Base rate just hit 5%

102 replies

LisaP1215 · 22/06/2023 12:15

Is there no end to these rises??!!

OP posts:

KievLoverTwo · 22/06/2023 15:07

RedToothBrush · 22/06/2023 15:05

40 year mortgages are not an option for most.

People in 2023 take out mortgages much older than they did.

In 2007 the average first time buyer was 28.

The average first time buyer now (as of 2022) was 34.

They are due to retire at age 67. That means they can only get a 33 year mortgage from a standard lender.

It highlights just how much houseprices have gone up, the effect of the 2008 crash on wages and how big (and how long you need to save for) a deposit is now.

Again, thats a fundamental change from 1989, which in effect left much more room for flexibility for buyers because they were buying much younger.

The slack in the system is much narrower.

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They still figured my OH would retire at 67, but I guess because he has a decent salary and decent pension, figure they will take it from his pension until 74. Idk the exact intricacies, just know pensions were involved.

RedToothBrush · 22/06/2023 15:40

KievLoverTwo · 22/06/2023 15:07

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Not everyone will be eligible for a mortgage in this way though. Especially in certain professions. And that also assumes you will have a decent pension. The reality is that many people, aren't saving enough, because they've put money into their home instead. Compulsory workplace pensions still have a relatively short history (and even shorter in many cases if you worked for a small employer).

People still paying the mortgage past pensionable age raises questions about how they will pay the bills (in the same way that larger numbers of renters into pensionable age does).

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