6% mortgage rates

[spring33]

Old thread https://www.mumsnet.com/talk/property/4813815-5-mortgage-rates?page=1

New thread, let's hope the next one won't be 7% interest rates or higher.

good news. about time. lets hope its not temporary.
Still got a looooong way to go

Everything crossed that this is a good sign 🤞🏻

Yes - small cuts but at least they are a step in the right direction. And I did read somewhere that lenders are nervous about being amongst the first to drop rates because they fear being innundated with mortgage applications!

In my demographic, having children in your 30s is unusual, most of my cohort that I went to school in university are done with teenagers.

They are mortgage free.
Personal attacks will get you banned on Mumsnet just for your information, I like to leave them up though, so the posters can get the measure of you.

What complete bullshit!

Most under 40 see inflation as crap because it just means costs are going up even more whilst wages stagnant.

It's completely different situation to having paid off your mortgage or at least having substantial equity and not much left on the mortgage.

From the UK Census site - figures from 2020:
"Half of women (50%) born in 1990 (the most recent cohort to reach age 30 years) remained childless by their 30th birthday; this is the first cohort where half remain childless by 30 years of age."

An under 40 here who certainly isn’t welcoming inflation, as my 4% pay rise this year isn’t covering the increase… I don’t know anyone who has had an inflation matching pay rise.

But the point is I was not born in 1990. Nor any of the people I went to school with.
hint hint we are old

My honest advice to you then is find a job that is keeping up with inflation because this is not gonna get better for you. It’s going to get worse. Literally you’re only way out of this is a salary rise by hook or by crook.

Yeah sadly that’s not going to happen, I have a disabled child who requires round the clock care so I can only work the 4 hours a day that I have alternative childcare in place. That’s fine though, my circumstances are almost irrelevant to the discussion, as they’re personal to me. My point was really that I don’t know anyone who has had a pay rise which matches inflation, and my circle are all professionals (lawyers, financial services etc). DH had a 10% pay rise this year which is one of the highest I’ve heard, but even so doesn’t match inflation.

Also I should have said we have enough disposable income to weather the storm, and low mortgage etc, my point was just that I don’t know anyone who is ‘welcoming’ inflation.

Inflation only shrinks your debt if the interest rate is fixed. Since mortgages are the biggest debt people have, and the fixes are mostly around 2-5 years, the pain is only delayed by a year or 2 if you're lucky. In the current situation there won't be many winners among the young.

I'm 40 and I don't know anyone who thinks high inflation is a good thing.

If we'd had a period of high inflation that inflated away our mortgages and led to higher salaries and then somehow resolved itself without higher interest rates and drops in property value, then sure, that would benefit some. But that's not what has happened.

Everyone I know in their 20s, are struggling with increased rent costs. Even people who have had decent pay increases aren't seeing the benefit of that as essential costs have risen by the same amount or more.

that's not what i took from your story, what i saw was the traditional concept of a property ladder, where people are able to buy young and move, as their circumstance demands and wages increase, to bigger and better things.

where most FTB are in their 30s and paying huge rents / childcare etc and simply cannot save, and wages have stagnated the idea of the property ladder is a relic

Hi, is anyone living in Woodley, Reading? We're family of 4, living in Northolt at the moment and trying to move out somewhere safer, Woodley seems to be ok for computing to london. We need an advice of good and bad parts of Woodley, and general description what is it like to live there. Thanks

You would be better off posting in the thread about moving to Reading, and asking your question there.

https://www.mumsnet.com/talk/property/4857193-advice-on-moving-to-reading-potentially-southcote?reply=127911830

In the very very old days in the 1980s when we first bought high inflation if you had borrowed as much as you cuold and used all your savings to buy and were in professional jobs with not just inflation but promotion rises to your salary inflation did erode the debt. I think my parents found that in the 1970s too when there was 60% inflation in total over 3 years - 20% a year.

However it is not quite the same these days and stamp duty land tax is much higher than it was too which makes frequent moves less wise.

I have never heard of the Charlie person but can use whatever sources of information they like. Now and in the 809s it tends to be best to buy a home you like and not worry too much about its value. My parents bought one house and lived in it for 50 years and died (literally) in the house. I hope I can stay in this one until I did which may be going on for 50 years.

Not worrying about the value is ok if you do intend to stay there until you die.

But that isn't the case for many people - they know they will have to move in the future. Maybe because of work or maybe because all they could afford initially was a very small property like a 1 bed flat, for example.

So I think it is sensible for people to consider the direction of house prices as they buy. They may still decide that for them, it is a better option to buy than to rent. But at least they are making an educated choice not going into it with no understanding that the value could well fall in the short term.

It often feels like the people saying ‘young people should lower their expectations as first time buyers and make do with a one bed flat to get on the property ladder’ are the same ones who say ‘young people should prepare to live in the same property until they die so that rises/falls in house prices don’t affect them’.

I wish we hadnt moved. I bought a property in 2001 and if we’d just made that work ex and I would have had two paid off houses now rather than none. People pay a fortune for “space” when kids are little, just go out more, parks, holudays etc until they grow up

As I said above, I have a disabled child. He requires a lot of equipment. I’d happily stay in our small house, but there literally isn’t room for him and his equipment. I guess it’s much easier to adapt if your child doesn’t need medical equipment. And he’ll only need more space as he gets older.
Having said that, I don’t think there are many families who could make a one bed flat work for a family.

Fairly unique circumstances and i wasn’t talking about a one bed flat, we each had a three bed house

Also your unique circumstances. Anyone wanting to buy a 3 bed house as a starter house on Mumsnet is told that they should lower their standards and go for a one bed do-er upper flat. My point above is that young people are simultaneously told this, and that they should stay in their first house instead of being ‘greedy’ and wanting to upgrade. Can’t win.

The ‘experts’ are predicting another 0.5% on the base rate next time, so it’s not clear why a couple of lenders are reducing, albeit by 0.1%

I think the market is predicting 0.25% now after the slight fall in inflation. The equities market certainly seems very happy at the moment and I'm guessing this is why