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mortgage rates increasing


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The number of mortgage products have gone down and there dont seem to be any 10% mortgages out there. The 15% mortgages seem to have higher rates. 

Im trying to figure iut what happened to mortgage rates after the last fonancial crisis in 2008. I can find the historic base rate data, but not historic average mortgage rate data. Does anybody know where this can be found? 

Thanks

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Hardly a rise really. I think the banks are just cashing in on the inexplicably high demand. 
 

I could see rates edging down again.

Hardly rocket science, the BoE will force rates down with the term funding scam again.

But if there's no one willing to borrow, matters not.

It remains a fact that house prices are detached from reality

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Hardly rocket science, the BoE will force rates down with the term funding scam again.

But if there's no one willing to borrow, matters not.

It remains a fact that house prices are detached from reality

BoE and the Fed both benefit from a Global (aka Chinese) demand for GBP and USD.  If that demand gets spooked and currency gets dumped, you will get overnight IR rises.

Luckily we have stable, sensible guys in the Whitehouse and Downing Street that have no problem with China

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BoE and the Fed both benefit from a Global (aka Chinese) demand for GBP and USD.  If that demand gets spooked and currency gets dumped, you will get overnight IR rises.

Luckily we have stable, sensible guys in the Whitehouse and Downing Street that have no problem with China

Been waiting for that for 12 years now

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wow.  where you in a position to buy 17 years ago?

With a big loan, of course I was, and maybe I should have got a few BTLs too! The past 2 decades have been a bit crap house-wise though. Shame really, would have like to have somewhere to settle down for a reasonable price. 3x salary maybe. But it wasn't to be.

I should have got gold, and then bitcoin, rather than houses back then, and then squirreled the rest away 🙂

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sorry to hear that.  the system sucks.

It certainly does, but it's a blip in what has been a pretty fortunate life, so I'm thankful for all of the good things. I'm in a position to buy now too, but I won't, because the system does suck and I will play no part of it!

When prices vs wages get back to a decent leveel, then I'll sort ot out. Until then I'll let it play out.

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It certainly does, but it's a blip in what has been a pretty fortunate life, so I'm thankful for all of the good things. I'm in a position to buy now too, but I won't, because the system does suck and I will play no part of it!

When prices vs wages get back to a decent leveel, then I'll sort ot out. Until then I'll let it play out.

The system does suck. You have to understand that we are all on a giant hamster wheel, IR and lax lending dictate how fast we have to run to stay still. When the going is good, we get a small slice of the action, when it is bad, we bail out the government and through them, the elite. Either way, the gov and the elite never lose out. Those are the rules.

I bought in 2010 when I realised that QE was on the cards. It happened to be when there was a lull in the market. HP to earnings where not where I would have liked, but HP had dropped and offers where being accepted, and most importantly, I found a house I actually liked.

CV and Brexit may have the opposite effect with respect to the money you have saved. I just don't know. See the rules above.

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The system does suck. You have to understand that we are all on a giant hamster wheel, IR and lax lending dictate how fast we have to run to stay still. When the going is good, we get a small slice of the action, when it is bad, we bail out the government and through them, the elite. Either way, the gov and the elite never lose out. Those are the rules.

I bought in 2010 when I realised that QE was on the cards. It happened to be when there was a lull in the market. HP to earnings where not where I would have liked, but HP had dropped and offers where being accepted, and most importantly, I found a house I actually liked.

CV and Brexit may have the opposite effect with respect to the money you have saved. I just don't know. See the rules above.

I'm hoping the mix of savings I have will mitigate this (or at least any inflation caused by this 'solution') if it does happen.

I am also in a pretty fortunate position that I don't need to buy so I am willing to wait it out for as long as they can keep the plates spinning. I still have hope that 'they' can't do anything once the time comes, even if they want to.

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Yes rates are higher now.

I took the plunge of buying a house last year with 15% deposit. The fixed 5 year rate was 1.99% (the best at the time 1.91%), now the best you can get is 2.64% so £80-150 per month more on a typical mortgage.

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Not sure it's that meaningful yet. Of course it is an increase but set into context of the short period before it is nothing. House prices in London where I am looking have been stagnant since 2016-2017..... the house price growth spurt came on the back of higher mortgage costs.

For instance 10-year fixed back in 2014 was in the order of 4%, because of the expectation that by now we'd be far up the normalisation curve. Today (well at least before the very recent rises) it was around 2%. The reduction in mortgage rate has done very little for house prices, because in many cases they have nowhere to go.

Put it this way, are there forced sales yet (in any significant number)? The pandemic was said to increase the three D's which would lead to an increase in these types of sales. While it still may happen, the honest answer is that it hasn't happened yet.

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Not sure it's that meaningful yet. Of course it is an increase but set into context of the short period before it is nothing. House prices in London where I am looking have been stagnant since 2016-2017..... the house price growth spurt came on the back of higher mortgage costs.

For instance 10-year fixed back in 2014 was in the order of 4%, because of the expectation that by now we'd be far up the normalisation curve. Today (well at least before the very recent rises) it was around 2%. The reduction in mortgage rate has done very little for house prices, because in many cases they have nowhere to go.

Put it this way, are there forced sales yet (in any significant number)? The pandemic was said to increase the three D's which would lead to an increase in these types of sales. While it still may happen, the honest answer is that it hasn't happened yet.

The three D's will happen.

Issue with the rest - is i don't get why you would sell with mortgage rates cheaper than rent. You need to live "somewhere" so anyone would be perfectly rational to hang on as long as possible - 6m mortgage holiday, going interest only etc rather than throw in the towel and end up paying more in rent or even worse homeless.

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I agree with that. It is much easier to hang on nowadays than in the past. 

In the case of people that are over-extended, I don't think think renting is more expensive. For the case of the new build flats, someone with a high LTV and perhaps HTB payment kicking in would actually have a lower monthly cost if they rented an older 2-bed flat (which also comes without stupid service charges).

OK, it would not be exactly like-for-like as the rental property might be 50 years older. But in terms of utility, it does the same thing.

There also is the case of people who are equity rich and cash poor - perhaps through loss of job. They could buy still, but move somewhere cheaper to save money. But they would need a sale in a certain time frame as well.

Sure, the three D's may happen, but I suspect that the next prop in the market would be to prevent distressed sales from taking place. 

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Im trying to figure iut what happened to mortgage rates after the last fonancial crisis in 2008. I can find the historic base rate data, but not historic average mortgage rate data. Does anybody know where this can be found? 

Thanks

They went down, a lot. BOE Base rate was 5.5% in Jan 2008, by December 2008 it was 2% and there were 4 cuts in 2008. IT collapsed to 0.5% in Q1 2009.  We bought a new house in March 2009 from STR in August 2007.  When we cleared our 2007 mortgage the monthly interest rate was about 5.5%.  When we agreed a mortgage in principle in December 2008 , it was base rate plus 1.45% tracker, at the time Base reate was 2% so IR would have been 3.45%, better than anything we had seen before. The month we copleted in Mid March 2009, the IR was cut to 0.5%, so out 1st repayment in April was at 1.95%. We have not paid above 2.5% mortgage rate on tracker or fixed since 2009.

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I'm hoping the mix of savings I have will mitigate this (or at least any inflation caused by this 'solution') if it does happen.

I am also in a pretty fortunate position that I don't need to buy so I am willing to wait it out for as long as they can keep the plates spinning. I still have hope that 'they' can't do anything once the time comes, even if they want to.

How much do you pay in rent per month ?

I reckon the place I bought to live in may have dropped 5% or so in price since last year. I've covered that at least in rent saved though, although the calculation is a bit skewed because I rented in the south and bought in the north-ish.

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How much do you pay in rent per month ?

I reckon the place I bought to live in may have dropped 5% or so in price since last year. I've covered that at least in rent saved though, although the calculation is a bit skewed because I rented in the south and bought in the north-ish.

Naff all effectively. Less than £300pm, and so I can afford to hold out.

For me, any house purchase would mainly be for freedom & space purposes rather than any big financial reasons, although I do appreciate many are in a worse position. Either spend shed loads on rent or shed loads on a house. Crap decision either way.

As mentioned, I'm not grumbling too much about my current position, but it would still be nice for affordable housing to include all housing rather than the HA lets. Would be pretty good for the country too.

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.

Sure, the three D's may happen, but I suspect that the next prop in the market would be to prevent distressed sales from taking place. 

Agreed distressed owner occupiers sound limited or unlikely. What about distressed landlords though?

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i building a nice campervan. im seriously thinking of moving into it permanent. i did this before for a couple of years but now feel ive had enough of rents, banks, councils, tax the lot. if they wanted me to stay on that hamster wheel like a diligent monkey then they should have giving a reward. now no reward just take and take.  im getting off the wheel im going rogue. 

 

This is the stage we are at now, where people really are working for nothing at all. they have removed all hope and ambition and the worse thing of all the chance to progress and leave serfdom behind. when millions upon millions who turn out to be the vast majority lifting the heaviest load start to realise their is no point even getting out of bed anymore theb we have trouble. it was only the hope of bettering themselves that kept them going. someone else can pay the bills now. 

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  • 433 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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