Mortgage options changing fast, what to do

[IucyB]

After being in rented for a long time (fled DV) I am finally in a position to buy a small flat (before I get too old for a mortgage, I'm a first time buyer). I have had my offer accepted and am now sorting out mortgage. Of course with the turmoil in the markets (due to the horrific war going on. I know that I am privileged to be even buying somewhere to live) this is not a great time to look for a mortgage. Some of the mortgage products I was considering have been withdrawn from the market.

I wonder what everyone else is doing - waiting to see if things get any better, getting a mortgage now in case things get worse etc. Any thoughts on what is going to happen in the mortgage market if the war continues or ends soon. I am sure there are much better informed people on here than me.

@KeepPumpingalso I am about to sell and then buy! It’s not rocket science it’s just being cautious!

@KeepPumpingand if you know anything about the rental market where I live you’ll know rents are getting higher and higher not lower! Because of the RRB landlords are selling up and demand far out weighs supply! Landlords know this so are pricing higher (as can no longer do bidding wars)! Maybe up north it’s different, but where I live property is scarce and in demand!

Most people looking to buy a basic flat are not a landlord and a tenant, your situation isn"t the majority.

This. Pick the best rate you can find and lock in. If it lowers over next few months you can simply switch to a better deal. Lock in to a deal before it gets any higher isy advice. You'll get 6 months to activate the deal. If you don't activate the deal it will expire unless your mortgage broker can get you an extension on same terms.

Your situation/area again is nothing like the majority experience around the country.

https://www.thisismoney.co.uk/money/buytolet/article-15632947/Landlords-forced-slash-rents-enquiries-dry-tenants-gone.html

As predicted the scare stories about the "Landlord Exodus" causing mass homelessness was just hot air, the drivers of rent are wages and demand.

https://www.msn.com/en-gb/news/insight/landlords-slash-rents-as-demand-collapses/gm-GM31D42889

@KeepPumpingI live in the South East! I have been speaking to estate agents and landlords regularly. I just said it might be different in other areas. If you’re intelligent and make smart choices buying is always better than renting. I also work in journalism and know what helps click bait! Things aren’t ideal at the moment but things change all the time.

Bond markets influence mortgage pricing, but that doesn’t make property ownership inherently “not worth the risk”. People buy based on long-term stability, not short-term rate movements.

Or we could do what you suggest run scared, hide under a rock and then complain when we have nothing to our name when we retire and you’ve paid off your landlords mortgage!!

@pinkpalmleaves If you read the This is Money article that was posted you’d know rents in London are down, as they are in Brighton. I wonder how much this is due to landlords realising the days of selling properties quickly and at huge profits are long gone, generally speaking. Especially regarding flats. So they’re staying put, like a lot of other people.

@topcat2026i rent two properties out in London. The rents rise with them, because they are good quality properties in sought after areas. If, as I suspect, many of these slum landlords suddenly realise they can’t charge full whack for a shoebox with a shower in. Similarly, I have seen many horrendous flats aren’t selling - because buyers want better. I do see good quality flats, without horrendous service charges etc are still selling. My original point still stands, if you’re looking to buy there is no point waiting. Grab yourself a bargain take advantage of what’s happening and enjoying living somewhere you own. Just buy in a good area and do your research. We can’t get all our information from The Mail Online or we would all be an anxious mess!

Your original point isn"t good advice IMO, when a crisis hits you should pause and take stock of the economy before diving into a large debt, you might be a tenant, landlord and journalist but I don"t think you have fully thought through the dynamics of the UK housing/debt market, especially in relation to the current crisis.

I agree. We’re likely heading into a recession and the unemployment rate is high, and predicted to rise. I am also fearful about the increasing adverse impact on the economy.

I meant to say that I am also fearful about the increasingly adverse impact of AI on the economy.

Sorry to say if you’re unemployed and renting you’re also screwed too! If you can’t pay rent do you just expect the landlord to let you stay for free? With the new renter reform act if you don’t pay your rent and leave in arrears you’re left with a CCJ! Which will stop you being able to rent or buy! You keep ingnoring the point I think I have made several times now about making an intelligent, informed decision. If we’re to believe everything the Daily Mail says, a missile is poised and ready to come over here so all our investments are screwed. 😂🙄 might as well live a little before that happens!

The housing benefit part of universal credit will cover all or some of your rent if you lose your job and can’t pay.

That"s right, doesn"t cover your mortgage though, or does it after a certain time?

@topcat2026’some’ not all! Private rents are normally priced at a higher percentage than social housing. Landlords aren’t looking for some of the rent they’re looking for all their rent to be paid!

Incorrect information again, you are much more screwed if you have a big mortgage, benefits picks up the tab for renters, mortgage debt holders pay interest on the losses the property makes!

Lets be honest, landlords and big mortgage holders are basically up shit creek with the developing global depression, it is not a position anyone should aspire to.

If you have it in principle, does that not lock in the rate? I remortgaged recently, before the rise of interest rates, glad I did.

@KeepPumpinglisten to yourself! It’s OK though… all those mortgage holders will help keep paying your UC bills 😂!

@KeepPumpingplease send me a link to your next MSN/Mail Online article to tell me where I’m wrong again?! 😂

Yes. It’s the mortgage payers who will lose their jobs who aren’t protected and in a worse position if they can’t pay that huge loan back.

Oh no wait, you get some shitty SMI loan.

I am also about to buy my first house and am so confused about what to do for the best. Below are the deals I have been offered.

5 year fixed 5.01%
3 year fixed 5%
2 year fixed 4.86%

I can afford all of them, but obviously don't want to lock into a 5 year deal if interest rates go down to 2% in a couple of years time. Similarly I don't want to have to remortgage in 2 years and the interest rates are now at 7%.

It's a real minefield isn't it?

@IucyB

I agree with this poster. it's ONLY my opinion, based on 'life' .

The best time to buy is always when you can.

There's always talk about price hikes/markets falling. Interest rate rising/falling.

no one knows and 'experts' are frequently proven wrong.

i bought my first property at Auction, I had a mortgage agreed etc. Overnight hundreds of mortgages were removed from the market, mine included. The woman from the mortgage brokers rang me on my way into the Auction to tell me. I told her to secure the best one she could & message me ASAP.

it was a huge jump in the interest rate (1.75% to 6%) but I took it because I wanted the property, it was only fixed for 2 years & I could still afford the repayments and I didn't have time to see what happened over the net few days/weeks/months. I had to make a decision on the spot & hope it all worked out as at Auction you are committed to buying the property.

many years & mortgage products later I have no regrets, yes my mortgage rate was high for 2 years, but I had the property and over the years I've fixed at various rates, forvarious periods, it all comes out in the wash!

and it's still better value for money than renting & waiting to see what happens IMO

@FlyMeToTheSpoonits always going to be a gamble! Maybe lock in for the 3 year fix? Happy medium! And good luck with the house buying xxx