TelBoy

LOL


You know too much

Iwan

Mine will lose a tenant if he does that - plenty of houses to rent that are sitting empty around my way.

///\oo/\\\

And you know for a fact he has no other debt that the rental income has to service?

Matteeboy

Same here!
Weak market down this way apart from about 6 weeks of the yearn when the holiday rental market goes crazy.

Matteeboy

Yes - All inherited off his Dad.
No mortgage of his own.

He's an accountant.

davegtt

LMAO @ you lot thinking everyone with a mortgage is worried by interest rate rises...

Whats the percentage of mortgage owners on a variable rate really? the change will hardly have an effect on many people and lets face it a .25% increase ona £100k mortgage is only going to rise £20 at the most.... wooooooooo bancrupcy here we all come

Calm down and go give your mum your £50 rent children.

davyboy

Just read this else where, scarey thought.

kingofturds

iTrader: (1)

Hope the arsehole that kicked me out to make room for holiday tenants gets his payback

TelBoy

It's a bigger effect than that, Dave. Many people have £500k+ mortgages now so for about 5m households that's going to mean an extra £100+ pm out the door, which for some will start to pinch just a little.

Matteeboy

Where did you live down here?
Are you "up country" now?

grim reaper

Sounds like your bricking it bankruptcy boy
dont worry scoobynet will have a whip round and we will buy you a tent for next year.

///\oo/\\\

Surely that is their own look out. Anyone with a £500,000 mortgage who hasn't had the sense to allow for a rise in rates deserves no sympathy?

davegtt

To be fair, unless your a muppet with no clue you should be living comfortbly if your taking a £500k mortgage out... The ordinary guy doesnt have 500k mortgage do they?

davegtt

Im not exactly flush boy but I know full well for the next 5 years any interest rate changes aint going to do me any damage and certainly wont be damaging my monthly savings

So Mr Reaper go and look for somebody else living on the edge

TelBoy

Well that's one way of looking at it Diablo, yes. But the pressure to pay up these days in the property market is enormous, and to be honest a lot of people have been enjoying unprecedented levels of disposable income in recent years. I actually don't think this will be a bad thing if it brings it home to people that you can't KEEP borrowing, borrowing, borrowing.

kingofturds

iTrader: (1)

Mevagissey, until the landlord decided he was better off Renting the place out for £600+ a week in the holiday seasons.

hoping to move back there in may/june though, apart from the summer gridlock season its not to bad a place to live.

TelBoy

You'd be surprised, Dave. I can look up figures if you like, but certainly in the South, mortgages of £350k are commonplace, £500k+ are not uncommon. This will be a sharp reminder to people that rising property prices a) aren't cast in stone and b) can't be used to pay off higher monthly mortgage bills.

Matteeboy

KoT - Yep, nice area.
Having been a North Coaster most of my life (Polzeath area) it's nice to be on the prettier S Coast, although the N Coast surfing beaches are only 15 minutes away.

So where are you currently?

We "did" Bristol for 8 years, and the Docklands for one.

davegtt

Tel, thats Southerners for you though, always knew they were thick as pig sh!te... when the bayliffs come for them they'll be screaming "Ger off myyyy Laaaand"

whilst the rest of the country carrys on regardless

davyboy

if you have a mortgage of 350k - 400k then replayments are likely to be 2000 - 3000 per moth.

I'd think anyone who could afford that would not worry too much about an extra £100 per month.

I guess when the rates keep going up and they come out of there 3 year fixed rate at 7% there could be problems!

kingofturds

iTrader: (1)

Moved up swindon way for a few months back in 2003 then st columb and currently par,near that bomb site they call st austell


Couldnt stay away from cornwall for long

TelBoy

At some point though, davyboy, that extra £100 is going to start being noticed, especially if you consider what % of monthly income people are now paying on mortgages. I think we're approaching that point; however i do think there's still sufficient slack in people's finances to be able to give up certain luxuries rather than panic about repayments, i certainly don't think we're in danger of seeing a massive crisis of confidence, but stranger things have happened....

borat52

The problem will be if rates rise enough to crash the housing market, if they do then in 5 years you could have negative equity and a big interest amount on your mortgage. Option 1 - tighten the belt and hope you can cover the interest rate then, Option 2 - sell up and cover the biggest part of the mortgage and still be stuck with the rest around your neck with no property to show for it.

I dont think this will happen though, even if it does crash in 5 years rates should be stable again and the market will have picked up from its lows. You were wise with your 5 year fixed deal, but I still think you bought very near the top of the market.

///\oo/\\\

LOL

And perhaps some people on here need a sharp reminder that not everyone lives in "the South", Tel

davegtt

For a start your banking on the fact that the market crashes and not having a clue how much equity I have in my property. Even if I did hit negative equity I wouldnt care because I bought my house to live in it and dont intend on selling until I have found a partner to marry and have at least 2 kids with, if a 3rd comes then Id consider somewhere bigger. I can see it being a good few years before I have to worry about that.

And how do you work out that November 2002 was the very near the top of the market since my property has almost doubled in value since then?

God your good at this arnt you....

Seriously Im not saying some people might start to think twice or worry about things but the majority of people are still comfortable. If need be I could cancel Sky Sports and Broadband, put a hold on one of my pensions, Im sure that would see me through some tough times as it would most people.

Dream Weaver

Can't believe people keep their mortgages for more than 2 years, you're all bonkers.

GrahamG

I love it all the time the interest rate goes up... .While i'm saving for my house... Hopefully it will fall off a cliff when i get a mortgage!!

TelBoy

Well yeah, but we're talking about the civilised world, aren't we?

davegtt

Yep then you can take your little mortgage out on your cheap house and pay a stupid percentage of interest back meaning you've saved bugger all in the immediate future

borat52

Hmm, the market was wrong by a lot more in 1929, and again around 2000 with the NASDAQ boom, not ot mention the late 80's/early 90's housing market. You'd have made a pretty penny sticking 2 fingers up to what the market said back then and shorting in a bull market before it turned - against common opinion in every case without exception.

The market is usually right, but in this case I think they underestimate the inflation risks. If inflation is higher than expected (and all the market does is price in a prediction on rates based on inflation), then rates will rise higher, mortgages will be unaffordable so demand for housing will drop thus prices will level/drop slightly = soft landing (personally I'm yet to see a market boom then soft land). If rates go higher still you have the biggest problem - existing mortgages become unnafordable so people sell en mass leaving houses with negative equity, consumer spending stops putting people out of work meaning they cant afford any repayments meaning they go bankrupt/sell assets ->Recession and large unemployment, the boom bust cycle is complete.

I really hope the second doesn't happen for everyones sake as a recession benefits nobody, but also don't think people fully appreciate how stretched most people in the UK are. I dont think many can afford another 1% on rates if indeed it comes to that.