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.

Sometimes it seems that way. Sometimes it feels worth giving a different viewpoint, sometimes I can't be bothered.

I posted last week about our remortgage rate change decision. So after holding a two year fee free for 6.09 about three weeks ago we have gone for a fee free this week of 5.08 for 5 years. Recent world events had us thinking we would like to fix longer than we usually do.

Anyway...I've got about ten weeks to keep shopping before we come off our current deal. The increase is noticeable but by stretching the term and paying down the principle we have brought the increase in payment down to about £130 a month more. Not too bad given we are moving from 1.14%. We can overpay without any penalty so hoping that might mitigate the interest charge over the term. I'm just sharing in case it helps anyone else mulling over what to do...

I've largely ignored this, honestly if this talk was going on in the late 90s and I wish I hadn't paid any attention then and bought then instead of 2005, if I had I would be mortgage free now! One day they will be right...
Personally I am curious about the direction interest rates will take. What happens to house prices doesn't matter to us much. I certainly would not want to be renting, that would be almost three times what we are paying monthly on our mortgage.. I realise that wouldn't apply for new ftb's but renting is not a cheap option.

That sounds good @Lelivre 5.08% fee free.

Is your lender First Direct? They often seem to have good rates.

As far as I can tell it's only CrashyTime who is a house price crash type. Who else are you referring to?

Actual sold prices or asking prices?

This story says asking, which is nowhere near the same as sold.

The article also includes this comment: 'Separate figures from Halifax bank earlier this month showed the fastest fall in annual house prices in 14 years in September.'

Even more importantly, it's just initial average asking prices for new listings in the last month. This is easily skewed by a large number of high value properties being listed.

Essentially, the data is next to useless.

It's Rightmove and their vested interest keeping on banging the 'Don't panic!' drum. 🤣

https://www.bbc.co.uk/iplayer/episodes/m001rkn5/britains-housing-crisis-what-went-wrong

Maybe this will have a sensible discussion about how you blow bubbles with cheap lending? That is the source of all the problems, thankfully over now, some of the key U.S bond yields were hitting 2006 levels today! Cheap debt is most certainly not coming back any time soon.

Rightmove actually published a shockingly negative press release (at least, it's shocking for them) the other day. They're basically having a go at people who are overpricing their houses. Some snippets below:

https://www.rightmove.co.uk/news/content/uploads/2023/10/Rightmove-HPI-16th-October-Final.pdf?fbclid=IwAR3kbLxSUYcrDY5Tdm4z6kP5eeCZNL8EPtEtbCTWsWx57cYoe1KtmDV6nHI

Average new seller asking prices increase by 0.5% (+£1,950) this month to £368,231, the smallest average asking price increase at this time of year since 2008, and well below the historic norm in October of 1.4%

The number of sales agreed are 17% below this time last year, as those sellers who are struggling to adjust their price expectations to match current activity levels are finding that their homes are being left on the shelf

Buyers are still active for the right property at the right price, but agents advise that sellers need to capture attention with a competitive price from the first day of marketing, as starting too high and reducing later damages the chances of a sale:

'Tim Bannister Rightmove Director of Property Science.' Bloody great job title that one! #missespoint

Sounds like a v sensible plan.

Exactly. Vested interests who rely on many people, including some on here, not being able to analyse their (frankly pretty useless) data.
Agree with @KievLoverTwo that it is actually a surprisingly negative forecast IF you read past the headlines.

Yes @Twiglets1 it's First Direct, just a rate change for us, they are great to deal with.

I find them a good company too (have a bank account with them).

So there you have it folks, HPC the movie, ML playing me it looks like (he used to post on HPC as no doubt did a few of the other guests on that programme) Is anyone still going to seriously argue that the HPC discussion that used to be a fringe website isn`t completely mainstream now?

I’ve only watched the first part of this (so far) but it is an interesting programme that highlights the long term problems caused by too many people buying multiple properties to let out & short sighted government interventions such as Help to Buy. You don’t normally believe what property experts have to say about the property market or “experts” as you normally refer to them but now you seem to acknowledge that some do actually know what they are talking about.

The thing is Crashy, this thread is supposed to be about current interest rates so I honestly feel like you should start a new thread called House Price Crash or something and link this programme to it. All your mates could contribute rather than derailing this thread?

Sweet that you are fanboying ML though 😂

Disappointing inflation figures this morning are going to put rates under pressure. I’d like someone who is much cleverer than me to explain how we keep inflation at 2% while pay rises at 8% and productivity is basically flat.

Or is it all a ruse to inflate away government debt?

inflating away government doesn't really work out well if the interest on the debt is also much higher....

After watching it all I read it as a bunch of people in government and related to property saying "It wasn`t me Guv, I TOLD you it was a bubble!" To be fair to Vince Cable and the BOE guy they did speak out against the BTL bubble and the general housing bubble that was forming from all the cheap debt at the time, but they eventually just had to go along with the prevailing winds in government and with the public (over exuberance and mania as people dived into the Ponzi scheme and actually used to boast about how much debt they had! How absurd does that sound now, LOL) Fair point about the thread topic, but the only reason a show like this goes out is BECAUSE of current interest rates!

"I’d like someone who is much cleverer than me to explain how we keep inflation at 2% while pay rises at 8% and productivity is basically flat."

Basic answer is we don`t (not saying I am cleverer than you) U.S 30 year mortgage just hit 8% BTW.

If anyone is interested there is a great discussion on Bloomberg right now about interest rates.

Can someone explain it to me simply?

Have you got a link please?

This might presage what's coming.

https://www.cnbc.com/amp/2023/10/18/30-year-fixed-mortgage-rate-just-hit-8percent-for-the-first-time-since-2000.html