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.

Naturally there is lots of speculation as no one knows 100%.

But also, some people would consider rates at around 3% as low whereas others would still see 3% as "high" compared to the ultra low mortgage rate years.

"they can't predict the future" but you can?

None of us can, it's all just our personal opinions.

It's almost like it can't be predicted!

The days of 1.5% and under are gone

Well, yes, I don't disagree with that prediction! But the future is rather uncertain.

Yes I think that's possibly the one thing we can all agree on!

Maybe not gone forever (never say never) but certainly gone for the foreseeable future.

But also, some people would consider rates at around 3% as low whereas others would still see 3% as "high" compared to the ultra low mortgage rate years.

hence why I said “high”.

Maybe not gone forever (never say never) but certainly gone for the foreseeable future.

they will return but not whilst i have a mortgage!

In order for rate rises to be effective in protecting the currency, they really need to be positive in real terms for a few years, so some way to go IMHO. That said, all fiat currencies tend to zero eventually, such is the nature of human greed/power - a powerful motivator to devalue money.

Central planners thought they had cracked it. Will leave the below BoE forecasts for your assessment of their forecasting abilities.😅

I'm with an adverse credit lender, paying about 4.8% which at the time was high but now...
I'm just hoping I will be ok when it comes to remortgage in 2026. Checked the lender base rate at the min and it is 9.71% 6.74% is their lowest on a fix

Hopefully you will have had a good few years of making payments on time by 2026 so can switch to a more mainstream product?

At least 4.8% turned out to be not such a bad rate after all...

@Twiglets1 hopefully - no ccj or anything like that, it was a couple of defaults that put me into the adverse lender section
I've never missed council tax/utilities etc

Our fixed deal ends July 2024, got £99k left with £200k equity approx. We've overpaid an extra £6000 since rates started going up which I'm proud of

We will approach our broker to start looking in January and hopefully get locked into a deal

I hope the interest rates have stayed steady by then or even fallen a little but who bloody knows 😩😩😩😮‍💨

There was a buzz about "negative rates" for a while, I think some people thought they might get paid to hold mortgage debt as well as a premium on their house price for "holding" the house, it had to end sometime, things were just getting too silly, the smart money fixed for ten years at super low rates.

https://www.msn.com/en-gb/money/other/us-economy-grows-at-49-its-strongest-pace-since-2021/ar-AA1iT0Wb

They are going higher IMO.

Dunno. Gilt yields seemed to have remained pretty much constant over the last couple of months.

I think the big deal at the moment is USD:GBP and how far the BOE dares to risk lowering that exchange rate by not going with base rate rises.

That’s what you should have done then Crashy, taken out a 10 year fix at super low rates. You’ve missed your chance now ☹️

At super high prices though it is just damage limitation, you are still making a big loss on the house 😢

The conundrum is that while interest rates are low, house prices tend to rise and when rates rise, prices tend to fall.

So there's actually no perfect time to buy is there?

The perfect time not to buy is now, you seem to assume that the last few years were somehow part of a normal cycle? If the cost of money goes back to normal higher levels then we have a long way for prices to fall to get back to the old wages/inflation/interest rate based boom and bust cycles.

“The perfect time not to buy is now”.

Another perfect time not to buy was in the past when prices were high and interest rates low.

Another perfect time not to buy will be in the future because prices will still be falling. Until they aren’t & then they’ll be rising which is another perfect time not to buy.

Which is why we're just going for it and buying! 🤷‍♀️ Only our future selves will know whether we got it wrong or not.

There’s never a perfect time to buy so better to just get on with it. House prices predicted to fall this year and next, but not by as much as some were predicting, then start to rise again in 2025. The small predicted fall won’t make much difference really, especially when you take into account paying the mortgage instead of rent for the next couple of years. Looks like there won’t be a proper crash that some people were hoping for.

You assume people always have the choice to buy and can just do that any time, people can`t buy now even if they wanted to because prices and the cost of debt are too high, previously they could buy at high prices because the debt cost was low, but they left themselves exposed to rate hikes with very big loans, the best thing for ordinary people is to buy with as little debt as possible (low prices) and at normal interest rates (5-7%) and pay off quickly.

People can`t predict future interest rates, as we can see now, how could anyone predict house prices in 2025?

No I don’t Crashy.