Interest Rates rise again
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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.
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
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Calm down and go give your mum your £50 rent children.
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Just read this else where, scarey thought.
I've just been gazing into my crystal ball and I foresee the economy failing and Labour being voted out...then the economy worsens while the next government struggle to put 10+ years of ineptitude right...and then all those people who voted Labour THREE times will again vote labour and we'll start it all over again
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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.
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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.
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
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Calm down and go give your mum your £50 rent children.
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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?
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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?
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So Mr Reaper go and look for somebody else living on the edge
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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.
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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.
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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.
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.
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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
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whilst the rest of the country carrys on regardless
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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!
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!
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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....
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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.
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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.
And perhaps some people on here need a sharp reminder that not everyone lives in "the South", Tel
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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.
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.
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?
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God your good at this arnt you....
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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
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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!!
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Oh yeah sorry the english version (I assumed you understand it since you were calling rates) is basically that the market expects rises of another 50 basis points by the end of the year, not 125 as you suggest. What I was saying is the market may be wrong by 25 but not by 75!
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.