Current Affairs Mortgages

[bluejohn66]

After divorce I'm mortgaged right up to OAP and beyond, however I've decided not to get stressed and worried, life's too short for that Shyte !! So to cope in these times of Woe, I've asked myself 'What Would The Everton Board Do' ? ....... So I've buried my head in the sand and hope it will sort itself out !!

Cheers Bill ?

 

[RomanReigns]

my 3 year mortgage was coming to an end in December 2021 and i renewed on a 5 year fixed rate of 1.19%

 

[Daveysgingerlovechild]

my 3 year mortgage was coming to an end in December 2021 and i renewed on a 5 year fixed rate of 1.19%

Just in time for interest rates to be 18% WOOT WOOT

 

[RomanReigns]

Just in time for interest rates to be 18% WOOT WOOT

better start saving now then i guess

 

[Ivo]

my 3 year mortgage was coming to an end in December 2021 and i renewed on a 5 year fixed rate of 1.19%

Get overpaying if you can! And tips hat for timing.

Our 5 year fixed ends next year...

 

[evilwebby]

Yeah, it's gonna be a horrendous reset over the next couple of years for those coming off their fixed rates (me included), but the 1% rate era was an abbhoration that should never have been allowed.

The flipside is that in this environment of higher inflation wages will increase faster and debt will be shrunk at a faster rate, but it will be painful for a few years.

 

[evilwebby]

And also, if people think this won't reverse those recent gains in house prices then that's just delusional. I think house prices are going to undergo a long period of correction, much more similar to 1987-1995 than 2007-2010.

 

[mahermi1]

After divorce I'm mortgaged right up to OAP and beyond, however I've decided not to get stressed and worried, life's too short for that Shyte !! So to cope in these times of Woe, I've asked myself 'What Would The Everton Board Do' ? ....... So I've buried my head in the sand and hope it will sort itself out !!

Cheers Bill ?

Soz for laughing mate but sincerely hope it works out for you.

 

[Tramps_mate]

And also, if people think this won't reverse those recent gains in house prices then that's just delusional. I think house prices are going to undergo a long period of correction, much more similar to 1987-1995 than 2007-2010.

I can see 15% if not higher being knocked off house prices..

 

[The binman chronicles]

And also, if people think this won't reverse those recent gains in house prices then that's just delusional. I think house prices are going to undergo a long period of correction, much more similar to 1987-1995 than 2007-2010.

It will lead to a sudden drop, however if they keep tanking the economy we could easily see cheap interest rates being brought back after a short period once the sting has been taken out of inflation. If that happens those losses won't last long.

 

[Martin Alvito]

I can see 15% if not higher being knocked off house prices..

The question is what happens with delinquencies. Interest rates cratered during the crisis the last time around. This time, the reverse will be happening. You're going to see pullback among buyers due to the rate rise and the rise in cost of living generally. If you also end up seeing people unable to pay, that can turn into a vicious cycle where people who are hopelessly underwater eventually decide to quit throwing good money after bad.

If your interest rates become and stay significantly elevated for an extended period, you could be looking at a real problem several years down the road, similar to how we had problems over here when people signed on to complex mortgages they simply could not afford when the introductory provisions expired.

 

[Bruce Wayne]

I can see 15% if not higher being knocked off house prices..

Over the past year, American shares have shed about $12trn in value, and $7trn has been wiped off bonds. Even crypto has lost about $2trn.

 

[Dixieslaces]

Its disgusting.

My fixed deal ends next October please tell me I'll be alreet Mr Jako ?

If it had of been early last week, I would have said pay your ERC if you can afford to and get on a 10 year deal, they were still hovering around 2.49% to 3.0% then, Now its a mess.

I work in finance sector, nothing major position wise but now over 20 years experience and this is a shocker.

Rates due to Swap Rate Derivatives and uncertainty have skyrocketed on a forecast of what BoE will do.

I have argued until I'm blue in the face with some of our execs and policy makers over some decisions that my company have made as being enough to trigger a huge financial crisis. They simply don't want or aren't able to do much about it due to the markets and the trigger that Kwarteng and Truss pulled.

Pre those measures, the BoE were always gonna raise the rates, borrowing has been too affordable and comfortable for way too long but we had a small element of time on our side, now, it could happen very soon and from the way that banks etc have reacted I expect it to be soon.

It has caused untold uncertainty in Consumer minds already, our contact centres cant cope with the influx and of course rates have already increased on some Mortgages over 3% as the banks position themselves. People who were o low fixed rate deals will see huge impact on their outgoings, its simply a precipice for some, that they may never come back from.

There is a real Fiscal shock coming, personally I think worse than 2008 and coupled with perhaps a housing price downturn and while the banks have no moral compass to speak of that will see them really help out the borrower, do they really want to see a return to wholesale repossessions and negative equity? What benefit does that have to the banks other than knowing that eventually it will go full circle and we will have banks sitting on even more appreciating assets while little old us, pay the heavy price.

Do everything you can to secure a long term fixed rate, its imperative, shop around and if you can pay to do it, do it. Trouble is all the good rates have pretty much disappeared.

 

[GlosBlue]

If it had of been early last week, I would have said pay your ERC if you can afford to and get on a 10 year deal, they were still hovering around 2.49% to 3.0% then, Now its a mess.

I work in finance sector, nothing major position wise but now over 20 years experience and this is a shocker.

Rates due to Swap Rate Derivatives and uncertainty have skyrocketed on a forecast of what BoE will do.

I have argued until I'm blue in the face with some of our execs and policy makers over some decisions that my company have made as being enough to trigger a huge financial crisis. They simply don't want or aren't able to do much about it due to the markets and the trigger that Kwarteng and Truss pulled.

Pre those measures, the BoE were always gonna raise the rates, borrowing has been too affordable and comfortable for way too long but we had a small element of time on our side, now, it could happen very soon and from the way that banks etc have reacted I expect it to be soon.

It has caused untold uncertainty in Consumer minds already, our contact centres cant cope with the influx and of course rates have already increased on some Mortgages over 3% as the banks position themselves. People who were o low fixed rate deals will see huge impact on their outgoings, its simply a precipice for some, that they may never come back from.

There is a real Fiscal shock coming, personally I think worse than 2008 and coupled with perhaps a housing price downturn and while the banks have no moral compass to speak of that will see them really help out the borrower, do they really want to see a return to wholesale repossessions and negative equity? What benefit does that have to the banks other than knowing that eventually it will go full circle and we will have banks sitting on even more appreciating assets while little old us, pay the heavy price.

Do everything you can to secure a long term fixed rate, its imperative, shop around and if you can pay to do it, do it. Trouble is all the good rates have pretty much disappeared.

Do you think things might be more settled in 5 years? I looked at 10 years but at the time things weren't where they are now so got 5.

 

[Dixieslaces]

See, interest rates were ridiculously low (historically speaking) so they always were likely to go up. Even arguably needed to. The problem is less gradual managed rises but the sheer shock pace of it.

My, very lay, sense is that it's a conundrum for Truss and Kwarteng. My understanding is that for years house prices have been drivers of GDP and growth. If the market crashes it arguably pulls a leg out from under them.

Thoughts?

Spot on mate.

We also have the added conundrum of one trying to stimulate an economy(Truss and Kwarteng) and the other (BoE) trying to head off Inflation, unfortunately both measures are now at odds with each respective measure and actually may trigger a deeper recession and Hyper Inflation, (All very doom and gloom) by by allowing the government to borrow more with the buy up of Gilt/Bonds, its effectively QE by another name and QE is largely responsible in my opinion for a lot of the fiscal issues we are now seeing. QE will always at some point cause a spike in inflation, if not actually crash a currency to a degree. constantly robbing Pete to pay Paul is car crash economics and Kwarteng policy of securing debt on future GDP growth is a risky policy, no in fact its suicidal given the level of Government debt worldwide. US announce 31 Trillion last night, first time ever reached that level.

QE and Trickle Down economics are very rarely successful, those at the top cream off the QE and it never really reaches the working man who actually needs it, hence the outcry over the 45 tax rate.

So where does it end?

I wish I could see the end but in all honesty we never really came out fully of Austerity measures following 2008, then along came pandemic and we now seem to be lurching from crisis to crisis.