6% mortgage rates; trouble a'ht Mill

[Twiglets1]

This is a new 6% mortgage rates thread as the last one is almost full.

Thanks to KievLoverTwo for suggesting the second part of the title to reflect all the squabbling these threads are causing. Which could be a thing of the past of course. But realistically, it won't be.

people didn't pile in during the stamp duty holiday because they thought rates had peaked but rather because it was a stamp duty holiday with an end date to add a bit of urgency

Call me a detective Crashy, but have you got a hotkey that triggers the Menlo font when you hit the apostrophe key? Either that or you are typing too furiously.

It's driving me to distraction - but in a good way!

@CrashyTime why do you think most of them are fucked who bought in the last 3/4 years?

I fully believe those who absolutely stretched their affordability and maxed out will be but most people don't do that who have a brain

Maybe it’s the MN equivalent of green ink

Because they were buying at the lowest interest rates in history, any prolonged period of more normal rates means they will have massively overpaid for basic property. I think the PTB want rates at around 5% for as long as possible now, and I also think they wont be shy to raise them more if there is another burst of inflation. Bailing out people with mortgage debt wont be a priority this time (it was never really a priority, just a handy by-product for debt holders of bailing out the whole financial system last time)

"have you got a hotkey that triggers the Menlo font when you hit the apostrophe key?"

Can you repeat that in Earthling please.

Ah you've spoilt my impression of you. I thought you were a coder who worked in the Menlo font.

Have you set up a short cut key - say CTRL+' - that changes the font you are typing in from "normal" to Menlo?

No, not intentionally anyway.

That doesn`t make sense because if you thought rates could go up you were massively overpaying to save a couple of thousand on SD? Not a particularly smart move.

In lots of cases it wasn’t just a couple of thousand saved. We moved during the stamp duty holiday because it was a good way to get a bigger house without having to have the stamp duty money. It saved us around £10k. We also did a 5 year fix at the time and so don’t need to remortgage until 2026 and so haven’t been affected by the recent rate rises. By 2026 we will have significantly overpaid the mortgage. It was a good option for us and lots of others.

But the rate rises mean that your house will have lost more than 10k in value from what you borrowed for it, but if the timing was right for you good luck.

Ramin suggests rates will gradually reduce over the next couple of years but not by as much perhaps as expected. Then he sees more upward pressure on rates thereafter resulting from high inflation and government spending.

Message: If you can, wait a year or two before remortgaging then lock in a long fix.

Looks like mortgage rates have stopped going down?

Wow - forever?

The rivalry between Crashy and Twiglets is my favourite thing about the house price/property threads

I find it quite entertaining too!

To people who drank deeply from the debt hose it will feel like forever.

To people who drank deeply from the debt hose it will feel like forever.

This is excellent but I do assume you are a parody now.

Are the people who drank deeply from the debt house those with mortgages? Is your position that nobody should have a mortgage?

Which is exactly what I’ve said on here. We are now at that ‘window’ to fix for those that didn’t fix prior to the inflationary cycle.

It’s an ideal time to take advantage of the banks fighting against each other, with the expectation of central bank rate cuts.

The reality is these cuts may never arrive (or will be smaller/fewer than expected until a secondary inflationary wave follows.

Increasing tensions of war escalations and Suez Canal shipping etc could bring that forward.

This ^^*

It's absolutely ridiculous

I have said before. most of us, and most people who have a mortgage are just people who've bought a house to live in 🤦‍♀️ and bought a suitable house according to their incomes, and done this when their circumstances allow just to have a secure place to call home

Anyone would think we're all in massive fuck off houses way beyond our means and in debt up to the eyeballs on range rovers, Chanel bags and holidays in the Maldives

When I bought my last house we borrowed less than half of what the bank said we could

So I really am sick of hearing it implied that I'm some sort of feckless debt ridden person

I see Santander has raised mortgage rates. There is talk of swap rates wobbling.

"Brokers" are quoted as basically saying it's only a blip, but the their livelihoods depend on getting people to take on mortgages, so they're hardly impartial

https://www.standard.co.uk/business/santander-mortgage-lender-interest-rates-loan-borrowing-home-property-bank-of-england-inflation-house-b1134172.html

Although the picture is still variable for those of us self flagellating at the altar of debt doom with mortgages, as some lenders are still cutting too:

https://www.forbes.com/uk/advisor/mortgages/2024/01/23/mortgage-updates/

Nationwide "took the axe" to their mortgage rates yesterday (hyperbole provided courtesy of the Evening standard), "in an aggressive bid to stay competitive with its rivals".

They went on to say that, "As ever the best deals are for borrowers with the biggest deposits. The rate on a five year fix for remortgaging with a 40% deposit is being cut by 0.8% to 3.88%. For first time buyers with a 25% deposit the three year fixed rate is being cut by 0.74% to 4.34%".

https://www.standard.co.uk/business/nationwide-mortgage-fixed-rates-b1134260.html#:~:text=Nationwide%20took%20the%20axe%20to,recent%20frenzy%20of%20rate%20cutting.