Mancunian284 Posted April 5, 2018 Share Posted April 5, 2018 14 hours ago, CanAffordWontPay said: I don't think it's going to be people with £100k mortgages worrying too much about that kind of increase. Round my neck of the woods though, it's going to be a different story. So on a £500k mortgage the increase will be around £200 per month. To get a £500k mortgage you would need to be earning £100k plus per year, £200 per month won’t bankrupt someone on £100k per year. Quote Link to comment Share on other sites More sharing options...
Mancunian284 Posted April 5, 2018 Share Posted April 5, 2018 (edited) 15 hours ago, Si1 said: Add that to MMR, s24, money laundering regs I appreciate that and my personal opinion is that we’re at the beginning of a slow deflation/stagnation as these things are being phased in deliberately to avoid a crash. Unless there is some kind of big unexpected event which causes a crash. I’m not saying an interest rate rise is insignificant, just that small, gradual increases over a few years aren’t going to cause mass panic. Edited April 5, 2018 by Mancunian284 Quote Link to comment Share on other sites More sharing options...
CanAffordWontPay Posted April 5, 2018 Share Posted April 5, 2018 1 minute ago, Mancunian284 said: So on a £500k mortgage the increase will be around £200 per month. To get a £500k mortgage you would need to be earning £100k plus per year, £200 per month won’t bankrupt someone on £100k per year. Who said it was going to bankrupt them? I'm merely stating what may seem like a small increase will have an impact for people who are stretched. Additionally it's not quite as simple as what you're making it out to be. Your working on the basis of intial/introudctory/lower ltv mortgage rates. Although subjective the majority of houses selling around here appear to be HTB. As we've seen recently there are few offering remortgages for these types of owners. From what I've experienced the typical buyer of HTB is someone who probably shouldn't be buying a house at these prices in the first place. They've barely managed to scrape a 5% deposit together (usually the majority coming from BOMAD). Once their HTB loan fees kick in, plus interest rates on their mortgages revert to 5%+, several hundred pounds (maybe as much as £800) across the board will make a difference. These people are heavily laden with debt; student loans, cars, credit cards etc. On the face of it, appear to make no adjustments to their lifestyle/expenditure, which I can only assume is adding to the debt. Quote Link to comment Share on other sites More sharing options...
GreenDevil Posted April 5, 2018 Share Posted April 5, 2018 21 hours ago, Mapatasy said: The Office for Budget Responsibility, which provides the forecasts on which Philip Hammond makes his decisions, is predicting an intimidating 36 per cent increase in mortgage interest payments over the next five years as interest rates rise... http://www.cityam.com/283257/can-you-afford-36-mortgage-hike-and-why-renters-may-once So a 700 mortgage goes to 900. Still 250 cheaper than renting. Quote Link to comment Share on other sites More sharing options...
Mancunian284 Posted April 5, 2018 Share Posted April 5, 2018 1 minute ago, CanAffordWontPay said: Who said it was going to bankrupt them? I'm merely stating what may seem like a small increase will have an impact for people who are stretched. Additionally it's not quite as simple as what you're making it out to be. Your working on the basis of intial/introudctory/lower ltv mortgage rates. Although subjective the majority of houses selling around here appear to be HTB. As we've seen recently there are few offering remortgages for these types of owners. From what I've experienced the typical buyer of HTB is someone who probably shouldn't be buying a house at these prices in the first place. They've barely managed to scrape a 5% deposit together (usually the majority coming from BOMAD). Once their HTB loan fees kick in, plus interest rates on their mortgages revert to 5%+, several hundred pounds (maybe as much as £800) across the board will make a difference. These people are heavily laden with debt; student loans, cars, credit cards etc. On the face of it, appear to make no adjustments to their lifestyle/expenditure, which I can only assume is adding to the debt. I am well aware of how complex the housing market is, the thread (and your comment) were about interest rates, not help to buy etc. Nice of you to waste your time explaining things I already know though, as evidenced by my posting history. Quote Link to comment Share on other sites More sharing options...
CanAffordWontPay Posted April 5, 2018 Share Posted April 5, 2018 4 minutes ago, Mancunian284 said: I am well aware of how complex the housing market is, the thread (and your comment) were about interest rates, not help to buy etc. Nice of you to waste your time explaining things I already know though, as evidenced by my posting history. haha fair enough, although it didn't quite come across that way with your two posts. Next time Ill waste more time and scroll through your posting history Quote Link to comment Share on other sites More sharing options...
Si1 Posted April 5, 2018 Share Posted April 5, 2018 1 hour ago, Mancunian284 said: I appreciate that and my personal opinion is that we’re at the beginning of a slow deflation/stagnation as these things are being phased in deliberately to avoid a crash. Unless there is some kind of big unexpected event which causes a crash. I’m not saying an interest rate rise is insignificant, just that small, gradual increases over a few years aren’t going to cause mass panic. fair enough Quote Link to comment Share on other sites More sharing options...
Mancunian284 Posted April 5, 2018 Share Posted April 5, 2018 23 minutes ago, CanAffordWontPay said: haha fair enough, although it didn't quite come across that way with your two posts. Next time Ill waste more time and scroll through your posting history Most people on here are much more educated than average on the state of housing. I’ve been reading the site for about 12 months although only started posting recently. I think the information that is shared (links to articles in publications that I normally wouldn’t read) and the opinions and analysis of certain posters has been invaluable to me. If you would like to educate/have some fun then pop over and post on mumsnet now and again too. Although the mood does seem to be changing a bit over there too now. Quote Link to comment Share on other sites More sharing options...
Mancunian284 Posted April 5, 2018 Share Posted April 5, 2018 (edited) 14 minutes ago, TonyJ said: Can you burst a bubble slowly? i don't think it's ever been done in history, but maybe it's different this time, because the current monetary authorities are obviously so much more expert and competent at avoiding problems than previous authorities (sarcasm intended). I don’t know (ask me in 2 years!)but I think that seems to be the intention. I’m not sure how much control the U.K. government has over it as I think one of the major problems has been too much money/debt sloshing around in global financial systems. Interesting article in the Guardian today, not entirely on topic but makes a good argument as to how impotent national governments are now. https://www.theguardian.com/news/2018/apr/05/demise-of-the-nation-state-rana-dasgupta?CMP=Share_iOSApp_Other Edited April 5, 2018 by Mancunian284 Quote Link to comment Share on other sites More sharing options...
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