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 also get in trouble with their mortgage debt payments very regularly, and they will be out just as quickly if not quicker.

@CrashyTime

Have you read my last post on what private renting was like for me? How I had to move constantly which was extremely stressful and expensive . I think I lived in about 15-20 rented places in about ten years . This is very common

I suspect though that your question was disingenuous and I've wasted my time sharing my experiences. 🙄

@CrashyTime its 2 months’ notice for an assured shorthold tenancy, by far the most common holding. Mortgage repossession is highly regulated. 0 chance if repossession in 2 months. So that statement is uninformed and completely untrue. Unless you advocate staying in the premises to avoid being voluntary homeless and not getting housing? Possibly then both would be out at the same time. It is much much easier to get rid of a tenant than repossession of a house. I don’t think you know what you are talking about

20 rented places in ten years isn`t common, nobody reading probably believes that this is common TBH, why even bother trying to say it is? If you genuinely moved that much you must be a terrible tenant TBH.

"Not the slightest bit concerned about our property value as we own it outright and have no desire or need to move again."

Why even bother getting involved in a thread about the cost of mortgage debt in that case?

@CrashyTime

lol you're just on the wind up now . or completely out of touch with reality .

It is also much easier to get rid of a tenancy for a tenant, you can walk away from a tenancy but you can"t run away from a mortgage debt. I don"t think you actually get the dire situation many mortgage debtors are going to be in when their fixes end?

@CrashyTime nothing is perfect in this business but repossession rates are yet to go anywhere near your suggestion. It is far more common to be evicted. You can get rid of mortgage debt or run away from it that is what repossession/ bankruptcy do. Neither are good situations

I wouldn't try and convince him them .

From what I can gather, what people like crashy want is for us mortgage holders to be in the absolute shit and for us and our families to lose our homes. This is because we all totally deserve it for being so smug and debt ridden apparently. And the high house prices are all our fault.

Had an offer accepted on a property having to use the nationwide helping hand and the interest rate attached to it is high! It's 5.09%!

No, I want house prices to fall to levels where they make sense for ordinary working people, the longer rates stay up the better.

Historically that is very low, and what is "helping hand", not another help to borrow too much scheme is it?

That would be great tbh, what do you think would be a sensible level, wages to house prices ratio ? Something like it was in the 70s ?

Early to mid 2000"s, basically where they were last time rates were this "high".

It's a scheme where they let you lend 5.5 your salary+ with a 5% deposit, that's interesting as my broker said it was quite high

https://www.schroders.com/en-gb/uk/individual/insights/what-174-years-of-data-tell-us-about-house-price-affordability-in-the-uk/

Some historical data , interesting to see the last sustained house price fall was the 19th C. Who knows what we have coming.

Talking to yourself again Crashy?

@CrashyTime when I bought at that time people were predicting a crash and you could get a 105% mortgage. If we were sent back in a Time Machine I bet you would be predicting a crash and missing out then

There’s not a ‘time frame’ but an affordability ratio in which it has to fall back to in line with wages. It’s simple mean reversion that has happened time after time.

Interest rates seem to be creeping back up :(

Bank of England interest rate has been fixed at 5.25% for a while now.

Do you mean mortgage rates seem to be creeping back up?

The thing is though that the majority of years in that graph mortgage lending only took into account one salary per household whilst now it’s two salaries. Two average £32k salaries would easily be able to get a mortgage for the current average house price listed in the graph. House prices won’t fall much as actually many people can still afford to buy.

I meant mortgages and general. But it doesn't matter if it's BoE or general banks because the situation is that ordinary people are paying more now for almost everything. Interest rates are creeping up in all realms, even borrowing money for businesses and investors are not investing because of it too. This is stifling the UK business scene and will eventually hurt jobs. Lots of businesses are not innovating because innovation costs money and people (salaries). I think we to need to stop referring to the BoE when it's clear general Banks are doing what they want to irrespective of them, because they do not have confidence in the economy nor the UK workforce.

Seems historically when prices hit 4 x earnings they rose and 6 x they fell.
Allowing 2 wages would mean the new low would be 8 x and when they hit 12 they will be unaffordable and fall

I think we might see the BOE cut not this months meeting but the one after