AIBU to think that people were daft if they thought intrest rates would stay low

[thekidsrule]

sorry if been done

intrest rates rising for some over the next few months and some people saying they may lose their homes/cant afford the hike

personally cant believe people thought they would stay so low forever

i took rises (took morgage out at approx 6-7%) into account was years ago though and realised that they may go up as well as down

at one point we were paying 14% that was a struggle

though thinking about it i suppose general cost of living added will have an added impact but so

so aibu to think people were daft to budget for only tiny rates

YANBU.

Too many people just don't seem able to learn from history when it comes to buying houses. I'm 51 so have seen a few ups and downs, Black Monday... we didn't have a mortgage just then but it was horrible for my colleagues who did.

If everyone could just resist this ridiculous pressure to stretch themselves to buy, to take out mortgages only if (a) a reasonable multiple of income and (b) allowing for significant rises in mortgage interest rates, we wouldn't be in such a bad financial situation ('everyone' being buyers in countries like US, Eire and UK).

Houses shouldn't be seen as a growing financial asset, they should be a place to live in, the value of which keeps pace with salary increases and no more. Its simple but hardly anyone seems to be able to think that way.

YANBU but it's human nature to hope for the best and fail to plan for the worst. If they're not old enough (like me and Grimma) to have experienced previous recessions, they could be forgiven for having taken Gordon 'end to boom and bust' Brown literally. And if your income/expenses are on a knife-edge, any increase, no matter how tiny, will be a problem. However, stats show that most of us are opting to pay down debts, save more and we're not taking on extra credit anything like we did in the past; lenders are more flexible and not reposessing homes so quickly. Hoping most will survive this.

if rates went up and up and people faced a real chance of losing their home where would they go,theres very little social housing as it is (thanks maggie) or affordable private renting,

Even with rises SVRs are still low. The housing market should have crashed long ago but has been propped up by the Bank of England making two years of incorrect inflation forecasts. People overextended in the boom, thinking property prices only go up. Those errors will become apparent as these recession deepens and the market feels the strain.

I am older as well - 47 and seen people lose their houses in previous recessions. It has personally made me very cautious financially. I know people who have on purpose taken the lagest mortgage they could get to buy the biggest house they could and it does shock me, This is not to buy a house that is okay, but so they can buy a fairly posh house.

Also know 2 amateur buy to let landlords who are in major trouble financially because they banked on house prices rising and the interest rate rise is going to have a large impact.

I do know a lot of people who seem to live very close to the edge financially.

same as you lesley i bought 20yrs ago,im 41 now and remember those days as very hard,guess if your younger you wouldnt remember this

deffo made me cautious regarding all debt

Also know 2 amateur buy to let landlords who are in major trouble financially because they banked on house prices rising

Very little sympathy for people who've done that - another factor artificially pushing up house prices. As to anyone who provided mortgages for such ventures ....

I am 43 and think people in their 20's and 30's have had such a worse time regarding house buying than those around my age. I am lucky and have a tracker of 0.18% above the Bank of England base rate but this mortgage was only available if you have more than 40% equity so unlikely to be people who have recently entered the property market.

Starting to think I should sell my house and live mortgage free. What a waste of money paying interest?