| Remortgage 09:48 - Sep 27 with 4926 views | clive_baker |
Blimey.
Boring I know but my fixed period ends in summer '23, I'm too early to lock a rate in now anywhere and by the time I can the BOE base will likely be up another 0.5% - 0.75%. I'm looking at an increase from 1.8% that I'm on now to something like 4% - 4.5% I imagine. I've got 50% LTV, 2 incomes, so relatively low risk from a lenders perspective.
On £300k of debt its a decent chunk of change, looking at £400 - £500 a month more from the summer, plus inflationary pressures and utilities etc.
Good news for those with more savings than debt innit, I guess they're the the ones that vote Tory. |  |
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| Remortgage on 09:57 - Sep 27 with 2786 views | Kieran_Knows |
I'm very glad that when I moved last year, we fixed in for 5 years. Got 4 years left as of next month, so really hoping things have settled down by the time we come round to our next remortgage. |  |
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| Remortgage on 09:57 - Sep 27 with 2783 views | nodge_blue |
There were suggestions yesterday that rates could hit 6% next year.
Sooner or later people don't want to lend money to countries where they think theres a chance they won't get their money back. We've borrowed so much that eventually its goes pop. |  |
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| Remortgage on 10:00 - Sep 27 with 2733 views | StokieBlue |
| Remortgage on 09:57 - Sep 27 by nodge_blue |
There were suggestions yesterday that rates could hit 6% next year.
Sooner or later people don't want to lend money to countries where they think theres a chance they won't get their money back. We've borrowed so much that eventually its goes pop. |
Currently our bonds are worse that Greece and Italy, two complete basket cases.
SB |  |
| Avatar - IC410 - Tadpoles Nebula |
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| Remortgage on 10:00 - Sep 27 with 2734 views | ibbleobble |
I feel for you. I’m a first time buyer and between our first AIP in March and second one in August it had jumped £500. We’re lucky to have got in with a fixed at 3.92% now but it was 2.29%.
Thankfully Kwasi had done us a solid on the stamp duty so we have better liquidity. As much as it pains me to align with a Tory policy, this one has been extremely advantageous for us in one respect. |  | | |
| Remortgage on 10:02 - Sep 27 with 2675 views | ArnoldMoorhen |
I think the only way to describe that is as a bomb exploding under your personal finances.
The size of your mortgage suggests that you are relatively well off, but, still, that's a lot of juggling of other financial arrangements to have to do in a short space of time in order to keep the good ship baker sailing steadily through the murky waters ahead.
No fault of yours. Absolutely the fault of Brexit (which as well as weakening the British economy, emboldened Putin, along with Trump's policy re Nato, and led him to believe there would be fragmented support for Ukraine) now compounded by Truss and her work-experience Chancellor.
Many people will struggle as Mortgage deals come to an end, but Credit card debt is where we will see people in complete meltdown over the next 6 months.
It's going to be a difficult Christmas for millions. | | | |
| Remortgage on 10:02 - Sep 27 with 2665 views | Keno |
send Osborne one-nil a PM
he is the mortgage gnu |  |
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| Remortgage on 10:03 - Sep 27 with 2664 views | noggin |
| Remortgage on 09:57 - Sep 27 by nodge_blue |
There were suggestions yesterday that rates could hit 6% next year.
Sooner or later people don't want to lend money to countries where they think theres a chance they won't get their money back. We've borrowed so much that eventually its goes pop. |
Good thing mental health services are not overstretched. They'll be in demand soon. |  |
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| Remortgage on 10:03 - Sep 27 with 2658 views | StokieBlue |
| Remortgage on 10:00 - Sep 27 by ibbleobble |
I feel for you. I’m a first time buyer and between our first AIP in March and second one in August it had jumped £500. We’re lucky to have got in with a fixed at 3.92% now but it was 2.29%.
Thankfully Kwasi had done us a solid on the stamp duty so we have better liquidity. As much as it pains me to align with a Tory policy, this one has been extremely advantageous for us in one respect. |
Any evidence for better liquidity due to the stamp duty increase?
Most people in the field have been saying that all that has/will happen is that sellers just put the price up for the amount people are saving in stamp duty.
I highly doubt it'll be effective in increasing liquidity.
SB | |
| Avatar - IC410 - Tadpoles Nebula |
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| Remortgage on 10:05 - Sep 27 with 2642 views | nodge_blue |
| Remortgage on 10:03 - Sep 27 by noggin |
Good thing mental health services are not overstretched. They'll be in demand soon. |
My next door neighbour who is a mental health nurse is exhausted now. | |
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| Remortgage on 10:12 - Sep 27 with 2600 views | N2_Blue |
Hey CB, we're in exactly same position, fixed rate expires Aug 23 and really very worried.
We still have 350k of debt over 20 years and i'm working out we will be paying an extra £600 a month . We'll find a way of managing it but with a baby on the way we basically are going to have zero expendable income and probably not give him/her a lot of things we would have wanted to.
I just don't understand how anyone can vote for this government unless you are on a 7 figure salary. But there will be people that do because it feels like 'winning something' when the blue seats pour in even though they are effectively shooting themselves in the foot. |  |
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| Remortgage on 10:17 - Sep 27 with 2567 views | PrideOfTheEast |
| Remortgage on 10:12 - Sep 27 by N2_Blue |
Hey CB, we're in exactly same position, fixed rate expires Aug 23 and really very worried.
We still have 350k of debt over 20 years and i'm working out we will be paying an extra £600 a month . We'll find a way of managing it but with a baby on the way we basically are going to have zero expendable income and probably not give him/her a lot of things we would have wanted to.
I just don't understand how anyone can vote for this government unless you are on a 7 figure salary. But there will be people that do because it feels like 'winning something' when the blue seats pour in even though they are effectively shooting themselves in the foot. |
Talk to your mortgage providers. Suspect going interest only for a period might become an option for some. If not, extend the term as far as you can. The industry will have to flex. | | | |
| Remortgage on 10:17 - Sep 27 with 2561 views | markchips |
| Remortgage on 10:05 - Sep 27 by nodge_blue |
My next door neighbour who is a mental health nurse is exhausted now. |
My partner is a nurse and is retiring shortly. We are hopefully in the process of selling having accepted an offer. The market is too hot and the whole point of this is to slow things down.
It is a dicey situation because too much will cripple the economy.
I feel for people trying to get on the property market now. | | | |
| Remortgage on 10:18 - Sep 27 with 2561 views | ElderGrizzly |
The BoE will put rates up 2% in November.
Next year by summer they will be at 6% unless something drastically changes, which will mean mortgage rates starting at around 7.5%
FT were saying yesterday that no deals will exist below 5% by the end of October this year.
Sunlit uplands etc etc... |  | | |
| Remortgage on 10:27 - Sep 27 with 2503 views | clive_baker |
| Remortgage on 10:02 - Sep 27 by ArnoldMoorhen |
I think the only way to describe that is as a bomb exploding under your personal finances.
The size of your mortgage suggests that you are relatively well off, but, still, that's a lot of juggling of other financial arrangements to have to do in a short space of time in order to keep the good ship baker sailing steadily through the murky waters ahead.
No fault of yours. Absolutely the fault of Brexit (which as well as weakening the British economy, emboldened Putin, along with Trump's policy re Nato, and led him to believe there would be fragmented support for Ukraine) now compounded by Truss and her work-experience Chancellor.
Many people will struggle as Mortgage deals come to an end, but Credit card debt is where we will see people in complete meltdown over the next 6 months.
It's going to be a difficult Christmas for millions. |
That's certainly one way of describing it. I know there are many who have it a lot worse than I do and begrudgingly I can find the money, it's going to sting a little though. I realise I'm fortunate, if it means I don't go away on holiday next year that's a bit of a 1st world problem isn't it.
There are many worse off through no fault of their own, and some through financial foolishness. I've been told by friends in the past that I'm "under leveraged", but I'm an accountant and naturally I think somewhat risk averse, I have been the one to remind them that rates can go up as well as down. Many seem to have short memories. My monthly payments will jump £400, annoying and a slap in the face, but I can't do anything about it. I have friends that have mortgages up to their eyeballs already and are looking at +£1,200 a month believe it or not. It's mental. So many people have been writing cheques they can't cash with cheap debt, I literally wouldn't be able to sleep at night. It's all going to go pop at this rate.
Part of me wonders if the Tories are setting the Labour government up to fail in an attempt to get reelected down the line. | |
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| Remortgage on 10:28 - Sep 27 with 2492 views | homer_123 |
Skipton and someone have confirmed they are no longer offering mortgages to new customers! |  |
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| Remortgage on 10:34 - Sep 27 with 2459 views | clive_baker |
| Remortgage on 10:18 - Sep 27 by ElderGrizzly |
The BoE will put rates up 2% in November.
Next year by summer they will be at 6% unless something drastically changes, which will mean mortgage rates starting at around 7.5%
FT were saying yesterday that no deals will exist below 5% by the end of October this year.
Sunlit uplands etc etc... |
I would be surprised if rates rise 2% in November. I would think from 2.25% that we're at now, we'll see a rise to 3% in November, with further rises thereafter.
There's arguably a case for getting out of my fixed term now and locking in something starting in a 3 today. It will mean I'm worse off between now and the summer compared to what I'm on now, and probably a chunky early repayment fee, but might pay back over 3-5 years. | |
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| Remortgage on 10:43 - Sep 27 with 2421 views | giant_stow |
| Remortgage on 10:00 - Sep 27 by StokieBlue |
Currently our bonds are worse that Greece and Italy, two complete basket cases.
SB |
Rule Britannia! |  |
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| Remortgage on 10:48 - Sep 27 with 2391 views | ElderGrizzly |
| Remortgage on 10:34 - Sep 27 by clive_baker |
I would be surprised if rates rise 2% in November. I would think from 2.25% that we're at now, we'll see a rise to 3% in November, with further rises thereafter.
There's arguably a case for getting out of my fixed term now and locking in something starting in a 3 today. It will mean I'm worse off between now and the summer compared to what I'm on now, and probably a chunky early repayment fee, but might pay back over 3-5 years. |
There was talk of them doing it yesterday, but the backed down apparently.
All depends how 'independent' the BoE will be from Kwarteng in the next few months, but there will be pressure to prop up the £ and raising interest rates is the 'easy' option | | | |
| Remortgage on 10:50 - Sep 27 with 2380 views | Radlett_blue |
| Remortgage on 10:00 - Sep 27 by StokieBlue |
Currently our bonds are worse that Greece and Italy, two complete basket cases.
SB |
Italian & Greek 10 year bonds yield more than British 10 year gilts.
Their yields would be way higher if their wasn't an implicit Eurozone guarantee that they would be bailed out, but they clearly still aren't trusted. One of the supposed big advantages of the Euro was that everyone would benefit from low German yields. |  |
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| Remortgage on 10:52 - Sep 27 with 2364 views | N2_Blue |
| Remortgage on 10:17 - Sep 27 by PrideOfTheEast |
Talk to your mortgage providers. Suspect going interest only for a period might become an option for some. If not, extend the term as far as you can. The industry will have to flex. |
Yes i think you may be right. Don't really like the idea of being interest only and taking mortgage into retirement but may not be much choice until things stabilise (if they ever do!)
I am quite worried because with a baby one of us was potentially not going to work for a while but that just isn't a consideration anymore. But at the same time i almost feel bad to be worried and whinge about my situation as for so many people this must be crippling and literally a fight for survival in keeping a roof over your heads.
The Tories in 12 years have really killed this country, one can go on about Brexit / COVID etc but there are plenty of other countries who are having an economic downturn but not to the extent we are going to face for years to come, perhaps even decades! | |
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| Remortgage on 11:04 - Sep 27 with 2313 views | Charlie_pl_baxter |
In a similar position although we finish in Feb so may be able to lock a deal in if anyone will let us. Regarding debt vs savings my dad was saying banks aren't really passing on the higher interest rates to savers atm so they are getting screwed over also. I'm sure the bankers will all get their new higher bonuses though... |  |
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| Remortgage on 11:05 - Sep 27 with 2309 views | StokieBlue |
| Remortgage on 10:50 - Sep 27 by Radlett_blue |
Italian & Greek 10 year bonds yield more than British 10 year gilts.
Their yields would be way higher if their wasn't an implicit Eurozone guarantee that they would be bailed out, but they clearly still aren't trusted. One of the supposed big advantages of the Euro was that everyone would benefit from low German yields. |
I should have been clearer, as of yesterday, our 5Y bonds yielded more than either.
Regardless of implicit guarantees (which it would be interesting to see if they now honoured), this is a rubbish state for UK bonds, they were up 150bp yesterday. In real terms that makes the measures announced by the Tories far more expensive than they originally claimed due to increased borrowing costs.
It's a total shower.
SB | |
| Avatar - IC410 - Tadpoles Nebula |
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| Remortgage on 11:07 - Sep 27 with 2293 views | chicoazul |
2 years left at 1.6% here. The era of cheap everything is over boyos. |  |
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| Remortgage on 11:08 - Sep 27 with 2284 views | OsborneOneNil |
| Remortgage on 10:52 - Sep 27 by N2_Blue |
Yes i think you may be right. Don't really like the idea of being interest only and taking mortgage into retirement but may not be much choice until things stabilise (if they ever do!)
I am quite worried because with a baby one of us was potentially not going to work for a while but that just isn't a consideration anymore. But at the same time i almost feel bad to be worried and whinge about my situation as for so many people this must be crippling and literally a fight for survival in keeping a roof over your heads.
The Tories in 12 years have really killed this country, one can go on about Brexit / COVID etc but there are plenty of other countries who are having an economic downturn but not to the extent we are going to face for years to come, perhaps even decades! |
If you go Interest Only (if it’s possible as there are many factors to consider) now you can reverse it in a few years ‘when’ things settle down. Same as a term to age 74….that can be restructured at a later date ‘when’ rates drop. |  | | |
| Remortgage on 11:11 - Sep 27 with 2261 views | OsborneOneNil |
| Remortgage on 10:34 - Sep 27 by clive_baker |
I would be surprised if rates rise 2% in November. I would think from 2.25% that we're at now, we'll see a rise to 3% in November, with further rises thereafter.
There's arguably a case for getting out of my fixed term now and locking in something starting in a 3 today. It will mean I'm worse off between now and the summer compared to what I'm on now, and probably a chunky early repayment fee, but might pay back over 3-5 years. |
I’m a Mortgage Adviser and have re-mortgaged a fair few clients recently who were still in a fixed rate period, and have ‘paid’ the ERC to jump deals.
Many of these were early this year, with the rates still sub 1.8% for 5 years. Seems crazy low now. | | | |
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