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.

Ok, but what are you basing your thinking on though?

Really hoping rates will fall after the next BoE meeting, even a smidgen would help. We're looking to buy now. I was wondering... If you get a mortgage agreed when buying a house do you have to stick to that deal even if rates fall lower (since buying and selling can take months), or does the deal automatically convert to the new rates?

The many different analysts predicting the base rate will fall in 2024, the only question being when

https://news.sky.com/story/bank-of-england-holds-interest-rate-at-5-25-for-fourth-time-in-a-row-13061300

Sorry but it is not expected that rates will fall as early as the next BoE meeting which is on 21st March. Most analysts don't expect the rate to start falling until the summer.

If you agree a fixed rate deal with a lender in March and the process drags on so long that the mortgage rate has gone down, most lenders will allow you to revert to the lower rate. This is something to check when you are agreeing a mortgage with a particular company - will it go down if their rates go down within the next 6 months?

This is something I put together for my DC so they could see the effect of different repayment terms and rates. The figures given are for a mortgage of £100K so just multiply the repayment for your own mortgage, e.g. *2.5 for £250,000 (or ask me and I'll pm a copy). Not sure whether it will display ok. If I was more savvy then I'd share a link to the file but I don't trust myself to do it securely!

That's amazing, thanks to you both.

It may drop, or it may go up again, or it may go sideways then stop, and come back again, and in reality we don`t really know? Is that what you are asking people to base their decisions to borrow hundreds of thousands of pounds on? Judging by the noises from the FED today rates could easily go UP again. Best to let rates do their work of reducing prices before you buy now IMO.

I’m not asking people to do anything Crashy. They must make up their own minds when is best for them to buy if they want to.

The subliminal message in a lot of the stuff you post though is "It"s OK, rates will HAVE to fall soon (why?) jump in, take some mortgage debt (we need you to, otherwise loans we have already made might go bad as people go into negative equity) It is similar to the Stamp Duty scam (save a few K to massively overpay!) in that the lender/developer benefits not the debt taker.

https://www.msn.com/en-gb/money/other/hsbc-raises-fixed-rate-mortgage-deals-for-the-second-time-in-two-weeks-as-lenders-hike-rates/ar-BB1joHrz

"If, by a miracle, rates start dropping again after the Budget, products can be changed, but if they don't, the rates around today will be gone tomorrow."

Bit rich to be lectured at about subliminal messages I may or may not be sending by someone who hammers home their message about property prices crashing with every post. Even your username @CrashyTime nothing subtle about that is there?

Yes, but being open about your views isn`t "subliminal" is it, it is the opposite. Articles pretending that the writer knows where interest rates are going (it is always down in the articles you post) is IMO just designed to keep people borrowing.

Your posts are always designed to stop people buying so if you don’t like to see any alternative views on interest rates or the property market being mentioned you may prefer to return to the House Price Crash forum where you are amongst like minded individuals?

I swear you must spend more time here than there these days 😂

A house isn’t a pension but I am still waiting to hear where the pensioners will live if they don’t own. The argument that waiting for the right time to invest or avoiding debt is wise is destroyed by the fact there are virtually no affordable rents or secure tenancies in this country for the elderly and hardly any social housing

Yes I feel like there's a time bomb for those who haven't been able to buy who will end up still renting at retirement age

I can't imagine having to rent in retirement

And it's all very well saying oh people will have to carry on working . But what if they can't ? And who's going to employ people in their 70s 80s and 90s

And yes there's housing benefit . But that only pays so much and imagine the insecurity of having to keep moving when you're elderly

I think it's disgusting. Something needs to be done . 😔

@iloveshetlandponies I agree, it is compounded by the fact that this generation of pensioners have less savings and pensions than ever before. The government needs to plan now for it and it is factual that everyone should try to secure something appropriate however modest, it should not be as hard as it is. Unless you are a vampire or living in an owned family home @CrashyTime etc, these are the only circumstances I can think of currently when the reality of physical frailty in old age can be bypassed

When was the last time you rented, and how many times did you move?

Looks like you monitor that forum very closely? My posts are designed to call attention to the fact that basic shelter isn`t worth decades worth of expensive mortgage debt, the stats for housing sales back me up! Judging by some of the posts on here about renting (I"m doubtful that the people posting have EVER rented TBH) it looks like the reality of Higher for Longer is starting to sink in, LOL,

No I don’t monitor that forum closely at all?

My comment was flippant and based purely on how much time you spend on Munsnet mansplaining things to us.

@CrashyTime I might tell you that if you tell us your housing status? I have personally rented and moved probably an average amount of times but have more experience of notices to quit though, seen absolutely loads of them as it’s the obvious way of dealing with absolutely unprotected tenancies that don’t suit businesses or people. Perhaps you can make your mind up about whether personal examples are relevant or not as your posts have taking a very inconsistent approach to that. Or you could answer how society will house pensioners?

@CrashyTime also ridiculous to suggest there are many adults who never rented, renting is by far the largest and largest growing sector for housing so statistically it would be very rare for someone not still living with their parents to have no rental experience.

@CrashyTime

I private rented from 1998 to 2009

It was the most stressful years housing wise of my life. Overpriced shit holes and moving every 6-12 months

And it is WAY WORSE now

I was luckily allocated a council house in 2009 as I'd been on the list for 11 years since the age of 18. It was such a relief to finaly have affordable rent and know I would not have to leave . Due to the affordable rent I was able to save for a deposit and finaly bought my own home in 2015.

I am doing everything I can to hang on to my own home including overpaying my mortgage to help counteract any interest rate rises .
Although I've just renewed my mortgage and it's not too bad it's only gone up £50 a month .

Because I'd genuinely rather die than have to private rent ever again

I suggested that the posters on this thread, who are pretending that you get evicted every two weeks when renting and trying to get people to believe that signing up for decades of expensive debt secured on the place you live is a better option have not rented in many a year, but are concerned that the value of their property is falling fast as people stop borrowing at silly prices.

People do get evicted very regularly I am starting to think it’s you has lived a sheltered life @CrashyTime