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.

I’m a single parent with a very recent mortgage, having had to start again at the age of 46 from scratch.

But equally by hook or by crook, I will not lose my houses.
Most people feel the same way rather than whining about what they can’t do, they get on with what they can

And there we have it, the IQ test failed.

Again, that is simply untrue.

youre utterly clueless yet determined to present your prejudice as fact.

My friends are going to Wimbledon tomorrow.

If you are suggesting a link between crowds and mortgage rates, I'll point out the following:

They've paid off their mortgage.

Haha. Honestly yes you did. You have continually spouted nonsense.

Of course, and that’s absolutely my point they’re completely unaffected along with the other thousands packing the venue and spending a fortune. I hope they have a lovely time.

Houses? Riiiight.

So you like pointing out the inequality in this country where people in their 50s are fine but anyone under 35 is bloody screwed.

There is now feeling that the BoE will over cook it on interest rates and CAUSE a crisis unnecessarily and that our current problems are more to do with labour shortages than inflation.

I think there is much to be said for this - especially given the number of 50 to 65 year olds taking early retirement which will be completely beyond the means of the current generation of mortgage holders.

Cheering on this inequality isn't a great look.

So im not 50. Im not cheering it on, just stating the obvious.

Under 35’s arent screwed, they will be absolutely fine. We’re in for a difficult few years nobodies denying that, but they’ll come out the other side. The negativity and the defeatism isn’t helpful.

@Calmdown14 it's true you don't hear a lot of sympathy for homeowners in Aberdeen. But also, you don't hear a lot of sympathy for homeowners in London who can easily pay 450k for a 1 bed flat. Who cares about that outside London? They choose to live in London, don't they? (or Aberdeen for that matter).

Seems to me that that most of us are intrinsically selfish and only care about conditions in our own little housing market bubble.

Hmm yes you are.

Well, I disagree, saying, I hope somebody has a lovely day at the tennis is hardly cheering on the demise of society for fucks sake.

I have children who are about to embark on this journey, very little of my assets are tied up in property. selfishly it would suit me if the market crash 25 to 30% would be my dream. Come true, but it won’t.

Buyers set the price of housing just as much as sellers.

The interest rates have only gone up in the past couple of months - of course there's no mass repossessions.

Many are still fixed on the old rate, and have up to 4 years before they pay more.

You have to default for a few months before the banks get really arsey.

There will be options for extending the payment period or going IO

And then if you still can't pay it'll take a good year before they get a court order/bailiffs/eviction

The problem is going to be when prices go down, recent buyers go into negative equity with no price increase in the foreseeable future, and they're paying every penny on a IO mortgage. Many will give up paying for such a massive never ending debt.

@happinessischocolate and if they give up where exactly do you think they’ll go ? This is completely a side of the sunken cost fallacy why people have probably invested thousands into Decor and upgrades of the house.
The announcement that the government will pay people’s mortgage is at the same rate as they’re paying rent is long overdue. Boris alluded to it, it’s not far off now.

Buyers set the price of housing just as much as sellers.

I think FTBs would disagree with that.

No repossessions yet. Yet is the word.

I have friends panicking who can't afford the new rates.

We are still on our fixed for another 12 months - I know many others who have 2 or 3 years grace but are terrified.

Several are saying they will forced to sell up and downsize - if of course they can.

@3BSHKATS

The announcement that the government will pay people’s mortgage is at the same rate as they’re paying rent is long overdue. Boris alluded to it, it’s not far off now.

😂😂

That is definitely not going to happen

It definitely has happened in the past, right up until I believe 2010.

No reason to suggest it won’t be a solution offered up by the government this time just in time for the general election assuming they want to win it.

I agree under 35s aren't screwed, it's a shame if they think of themselves that way. Leads to lots of bitterness as we have seen in the personal insults directed at you by @PaigeMatthews

Those of us on this thread who are slightly older (cough) know that there have been times in the past where we could have despaired at our situation, like when we had to sell properties for less than we bought them for (happened to me twice) or when we heard of people being repossessed.

It's a very hard time to be trying to get on the property ladder, or to be recent home owners. But that doesn't mean younger people are screwed. Interest rates will fall again eventually - maybe as soon as the end of 2024 as some economists predict. They won't just be climbing indefinitely.

I think we're both right!

Due to central bank suppression of interest rates, borrowers are now and have for the last 15 years been subsidised by lenders, since interest rates are still below inflation. Most people saw this "gift" for what it was, and reduced their borrowing or applied self control and resisted borrowing what they would never have a change of repaying under normal market conditions. There are some with a high risk appetite who overborrowed and now have to reduce their borrowing to avoid bad debt. The few who clamour for even more subsidy from lenders who have lost more over the last 15 years and continue to subsidise them are unreasonable, and no matter how abusive they get, are not owed a living by demanding increased subsidies from others. People who stopped working at any point over the last 15 years have lost the most, not those who overborrowed and are still refusing to live within their means. That's why there will be no additional state "support" by any party because the only way to exit this mess is adjust interest rates until they are normalised at about 4% above inflation for markets to operate in a non-dysfunctional way. Current interest rates remain dysfunctional and as such provide the gift of time for borrowers to sell up and reduce debt to their sustainable levels.

It's buyers (and the banks loaning criteria) that is now bringing prices down.

Houses are only worth what people can afford to pay for them.

Our first mortgage had a 14% interest rate. We didn't expect nor recieved any help. When the interest rates have been so low, there was only one way they were going to go.

Spot on! Couldn’t agree more. 👏🏻👏🏻👏🏻