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.

Low interest rates are the main cause of high property increases.
I paid over 14% in the 90s and many many repossessions happened because of it.

Too low and too high interest rates are both bad (in general) for the majority of people

Its all because of those damn avocados 🥑

This! It’s not comparable to today’s situation.

2007 most of the country isn’t massively different to 2007 now. Considering the market crashed in 08/09.

And Netflix. Any time anyone mentions struggling with money the answer appears to be to cancel netflix. If my mortgage increases by two trillion pounds then how will the £10 Netflix money help?

What is moving home with charlie

I haven't seen avocados in the shops for ages!

I do wonder why people are so shocked mortgage rates are going up they always where going to go up. Okay maybe happened faster but that’s why I fixed for the first time in 2020 but it’s also why we didn’t max out our possible mortgage and why we’ve been paying it as if it was 5% since we took it up. So when our rate is due to change in 2025 it’ll not be a shock and we’ve reduced the amount outstanding.

far too many living for the now and not planning for the future but then we’ve had 40 years of governments not thinking long term and only every short term gains. So it’s a pretty endemic problem

Your medal is in the post.

I had avocado on my dinner tonight! No wonder I can’t afford the £450 per month mortgage increase!

Oh here we go, it’s the “I paid 12% … of 50p’ brigade.

Honestly, you genuinely do not need to know. I’ve saved you five hours of your life. You can thank me later

You're not welcome on this thread if you've been sensible financially I'm afraid! This thread is for people who like everything their own way and to blame everyone else.

Interest rates rises are great for savers like us though just like when we were struggling with our mortgage and bills and could barely afford to eat in the 90's. Both working full time.
Struggling was exactly the same then as it is now, trust me I was there. It's not going to be a popular view but I'm saying it anyway.
Stop pretending this is the first time anyone has ever found paying mortgages and bills difficult.
It really isn't.

Are you actually having a giraffe? I was trying to buy a house during 2020 in 2021. I was offering the asking price on the spot and houses were selling for 30 grand more. These were houses that you’d be better off demolishing and start again, but for the fact that they were mid terraces.

Between 2008 and 2023, the house down the road increased by over £120,000

Dude who regularly comments on the housing market and gives advice about stuff like: how to get your house to sell if you need to sell it quickly, what to do if you're a FTB worrying about negative equity, he takes things like newly released land registry stats on house prices and analyses it so it makes more sense (e.g. when they release a batch, it's usually 8000 out of 80000 transactions so is NOT indicative of the market), analysis on interest rates versus inflation versus house prices and what happens to the economy.

Really useful to gain historic housing info, with interesting guests who always teach me something new, but my god THAT MAN CAN WAFFLE FOR ENGLAND.

He has some haters on here too! But yeah, he's on FB, twitter, instagram and various other places.

I've been back through his videos about 10 months, further back past that and it just feels like he's trying to flog you the various services he's involved in. These days there's a lot less of that and far more useful advice.

https://www.facebook.com/MovingHomeWithCharlie?locale=en_GB

25 years ago, when we bought our first house, we had a 3.79% capped fixed rate (don't think they exist anymore?)
So, every month (pretty much) our mortgage went down a bit.
We always fixed, which I now regret as we paid more than we needed to over the years.
However, I fixed at 1.2% for 5 years last February, so perhaps it all evens out?
I'm afraid I wouldn't be surprised to see rates at 9/10% by Q4 next year:(
Hoping by 2027bthungs will have calmed down but I expect the rate to be at least 3/4%

I bought my first property in the late 80’s. It was a studio above a betting shop and cost £41k. I was an AO in the civil service so my wages would have been around £16k . I had a £5k deposit plus enough saved for fees. When interest rates went up I got a job 3 evenings a week plus Saturday and Sunday lunchtime. When I got promoted to EO the market had crashed but I was earning more so sold up for £35k and bought a small flat for £51k. I was still in the flat when I met my husband and we didn’t buy together until after we married. Husband didn’t own a property to sell so the only equity came from the flat which I sold for £56k. The house cost £91k and was a small semi. We stayed there until I was pregnant with our second child which was 1998 when we sold for £130k . We moved from Surrey to Sussex and bought a terrace for £71k as we needed to halve our mortgage as I needed to be at home with my first son who had special needs. We had an endowment mortgage which was mis sold and we narrated to make a claim that was upheld and we received a lump sum when we were in the Sussex house that put us back to the position had we been paying a repayment for those years. We kept the insurance policy even though we were now repayment as it was a life insurance policy which later paid out when my husband died. I am now old enough to be mortgage free. I used some of the insurance payment to help my younger son onto the property ladder this March. He saved half and I gifted half of a £70k deposit Luck he listened to his mum and fixed for 5 years on a £120k mortgage. The flat was a wreck and he is still not in yet as he has been renovating on weekends only due to it being a flat and it would be too noisy to work in the evenings. Bathroom and kitchen work surfaces are the only jobs that are bring done by trades so it’s taken time.

Good to know they still exist!

and we didn't have mobile 'phones, computers (Mumsnet, Facebook, Twitter etc

In 1991? no shit 🙄

This is my old house, I bought in 2005 and sold in 2007
Thought the price changes were interesting

The old "I was there in the early 90s". And yes, I was there with a mortgage. Lived in a hole in the road too. 😏 The situation was completely different back then as others have pointed out - affordability ratios much lower, plus no decade of wage stagnation, or indeed artificially suppressed interest rates. Though the 80s saw a dip in house building as compared with the 70s, it still compares favourably to the last ten years.

Ed Conway had a good graphic on twitter a few weeks back, plus a couple of others from elsewhere added to re-inforce the point.

Just locked in at 5.69%, quite depressing as our current rate is 0.99%
monthly repayment is now £2190. We’ve been overpaying by £1000 a month up to now so I feel like we will be financially fine for it but my job is a bit up in the air from 2024 and I am dreading that. Saving as much as I can now!

Just for a moment there I thought I was reading an extract from Ball and Chain Weekly 🙄

average house prices compared to average income has gone from being a 3 x multiple to a 5x multiple. Over the same period we have gone from most families having one income to most having two. Surely this is the link.

Yes I agree. Prices go up in proportion to demand, and the double-income household has created a huge surge in demand over the last thirty years. The net effect is that you now need to have both partners working to compete for housing with all the other double-income households.

(Negative real interest rates, planning laws restricting new development and substantial population growth also played their part.)

£422,000 22 May 2015 Freehold
£120,000 26 Nov 1997 Freehold
£91,000 22 Feb 1995 Freehold

sorry I mistyped I sold in nov 87 for £120k
large increase when sold 7 years later but I know in those 7 years they added a loft extension with 2 beds and a bath and knocked through the small box kitchen into the dining room and made a large kitchen diner. My brother lived one road over and watched the work being done.