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Original poster

What do you think will happen to mortgage interest rates? Wth the

179 replies

PeepsAndSheeps · 28/04/2022 09:14

What do you think will happen to mortgage interest rates? This is my first time having a mortgage during any type of a financial crisis. They've been going up recently, I assume that's set to continue?
Is there a point at which they can't go any higher? I know there were interest rates of 14/15% in my folks day.

OP posts:
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ReadyToMoveIt · 30/04/2022 12:35

but of course that doesn’t mean it doesn’t work out for some without a guarantee and brilliant it worked for you and your family

Well that’s what I meant. In our position, it was sensible.
I work in financial services. In risk, in fact. It wasn’t done on a whim.

tomatoandherbs · 30/04/2022 12:36

👍

NoWordForFluffy · 30/04/2022 12:53

tomatoandherbs · 30/04/2022 11:38

Braver than me. Much braver. But good it’s paid off in your case

I don't think you understand the issues around renting. It's usually more expensive than buying, but also makes it hard to save for a deposit for the same reason.

NoWordForFluffy · 30/04/2022 12:55

newtb · 30/04/2022 11:39

In my memory the base raté went to 15%the mortgage rate was 16%.
How did we manage? No foreign holidays, new cars, fancy mobiles, New clothes etc. Around 1981/2.
Then, again, in 92 or 93 when the UK crashed out of the EMS, the exchange rate mechanism, after they'd tried, and failed, to shadow the deutschemark, (which then became the euro) overnight the rates shot to 15% and the pound dropped like a stone to 7FF when it was normally between 9FF50 and 10FF50.
Was on holiday in France at the time, and the credit card bills were interesting to say the least.

You simply can't compare 81/82 to the current economic climate / situation. It's not even apples and oranges, more like apples and concrete for comparison!

RiverSkater · 30/04/2022 13:04

We have just fixed for five years. Bit of a gamble but it was too scary not to.

TuxedoJunction · 30/04/2022 13:12

I think the BoE will put up interest rates this coming week (there’s a rate review on Thursday) and then again in June. Obviously banks will front run the rate, so people will be looking at 3%+ easily for fixed rate deals. Some touching 4% if on 10% deposits.

The only plus (for some) will be it might slow down the rising housing market and prices will level off.

NoWordForFluffy · 30/04/2022 13:21

I saw an article the other day which said that March saw the slowest growth in house prices since last September (probs influenced by end of SDLT reduction that month). It specifically cited the increase in cost of living.

I wonder if the current trend of advertising houses as 'offers over' will end if the market starts to struggle a touch?

Westair · 30/04/2022 13:34

NoWordForFluffy · 30/04/2022 13:21

I saw an article the other day which said that March saw the slowest growth in house prices since last September (probs influenced by end of SDLT reduction that month). It specifically cited the increase in cost of living.

I wonder if the current trend of advertising houses as 'offers over' will end if the market starts to struggle a touch?

The sooner the ‘offers over’ trend ends the better for everyone!

Westair · 30/04/2022 13:37

tomatoandherbs · 30/04/2022 11:23

The only reason they are allowed is because the government is guaranteeing them for 7 years

the fact a bank not willing to lend to someone unless the government guarantees them… tells you all you need to know re how financially sensible a 95/5 loan is in itself

I've just had a look and you can get 95% deals from 2.35% from the Newcastle BS, Nationwide, Yorkshire BS, Barclays, HSBC, Skipton, First direct.. (and I'm only up to 2.89% on the list!).

It's easy to be sanctimonious without the facts, isn't it?

sonicred · 30/04/2022 13:40

The sooner the ‘offers over’ trend ends the better for everyone!

the area im looking in had everything offers over last month & it was a struggle to get onto an open day. Now things coming up priced normally.

NoWordForFluffy · 30/04/2022 13:43

It's easy to be sanctimonious without the facts, isn't it?

They have a very judgmental vibe about them! They're probably of a similar ilk to Kirstie Allsop! 🙄

The sooner the ‘offers over’ trend ends the better for everyone!

I agree! It's rubbish (and almost every house on Rightmove etc in my town has such a listing).

ohfook · 30/04/2022 13:57

tomatoandherbs · 30/04/2022 07:46

I can’t believe that a poster on here has been accepted for a 90/10 mortgage. I honestly thought that the industry had been tightened up and a minimum of15/85 unless a specialist mortgage company

We got a 95% mortgage through a high street lender two years ago.

ohfook · 30/04/2022 14:16

tomatoandherbs · 30/04/2022 11:17

I can understand the keenness to get on the property ladder asap but it does seem that a deposit of 5% is really an indication that perhaps it is just something you can’t afford. So have to rent. A sad fact of life. Just like I’d love a Tesla. But I accept. I just can’t afford it. So drive a cheapo run around

But why if we're public sector workers who are presumably paid a living wage then we should be able to afford a home and why would we deny our children that security of the option is available to us?

tomatoandherbs · 30/04/2022 14:16

Interestingly just input £200,000 value property with 5% deposit on nationwide

”no mortgage available”

What do you think will happen to mortgage interest rates? Wth the
tomatoandherbs · 30/04/2022 14:18

And again… £150,000 value with 5% seposot

”there are no mortgages available”

tomatoandherbs · 30/04/2022 14:19

Sorry wrong pic!

tomatoandherbs · 30/04/2022 14:21

did not mean to post that!

yes i see available

i am surprised and concerned but as has been demonstrated on this thread - seems to have worked very well for some

NoWordForFluffy · 30/04/2022 14:22

And here are 3 banks specifically offering them.

What do you think will happen to mortgage interest rates? Wth the
What do you think will happen to mortgage interest rates? Wth the
What do you think will happen to mortgage interest rates? Wth the
NoWordForFluffy · 30/04/2022 14:23

tomatoandherbs · 30/04/2022 14:21

did not mean to post that!

yes i see available

i am surprised and concerned but as has been demonstrated on this thread - seems to have worked very well for some

It's not for you to be concerned though, is it? It's between the buyer and their lender.

Westair · 30/04/2022 14:29

tomatoandherbs · 30/04/2022 14:16

Interestingly just input £200,000 value property with 5% deposit on nationwide

”no mortgage available”

Oh wow, so you actually thought I was lying and went to look? 😬

Chaoslatte · 30/04/2022 14:32

tomatoandherbs · 30/04/2022 14:16

Interestingly just input £200,000 value property with 5% deposit on nationwide

”no mortgage available”

This picture shows a 95% deposit which is why it’s not coming up with anything - there’s a minimum amount you need to borrow.

NoWordForFluffy · 30/04/2022 14:34

tomatoandherbs · 30/04/2022 14:18

And again… £150,000 value with 5% seposot

”there are no mortgages available”

Must be the figures that you put in, as I put my earnings in and Nationwide told me that a 5% deposit was fine! 🤷‍♀️

NoWordForFluffy · 30/04/2022 14:35

Chaoslatte · 30/04/2022 14:32

This picture shows a 95% deposit which is why it’s not coming up with anything - there’s a minimum amount you need to borrow.

Show quote history

Ah yes, I hasn't spotted that! User error!

tomatoandherbs · 30/04/2022 14:44

So one can’t be concerned about anything that does not directly concern them?

tomatoandherbs · 30/04/2022 14:45

Yes i know the error! I immediately posted after to say didn’t mean to post!