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.

Yes I agree and really it’s unfair to pile in on @MotherOfRatios they have decided to buy a flat for very good reasons and that is a sensible decision for them plus it is their business.

People like @CrashyTime & others are going too far telling people they should be moving out of London or wfh. Not everyone wants to do that or even is able to do that, it very much depends on the type of job they have.

"A mortgage for you makes much more sense."

That is what people said during the stamp duty holiday, they are very unlikely to still be saying that as they come off their fixes? The poster is allegedly "physically ill" with flat sharing, why on earth would they want someone in a spare room next to them when they buy their own place, they have said they can only afford a one bed anyway and the need for a lodger would just underline that they can"t afford it?

It was just bugging me @CrashyTime how you and another were being so negative about @MotherOfRatios's choice to buy a place. They've already said they're struggling with their mental health living in shared places and prefer to buy. I don't think piling on your negative attitude about buying somewhere helps at all.

Also there are a lot of people that are still feeling very positive about buying at the moment. Everyone is entitled to their own opinion but of course no-one really knows what is next for the housing market. One could argue that it might be cheaper to buy a place now with higher interest rates than wait a year or so for if/when rates might be lower. Firstly because they might not go much lower and secondly because if they did go much lower chances are more people would buy and the price would go up. And back to throwing in that extra 12k or whatever of rent that they wouldn't be paying and buying for some might still be an attractive prospect. I have bought and sold over 10 properties in my time and all of them are much higher in value now then they were when I bought them, even the one I bought in the 2007-8 peak before the last big crash. I well remember the pain of a 5.5% mortgage rate then which in the long run turned out to be very much worth worth it.

Of course @MotherOfRatios doesn't have to get a lodger, but house sharing with a group of people in a room you're renting and renting a room out to a friend in a place you own can be very different things. And the people who are referring to who are coming off low rates and looking at much higher ones are also probably not thinking 'gosh I wish I was still renting' but more likely concentrating on how they can afford to pay the mortgage and looking forward to a day when rates are a bit lower. Of course there will be a minority of people who won't be afford to afford their mortgages at all however mortgages have been stress tested for a long time now and whilst a rise in payments can be pretty hideous it doesn't yet seem like it's causing an almighty crash/rush to sell. In the light of all this to me it would still seem like a wise decision to buy rather than rent, if one can afford the repayments and also has the deposit/requisite mortgage requirements to get one.

The amount of borrowing you were paying 5.5% on was much less than the amount someone today is expected to borrow so people can pretend their house was a good earner, that is the problem with Ponzi schemes it is usually those last in that get punished hardest, that is why posters are cautioning against jumping into the London Ponzi at this stage.

I reckon you just want this thread to hit 40 pages sooner rather than later because so many of the assumptions you had when it started have been severely challenged haven"t they?

Not at all you’re the one who keeps posting on here & keeping discussions going. Why don’t you give it a rest so the thread can slow down getting to 40 pages?

I would actually prefer to wait until the base rate is reduced before the next thread starts but you keep saying things that need a response.

Actually @CrashyTime with my latest house I only bought last year so I've borrowed a shit ton at a comparatively high rate (although to be fair pre 2008 I have paid higher). I knew what I was doing though. I would far rather spend 2.3k a month on a repayment mortgage than 2k a month on rent hoping the market will go down. Not that I am in my residential mortgage for an investment (I invest elsewhere for that) but the house HAS already risen 35k in value. But I wouldn't have minded had it gone down either as it's my home and I am in it for the longer haul.

Many landlords (themselves recouping back higher interest rates) will be putting up their rents and repeating this annually. A friend of mine just had her 2k a month rent (agreed less than a year ago) upped to 2.5k making it unaffordable for her and she has to move out. At least with a fixed rate mortgage you know where you are for 2/5/10 years.

I have a different take on it. I think that encouraging people to do things which could potentially land them in very deep trouble in the future is v unkind and dangerous.
Clearly, you have a different opinion about the future of the UK housing market to my own so assume that prices will just continue to rise in the future and that as long as you don't need to sell, you will be fine. I come at this from a different perspective so I don't see it as negativity but as an attempt to be helpful.
I hope that @MotherOfRatios is very happy with her choice and wish her all the best.

yes @rainingsnoring it appears we do have completely different takes on it. @MotherOfRatios has mentioned that she's really miserable renting and has done her due diligence, weighed up the pros and cons and for her own personal circumstances wants to buy. Why would you put her off? You do realise that outside this thread thousands of people are still out there buying property and going about their lives as normal? Life just doesn't stop because there MAY be a correction in the housing market coming at some point. There might not be! I am pretty sure that even if there are dips in the course of things yes property, over the course of the long period (let's face it not many people buy houses just for a couple of years) will definitely rise. Plus it's much more secure than being at the mercy of a landlord who can put up the rent.

I can totally understand why she wants to buy. Perhaps you haven't read my previous posts where I sympathised and said that she and others have only poor choices. My other concerns were the low deposit ( 5%) and high salary multiple mentioned plus she also appears to be buying alone so no second income to fall back on. These factors make buying much more risky, hence my comments. No one has suggested that the housing market should grind to a halt, merely that she/ anyone else careful weighs up their options. I'm struggling to understand why this is seen as 'negative'. I think it's prudent and common sense.

There's always a risk when buying a property however, I'm not buying property because it's an asset I'm buying it because I want to live somewhere stable. I can't really magically make myself have a 20% deposit when I rent and my rent is high so I save what I can. I have friends are buying half £1 million flats. I would never be that stupid. My budget is max £240k and that is cheap for London

Sorry to be the one to tell you, but most people in the UK don"t pay 2k rent per month, but as they say, every rent rise takes you closer to the void.

The average is over 2k in London where @MotherOfRatios lives and works

A 1/2 bed flat inc bills and service charge is often cheaper than rent

"You do realise that outside this thread thousands of people are still out there buying property and going about their lives as normal?"

It is many thousands less than used to be doing this though, lots of young people are choosing to be mobile while they are saving if you know what I mean.

https://www.plumplot.co.uk/South-East-property-transactions.html

Can you post an example of the type of flat so we can have a look with PropertyLog?

Can you post examples of the type of flat you are looking at?

Why should she? You don't answer a single personal question on here yet are always asking intrusive questions of other people like asking them to post details about the type of properties they are looking to buy or even a link to those properties in some cases.

Why do I need to?

Hardly intrusive if it is already on RM, no one is asking for a specific flat address just a general postcode and type of flat, you seem cagey about people checking the actual reality of anecdotal claims with PropertyLog?

Because we can help you find bargains with PropertyLog, it works for rents as well.

I've no objection to people using property log it seems very useful I just think it's inappropriate to keep asking people to share personal information - you have asked me in the past where I live for example. Yet you don't share anything about your own housing situation which is fine of course but others don't want to grilled either about personal stuff like the type of flat they are trying to buy.

" you have asked me in the past where I live for example. "

Can you quote the post.

" but others don't want to grilled either about personal stuff like the type of flat they are trying to buy."

The poster told us straight away that they wanted to buy a 1 bed flat for 240k, LOL.

No I can't! I'm not going to trawl through all the thousands of posts between us to find it but I do remember thinking once you were being a bit too intrusive and laughing to myself thinking as if I'm going to say where I live (you weren't asking for an address to be clear, just the area). But you have also asked people to post a link to a property they are struggling to sell and here you are asking @MotherOfRatios for a link to the sort of flat she is interested in.

People share what they want to share is my point and you are very protective of your own privacy so there is no reason you should expect others to share information they haven't volunteered.