Jump to content
House Price Crash Forum
TheCountOfNowhere

Who's Afraid Of The Big Bad Rate Rise?

Recommended Posts

....And after 3 years when rates are 5% ?

If rates do shoot up ( some chance ) then it would be an uncomfortable couple of years for them facing financial Armageddon at the end of it.

Edited by TheCountOfNowhere

Share this post


Link to post
Share on other sites

Neutral...has its benefits and disadvantages, but the economy would find it hard due to the sheer size of the debt pile.....nice low inflation suits me.....like it when prices stay steady no change from the year before.

Share this post


Link to post
Share on other sites

Thinking of going 10yr myself, can get it for 3.5% .Not a huge sum in todays terms , got 14 yrs to go , so if i set up overpayments it will be done by end of 10 yr anyway.

Views?

D

Share this post


Link to post
Share on other sites

Neutral...has its benefits and disadvantages, but the economy would find it hard due to the sheer size of the debt pile.....nice low inflation suits me.....like it when prices stay steady no change from the year before.

a 50% collaps ein london and 20% in the shires doesn't take us far away from where we were in 2008.

This is on low sales volumes, sp the people loosing out would be:

1) ( increasingly hated ) Buy To(i)Leters

2) Speculators

3) Money Launderers ( 50p in the £1 is probably great for them ).

4) The gifted deposit brigade ( who probably wont loose them homes ).

A collapse in prices back to 2004 crazy prices will affect no one anyone much cares about.

Share this post


Link to post
Share on other sites

Thinking of going 10yr myself, can get it for 3.5% .Not a huge sum in todays terms , got 14 yrs to go , so if i set up overpayments it will be done by end of 10 yr anyway.

Views?

D

I found a house in good area that i like and have gone for 10year fix of 3.34. Just like youself i have over paided I am epecting the first mortgage statment in a few months to find out how much my monthly payment as gone down.

It did seem to make sense to me and if there is rise in rates by aound .5% i would think i won my gamble.

Share this post


Link to post
Share on other sites

Rates will be sub 5% for at least 10 years IMO so not worth worrying

Agree....i don't think we'll even see a rate rise in 2016. By the end of year I reckon the conversation will revolve more about negative rates. But for what it's worth, I still think that 2016 will be the year of the great London HPC and that this will spread into the home counties in 2017....current rates and beyond have been well and truly arb'd by sellers

Share this post


Link to post
Share on other sites

Thinking of going 10yr myself, can get it for 3.5% .Not a huge sum in todays terms , got 14 yrs to go , so if i set up overpayments it will be done by end of 10 yr anyway.

Views?

D

I've just fixed for 5 years at 2.55%.

Share this post


Link to post
Share on other sites

....And after 3 years when rates are 5% ?

If rates do shoot up ( some chance ) then it would be an uncomfortable couple of years for them facing financial Armageddon at the end of it.

5% will not impact me. It would be £100 a month more. I am currently overpaying my mortgage.

Share this post


Link to post
Share on other sites

I just can't see rates rising, I can however see housing transactions shrinking and HPC Autumn 2016. A rate rise of 2% over the next year coupled with the first wave of HTBers having to repay is just not feasible.

Anecdotally the first 4 listings on RM for where I live (Telford) are all "Reduced today". Hopefully the first signs.....

Share this post


Link to post
Share on other sites

I just can't see rates rising, I can however see housing transactions shrinking and HPC Autumn 2016.

Anecdotally the first 4 listings on RM for where I live (Telford) are all "Reduced today". Hopefully the first signs.....

I agree. I fuily expect to see prices lower by the end of the year.

Share this post


Link to post
Share on other sites

I found a house in good area that i like and have gone for 10year fix of 3.34. Just like youself i have over paided I am epecting the first mortgage statment in a few months to find out how much my monthly payment as gone down.

It did seem to make sense to me and if there is rise in rates by aound .5% i would think i won my gamble.

I believe that overpayment reduces the term of the mortgage rather than the payments.

Share this post


Link to post
Share on other sites

I believe that overpayment reduces the term of the mortgage rather than the payments.

If you pay them off in chunks,not fixed it lowers the payments.My partner has paid her house off over the last 5 years doing that.Once i had snared her after a few dates i made her read this site :lol: .

My daughter has just bought last year,north east, good 3 bed semi £117k,repayment mortgage fixed for 5 years at 2.74% (26% deposit),she is overpaying 10% a year of outstanding capital (maximum) and that lowers the payments not the term.I looked at what she needed to do to make sure if rates were 5% her mortgage would be the same as now on her fix at the end of the 5 years.

Share this post


Link to post
Share on other sites

If you pay them off in chunks,not fixed it lowers the payments.My partner has paid her house off over the last 5 years doing that.Once i had snared her after a few dates i made her read this site :lol: .

My daughter has just bought last year,north east, good 3 bed semi £117k,repayment mortgage fixed for 5 years at 2.74% (26% deposit),she is overpaying 10% a year of outstanding capital (maximum) and that lowers the payments not the term.I looked at what she needed to do to make sure if rates were 5% her mortgage would be the same as now on her fix at the end of the 5 years.

There has to be a total change to people and their attitude to debt.

In the days of subbed (MIRAS) mortgages and better-than-inflation pay increases (and low HP to income ratios!) taking on a large (for those days - 5 times main salary!!!) was only painful for a few years. Wages increases at 10% for 5 years halved the nominal cost of the mortgage.

These days when I know a lot of people earning less in nominal terms, never mind real!, than the were 10-15 years ago - fcked with a large mortgage.

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now

  • Recently Browsing   0 members

    No registered users viewing this page.

  • The Prime Minister stated that there were three Brexit options available to the UK:   42 members have voted

    1. 1. Which of the Prime Minister's options would you choose?


      • Leave with the negotiated deal
      • Remain
      • Leave with no deal

    Please sign in or register to vote in this poll. View topic


×

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.