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Mortgage prices - gone nuts.

russdx1 said:
Yup mine was 33 years, then I dropped a few years and gonna drop a few this time so be left with 20 on 250k ahhhh. Totally picked wrong time and rate but will try and overpay as much as I can and drop that 20 years down as well. One day I’ll own my own home :D Wish I’d done all of this on the lower rates though!!!
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As other's have said, getting your mortgage paid off early is truly life-changing. So glad we overpaid massively/reduced the term when younger - annual bonuses, disposable income, everything went on getting rid of the debt asap. Totally the right thing to do to overpay and reduce the term whenever you can afford to imo.
 
M4carp said:
Depends where you live and job, bought my first flat in London in 1991 for £52k when I was 23. Tuff times for me and my mrs with kids for years.

Had this debate with my kids, they are better off than we was but due to location and they have decent incomes.
Houses here - 3 bed avg £240k, if you have a household income of nearly £100k you ain’t doing bad!
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Similar with me. I was single and bought a London flat for 70k in 1991 aged 23. I was in a really well paid professional job in the city but mortgage costs were 55% of my take home pay then there was ground rent and service charges transport to work so I never had any money left at the end of the month. I rarely ate out, furnished the place with gifted second hand goods and didn't go on holiday for 5 years and sold the car I had to cut down on costs and bring so.e money in.

It was always tough for younger generations to get on the housing ladder.
 
Compulsory Economics in years 10 & 11 would set up youngsters mentally for the cyclical nature of financial climates imho. Macro at least anyway, I'm a sucker for Micro personally 🤓
 
A lot of people got into the rental business ten years ago with mortgage rates so low. Interest only mortgages. I think house prices will come down a bit and landlords selling will bring it down a bit more.
 
Just been told my mortgage will be going up (in a few months time) to 8.25%!! Will definitely looking at least a couple of grand EXTRA a month.

As for house prices, they're are certainly not going down around here and are still going up. Sold my rental properties a few years ago as the tax became crippling but don't expect all landlords to start off loading their portfolios. I know some that are still buying and many are just AirBnB'ing for the same return with the tax burden. Increase in population and short supply of property will be the driver. People have to live somewhere regardless of interest rates.
 
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A couple of grand extra a month is insane. 😱

Landlords are an easy media target as most people see them as making money for old rope.
Problem is there is a real need for good quality rental accommodation and a massive shortage of it. Not everyone is in a position or want to buy
I get the feeling that the current government would be far happier to just have large corporations providing rental accommodation.
 
Just been told about HMO’s that get let out for people coming out of prison and making a small fortune, even to the point where you do a deal with a landlord and take care of the house and put these released prisoners in and still make very good money. Apparently quite a few of these people are not even staying in their rooms, also they are not having issues with tenants or getting paid. Can’t remember the cost per room but it was crazy high and they can’t get enough rooms.

Like AirBnB there are options for landlords to get the most out of their buy to let, I just rent mine to my kids for cheap😏
Luckily for them that prisoner scheme is in England.

Just got to ride the storm and hopefully it will pass soon🤞
 
johnwhitfield said:
Landlords are an easy media target as most people see them as making money for old rope.
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Ain't that the truth, all landlords are unscrupulous and all tenants are saints.

The media ignores the fact that a lot of landlords have one property as a long term investment and most of the rent will pay a mortgage.
 
Arv said:
It's cyclic every 10 or so years. Credit is readily available and then they pull the rug from under. Rinse and repeat.

I see it going to 5.25% then coming down to 4.5. The "fixed" energy market is coming down to normalish values and the food prices should trickle down by November.
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So rates were raised to 5.25% as expected. Voting was different this time 6-3, so I think 5.5% in September and will stay at this level until coming back down in 2024.
 
Arv said:
So rates were raised to 5.25% as expected. Voting was different this time 6-3, so I think 5.5% in September and will stay at this level until coming back down in 2024.
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How much will they drop do you reken in 2024?
 
Arv said:
Difficult to say really. I didn't get the BOE memo but once they fudge the inflation numbers to a lower level they could walk it down some to around 4%.

We are basically paying back all that money for that covid sham.
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If you consider over 225.000 covid related deaths a sham. I guess you were not lucky enough to get a free ambulance ride then. Unlike myself.
 
russdx1 said:
How much will they drop do you reken in 2024?
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Predicting this is really difficult at this stage I think - the BoE and the US Fed have consistently been wrong whenever they've made predictions about inflation for years now, so their comments can't be relied on at all. Politican's words even less so. And many of the think-tanks and other commentators have vested interests in one outcome or the other, so can't be relied on either.

There was a reduction in inflation last time the figures came out, so it appeared the interest rate rises were having the desired effect, but the month before they missed their target by a lot - so there is no consistent pattern yet. I'd guess predictions will be more reliable after September's inflation figures come out - and whether any reduction is in line with expectations or worse. Overall, we're currently at 7.9% inflation, down from a peak of 10.5% in February, and aiming for 2%. So there's a fair way to go yet - and it's a bit premature to be thinking about interest rate reduction just yet imo.
 
I think they also need to revise their target of 2% and their ever changing basket of goods that they derive the figure from. It's almost as if they want to control the way inflation goes ;)
 
the boe are not in control. neither is any govt. modern slavery is alive and kicking. call them the “man behind the curtain” or the “knights illuminati” or whatever you want. but they’re still pulling the main levers. they pull the handle of the fruit machine they designed to pay out to themselves 100%.

The 99.999% rest of us just fight for a few scraps
 
I wouldn’t expect rates to come down at all next year, just empty promises from the B of E, best you can hope for is that they eventually stop increasing the base rate.
Inflation’s going to take years to get under control, still seeing warning signs of excessive spending, car sales up, packed pubs, trade unions winning big pay rises etc.

If I had any debt i’d be considering what to do if rates were to go to 8-10% or higher over the next few years. Best be prepared just in case.

I may be sounding like a stuck record but i’ll mention it again, the 50 year average base rate is over 7%. Rate stayed permanently above 5% from 1948 to 2001. In the late seventies it took rates of 17% in the UK and 20% in the US before they finally slayed the inflation dragon. Buckle up!
 
Tucks said:
Compared to the ongoing excess deaths and fact that more people have now died as a result of the lockdown measures than Covid itself, the case for a 'sham' has a strong argument for it.
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Proof of the fact please. You saying something is a fact doesn't make it one , and neither does reports that say "maybe" a result of lockdown. Crap journalism is alive and well. The latest increase in deaths could be down to any number of socioeconomic reasons including the current gross under funding of the NHS.
 
Didn’t the BOE recently say that rates would stay high for at least 2 years?
There’s no way they will come down any time soon or there wouldn’t of been any point in raising them in the 1st place.
This is the norm the last decade has not been.
 
Moorey said:
Proof of the fact please. You saying something is a fact doesn't make it one , and neither does reports that say "maybe" a result of lockdown. Crap journalism is alive and well. The latest increase in deaths could be down to any number of socioeconomic reasons including the current gross under funding of the NHS.
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Don’t want to be drawn in to this and every life lost is a tragedy.
But weren’t a lot of covid deaths simply recorded as such due to the fact the deceased had covid in their system at the time of death?
 
mark9 said:
I wouldn’t expect rates to come down at all next year, just empty promises from the B of E, best you can hope for is that they eventually stop increasing the base rate.
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I read yesterday that some back-benchers started calling for tax cuts to offset the increase in people's mortgages. A proposal that would act in the exact opposite way entirely to that of the BoE, prolonging inflation even longer... It's such a stupid suggestion that I kind of expect they will actually do it.
 
Moorey said:
If you consider over 225.000 covid related deaths a sham
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These people didn't die of Covid. They died with Covid. Where are your facts?

Now blaming the underfunding of the NHS for excess deaths :rofl:

If you watch or listen to anything other than SkyNews and the BBC you might get some real truth. 'The truth is out there' , Skully
 
Guys there's already a covid thread here, could we keep this one on the topic of mortgages?

The "C" Word

In challenging times globally, I do hope our Pinball community keeps safe and healthy. Lots of hype in the media and drastic measures being taken by Goverments across the planet, with some counties just not declaring just to save face. Keep safe and play pinball. (And clean the buttons I guess...
www.pinballinfo.com
 
Arv said:
We are basically paying back all that money for that covid sham.
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And wasn't it just. Still, at least the poor cronies made a little money on behalf of the tax payer.

The real wake-up call for those living beyond their means in expensive properties and still spending on pointless home improvements doesn't appear to have kicked in yet, but it will. It will be a rude awakening.
 
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