Page 3 | 6% mortgage rates

spring33 · 2023-07-07T19:38:55+00:00

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

PerfectYear321 · 07/07/2023 23:53

This reply has been deleted

Message deleted by MNHQ. Here's a link to our Talk Guidelines.

PerfectYear321 · 07/07/2023 23:56

UrsulaIsMyQueen · 07/07/2023 22:43

Your medal is in the post.

Show quote history

Exactly. These interest rate snobs are the new smug marrieds.

PerfectYear321 · 07/07/2023 23:58

This reply has been deleted

Message deleted by MNHQ. Here's a link to our Talk Guidelines.

PerfectYear321 · 08/07/2023 00:04

Proudboomer · 07/07/2023 23:35

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.

Cool story, but what is the moral of it/ please do a TLDR

Countdowntowinter · 08/07/2023 00:12

3BSHKATS · 07/07/2023 20:50

Wimbledon was packed today. Perhaps more people are unaffected than mn bargains for

Of course not everyone is affected.

Countdowntowinter · 08/07/2023 00:16

Although people say it was different in the 1980's lots of people were repossessed by banks and building societies. So even though the house prices were lower if people can't pay the mortgage they can't pay the mortgage. Not yet heard of mass repossessions - they might start coming?

LauraNicolaides · 08/07/2023 00:20

Countdowntowinter · 08/07/2023 00:16

Although people say it was different in the 1980's lots of people were repossessed by banks and building societies. So even though the house prices were lower if people can't pay the mortgage they can't pay the mortgage. Not yet heard of mass repossessions - they might start coming?

Not yet heard of mass repossessions - they might start coming?

Unfortunately inevitable. They were certainly a big feature of the early nineties.

PerfectYear321 · 08/07/2023 00:20

Countdowntowinter · 08/07/2023 00:12

Of course not everyone is affected.

Show quote history

Exactly

Mortgage hikes affect a tiny proportion of the populace. It should have affected me, for example, but I paid to get out of my fix last year and fixed for ten years at a decent rate.

My gen Z adult offspring and their friends are very comfy living at home. They're certainly not going to help bring inflation down.

UrsulaIsMyQueen · 08/07/2023 00:22

Countdowntowinter · 08/07/2023 00:16

Although people say it was different in the 1980's lots of people were repossessed by banks and building societies. So even though the house prices were lower if people can't pay the mortgage they can't pay the mortgage. Not yet heard of mass repossessions - they might start coming?

Well yes, of course they will.

Proudboomer · 08/07/2023 00:23

Cool story, but what is the moral of it/ please do a TLDR

I had no idea what a tldr was so I googled. Still have no clue so it’s probably an insult I don’t get. All I was trying to point out is that all generations have had it hard. My son was lucky I could help him and I could only help him as my husband died and I got an insurance payout. he has started off with a 2 bed flat. I wasn’t so lucky as I started off with a crappy studio and 2 jobs to pay for it as no one could afford to help.

PerfectYear321 · 08/07/2023 00:24

LauraNicolaides · 08/07/2023 00:20

Not yet heard of mass repossessions - they might start coming?

Unfortunately inevitable. They were certainly a big feature of the early nineties.

Show quote history

I honestly don't think mass repos will be a thing. There is more info available these days, fixed rates are the norm, and banks are more lenient these days

Miajk · 08/07/2023 00:25

Zipps · 07/07/2023 23:05

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.

Show quote history

What a stupid comment.

Avg house price back in the 90s - £58,153
Now - £285,009

5x increase.

Avg salary in the 90s -£17,784
Now - £31,447

Not even increased by 2x.

Uni fees then - £1000 per year
Now - lucky to get it for £10k a year

10 times increase.

If you struggled then surely you're able to see that it's much harder now?

Honestly some people are so out of touch I'm begging you to go out live in the real world.

PerfectYear321 · 08/07/2023 00:30

Proudboomer · 08/07/2023 00:23

Cool story, but what is the moral of it/ please do a TLDR

I had no idea what a tldr was so I googled. Still have no clue so it’s probably an insult I don’t get. All I was trying to point out is that all generations have had it hard. My son was lucky I could help him and I could only help him as my husband died and I got an insurance payout. he has started off with a 2 bed flat. I wasn’t so lucky as I started off with a crappy studio and 2 jobs to pay for it as no one could afford to help.

It stands for ' Too long, didn't read ' and is a prompt to summarise a lengthy post

Your post doesn't prove that everyone has it difficult as your story included insurance payouts and you giving a helping hand to your son.

I'm sorry for your loss, but we know a huge part of the property market depends on young people obtaining inheritances or gifts from the bank of mum and dad so your story doesn't add anything new

Somanycats · 08/07/2023 00:31

In 1993 our house was 6 x our joint income at 140k. It's now worth 500k. So DS and his girlfriend could buy it for 6 X their joint income. Well they would be 20k short, but they are only 28, so three years younger than we were when we bought. That all seems very comparable to me

berksandbeyond · 08/07/2023 00:31

god, people are annoying with this ‘we paid 182818% bullshit’. Well done, you’re old, you got lucky to buy a house for a tenner. Go away.

berksandbeyond · 08/07/2023 00:33

Oh and I can comfortably pay my mortgage, im just getting tired of people on here trying to kick people when they’re down. It’s not shit life olympics, people are allowed to be sad / annoyed / worried their mortgage has gone from 2% to 6%, they don’t need you to come on and tell them you paid 15% and walked 4 miles to do a 19 hour shift down the mines

Tinkietot · 08/07/2023 00:35

@Zipps i don’t think people aren’t saying it was hard in the 90s but I think when people are stressed someone saying I had it hard 20 years ago isn’t always helpful.

It’s the same as someone breaking a bone and instead of someone saying I sympathise it must be difficult. Someone going I broke my leg 20 years ago too.

The 90s was difficult for a lot of people but I am sure if someone told you to stop complaining we had it hard in the 60s it might have annoyed you too. That’s how it comes across as a strange competition.

LauraNicolaides · 08/07/2023 00:36

PerfectYear321 · 08/07/2023 00:24

I honestly don't think mass repos will be a thing. There is more info available these days, fixed rates are the norm, and banks are more lenient these days

Show quote history

There is more info available these days, fixed rates are the norm

I really hope you're right, but I don't see how info is going to help. Fixed rates are fine until they end in a huge interest hike, which is what the thread is about, and what's going to roll out over the next year or two.

Many people are already struggling with the rising cost of living and teetering on the edge. Huge rises in monthly mortgage payments just can't be absorbed, and it doesn't look like we're talking about an acute problem which will all calm down in six months, so lenders can help borrowers to smooth out the hump.

PerfectYear321 · 08/07/2023 00:44

Somanycats · 08/07/2023 00:31

In 1993 our house was 6 x our joint income at 140k. It's now worth 500k. So DS and his girlfriend could buy it for 6 X their joint income. Well they would be 20k short, but they are only 28, so three years younger than we were when we bought. That all seems very comparable to me

Well yours is not a typical case because your house hasn't gone up as much as a lot of others would have. 140k in 1993 would be expected to be a lot more than 500k these days.

caringcarer · 08/07/2023 00:47

@UrsulaIsMyQueen @arlequin I stayed a home with 2 under 3 but only for 4 1/2 years. As soon as our youngest was at school I went back to work part time. Then about 2 1/2 years later full time. If I could have got childcare the cost of 2 children full time would most likely be more than I could earn. No free hours or UC top ups then. I lived in a very small village 14 miles from a town. No nursery in our village, not even a childminder back then.

PerfectYear321 · 08/07/2023 00:50

LauraNicolaides · 08/07/2023 00:36

There is more info available these days, fixed rates are the norm

I really hope you're right, but I don't see how info is going to help. Fixed rates are fine until they end in a huge interest hike, which is what the thread is about, and what's going to roll out over the next year or two.

Many people are already struggling with the rising cost of living and teetering on the edge. Huge rises in monthly mortgage payments just can't be absorbed, and it doesn't look like we're talking about an acute problem which will all calm down in six months, so lenders can help borrowers to smooth out the hump.

Show quote history

I agree with your points. The CoL crisis is a nightmare

What I mean about info being readily available is things like advice to try and obtain a good rate six months before your deal ends/ mortgage comparison sites/ sites like money saving expert etc etc etc

The next couple of years will be 'interesting'

They're trying to control interest rates by pushing up rates but then people are asking for help for people affected (eg IO mortgages) which will negate the effect of the interest rate rises (meaning more interest rate rises?)

GatesOfBabylon · 08/07/2023 01:44

These threads are a bit silly really as there is so much regional variation across the country.

I bought a house in 1990 for £35k, our wages were 2 nurse salaries of around £8k per year.

I used that in2013dollars site and it says that £35k in 1990 is equivalent to £102k in 2023. That house is now worth £130k. So yes house price to £ due to inflation has worsened even in yorkshire.

But a nurse salary is now more like £30k and two of them buying that house in 2023 for £130k even with 7% mortgage rate is far easier than it was for us in 1990.

Of course things are totally different in the south east where there has been greater house price inflation. There is no single property market.

Oh and that same house rented out in the early 90s for £550 a month, and now rents for £700 a month. Things were a lot harder in the 80s/90s in large areas of the country; many of the places my mates rented would be illegal to live in now the conditions were so bad.

somewhereovertherain · 08/07/2023 06:22

3BSHKATS · 07/07/2023 23:06

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

Show quote history

2008 was the peak and 2022 is the next peak. Lots of house between 09 and 19 barley increased at all. It was the 5 times I was disputing. I’m sure some areas have variations.

somewhereovertherain · 08/07/2023 06:24

Miajk · 08/07/2023 00:25

What a stupid comment.

Avg house price back in the 90s - £58,153
Now - £285,009

5x increase.

Avg salary in the 90s -£17,784
Now - £31,447

Not even increased by 2x.

Uni fees then - £1000 per year
Now - lucky to get it for £10k a year

10 times increase.

If you struggled then surely you're able to see that it's much harder now?

Honestly some people are so out of touch I'm begging you to go out live in the real world.

Show quote history

Clearly shows you don’t know how the uni system works now.

Overthebow · 08/07/2023 06:33

caringcarer · 08/07/2023 00:47

@UrsulaIsMyQueen @arlequin I stayed a home with 2 under 3 but only for 4 1/2 years. As soon as our youngest was at school I went back to work part time. Then about 2 1/2 years later full time. If I could have got childcare the cost of 2 children full time would most likely be more than I could earn. No free hours or UC top ups then. I lived in a very small village 14 miles from a town. No nursery in our village, not even a childminder back then.

Most people now can’t even afford to stay at home for 4 years. Most people go back to work part time when kids are small and then up hours/go full tim when they start school. Childcare for two children full time would be more than I earn now and my salary is over £50k. Even with the tax free help. We couldn’t afford for me to stay at home.