.
Crazy times....really hard to know where it will end
Title: Re: Mortgages - Help!
Post by: seafoid on September 26, 2022, 06:13:22 PM
Rates could go to 10% before coming back to where they were before.
Title: Re: Mortgages - Help!
Post by: toby47 on September 27, 2022, 09:15:14 AM
Some people going to be seriously crushed coming out of fixed term mortgages in the next year or so.
Title: Re: Mortgages - Help!
Post by: trailer on September 27, 2022, 09:20:15 AM
My fixed rate ends in exactly 2 years. Expecting bad things, but maybe it will have settled down then.
Title: Re: Mortgages - Help!
Post by: screenexile on September 27, 2022, 09:24:44 AM
Quote from: trailer on September 27, 2022, 09:20:15 AM
My fixed rate ends in exactly 2 years. Expecting bad things, but maybe it will have settled down then.

Same as that. . . might have to increase the term to keep repayments down but fingers crossed things will settle at that stage!
Title: Re: Mortgages - Help!
Post by: RedHand88 on September 27, 2022, 10:17:03 AM
Was explaining this to a work colleague who had no idea this was happening. I ran her numbers and her mortgage is going from £460 to £900 next summer.
I don't think she believes me.

250k households coming out of fixed rates in the UK each quarter next year. Their mortgages are going to double overnight. Default rates are going to skyrocket.

This is a huge huge problem and everyone is spending their time discussing Philip Schofield instead of interest rates/ inflation.
Title: Re: Mortgages - Help!
Post by: trueblue1234 on September 27, 2022, 10:19:21 AM
We signed into a 5 year fixed rate in Jan this year and got 1.68 rate I think. First time I have ever done a 5 year fixed. The wife wanted to go for a 2 year to see how things went. She dodged a bullet.

Title: Re: Mortgages - Help!
Post by: RedHand88 on September 27, 2022, 10:21:35 AM
Quote from: trueblue1234 on September 27, 2022, 10:19:21 AM
We signed into a 5 year fixed rate in Jan this year and got 1.68 rate I think. First time I have ever done a 5 year fixed. The wife wanted to go for a 2 year to see how things went. She dodged a bullet.

Divorce her!  ;D
Title: Re: Mortgages - Help!
Post by: brokencrossbar1 on September 27, 2022, 10:38:05 AM
We are having the very same discussions at the minute. Fixed rate runs out next November and it would have cost us £3500 to break it a few months back with redemption charges. Decided against it. The predictions for the interest rate hikes mean we have to really look at the options. I would suspect that most fixed rate deals will be in the 4.5% range but you might get better on a discounted rate for 12-24 months. Much will depend on the volatility of the world next year but you really can't predict what will be happening next week nevermind next year.

I bought my first house in 1999. Base rate was 5.5%. Over the next few years it varied between that and 4.25. I remember buying a house at the same level mortgage that we presently have where the base was 4.75%. If it goes up to 5.5 or 6 the world isn't gonna collapse. People need to be mindful of their lives and adjust accordingly because they will go back down.
Title: Re: Mortgages - Help!
Post by: clarshack on September 27, 2022, 11:03:30 AM
my fixed rate runs out in just under 4 years, so still a bit of time for the world to sort itself out before then.
Title: Re: Mortgages - Help!
Post by: clarshack on September 27, 2022, 11:06:45 AM
Quote from: RedHand88 on September 27, 2022, 10:17:03 AM
Was explaining this to a work colleague who had no idea this was happening. I ran her numbers and her mortgage is going from £460 to £900 next summer.
I don't think she believes me.

250k households coming out of fixed rates in the UK each quarter next year. Their mortgages are going to double overnight. Default rates are going to skyrocket.

This is a huge huge problem and everyone is spending their time discussing Philip Schofield instead of interest rates/ inflation.

I was going to ask how on earth does someone not know what is going on in the world especially a mortgage holder but your last sentence explains everything.
Title: Re: Mortgages - Help!
Post by: Fear Bun Na Sceilpe on September 27, 2022, 11:10:19 AM
Quote from: clarshack on September 27, 2022, 11:06:45 AM
Quote from: RedHand88 on September 27, 2022, 10:17:03 AM
Was explaining this to a work colleague who had no idea this was happening. I ran her numbers and her mortgage is going from £460 to £900 next summer.
I don't think she believes me.

250k households coming out of fixed rates in the UK each quarter next year. Their mortgages are going to double overnight. Default rates are going to skyrocket.

This is a huge huge problem and everyone is spending their time discussing Philip Schofield instead of interest rates/ inflation.

I was going to ask how on earth does someone not know what is going on in the world especially a mortgage holder but your last sentence explains everything.

I dont think anyone seen the predicted 6% coming
Title: Re: Mortgages - Help!
Post by: Kidder81 on September 27, 2022, 11:16:35 AM
Quote from: Fear Bun Na Sceilpe on September 27, 2022, 11:10:19 AM
Quote from: clarshack on September 27, 2022, 11:06:45 AM
Quote from: RedHand88 on September 27, 2022, 10:17:03 AM
Was explaining this to a work colleague who had no idea this was happening. I ran her numbers and her mortgage is going from £460 to £900 next summer.
I don't think she believes me.

250k households coming out of fixed rates in the UK each quarter next year. Their mortgages are going to double overnight. Default rates are going to skyrocket.

This is a huge huge problem and everyone is spending their time discussing Philip Schofield instead of interest rates/ inflation.

I was going to ask how on earth does someone not know what is going on in the world especially a mortgage holder but your last sentence explains everything.

I dont think anyone seen the predicted 6% coming

The Banks didn't, I got 2.5% fixed for 5 years about a month ago
Title: Re: Mortgages - Help!
Post by: Fear Bun Na Sceilpe on September 27, 2022, 11:22:38 AM
Quote from: Kidder81 on September 27, 2022, 11:16:35 AM
Quote from: Fear Bun Na Sceilpe on September 27, 2022, 11:10:19 AM
Quote from: clarshack on September 27, 2022, 11:06:45 AM
Quote from: RedHand88 on September 27, 2022, 10:17:03 AM
Was explaining this to a work colleague who had no idea this was happening. I ran her numbers and her mortgage is going from £460 to £900 next summer.
I don't think she believes me.

250k households coming out of fixed rates in the UK each quarter next year. Their mortgages are going to double overnight. Default rates are going to skyrocket.

This is a huge huge problem and everyone is spending their time discussing Philip Schofield instead of interest rates/ inflation.

I was going to ask how on earth does someone not know what is going on in the world especially a mortgage holder but your last sentence explains everything.

I dont think anyone seen the predicted 6% coming

The Banks didn't, I got 2.5% fixed for 5 years about a month ago

Good job, im coming out of 1.75 in August(2 year deal), it will put me under serious p
Title: Re: Mortgages - Help!
Post by: screenexile on September 27, 2022, 11:36:13 AM
The wife works for a US company and gets paid in dollars and has had something like a 20% payrise since Christmas just with the fx rate . . . she's only part time though so trying to get her to up the hours!!!!
Title: Re: Mortgages - Help!
Post by: Fear Bun Na Sceilpe on September 27, 2022, 11:40:33 AM
Quote from: screenexile on September 27, 2022, 11:36:13 AM
The wife works for a US company and gets paid in dollars and has had something like a 20% payrise since Christmas just with the fx rate . . . she's only part time though so trying to get her to up the hours!!!!
Lol, winners and losers, good on her
Title: Re: Mortgages - Help!
Post by: Milltown Row2 on September 27, 2022, 11:57:07 AM
This will shoot up the cost of renting also surely?
Title: Re: Mortgages - Help!
Post by: imtommygunn on September 27, 2022, 11:58:09 AM
Quote from: screenexile on September 27, 2022, 11:36:13 AM
The wife works for a US company and gets paid in dollars and has had something like a 20% payrise since Christmas just with the fx rate . . . she's only part time though so trying to get her to up the hours!!!!

Having that discussion with a friend this morning as in IT we mostly work in US companies - would be nice to get an adjustment alright!!

I was talking to someone who was telling me that Turkey has 80% inflation and their global company had to up their salaries.
Title: Re: Mortgages - Help!
Post by: Kidder81 on September 27, 2022, 12:10:40 PM
Quote from: Milltown Row2 on September 27, 2022, 11:57:07 AM
This will shoot up the cost of renting also surely?

You would think, plenty of mortgages on buy to let so as the landlords mortgage payments go up they will have to pass that on to the tenant
Title: Re: Mortgages - Help!
Post by: trailer on September 27, 2022, 12:12:30 PM
Quote from: Kidder81 on September 27, 2022, 11:16:35 AM
Quote from: Fear Bun Na Sceilpe on September 27, 2022, 11:10:19 AM
Quote from: clarshack on September 27, 2022, 11:06:45 AM
Quote from: RedHand88 on September 27, 2022, 10:17:03 AM
Was explaining this to a work colleague who had no idea this was happening. I ran her numbers and her mortgage is going from £460 to £900 next summer.
I don't think she believes me.

250k households coming out of fixed rates in the UK each quarter next year. Their mortgages are going to double overnight. Default rates are going to skyrocket.

This is a huge huge problem and everyone is spending their time discussing Philip Schofield instead of interest rates/ inflation.

I was going to ask how on earth does someone not know what is going on in the world especially a mortgage holder but your last sentence explains everything.

I dont think anyone seen the predicted 6% coming

The Banks didn't, I got 2.5% fixed for 5 years about a month ago

Fair play.
Title: Re: Mortgages - Help!
Post by: imtommygunn on September 27, 2022, 12:16:26 PM
The budget on friday and boe response has blown everything out of the water.
Title: Re: Mortgages - Help!
Post by: Milltown Row2 on September 27, 2022, 12:19:20 PM
Quote from: imtommygunn on September 27, 2022, 12:16:26 PM
The budget on friday and boe response has blown everything out of the water.

I've sent her a text asking her to let me know what we are on, I've a fixed rate 5 year term in my head but not 100% sure and not 100% when we did that.. We have been using a guy to do that stuff, I know its lazy but he's been grand
Title: Re: Mortgages - Help!
Post by: imtommygunn on September 27, 2022, 12:31:19 PM
Most people tend to work like that. Never been an issue before with a relatively stable economy.
Title: Re: Mortgages - Help!
Post by: johnnycool on September 27, 2022, 01:57:38 PM
Quote from a financial expert;

"This is nightmare for most of middle class - someone with a £250k mortgage currently paying 3% would see their interest rate rise to 6.5% or simple terms annual interest bill rise from £7,500 to £16,250 They would need to find over £700 extra per month to not lose their house"

Thank fúck i don't have a mortgage.....
Title: Re: Mortgages - Help!
Post by: Milltown Row2 on September 27, 2022, 02:00:19 PM
Quote from: johnnycool on September 27, 2022, 01:57:38 PM
Quote from a financial expert;

"This is nightmare for most of middle class - someone with a £250k mortgage currently paying 3% would see their interest rate rise to 6.5% or simple terms annual interest bill rise from £7,500 to £16,250 They would need to find over £700 extra per month to not lose their house"

Thank fúck i don't have a mortgage.....

Just found out its a 1.84% over 5 years .. 2 and half years ago, fingers crossed
Title: Re: Mortgages - Help!
Post by: trueblue1234 on September 27, 2022, 02:01:07 PM
The wife has a house in Belfast ( Not we, it's only we when there's a problem in the house!!) and had been on a dream of a tracker mortgage for the last 15 odd years. The mortgage advised had told her she wouldn't get the same again if she came out of it. Which was great for so many years there. But now I'm wondering should she switch to a fixed now. If it was going to be a 1-2 year would she be better sitting it out. Or should she cut now and get it fixed for 5 years?
Are Interests rates likely to return to what they had been for the last 15 years? Prob unlikely in my view.
Title: Re: Mortgages - Help!
Post by: clarshack on September 27, 2022, 02:14:54 PM
for arguments sake interest rates jump to a rate in which most folk hand back their keys, then what? wouldn't banks have all these properties that they wouldn't be able to sell? or do they become landlords themselves?

https://www.bbc.co.uk/news/articles/cjkdyy9xgn3o
Title: Re: Mortgages - Help!
Post by: johnnycool on September 27, 2022, 04:05:39 PM
Quote from: clarshack on September 27, 2022, 02:14:54 PM
for arguments sake interest rates jump to a rate in which most folk hand back their keys, then what? wouldn't banks have all these properties that they wouldn't be able to sell? or do they become landlords themselves?

https://www.bbc.co.uk/news/articles/cjkdyy9xgn3o

UK Gov sets up their own NAMA.
Title: Re: Mortgages - Help!
Post by: Maroon Manc on September 27, 2022, 05:18:40 PM
Quote from: clarshack on September 27, 2022, 02:14:54 PM
for arguments sake interest rates jump to a rate in which most folk hand back their keys, then what? wouldn't banks have all these properties that they wouldn't be able to sell? or do they become landlords themselves?

https://www.bbc.co.uk/news/articles/cjkdyy9xgn3o

You'll see a lot of overseas money flood into the market given the state of the exchange rate and its already starting to happen.
Title: Re: Mortgages - Help!
Post by: Dougal Maguire on September 27, 2022, 06:37:35 PM
I remember fixing at 10% for 10 years 20 years ago I think it was shortly after Norman Lamont increased interest rates to 15% in an afternoon after a run on the pound It was a good deal at the time and gave certainty. I pity people with mortgages in todays climate. It must be hugely worrying.
Title: Re: Mortgages - Help!
Post by: seafoid on September 27, 2022, 07:12:57 PM
UK stagflation is another reason for a United Ireland . Because of Brexit, UK companies can't benefit from cheaper sterling by exporting to the EU
This means inflation is worse than in the EU.
Title: Re: Mortgages - Help!
Post by: armaghniac on September 27, 2022, 10:13:57 PM
Quote from: seafoid on September 27, 2022, 07:12:57 PM
UK stagflation is another reason for a United Ireland . Because of Brexit, UK companies can't benefit from cheaper sterling by exporting to the EU
This means inflation is worse than in the EU.

A lot of consumer goods pass through the UK to Ireland though, in the short term you could knock 1% of Irish inflation because of Sterling declining.
Title: Re: Mortgages - Help!
Post by: screenexile on September 28, 2022, 12:56:03 PM
Rate falling like a stone after the BoE Intervention . . . where the f**k is the Prime Minister FFS???? Surely she needs to be making some kind of an appearance?

My guess is they haven't a f**king scooby what to do other than admit they made a mistake and row back on last week's announcement. Fat chance of that happening though!
Title: Re: Mortgages - Help!
Post by: Fear Bun Na Sceilpe on September 28, 2022, 12:59:39 PM
Disaster
Title: Re: Mortgages - Help!
Post by: RedHand88 on September 28, 2022, 02:49:22 PM
My bank have pulled all fixed rate mortgage rates from their website.

This is getting really bad.
Title: Re: Mortgages - Help!
Post by: imtommygunn on September 28, 2022, 03:36:07 PM
Quote from: screenexile on September 28, 2022, 12:56:03 PM
Rate falling like a stone after the BoE Intervention . . . where the f**k is the Prime Minister FFS???? Surely she needs to be making some kind of an appearance?

My guess is they haven't a f**king scooby what to do other than admit they made a mistake and row back on last week's announcement. Fat chance of that happening though!

I would be very surprised were they to do that.

You think about it - she's been in what 3 weeks and the place is couped and the only reason it took as long as 3 weeks is because the queen died!!
Title: Re: Mortgages - Help!
Post by: square_ball on September 28, 2022, 03:47:57 PM
Quote from: RedHand88 on September 28, 2022, 02:49:22 PM
My bank have pulled all fixed rate mortgage rates from their website.

This is getting really bad.

I changed over to a 5 year fixed deal last May. Just done a quick check on my providers website for the same figures and term and its coming in £206 dearer per month. I wouldn't like to be looking about buying a house in the next few months.
Title: Re: Mortgages - Help!
Post by: Hereiam on September 28, 2022, 10:59:38 PM
 The fact that this was all announced on a Friday tells you they knew what they were doing and this has been planned. Question is what is the end game
Title: Re: Mortgages - Help!
Post by: Maroon Manc on September 29, 2022, 08:35:12 AM
Quote from: screenexile on September 28, 2022, 12:56:03 PM
Rate falling like a stone after the BoE Intervention . . . where the f**k is the Prime Minister FFS???? Surely she needs to be making some kind of an appearance?

My guess is they haven't a f**king scooby what to do other than admit they made a mistake and row back on last week's announcement. Fat chance of that happening though!

I haven't heard one 'expert' claim last weeks budget will have positives for the economy so its hard to imagine it was common consensus within government departments it was a plan that would work. The only guarantee is the wealthy won't be affected and their standard of living will remain roughly the same as their saving on income tax will help offset the increase in mortgage payments whilst the rest of us suffer.

I know of a good few people who are in big trouble, houses prices in South Manchester and all big cites over here are crazy; Plenty of young couples with mortgages of well over 300,000, a 4% increase in interest is a £1000 a month extra to find, not exactly viable. (like to know the logic that the budget will aid growth)

A whole generation have been brought up on low interest rates and budgeted/live accordingly, millions in the next 4 years won't even pass affordability checks anyway and will end up on on the SVR and will end up been repossessed unless that interest rates comes under control.



Title: Re: Mortgages - Help!
Post by: imtommygunn on September 29, 2022, 09:01:12 AM
I honestly think it has to be sinister. I mean I know sometimes the tories look incompetent but I am pretty untrusting of them and think there is generally a reason.
Title: Re: Mortgages - Help!
Post by: seafoid on September 29, 2022, 09:10:04 AM
https://mobile.twitter.com/Peston/status/1575160338248761344
Title: Re: Mortgages - Help!
Post by: bennydorano on October 05, 2022, 03:46:54 PM
Had an interesting conversation with a fella about remortgaging in the current circumstances, he reckoned a lot of people will be extending their capital repayment (CR) mortgages over more years to ease affordability but what they should be doing is going interest only for the period you were prepared to extend it over anyway (for example) - rather than going from a 10 Yr to a 12 year CR mortgage, go for a 10 year interest only mortgage and after 2 years you'll still have a 10 year mortgage. Seems a sensible approach but only if you reckon on there being 2 years lost payments anyway??? Am I missing something obvious?
Title: Re: Mortgages - Help!
Post by: Mike Tyson on October 05, 2022, 04:03:24 PM
Quote from: bennydorano on October 05, 2022, 03:46:54 PM
Had an interesting conversation with a fella about remortgaging in the current circumstances, he reckoned a lot of people will be extending their capital repayment (CR) mortgages over more years to ease affordability but what they should be doing is going interest only for the period you were prepared to extend it over anyway (for example) - rather than going from a 10 Yr to a 12 year CR mortgage, go for a 10 year interest only deal which is much cheaper and after 2 years you'll still have a 10 year mortgage. Seems a sensible approach but only if you reckon on there being 2 years lost payments anyway??? Am I missing something obvious?

I don't understand what you're saying here?

The obvious would be finding a bank willing to give you an interest only mortgage & then the huge lump sum payment at the end of the term.
Title: Re: Mortgages - Help!
Post by: Milltown Row2 on October 05, 2022, 04:04:44 PM
Quote from: bennydorano on October 05, 2022, 03:46:54 PM
Had an interesting conversation with a fella about remortgaging in the current circumstances, he reckoned a lot of people will be extending their capital repayment (CR) mortgages over more years to ease affordability but what they should be doing is going interest only for the period you were prepared to extend it over anyway (for example) - rather than going from a 10 Yr to a 12 year CR mortgage, go for a 10 year interest only deal which is much cheaper and after 2 years you'll still have a 10 year mortgage. Seems a sensible approach but only if you reckon on there being 2 years lost payments anyway??? Am I missing something obvious?

Mate of mine has been interest only for about 10 years !! Its hard to come out off, as he's been used to the payments. He did it while kids were at college, he's one more left (she's one more year) and then he's going to try and get back on track..

I wasn't sure that interest only was available though as we thought about with the kids being away, but didnt bother..

I'd horse it on through if you can afford it. it can't stay that high for 3 or 4 years, can it? 
Title: Re: Mortgages - Help!
Post by: imtommygunn on October 05, 2022, 04:09:50 PM
The reckoning is it will level out at ~5.5%...
Title: Re: Mortgages - Help!
Post by: Jeepers Creepers on October 05, 2022, 04:20:12 PM
Quote from: Milltown Row2 on October 05, 2022, 04:04:44 PM
Quote from: bennydorano on October 05, 2022, 03:46:54 PM
Had an interesting conversation with a fella about remortgaging in the current circumstances, he reckoned a lot of people will be extending their capital repayment (CR) mortgages over more years to ease affordability but what they should be doing is going interest only for the period you were prepared to extend it over anyway (for example) - rather than going from a 10 Yr to a 12 year CR mortgage, go for a 10 year interest only deal which is much cheaper and after 2 years you'll still have a 10 year mortgage. Seems a sensible approach but only if you reckon on there being 2 years lost payments anyway??? Am I missing something obvious?

Mate of mine has been interest only for about 10 years !! Its hard to come out off, as he's been used to the payments. He did it while kids were at college, he's one more left (she's one more year) and then he's going to try and get back on track..

I wasn't sure that interest only was available though as we thought about with the kids being away, but didnt bother..

I'd horse it on through if you can afford it. it can't stay that high for 3 or 4 years, can it?

He/she's s in for a shock!
Title: Re: Mortgages - Help!
Post by: yellowcard on October 05, 2022, 05:22:27 PM
Quote from: bennydorano on October 05, 2022, 03:46:54 PM
Had an interesting conversation with a fella about remortgaging in the current circumstances, he reckoned a lot of people will be extending their capital repayment (CR) mortgages over more years to ease affordability but what they should be doing is going interest only for the period you were prepared to extend it over anyway (for example) - rather than going from a 10 Yr to a 12 year CR mortgage, go for a 10 year interest only mortgage and after 2 years you'll still have a 10 year mortgage. Seems a sensible approach but only if you reckon on there being 2 years lost payments anyway??? Am I missing something obvious?

That would make sense since if you remortgage then you are paying more interest on the remortgaged amount.
Title: Re: Mortgages - Help!
Post by: nrico2006 on October 05, 2022, 09:51:54 PM
If the pound has got back to pre mini-budget levels, why won't mortgage rates move back accordingly?
Title: Re: Mortgages - Help!
Post by: seafoid on October 05, 2022, 10:15:08 PM
Quote from: imtommygunn on October 05, 2022, 04:09:50 PM
The reckoning is it will level out at ~5.5%...
What if it doesn't? Markets have underestimated inflation since the start.
Title: Re: Mortgages - Help!
Post by: Milltown Row2 on October 05, 2022, 10:55:05 PM
Quote from: Jeepers Creepers on October 05, 2022, 04:20:12 PM
Quote from: Milltown Row2 on October 05, 2022, 04:04:44 PM
Quote from: bennydorano on October 05, 2022, 03:46:54 PM
Had an interesting conversation with a fella about remortgaging in the current circumstances, he reckoned a lot of people will be extending their capital repayment (CR) mortgages over more years to ease affordability but what they should be doing is going interest only for the period you were prepared to extend it over anyway (for example) - rather than going from a 10 Yr to a 12 year CR mortgage, go for a 10 year interest only deal which is much cheaper and after 2 years you'll still have a 10 year mortgage. Seems a sensible approach but only if you reckon on there being 2 years lost payments anyway??? Am I missing something obvious?

Mate of mine has been interest only for about 10 years !! Its hard to come out off, as he's been used to the payments. He did it while kids were at college, he's one more left (she's one more year) and then he's going to try and get back on track..

I wasn't sure that interest only was available though as we thought about with the kids being away, but didnt bother..

I'd horse it on through if you can afford it. it can't stay that high for 3 or 4 years, can it?

He/she's s in for a shock!

They'll be grand but that's nothing to do with how they have done their mortgage, they've a couple of inheritance pay checks coming that'll square things but they have lost out I'd say potentially 
Title: Re: Mortgages - Help!
Post by: RedHand88 on October 06, 2022, 06:46:10 AM
Quote from: nrico2006 on October 05, 2022, 09:51:54 PM
If the pound has got back to pre mini-budget levels, why won't mortgage rates move back accordingly?

Inflation still high, which I think is the main factor in setting mortgage rates.
Title: Re: Mortgages - Help!
Post by: johnnycool on October 06, 2022, 09:27:15 AM
Quote from: RedHand88 on October 06, 2022, 06:46:10 AM
Quote from: nrico2006 on October 05, 2022, 09:51:54 PM
If the pound has got back to pre mini-budget levels, why won't mortgage rates move back accordingly?

Inflation still high, which I think is the main factor in setting mortgage rates.

Wasn't helped by the BOE intervention to buy gilds as the pension funds were tanking due to the budget as much as the £ was.

Investors were evidently trying to get shot of anything UK based.

Title: Re: Mortgages - Help!
Post by: nrico2006 on October 06, 2022, 09:49:27 AM
Quote from: RedHand88 on October 06, 2022, 06:46:10 AM
Quote from: nrico2006 on October 05, 2022, 09:51:54 PM
If the pound has got back to pre mini-budget levels, why won't mortgage rates move back accordingly?

Inflation still high, which I think is the main factor in setting mortgage rates.

But the sudden change in the mortgage landscape was related to the pound dropping as a consequence of the mini-budget, not the cost of living crisis.
Title: Re: Mortgages - Help!
Post by: RedHand88 on October 06, 2022, 10:15:16 AM
Quote from: nrico2006 on October 06, 2022, 09:49:27 AM
Quote from: RedHand88 on October 06, 2022, 06:46:10 AM
Quote from: nrico2006 on October 05, 2022, 09:51:54 PM
If the pound has got back to pre mini-budget levels, why won't mortgage rates move back accordingly?

Inflation still high, which I think is the main factor in setting mortgage rates.

But the sudden change in the mortgage landscape was related to the pound dropping as a consequence of the mini-budget, not the cost of living crisis.

Fair point. Banks must be adapting a "wait and see" approach before reintroducing fixed rates.
Title: Re: Mortgages - Help!
Post by: nrico2006 on October 06, 2022, 10:45:32 AM
Quote from: RedHand88 on October 06, 2022, 10:15:16 AM
Quote from: nrico2006 on October 06, 2022, 09:49:27 AM
Quote from: RedHand88 on October 06, 2022, 06:46:10 AM
Quote from: nrico2006 on October 05, 2022, 09:51:54 PM
If the pound has got back to pre mini-budget levels, why won't mortgage rates move back accordingly?

Inflation still high, which I think is the main factor in setting mortgage rates.

But the sudden change in the mortgage landscape was related to the pound dropping as a consequence of the mini-budget, not the cost of living crisis.

Fair point. Banks must be adapting a "wait and see" approach before reintroducing fixed rates.

Yep, which is understandable.  Hopefully the meeting today will help settle things towards normality again.
Title: Re: Mortgages - Help!
Post by: Maroon Manc on October 06, 2022, 11:02:52 AM
I see 2 year fixed rates above 6%, you'd have to be out of all other options to take a lender up on that offer.

I've seen talks of 5.5% been the new norm, don't see that happening for a 5 year period without having catastrophic consequences for the economy. Thats a lot of billions been spent on interest as opposed to feeding back into the economy, millions lost in various forms of tax.


Title: Re: Mortgages - Help!
Post by: quit yo jibbajabba on October 06, 2022, 11:07:14 AM
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
Title: Re: Mortgages - Help!
Post by: armaghniac on October 06, 2022, 11:29:46 AM
Quote from: nrico2006 on October 06, 2022, 10:45:32 AM
Quote from: RedHand88 on October 06, 2022, 10:15:16 AM
Quote from: nrico2006 on October 06, 2022, 09:49:27 AM
Quote from: RedHand88 on October 06, 2022, 06:46:10 AM
Quote from: nrico2006 on October 05, 2022, 09:51:54 PM
If the pound has got back to pre mini-budget levels, why won't mortgage rates move back accordingly?

Inflation still high, which I think is the main factor in setting mortgage rates.

But the sudden change in the mortgage landscape was related to the pound dropping as a consequence of the mini-budget, not the cost of living crisis.

Fair point. Banks must be adapting a "wait and see" approach before reintroducing fixed rates.

Yep, which is understandable.  Hopefully the meeting today will help settle things towards normality again.

You have to remember that the ultra low interest rates of recent years has not been normal. I'm not saying that the 17% rates of the 1970s will come back, but between 2000-2007 the rates were 4-5%.

Quote from: Maroon Manc on October 06, 2022, 11:02:52 AM
I see 2 year fixed rates above 6%, you'd have to be out of all other options to take a lender up on that offer.

I've seen talks of 5.5% been the new norm, don't see that happening for a 5 year period without having catastrophic consequences for the economy. Thats a lot of billions been spent on interest as opposed to feeding back into the economy, millions lost in various forms of tax.

For every borrower there is a saver, no money is "lost".
Title: Re: Mortgages - Help!
Post by: Fear Bun Na Sceilpe on October 06, 2022, 11:36:07 AM
Im currently on 1.23%. Ahhhhhhhh. Changing in August
Title: Re: Mortgages - Help!
Post by: imtommygunn on October 06, 2022, 11:44:18 AM
Quote from: quit yo jibbajabba on October 06, 2022, 11:07:14 AM
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.
Title: Re: Mortgages - Help!
Post by: RedHand88 on October 06, 2022, 12:02:39 PM
Quote from: Fear Bun Na Sceilpe on October 06, 2022, 11:36:07 AM
Im currently on 1.23%. Ahhhhhhhh. Changing in August

Start saving now.
Title: Re: Mortgages - Help!
Post by: Maroon Manc on October 06, 2022, 12:04:08 PM
Quote from: armaghniac on October 06, 2022, 11:29:46 AM
Quote from: nrico2006 on October 06, 2022, 10:45:32 AM
Quote from: RedHand88 on October 06, 2022, 10:15:16 AM
Quote from: nrico2006 on October 06, 2022, 09:49:27 AM
Quote from: RedHand88 on October 06, 2022, 06:46:10 AM
Quote from: nrico2006 on October 05, 2022, 09:51:54 PM
If the pound has got back to pre mini-budget levels, why won't mortgage rates move back accordingly?

Inflation still high, which I think is the main factor in setting mortgage rates.

But the sudden change in the mortgage landscape was related to the pound dropping as a consequence of the mini-budget, not the cost of living crisis.

Fair point. Banks must be adapting a "wait and see" approach before reintroducing fixed rates.

Yep, which is understandable.  Hopefully the meeting today will help settle things towards normality again.

You have to remember that the ultra low interest rates of recent years has not been normal. I'm not saying that the 17% rates of the 1970s will come back, but between 2000-2007 the rates were 4-5%.

Quote from: Maroon Manc on October 06, 2022, 11:02:52 AM
I see 2 year fixed rates above 6%, you'd have to be out of all other options to take a lender up on that offer.

I've seen talks of 5.5% been the new norm, don't see that happening for a 5 year period without having catastrophic consequences for the economy. Thats a lot of billions been spent on interest as opposed to feeding back into the economy, millions lost in various forms of tax.

For every borrower there is a saver, no money is "lost".

Average house price to average income ratio is as high as it ever been, interest rates of circa 5% will cause chaos.

The average mortgage is £138,000, a 3.5% rise on that is about £400 a month. Thats going to have a huge knock-on affect on disposable incomes and therefore growth in the economy.



Title: Re: Mortgages - Help!
Post by: clarshack on October 06, 2022, 12:16:11 PM
Quote from: imtommygunn on October 06, 2022, 11:44:18 AM
Quote from: quit yo jibbajabba on October 06, 2022, 11:07:14 AM
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.

I've seen people saying that 15% interest rates back in the 80's/early 90's is the equivalent of it only going to 6% at present.
Title: Re: Mortgages - Help!
Post by: imtommygunn on October 06, 2022, 12:24:56 PM
Rough  :(

I don't know what they're going to do if it leads to mass repossessions. No winners there.
Title: Re: Mortgages - Help!
Post by: Kidder81 on October 06, 2022, 12:38:45 PM
People didn't have the debt/HP in the 80s that people do now & mortgage payment was a lower % of your salary
Title: Re: Mortgages - Help!
Post by: Milltown Row2 on October 06, 2022, 12:45:07 PM
Only the rich had credit cards, now someone on benefits has a credit card maxed out
Title: Re: Mortgages - Help!
Post by: LC on October 06, 2022, 12:50:42 PM
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.
Title: Re: Mortgages - Help!
Post by: RedHand88 on October 06, 2022, 12:54:56 PM
Quote from: Milltown Row2 on October 06, 2022, 12:45:07 PM
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.
Title: Re: Mortgages - Help!
Post by: RedHand88 on October 06, 2022, 12:59:37 PM
Quote from: imtommygunn on October 06, 2022, 11:44:18 AM
Quote from: quit yo jibbajabba on October 06, 2022, 11:07:14 AM
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.
Title: Re: Mortgages - Help!
Post by: yellowcard on October 06, 2022, 01:01:26 PM
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.   
Title: Re: Mortgages - Help!
Post by: RedHand88 on October 06, 2022, 01:03:06 PM
I don't believe the Tories intended or expected this to happen. Putting people out of homes does not usually win you elections.
Title: Re: Mortgages - Help!
Post by: Milltown Row2 on October 06, 2022, 01:18:16 PM
Quote from: RedHand88 on October 06, 2022, 12:54:56 PM
Quote from: Milltown Row2 on October 06, 2022, 12:45:07 PM
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
Title: Re: Mortgages - Help!
Post by: clarshack on October 06, 2022, 01:19:17 PM
Quote from: RedHand88 on October 06, 2022, 12:59:37 PM
Quote from: imtommygunn on October 06, 2022, 11:44:18 AM
Quote from: quit yo jibbajabba on October 06, 2022, 11:07:14 AM
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.
Title: Re: Mortgages - Help!
Post by: Milltown Row2 on October 06, 2022, 01:23:18 PM
Quote from: clarshack on October 06, 2022, 01:19:17 PM
Quote from: RedHand88 on October 06, 2022, 12:59:37 PM
Quote from: imtommygunn on October 06, 2022, 11:44:18 AM
Quote from: quit yo jibbajabba on October 06, 2022, 11:07:14 AM
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!!
Title: Re: Mortgages - Help!
Post by: seafoid on October 06, 2022, 01:24:00 PM
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
Title: Re: Mortgages - Help!
Post by: RedHand88 on October 06, 2022, 01:24:59 PM
Quote from: Milltown Row2 on October 06, 2022, 01:23:18 PM
Quote from: clarshack on October 06, 2022, 01:19:17 PM
Quote from: RedHand88 on October 06, 2022, 12:59:37 PM
Quote from: imtommygunn on October 06, 2022, 11:44:18 AM
Quote from: quit yo jibbajabba on October 06, 2022, 11:07:14 AM
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.
Title: Re: Mortgages - Help!
Post by: clarshack on October 06, 2022, 01:29:33 PM
Quote from: Milltown Row2 on October 06, 2022, 01:23:18 PM
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.
Title: Re: Mortgages - Help!
Post by: Milltown Row2 on October 06, 2022, 01:35:48 PM
Quote from: clarshack on October 06, 2022, 01:29:33 PM
Quote from: Milltown Row2 on October 06, 2022, 01:23:18 PM
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!!
Title: Re: Mortgages - Help!
Post by: johnnycool on October 06, 2022, 01:37:13 PM
Quote from: clarshack on October 06, 2022, 01:29:33 PM
Quote from: Milltown Row2 on October 06, 2022, 01:23:18 PM
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.

Yip, remember the same outside one on the Ormeau Road for a new development on the Ravenhill Road, with them selling for the extortionate price of £80K for a semi or town house, probably more late 90's in fairness.
Title: Re: Mortgages - Help!
Post by: seafoid on October 06, 2022, 01:40:58 PM
Quote from: RedHand88 on October 06, 2022, 01:24:59 PM
Quote from: Milltown Row2 on October 06, 2022, 01:23:18 PM
Quote from: clarshack on October 06, 2022, 01:19:17 PM
Quote from: RedHand88 on October 06, 2022, 12:59:37 PM
Quote from: imtommygunn on October 06, 2022, 11:44:18 AM
Quote from: quit yo jibbajabba on October 06, 2022, 11:07:14 AM
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.
Wages haven't increased in line with house prices. Low interest rates hid that to some extent and implied that high prices were affordable. Now that arrangement has collapsed.
Title: Re: Mortgages - Help!
Post by: Maroon Manc on October 06, 2022, 01:52:09 PM
Quote from: RedHand88 on October 06, 2022, 01:03:06 PM
I don't believe the Tories intended or expected this to happen. Putting people out of homes does not usually win you elections.

They wouldn't have but did know full well their would be a huge issue in the housing market if rates had to rise, their policies on stamp duty have fuelled huge price increases in recent years. They've seen the ratio's on

The £ has struggled against the $ the last 6 years, if rates had risen 0.25% or 0.5% in the last 6 years we wouldn't be in this situation. Only way out of this looks to be if there's trouble ahead in the US and their rate rises come to a halt, tough times ahead in 2023 though.



Title: Re: Mortgages - Help!
Post by: Fear Bun Na Sceilpe on October 06, 2022, 04:20:30 PM
Quote from: RedHand88 on October 06, 2022, 12:02:39 PM
Quote from: Fear Bun Na Sceilpe on October 06, 2022, 11:36:07 AM
Im currently on 1.23%. Ahhhhhhhh. Changing in August

Start saving now.

I read that as "Start starving" at first glance lol
Title: Re: Mortgages - Help!
Post by: Fear Bun Na Sceilpe on October 06, 2022, 04:22:10 PM
Thd 80s were far worse all round-depressing economically but funtimes also
Title: Re: Mortgages - Help!
Post by: Franko on October 06, 2022, 04:52:07 PM
Rough ratios of average house price to median salary;

1980's
3

Now
8

People are way over-leveraged and won't cope with a massive hike in rates

Some people looking at up to £1000/month increases upon renewal

Which just isn't sustainable
Title: Re: Mortgages - Help!
Post by: seafoid on October 06, 2022, 06:10:00 PM
Quote from: Franko on October 06, 2022, 04:52:07 PM
Rough ratios of average house price to median salary;

1980's
3

Now
8

People are way over-leveraged and won't cope with a massive hike in rates

Some people looking at up to £1000/month increases upon renewal

Which just isn't sustainable
Agree totally. High prices only work with low rates. Price falls on the way
Title: Re: Mortgages - Help!
Post by: Fear Bun Na Sceilpe on October 06, 2022, 06:14:22 PM
Aye but in 80s still far worse off. No jobs. No money. Emigration
Title: Re: Mortgages - Help!
Post by: seafoid on October 06, 2022, 08:01:28 PM
Quote from: Fear Bun Na Sceilpe on October 06, 2022, 06:14:22 PM
Aye but in 80s still far worse off. No jobs. No money. Emigration
+ the Troubles incl the INLA
Title: Re: Mortgages - Help!
Post by: Franko on October 07, 2022, 08:34:40 AM
Quote from: Fear Bun Na Sceilpe on October 06, 2022, 06:14:22 PM
Aye but in 80s still far worse off. No jobs. No money. Emigration

I'd hold off talking until you see what's coming

This could make 2008 look like the boom times
Title: Re: Mortgages - Help!
Post by: Fear Bun Na Sceilpe on October 07, 2022, 08:39:09 AM
Quote from: Franko on October 07, 2022, 08:34:40 AM
Quote from: Fear Bun Na Sceilpe on October 06, 2022, 06:14:22 PM
Aye but in 80s still far worse off. No jobs. No money. Emigration

I'd hold off talking until you see what's coming

This could make 2008 look like the boom times

We have high employment. No indication that is going to change soon. Thats the key difference, back in the day we were all skint. Boys from the blackstuff all over the place "gis a job"
Title: Re: Mortgages - Help!
Post by: seafoid on October 07, 2022, 09:35:46 AM
I remember staying in a house in Rathgar in Dublin in 1995 that was sold that year for 130k. Seemed like a fortune.
Last year it was sold for 600k.

5% of 130 is 6.5
5% of 600 is 30
Title: Re: Mortgages - Help!
Post by: Franko on October 07, 2022, 10:01:51 AM
Quote from: Fear Bun Na Sceilpe on October 07, 2022, 08:39:09 AM
Quote from: Franko on October 07, 2022, 08:34:40 AM
Quote from: Fear Bun Na Sceilpe on October 06, 2022, 06:14:22 PM
Aye but in 80s still far worse off. No jobs. No money. Emigration

I'd hold off talking until you see what's coming

This could make 2008 look like the boom times

We have high employment. No indication that is going to change soon. Thats the key difference, back in the day we were all skint. Boys from the blackstuff all over the place "gis a job"

We had high employment in early summer 2007 also.

By January 2009 plane loads of young Irish people were arriving in Melbourne with one-way tickets
Title: Re: Mortgages - Help!
Post by: Fear Bun Na Sceilpe on October 07, 2022, 10:11:25 AM
Quote from: Franko on October 07, 2022, 10:01:51 AM
Quote from: Fear Bun Na Sceilpe on October 07, 2022, 08:39:09 AM
Quote from: Franko on October 07, 2022, 08:34:40 AM
Quote from: Fear Bun Na Sceilpe on October 06, 2022, 06:14:22 PM
Aye but in 80s still far worse off. No jobs. No money. Emigration

I'd hold off talking until you see what's coming

This could make 2008 look like the boom times

We have high employment. No indication that is going to change soon. Thats the key difference, back in the day we were all skint. Boys from the blackstuff all over the place "gis a job"

We had high employment in early summer 2007 also.

By January 2009 plane loads of young Irish people were arriving in Melbourne with one-way tickets

Mostly for the sesh
Title: Re: Mortgages - Help!
Post by: yellowcard on October 07, 2022, 10:30:02 AM
Unemployment will naturally begin to rise if interest rates remain high as the cost of borrowing goes up. Retail businesses are already feeling the pinch and other sectors are not immune to energy price rises. So businesses are facing the double whammy of higher cost of doing business and reduced sales as customers have less disposable income to spend. There is a time lag with all of these things and it will take a while before the full effects are felt.   
Title: Re: Mortgages - Help!
Post by: armaghniac on October 07, 2022, 10:37:51 AM
Quote from: yellowcard on October 07, 2022, 10:30:02 AM
Unemployment will naturally begin to rise if interest rates remain high as the cost of borrowing goes up. Retail businesses are already feeling the pinch and other sectors are not immune to energy price rises. So businesses are facing the double whammy of higher cost of doing business and reduced sales as customers have less disposable income to spend. There is a time lag with all of these things and it will take a while before the full effects are felt.

Energy prices remove money from everyone, so that leaves less to spend on other things. Interest rates will increase and will be higher, but they will not be "high". In the Eurozone they will not exceed 4%, while in the UK they might be 1 or 2% higher. I don't see anything like 2007.
Title: Re: Mortgages - Help!
Post by: imtommygunn on October 07, 2022, 10:47:52 AM
Is it not a problem though that the money is still being spent allbeit not in the retail sector etc but to energy companies so you have inflation to prevent spending but spending is a must due to energy prices?

Every week you read about loads of small businesses shutting. Things like chippies etc are moving to a place they are no longer viable business due to overheads.
Title: Re: Mortgages - Help!
Post by: Franko on October 07, 2022, 10:55:45 AM
Quote from: Fear Bun Na Sceilpe on October 07, 2022, 10:11:25 AM
Quote from: Franko on October 07, 2022, 10:01:51 AM
Quote from: Fear Bun Na Sceilpe on October 07, 2022, 08:39:09 AM
Quote from: Franko on October 07, 2022, 08:34:40 AM
Quote from: Fear Bun Na Sceilpe on October 06, 2022, 06:14:22 PM
Aye but in 80s still far worse off. No jobs. No money. Emigration

I'd hold off talking until you see what's coming

This could make 2008 look like the boom times

We have high employment. No indication that is going to change soon. Thats the key difference, back in the day we were all skint. Boys from the blackstuff all over the place "gis a job"

We had high employment in early summer 2007 also.

By January 2009 plane loads of young Irish people were arriving in Melbourne with one-way tickets

Mostly for the sesh

That must be the Derry City ones...  ;)

The vast majority went to work
Title: Re: Mortgages - Help!
Post by: seafoid on October 07, 2022, 10:57:56 AM
This is the big mortgage risk

https://www.ft.com/content/e759c33f-2515-4269-8c9b-e9e517d22a3d

A top Federal Reserve official has warned it is a "fantasy" to think the US central bank can bring inflation down sufficiently without raising interest rates to a level where they constrain the economy. James Bullard, president of the St Louis branch of the Fed, said the central bank needed to be more aggressive in its efforts to root out the highest inflation in four decades as he called for rates to rise to a point where they actively curtail growth.
Title: Re: Mortgages - Help!
Post by: Milltown Row2 on October 07, 2022, 11:05:09 AM
Quote from: imtommygunn on October 07, 2022, 10:47:52 AM
Is it not a problem though that the money is still being spent allbeit not in the retail sector etc but to energy companies so you have inflation to prevent spending but spending is a must due to energy prices?

Every week you read about loads of small businesses shutting. Things like chippies etc are moving to a place they are no longer viable business due to overheads.

How much profits will the energy companies make with these hikes or will they be showing no profits? If they are showing profits then surely they are just taking the piss?
Title: Re: Mortgages - Help!
Post by: yellowcard on October 07, 2022, 11:06:14 AM
Quote from: armaghniac on October 07, 2022, 10:37:51 AM
Quote from: yellowcard on October 07, 2022, 10:30:02 AM
Unemployment will naturally begin to rise if interest rates remain high as the cost of borrowing goes up. Retail businesses are already feeling the pinch and other sectors are not immune to energy price rises. So businesses are facing the double whammy of higher cost of doing business and reduced sales as customers have less disposable income to spend. There is a time lag with all of these things and it will take a while before the full effects are felt.

Energy prices remove money from everyone, so that leaves less to spend on other things. Interest rates will increase and will be higher, but they will not be "high". In the Eurozone they will not exceed 4%, while in the UK they might be 1 or 2% higher. I don't see anything like 2007.

That is the current forecast but as with all forecasts they come with a bit of a health warning. Events can sometimes take over as the combination of Brexit, Covid and the war have all had huge impacts on the economic outlook. 
Title: Re: Mortgages - Help!
Post by: imtommygunn on October 07, 2022, 11:38:52 AM
Quote from: Milltown Row2 on October 07, 2022, 11:05:09 AM
Quote from: imtommygunn on October 07, 2022, 10:47:52 AM
Is it not a problem though that the money is still being spent allbeit not in the retail sector etc but to energy companies so you have inflation to prevent spending but spending is a must due to energy prices?

Every week you read about loads of small businesses shutting. Things like chippies etc are moving to a place they are no longer viable business due to overheads.

How much profits will the energy companies make with these hikes or will they be showing no profits? If they are showing profits then surely they are just taking the piss?

Someone is making a bit of money from it that is for sure. It will change nothing with this government.
Title: Re: Mortgages - Help!
Post by: armaghniac on October 13, 2022, 12:33:25 AM
"Moneyfacts, a data provider, said that homeowners paid 2.34 per cent on the average two-year fixed deal last December but this had jumped to 6.46 per cent."

That will be a bit of a squeeze on Sterling mortgage holders. But UK bonds are 5% so mortgages are not going to come down.
People in the ROI didn't have very cheap mortgages, but they will see less of an increase now.
House prices will not be going up.
Title: Re: Mortgages - Help!
Post by: seafoid on October 13, 2022, 11:20:50 AM

In 2007 subprime rates which were priced at 2-3% went to 5-7%.
The market collapsed and Fianna Fail collapsed some time later. Lehman is what people remember, not the jacking up of rates.
Most ordinary Brits have very little spare cash. On a house worth 400K, 6% is an extra 12k and there are no payrises.
The housing market cannot support 6%. You must be joking.
Title: Re: Mortgages - Help!
Post by: Milltown Row2 on October 13, 2022, 11:45:04 AM
Quote from: seafoid on October 13, 2022, 11:20:50 AM

In 2007 subprime rates which were priced at 2-3% went to 5-7%.
The market collapsed and Fianna Fail collapsed some time later. Lehman is what people remember, not the jacking up of rates.
Most ordinary Brits have very little spare cash. On a house worth 400K, 6% is an extra 12k and there are no payrises.
The housing market cannot support 6%. You must be joking.

Anyone who has a mortgage for £400K should be able to afford the hike, if not they should not have taken on such a big mortgage
Title: Re: Mortgages - Help!
Post by: Maroon Manc on October 13, 2022, 11:55:36 AM
One way out of this mess in the short term and even possibly long term is too allow those who are heading for trouble to switch to an interest only mortgage.
Title: Re: Mortgages - Help!
Post by: seafoid on October 13, 2022, 12:07:10 PM
Quote from: Milltown Row2 on October 13, 2022, 11:45:04 AM
Quote from: seafoid on October 13, 2022, 11:20:50 AM

In 2007 subprime rates which were priced at 2-3% went to 5-7%.
The market collapsed and Fianna Fail collapsed some time later. Lehman is what people remember, not the jacking up of rates.
Most ordinary Brits have very little spare cash. On a house worth 400K, 6% is an extra 12k and there are no payrises.
The housing market cannot support 6%. You must be joking.

Anyone who has a mortgage for £400K should be able to afford the hike, if not they should not have taken on such a big mortgage
Banks can't stop issuing mortgages and their risk management is atrocious. The UK is going through what happened in the South post 2008.
Bank multiples are presumably higher than 2.5.
Title: Re: Mortgages - Help!
Post by: imtommygunn on October 13, 2022, 12:08:44 PM
Quote from: Milltown Row2 on October 13, 2022, 11:45:04 AM
Quote from: seafoid on October 13, 2022, 11:20:50 AM

In 2007 subprime rates which were priced at 2-3% went to 5-7%.
The market collapsed and Fianna Fail collapsed some time later. Lehman is what people remember, not the jacking up of rates.
Most ordinary Brits have very little spare cash. On a house worth 400K, 6% is an extra 12k and there are no payrises.
The housing market cannot support 6%. You must be joking.

Anyone who has a mortgage for £400K should be able to afford the hike, if not they should not have taken on such a big mortgage

The same applies to any level of mortgage though. You take what the bank deems you can afford. At that point in time you could afford it - times have (drastically) changed. If the bank is not going to assess you on scenarios like this you are unlikely to apply the criteria yourself.

It's all relative so impacts any amount of mortgage.
Title: Re: Mortgages - Help!
Post by: armaghniac on October 13, 2022, 12:12:36 PM
Quote from: Maroon Manc on October 13, 2022, 11:55:36 AM
One way out of this mess in the short term and even possibly long term is too allow those who are heading for trouble to switch to an interest only mortgage.

People choose to forget that interest rates were always going to go up, just as the balmy days of summer are always followed by winter. If you overpaid on your mortgage when rates were low, now you could go interest only and still be on course with fairly consistent payments.

I think the UK lending probably has been more generous than in the South, where the restrictive criteria will prove their worth now, people might feel a squeeze but they should not lose their house and the rest of use will not have to bail out the banks. 
Title: Re: Mortgages - Help!
Post by: seafoid on October 13, 2022, 12:14:20 PM
I don't think ordinary punters are in a position to do that. In other countries banks are mandated to carry out stress tests of +3% for example to see if applicants can afford the mortgage subject to a maximum  of 30% or 40% of income.
Title: Re: Mortgages - Help!
Post by: Maroon Manc on October 13, 2022, 12:40:10 PM
Quote from: armaghniac on October 13, 2022, 12:12:36 PM
Quote from: Maroon Manc on October 13, 2022, 11:55:36 AM
One way out of this mess in the short term and even possibly long term is too allow those who are heading for trouble to switch to an interest only mortgage.

People choose to forget that interest rates were always going to go up, just as the balmy days of summer are always followed by winter. If you overpaid on your mortgage when rates were low, now you could go interest only and still be on course with fairly consistent payments.

I think the UK lending probably has been more generous than in the South, where the restrictive criteria will prove their worth now, people might feel a squeeze but they should not lose their house and the rest of use will not have to bail out the banks.

Rates were low for 14 years, a generation of people thought it was the norm. Houses prices have gone crazy, there'll be very few households with a mortgage that won't feel the pinch of a 3-4% increase in rates.

Title: Re: Mortgages - Help!
Post by: Milltown Row2 on October 13, 2022, 01:36:06 PM
Again anyone who can afford a £400K house can well afford the hike, and if they couldn't then that's on them, they'll also hardly go homeless, they will just have to sell and move into the estate
Title: Re: Mortgages - Help!
Post by: quit yo jibbajabba on October 13, 2022, 01:50:14 PM
Rumours atm of a big u-turn from the Tories on their mini budget. Appreciate it wont fix things overnight but will be interesting to see the fallout.

Such a shitshow atm...
Title: Re: Mortgages - Help!
Post by: Tony Baloney on October 13, 2022, 01:56:34 PM
I have 4 years left of a 5 year fix at 1.44% - would I be best trying to overpay as much as possible (without incurring any overpayment penalties) in the knowledge that's it's definitely going to be a higher rate in 2026? I have seen this question asked elsewhere and an investment chap said he would invest the money you'd overpay as the returns over the same period are likely to be greater.
Title: Re: Mortgages - Help!
Post by: Maroon Manc on October 13, 2022, 01:58:02 PM
Quote from: Milltown Row2 on October 13, 2022, 01:36:06 PM
Again anyone who can afford a £400K house can well afford the hike, and if they couldn't then that's on them, they'll also hardly go homeless, they will just have to sell and move into the estate

Probably a bit different over, £400,000 is probably the price of a house in South Manchester, a lot of people will be in real trouble.
Title: Re: Mortgages - Help!
Post by: imtommygunn on October 13, 2022, 01:58:34 PM
Invest in what though Tony? Savings?
Title: Re: Mortgages - Help!
Post by: Maroon Manc on October 13, 2022, 02:00:12 PM
Quote from: Tony Baloney on October 13, 2022, 01:56:34 PM
I have 4 years left of a 5 year fix at 1.44% - would I be best trying to overpay as much as possible (without incurring any overpayment penalties) in the knowledge that's it's definitely going to be a higher rate in 2026? I have seen this question asked elsewhere and an investment chap said he would invest the money you'd overpay as the returns over the same period are likely to be greater.

Just use a spreadsheet and work it out, you can get 4% on a 1 year savings fix and there's a good few easy access account paying more then 1.44% and with rates likely going higher savings rates will improve.
Title: Re: Mortgages - Help!
Post by: seafoid on October 13, 2022, 02:33:10 PM
Quote from: Tony Baloney on October 13, 2022, 01:56:34 PM
I have 4 years left of a 5 year fix at 1.44% - would I be best trying to overpay as much as possible (without incurring any overpayment penalties) in the knowledge that's it's definitely going to be a higher rate in 2026? I have seen this question asked elsewhere and an investment chap said he would invest the money you'd overpay as the returns over the same period are likely to be greater.
Inflation is like food poisoning. Once it goes through the system things return to normal. I doubt it will be higher in 2026
Title: Re: Mortgages - Help!
Post by: WT4E on October 13, 2022, 02:34:41 PM
Quote from: seafoid on October 13, 2022, 02:33:10 PM
Quote from: Tony Baloney on October 13, 2022, 01:56:34 PM
I have 4 years left of a 5 year fix at 1.44% - would I be best trying to overpay as much as possible (without incurring any overpayment penalties) in the knowledge that's it's definitely going to be a higher rate in 2026? I have seen this question asked elsewhere and an investment chap said he would invest the money you'd overpay as the returns over the same period are likely to be greater.
Inflation is like food poisoning. Once it goes through the system things return to normal. I doubt it will be higher in 2026

Nice Analogy. Fair Play
Title: Re: Mortgages - Help!
Post by: nrico2006 on October 13, 2022, 02:50:56 PM
Quote from: quit yo jibbajabba on October 13, 2022, 01:50:14 PM
Rumours atm of a big u-turn from the Tories on their mini budget. Appreciate it wont fix things overnight but will be interesting to see the fallout.

Such a shitshow atm...

But you would imagine that whatever u-turn that comes over the next few weeks will season well enough for anybody coming out of mortgage deals next year or the year after.
Title: Re: Mortgages - Help!
Post by: seafoid on October 13, 2022, 02:52:41 PM
Global debt is about 4 times the size of the economy.
If the economy is 100, debt is 400.

If interest rates are 1%, interest cost is 400*1% = 4
If interest rates are 5% , interest cost is 400*5%= 20

You can't have a long term situation where interest payments are 20% of the economy.
This would mean the money currently spent on clothes, holidays and going out for example would be stopped in order to pay interest
This is why rates will go down eventually.
Title: Re: Mortgages - Help!
Post by: theskull1 on October 13, 2022, 02:59:40 PM
Quote from: Tony Baloney on October 13, 2022, 01:56:34 PM
I have 4 years left of a 5 year fix at 1.44% - would I be best trying to overpay as much as possible (without incurring any overpayment penalties) in the knowledge that's it's definitely going to be a higher rate in 2026? I have seen this question asked elsewhere and an investment chap said he would invest the money you'd overpay as the returns over the same period are likely to be greater.

Thats what I'd do

Title: Re: Mortgages - Help!
Post by: imtommygunn on October 13, 2022, 03:05:27 PM
Quote from: quit yo jibbajabba on October 13, 2022, 01:50:14 PM
Rumours atm of a big u-turn from the Tories on their mini budget. Appreciate it wont fix things overnight but will be interesting to see the fallout.

Such a shitshow atm...

The BoE are forcing their hand and they reckon also that the 1922 committee have told them to do it or else. Either Kwarteng or Truss, possibly both, sound to be very very close to being on the way out.
Title: Re: Mortgages - Help!
Post by: johnnycool on October 13, 2022, 03:06:54 PM
Quote from: theskull1 on October 13, 2022, 02:59:40 PM
Quote from: Tony Baloney on October 13, 2022, 01:56:34 PM
I have 4 years left of a 5 year fix at 1.44% - would I be best trying to overpay as much as possible (without incurring any overpayment penalties) in the knowledge that's it's definitely going to be a higher rate in 2026? I have seen this question asked elsewhere and an investment chap said he would invest the money you'd overpay as the returns over the same period are likely to be greater.

Thats what I'd do

what would you be investing in? Shares in Fossil fuel companies?
Title: Re: Mortgages - Help!
Post by: imtommygunn on October 13, 2022, 03:07:50 PM
A currency that is not sterling  :D
Title: Re: Mortgages - Help!
Post by: theskull1 on October 13, 2022, 03:13:50 PM
I dunno  :o

Put into an ISA of some sort (advise needed on what fund(s) to choose)
or
Salary Sacrifice into a pension and benefit from not incurring income tax on the investment.

If the mortgage rate is pants in 4 years time, then the ISA avenue could be used to pay off a chunk at that point
Title: Re: Mortgages - Help!
Post by: seafoid on October 13, 2022, 03:31:02 PM
I don't think returns are going to be much more than they were over the last 5 years and they weren't great.
Because you have a lot of volatility.

If you want to make money hold cash and buy stuff when the market crashes.
You could have made 40% in 2020 doing this.

Otherwise if that's too scary invest in staples that people have to buy
https://www.cnbc.com/video/2022/10/12/the-importance-of-pricing-power-for-consumer-staples.html
Title: Re: Mortgages - Help!
Post by: The Trap on October 13, 2022, 03:49:43 PM
Can you change your mortgage to interest only? I tried with Danske Bank on mortgage LTV approx 50% and they wouldn't do it..stuck on a variable rate at the moment due to personal circumstances.
Title: Re: Mortgages - Help!
Post by: quit yo jibbajabba on October 13, 2022, 04:57:47 PM
some do and some dont Trap.Danske be among the more conservative type of lender so no surprise but elsewhere you possibly could have
Title: Re: Mortgages - Help!
Post by: seafoid on October 13, 2022, 06:12:31 PM
https://www.cnbc.com/video/2022/10/13/moritz-kramer-on-markets-it-would-be-a-miracle-if-nothing-were-to-blow-up.html
Title: Re: Mortgages - Help!
Post by: Milltown Row2 on October 14, 2022, 08:51:11 AM
Quote from: seafoid on October 13, 2022, 03:31:02 PM
I don't think returns are going to be much more than they were over the last 5 years and they weren't great.
Because you have a lot of volatility.

If you want to make money hold cash and buy stuff when the market crashes.
You could have made 40% in 2020 doing this.

Otherwise if that's too scary invest in staples that people have to buy
https://www.cnbc.com/video/2022/10/12/the-importance-of-pricing-power-for-consumer-staples.html

Buying shares in things that are used everyday and needed?

Like nappies for instance?

Was going to start a thread on "Are you at the finishing line or what's your plan to get there?"

Love my job but 15 years minimum before I get to the old retirement age never mind the current one leaves you worried enough if you are covered!!

Need a income during retirement that is better than the bog standard pension which in truth is all I have, I've multiple pensions that don't add up to shit, so its either live off her pension or start investing in something with a return better than saving, which I'm crap at
Title: Re: Mortgages - Help!
Post by: JohnDenver on October 14, 2022, 09:01:18 AM
Quote from: Milltown Row2 on October 14, 2022, 08:51:11 AM
Quote from: seafoid on October 13, 2022, 03:31:02 PM
I don't think returns are going to be much more than they were over the last 5 years and they weren't great.
Because you have a lot of volatility.

If you want to make money hold cash and buy stuff when the market crashes.
You could have made 40% in 2020 doing this.

Otherwise if that's too scary invest in staples that people have to buy
https://www.cnbc.com/video/2022/10/12/the-importance-of-pricing-power-for-consumer-staples.html

Buying shares in things that are used everyday and needed?

Like nappies for instance?

Was going to start a thread on "Are you at the finishing line or what's your plan to get there?"

Love my job but 15 years minimum before I get to the old retirement age never mind the current one leaves you worried enough if you are covered!!

Need a income during retirement that is better than the bog standard pension which in truth is all I have, I've multiple pensions that don't add up to shit, so its either live off her pension or start investing in something with a return better than saving, which I'm crap at

Surely you will have better than the bog standard state pension if you have multiple pensions?

Also - are you planning a lot of travel or other activities when retired that would require a bigger income?
Title: Re: Mortgages - Help!
Post by: Milltown Row2 on October 14, 2022, 09:09:45 AM
Quote from: JohnDenver on October 14, 2022, 09:01:18 AM
Quote from: Milltown Row2 on October 14, 2022, 08:51:11 AM
Quote from: seafoid on October 13, 2022, 03:31:02 PM
I don't think returns are going to be much more than they were over the last 5 years and they weren't great.
Because you have a lot of volatility.

If you want to make money hold cash and buy stuff when the market crashes.
You could have made 40% in 2020 doing this.

Otherwise if that's too scary invest in staples that people have to buy
https://www.cnbc.com/video/2022/10/12/the-importance-of-pricing-power-for-consumer-staples.html

Buying shares in things that are used everyday and needed?

Like nappies for instance?

Was going to start a thread on "Are you at the finishing line or what's your plan to get there?"

Love my job but 15 years minimum before I get to the old retirement age never mind the current one leaves you worried enough if you are covered!!

Need a income during retirement that is better than the bog standard pension which in truth is all I have, I've multiple pensions that don't add up to shit, so its either live off her pension or start investing in something with a return better than saving, which I'm crap at

Surely you will have better than the bog standard state pension if you have multiple pensions?

Also - are you planning a lot of travel or other activities when retired that would require a bigger income?

Multiple shit pensions to be fair.. one for 11 years in the Yard, which I'm let to believe has went to crap, 2 years in one company, different three year ones in a few others and a basic pension in my current job..

Yes holidaying would be there and not having to wait on the NHS to sort me out when I need it
Title: Re: Mortgages - Help!
Post by: seafoid on October 14, 2022, 11:44:28 AM
Quote from: Milltown Row2 on October 14, 2022, 08:51:11 AM
Quote from: seafoid on October 13, 2022, 03:31:02 PM
I don't think returns are going to be much more than they were over the last 5 years and they weren't great.
Because you have a lot of volatility.

If you want to make money hold cash and buy stuff when the market crashes.
You could have made 40% in 2020 doing this.

Otherwise if that's too scary invest in staples that people have to buy
https://www.cnbc.com/video/2022/10/12/the-importance-of-pricing-power-for-consumer-staples.html

Buying shares in things that are used everyday and needed?

Like nappies for instance?

Was going to start a thread on "Are you at the finishing line or what's your plan to get there?"

Love my job but 15 years minimum before I get to the old retirement age never mind the current one leaves you worried enough if you are covered!!

Need a income during retirement that is better than the bog standard pension which in truth is all I have, I've multiple pensions that don't add up to shit, so its either live off her pension or start investing in something with a return better than saving, which I'm crap at
In a recession people still buy food and drink and other essentials and small treats. They still go to hurling matches.
Title: Re: Mortgages - Help!
Post by: imtommygunn on October 14, 2022, 12:01:59 PM
Quote from: Milltown Row2 on October 14, 2022, 09:09:45 AM
Quote from: JohnDenver on October 14, 2022, 09:01:18 AM
Quote from: Milltown Row2 on October 14, 2022, 08:51:11 AM
Quote from: seafoid on October 13, 2022, 03:31:02 PM
I don't think returns are going to be much more than they were over the last 5 years and they weren't great.
Because you have a lot of volatility.

If you want to make money hold cash and buy stuff when the market crashes.
You could have made 40% in 2020 doing this.

Otherwise if that's too scary invest in staples that people have to buy
https://www.cnbc.com/video/2022/10/12/the-importance-of-pricing-power-for-consumer-staples.html

Buying shares in things that are used everyday and needed?

Like nappies for instance?

Was going to start a thread on "Are you at the finishing line or what's your plan to get there?"

Love my job but 15 years minimum before I get to the old retirement age never mind the current one leaves you worried enough if you are covered!!

Need a income during retirement that is better than the bog standard pension which in truth is all I have, I've multiple pensions that don't add up to shit, so its either live off her pension or start investing in something with a return better than saving, which I'm crap at

Surely you will have better than the bog standard state pension if you have multiple pensions?

Also - are you planning a lot of travel or other activities when retired that would require a bigger income?

Multiple shit pensions to be fair.. one for 11 years in the Yard, which I'm let to believe has went to crap, 2 years in one company, different three year ones in a few others and a basic pension in my current job..

Yes holidaying would be there and not having to wait on the NHS to sort me out when I need it

Private pensions are really really shit. Unless you have hundreds of k in them then you're not going to get huge addition from them on retirement.
Title: Re: Mortgages - Help!
Post by: screenexile on October 14, 2022, 12:16:27 PM
Kwasi on the way out . . . who the f**k else wants that job??
Title: Re: Mortgages - Help!
Post by: Armagh18 on October 14, 2022, 12:20:29 PM
Quote from: Milltown Row2 on October 13, 2022, 01:36:06 PM
Again anyone who can afford a £400K house can well afford the hike, and if they couldn't then that's on them, they'll also hardly go homeless, they will just have to sell and move into the estate
Surely you're taking the piss
Title: Re: Mortgages - Help!
Post by: JimStynes on October 14, 2022, 12:23:40 PM
Quote from: Milltown Row2 on October 14, 2022, 08:51:11 AM
Quote from: seafoid on October 13, 2022, 03:31:02 PM
I don't think returns are going to be much more than they were over the last 5 years and they weren't great.
Because you have a lot of volatility.

If you want to make money hold cash and buy stuff when the market crashes.
You could have made 40% in 2020 doing this.

Otherwise if that's too scary invest in staples that people have to buy
https://www.cnbc.com/video/2022/10/12/the-importance-of-pricing-power-for-consumer-staples.html

Buying shares in things that are used everyday and needed?

Like nappies for instance?

Was going to start a thread on "Are you at the finishing line or what's your plan to get there?"

Love my job but 15 years minimum before I get to the old retirement age never mind the current one leaves you worried enough if you are covered!!

Need a income during retirement that is better than the bog standard pension which in truth is all I have, I've multiple pensions that don't add up to shit, so its either live off her pension or start investing in something with a return better than saving, which I'm crap at

Sure your wife will have a lovely wee teaching pension
Title: Re: Mortgages - Help!
Post by: Milltown Row2 on October 14, 2022, 01:23:04 PM
Quote from: Armagh18 on October 14, 2022, 12:20:29 PM
Quote from: Milltown Row2 on October 13, 2022, 01:36:06 PM
Again anyone who can afford a £400K house can well afford the hike, and if they couldn't then that's on them, they'll also hardly go homeless, they will just have to sell and move into the estate
Surely you're taking the piss

The last bit yes, but if someone has enough money to buy a £400K house they should be well able to afford the hike, if not they were given bad advice at the time of getting a mortgage, did they think the 1.4% would last forever?
Title: Re: Mortgages - Help!
Post by: Milltown Row2 on October 14, 2022, 01:24:29 PM
Quote from: JimStynes on October 14, 2022, 12:23:40 PM
Quote from: Milltown Row2 on October 14, 2022, 08:51:11 AM
Quote from: seafoid on October 13, 2022, 03:31:02 PM
I don't think returns are going to be much more than they were over the last 5 years and they weren't great.
Because you have a lot of volatility.

If you want to make money hold cash and buy stuff when the market crashes.
You could have made 40% in 2020 doing this.

Otherwise if that's too scary invest in staples that people have to buy
https://www.cnbc.com/video/2022/10/12/the-importance-of-pricing-power-for-consumer-staples.html

Buying shares in things that are used everyday and needed?

Like nappies for instance?

Was going to start a thread on "Are you at the finishing line or what's your plan to get there?"

Love my job but 15 years minimum before I get to the old retirement age never mind the current one leaves you worried enough if you are covered!!

Need a income during retirement that is better than the bog standard pension which in truth is all I have, I've multiple pensions that don't add up to shit, so its either live off her pension or start investing in something with a return better than saving, which I'm crap at

Sure your wife will have a lovely wee teaching pension

Yes Jim and she knows that's why I'm here lol!!
Title: Re: Mortgages - Help!
Post by: seafoid on October 15, 2022, 10:10:23 AM
Some good advice in this article

https://www.ft.com/content/3c00e3a5-e3ca-416e-9b18-20e36b50bcb8

Mortgage wake-up call for middle classes Rising interest rates could cost some borrowers more than rising energy bills CLAER BARRETT  How much could your household finances be squeezed in the next few years? The answer could well come down to the size of your mortgage. If you've borrowed a lot of money to buy your dream home, rising interest rates have the potential to curb the spending power of the middle classes much more than rising energy bills have done so far. I have a friend who has been paying an extra £500 a month on her mortgage since she rolled off a fixed-rate deal. She needs to move house in a year, for school-related reasons, so didn't want to lock into another fix. When the Bank of England increased the base rate by half a percentage point last week — the biggest rise in 27 years — she sent me a WhatsApp message saying "Arrrrrrghhhh". Most UK borrowers have locked into a fixed rate, but about 1.3mn will expire this year and 1.81mn next year, according to trade body UK Finance. Bank of England data shows more than £10bn was overpaid on mortgages in the first six months of this year — a trend evidenced in FT Money's bonus survey in February, where 13 per cent of respondents said this was your intention. Soaring property prices, bigger mortgages and lengthier repayment terms mean that even a small change to interest rates will increase the lifetime costs of your home loan.

Here are some points to consider well in advance of when your current fix comes to an end.
Get your paperwork in order Anyone with a fixed mortgage needs to plan for what to do when it expires. Find the date, ring it in your diary and be ready to start looking for a new deal at least six months beforehand. "The amount of mortgage applications lenders are getting are still at very high levels, and we've seen two or three pause taking on new business while they get back up to speed," says Andrew Montlake, managing director at mortgage broker Coreco. He has heard stories of customers waiting three to four weeks to get a mortgage review appointment, by which time interest rates have risen. If you're sticking with the same lender, remortgaging deals — known as retention products — can't usually be secured until you have less than four months remaining. But if you're switching to a new lender, it's often possible to "lock in" a rate six months ahead of your current deal expiring. Expect to pay about £500 for an independent mortgage broker to help you find the best deal for your circumstances.


Careful preparation should mean you avoid the misery of reverting to your lender's standard variable rate (SVR). The average SVR is already 5.17 per cent, according to Moneyfacts, the price comparison site. This figure has increased for eight consecutive months and is likely to swell further, adding up to a huge payment shock for those who roll off a fix. How long to fix for? You won't thank me for saying that the best time to fix your mortgage was six months to a year ago. Five-year fixes are still the most popular product, but the average rate offered on these deals breached 4 per cent in August, according to Moneyfacts — a level last seen in 2014. The average two-year fix is a shade under this at 3.95 per cent. The more equity you have in your home, the better the rate you will be able to secure. However, deals with the lowest rates tend to have the highest fees (typically £1,000 or more). Add the fees to your loan, and you'll be paying interest on top. Mortgage brokers report early signs that more borrowers are prepared to gamble on a two-year fix, betting that central banks will be forced to cut rates in a recession. High-profile US investors Cathie Wood and Ray Dalio have both said they expect to see rate cuts in 2023-24. However, non-billionaires are likely to value the certainty of a fixed rate on their biggest monthly outgoing. Be prepared to make a quick decision Whether you're buying a home or remortgaging, speed is of the essence. The average mortgage product has an average shelf life of just 17 days, according to Moneyfacts — an all-time low. Recommended UK interest rates Mortgage misery for millions following rate rise If a lender's rate moves to the top of a best buy table, they will often withdraw it swiftly to avoid the operational challenge of a deluge of applications. "I could give a client one rate at 9am, then have to call back at noon and say that deal is being withdrawn at 5pm today," says Coreco's Montlake.
"Some clients think it's a sales technique but that is the reality of the market." Should you pay to nix your current fix? With rates ticking up, you may be tempted to pay a penalty to quit your existing deal and lock into a new one. As a rule of thumb, early repayment charges on a five-year fix are 5 per cent of the outstanding balance in the first year, falling on a sliding scale to 1 per cent by the final year. If you break a fix on a £500,000 mortgage with two years left to run, that could cost you £10,000, plus product fees for the new mortgage — and your monthly repayments would instantly be higher. Is it worth it? A free mortgage calculator from budgeting app Nous.co attempts to answer this question based on market predictions about where interest rates could be by the time your fix ends and what the likely costs or savings could be. I'd also use a mortgage overpayment calculator to see what impact using that cash to make a one-off repayment could have, assuming your mortgage deal allows this, and whether this could tip you into a lower LTV. Sprive, a new app, allows people to vary their overpayments in accordance with their monthly spending. What about buy-to-let mortgages?
Landlords are more likely to have interest-only mortgages. Though most are locked into fixed-rate deals, this means they will be exposed to much bigger cost swings than repayment borrowers when rates expire. Lenders apply a range of affordability calculations to buy-to-let loans. The main one is the interest coverage ratio — the monthly rent expressed as a percentage of your monthly interest payment — typically 125 to 145 per cent. However, lenders use a "stress rate" to calculate these ratios and this is much higher than the actual interest paid on the loan. David Hollingworth, associate director at broker L&C Mortgages, notes that several lenders have increased their stress rates this month, and expects others to follow. "The upshot will be landlords need to charge higher rents to borrow the same amount," he says. For example, Metro Bank has just upped one of its stress rates from 4 to 5.5 per cent, and demands interest cover of 140 per cent. On a £200,000 interest only mortgage, he calculates this would mean landlords require an extra £350 of monthly rental income to satisfy the lender's requirements. As we've been hearing on the Money Clinic podcast this week, renters are already finding these higher costs are being passed on to them, with London letting agents reporting rent rises of 40 per cent on the renewal of tenancies. However much rising mortgage rates make you want to scream, just be grateful that you own your home. Claer Barrett is the FT's consumer editor: claer.barrett@ft.com; Twitter @Claerb; Instagram @Claerb

Title: Re: Mortgages - Help!
Post by: bennydorano on October 29, 2022, 01:25:50 PM
Signed up to a new mortgage deal with my current provider, doesn't kick in until January but such a relief to get sorted, a weight off our shoulders. The figures quoted for the end of our current payments / moving onto the SVR in January would have been very painful and we're into single figures of years left on it. Some people really are going to be crippled by rising rates.
Title: Re: Mortgages - Help!
Post by: gawa316 on November 04, 2022, 04:33:22 PM
Anyone know anything about capital gains tax? Selling a house in the north. Currently living in the US, and not sure if that makes a difference
Title: Re: Mortgages - Help!
Post by: 93-DY-SAM on November 04, 2022, 04:42:02 PM
Quote from: gawa316 on November 04, 2022, 04:33:22 PM
Anyone know anything about capital gains tax? Selling a house in the north. Currently living in the US, and not sure if that makes a difference

At a basic starting point if you sold it for more than you bought it for then if this exceeds your CGT allowance then you'll have to pay the CGT on any money over that threshold. If you have another half and the house in both names then you can both use your allowance towards this.



Title: Re: Mortgages - Help!
Post by: RedHand88 on December 15, 2022, 12:39:07 PM
https://www.telegraph.co.uk/property/buy-to-let/buy-let-mortgage-crunch-means-landlords-could-lose-money/ (https://www.telegraph.co.uk/property/buy-to-let/buy-let-mortgage-crunch-means-landlords-could-lose-money/)

Woman who owns 6 houses realises at the first sign of trouble that she can't afford them.

It's hard to find sympathy for people like this. They overextended when rates were historically low, obviously assuming they would stay rock bottom forever. It's wannabe property developers like this that make it so hard for young people to own their own home.
Title: Re: Mortgages - Help!
Post by: Milltown Row2 on December 15, 2022, 12:41:39 PM
Quote from: RedHand88 on December 15, 2022, 12:39:07 PM
https://www.telegraph.co.uk/property/buy-to-let/buy-let-mortgage-crunch-means-landlords-could-lose-money/ (https://www.telegraph.co.uk/property/buy-to-let/buy-let-mortgage-crunch-means-landlords-could-lose-money/)

Woman who owns 6 houses realises at the first sign of trouble that she can't afford them.

It's hard to find sympathy for people like this. They overextended when rates were historically low, obviously assuming they would stay rock bottom forever. It's wannabe property developers like this that make it so hard for young people to own their own home.

I blame Dion Dublin for this malarkey
Title: Re: Mortgages - Help!
Post by: NAG1 on December 15, 2022, 12:48:14 PM
Quote from: RedHand88 on December 15, 2022, 12:39:07 PM
https://www.telegraph.co.uk/property/buy-to-let/buy-let-mortgage-crunch-means-landlords-could-lose-money/ (https://www.telegraph.co.uk/property/buy-to-let/buy-let-mortgage-crunch-means-landlords-could-lose-money/)

Woman who owns 6 houses realises at the first sign of trouble that she can't afford them.

It's hard to find sympathy for people like this. They overextended when rates were historically low, obviously assuming they would stay rock bottom forever. It's wannabe property developers like this that make it so hard for young people to own their own home.

Zero or even less than zero if possible sympathy for people like this.

Killing the housing market for young people or people in general who would like to own a property in the area the were brought up in.

The more of these types that go to the wall the better, maybe get some sort semblance of order back into property ownership.
Title: Re: Mortgages - Help!
Post by: quit yo jibbajabba on December 15, 2022, 12:49:32 PM
Quote from: Milltown Row2 on December 15, 2022, 12:41:39 PM
Quote from: RedHand88 on December 15, 2022, 12:39:07 PM
https://www.telegraph.co.uk/property/buy-to-let/buy-let-mortgage-crunch-means-landlords-could-lose-money/ (https://www.telegraph.co.uk/property/buy-to-let/buy-let-mortgage-crunch-means-landlords-could-lose-money/)

Woman who owns 6 houses realises at the first sign of trouble that she can't afford them.

It's hard to find sympathy for people like this. They overextended when rates were historically low, obviously assuming they would stay rock bottom forever. It's wannabe property developers like this that make it so hard for young people to own their own home.

I blame Dion Dublin for this malarkey

"Never mind that have ye seen the size of his d1ck"?

😂😂😂
Title: Re: Mortgages - Help!
Post by: RedHand88 on December 15, 2022, 01:21:26 PM
Quote from: NAG1 on December 15, 2022, 12:48:14 PM
Quote from: RedHand88 on December 15, 2022, 12:39:07 PM
https://www.telegraph.co.uk/property/buy-to-let/buy-let-mortgage-crunch-means-landlords-could-lose-money/ (https://www.telegraph.co.uk/property/buy-to-let/buy-let-mortgage-crunch-means-landlords-could-lose-money/)

Woman who owns 6 houses realises at the first sign of trouble that she can't afford them.

It's hard to find sympathy for people like this. They overextended when rates were historically low, obviously assuming they would stay rock bottom forever. It's wannabe property developers like this that make it so hard for young people to own their own home.

Zero or even less than zero if possible sympathy for people like this.

Killing the housing market for young people or people in general who would like to own a property in the area the were brought up in.

The more of these types that go to the wall the better, maybe get some sort semblance of order back into property ownership.

"Mrs Deane, 40, and her husband have built up a small portfolio of five buy-to-lets since 2009, when they started renovating local properties and letting them to families on housing benefit."

F*** off like
Title: Re: Mortgages - Help!
Post by: Knock Yer Mucker In on August 31, 2023, 11:43:26 AM
interest ratee s going up.

Advise, should I settle on the interest being offered and fix it for two years, or will the interest rate drop by 0.25% Or go variable for 5/6 months?
Title: Re: Mortgages - Help!
Post by: seafoid on August 31, 2023, 12:08:41 PM
Quote from: Knock Yer Mucker In on August 31, 2023, 11:43:26 AM
interest ratee s going up.

Advise, should I settle on the interest being offered and fix it for two years, or will the interest rate drop by 0.25% Or go variable for 5/6 months?
Calculate what you can afford. Even the Fed does not know what will happen. At some point rates will fall but timing is impossible to know.

https://www.cnbc.com/video/2023/08/25/the-market-has-reacted-to-powells-comments-neutrally-says-former-dallas-fed-president-fisher.html
Title: Re: Mortgages - Help!
Post by: gallsman on August 31, 2023, 02:07:42 PM
Spain based, so slightly different but I switched from a variable to a 5 year fixed there last month. Payment has jumped 30 quid a month but now also includes my home insurance, so to all intents and purposes I'm paying the same. I'm at 1.79% instead of 4.9%.
Title: Re: Mortgages - Help!
Post by: Rois on August 31, 2023, 03:04:46 PM
Quote from: gallsman on August 31, 2023, 02:07:42 PM
Spain based, so slightly different but I switched from a variable to a 5 year fixed there last month. Payment has jumped 30 quid a month but now also includes my home insurance, so to all intents and purposes I'm paying the same. I'm at 1.79% instead of 4.9%.
5 year fixed at 1.79%?? That's amazing.
Title: Re: Mortgages - Help!
Post by: seafoid on August 31, 2023, 03:12:17 PM
Quote from: Rois on August 31, 2023, 03:04:46 PM
Quote from: gallsman on August 31, 2023, 02:07:42 PM
Spain based, so slightly different but I switched from a variable to a 5 year fixed there last month. Payment has jumped 30 quid a month but now also includes my home insurance, so to all intents and purposes I'm paying the same. I'm at 1.79% instead of 4.9%.
5 year fixed at 1.79%?? That's amazing.
Short term rates are higher because of inflation.. Infation is exppected to disappear within 5 years
Title: Re: Mortgages - Help!
Post by: CiKe on August 31, 2023, 04:42:22 PM
Quote from: seafoid on August 31, 2023, 03:12:17 PM
Quote from: Rois on August 31, 2023, 03:04:46 PM
Quote from: gallsman on August 31, 2023, 02:07:42 PM
Spain based, so slightly different but I switched from a variable to a 5 year fixed there last month. Payment has jumped 30 quid a month but now also includes my home insurance, so to all intents and purposes I'm paying the same. I'm at 1.79% instead of 4.9%.
5 year fixed at 1.79%?? That's amazing.
Short term rates are higher because of inflation.. Infation is exppected to disappear within 5 years

Yes but the banks don't tell you that and 99.9% of people won't know what a swap rate or term structure is. But even if you do, then you still have to make a call about whether you think those long term rates are fair or not. If you can afford it well enough, I'd go fixed and know what you are getting. Peace of mind is worth a lot.

Only good investment decision I have made was fixing about 18months ago at 0.7% for 25 years. It's criminal that long-term fixed rates weren't available back home.
Title: Re: Mortgages - Help!
Post by: gallsman on August 31, 2023, 05:21:18 PM
Quote from: Rois on August 31, 2023, 03:04:46 PM
Quote from: gallsman on August 31, 2023, 02:07:42 PM
Spain based, so slightly different but I switched from a variable to a 5 year fixed there last month. Payment has jumped 30 quid a month but now also includes my home insurance, so to all intents and purposes I'm paying the same. I'm at 1.79% instead of 4.9%.
5 year fixed at 1.79%?? That's amazing.

Base rate is 2.89 and if comes down by buying other products (all of which I need anyway).

If I'd been awake a year ago I could have fixed for the rest of the term around 1%!