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Mortgage rates rise for third consecutive month


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https://moneyfacts.co.uk/news/mortgages/mortgage-rates-rise-for-third-consecutive-month/

Figures to be published in the latest Moneyfacts UK Mortgage Trends Treasury Report show that the average two year fixed mortgage rate has increased by 0.14% month-on-month, up from 2.24% at the start of September to 2.38% on 1 October. 

 

3 rate rises by the end of 2020. Surprised no one predicted this :lol: 

 

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https://moneyfacts.co.uk/news/mortgages/mortgage-rates-rise-for-third-consecutive-month/

Figures to be published in the latest Moneyfacts UK Mortgage Trends Treasury Report show that the average two year fixed mortgage rate has increased by 0.14% month-on-month, up from 2.24% at the start of September to 2.38% on 1 October. 

 

3 rate rises by the end of 2020. Surprised no one predicted this :lol: 

 

Good

Burn the debt slaves

 

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‘I’m trapped by my mortgage – let me escape’

"People who can afford to pay more can get mortgages meet the affordability rules so they can pay less with a cheaper mortgage of less than 2%. I'm paying £1,100 a month at 5% and you're telling me I can't afford to pay less?"

 

Welcome to the party pal.  I can't afford £900 mortgage, but can afford £1100 rent to a BTL scumlord?

I got 99 problems, but you aint one.

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‘I’m trapped by my mortgage – let me escape’

"People who can afford to pay more can get mortgages meet the affordability rules so they can pay less with a cheaper mortgage of less than 2%. I'm paying £1,100 a month at 5% and you're telling me I can't afford to pay less?"

 

Welcome to the party pal.  I can't afford £900 mortgage, but can afford £1100 rent to a BTL scumlord?

I got 99 problems, but you aint one.

It's sh1t. But we all have to cope with sh1t. What makes this special sh1t that needs a govt bail out?

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It's sh1t. But we all have to cope with sh1t. What makes this special sh1t that needs a govt bail out?

Because she is a scared home owner and we must give everything to them.

Plus she also a pretty face for Tory boys obsessed with 'helping our own'

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‘I’m trapped by my mortgage – let me escape’

"People who can afford to pay more can get mortgages meet the affordability rules so they can pay less with a cheaper mortgage of less than 2%. I'm paying £1,100 a month at 5% and you're telling me I can't afford to pay less?"

 

Welcome to the party pal.  I can't afford £900 mortgage, but can afford £1100 rent to a BTL scumlord?

I got 99 problems, but you aint one.

That's the BBC, I almost believed it for a moment there.

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Rates will fall once the glut in the market is processed. This is simply lenders throttling applications by raising rates and pulling the higher LTVs. There's good reason for this, they are limited in how much risk and what lending multiples they're able to take. Once the frenzy in the market subsides they'll be back competing for business but with an appetite (and ability) to take on those higher multiples and LTVs. 

I remortgage next near. Let's see if rates are 10% or 1%. 

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Rates will fall once the glut in the market is processed. This is simply lenders throttling applications by raising rates and pulling the higher LTVs. There's good reason for this, they are limited in how much risk and what lending multiples they're able to take. Once the frenzy in the market subsides they'll be back competing for business but with an appetite (and ability) to take on those higher multiples and LTVs. 

I remortgage next near. Let's see if rates are 10% or 1%. 

That's a part of it, but much more they realise the writing is on the wall. The government cant keep furlough going forever, unemployment will eventually surge and taxes will rise to pay for all this, not least on property. 

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That's a part of it, but much more they realise the writing is on the wall. The government cant keep furlough going forever, unemployment will eventually surge and taxes will rise to pay for all this, not least on property. 

That wishful thinking quite frankly. The mortgage companies cannot deal with the demand now so this is plain old pick of the punters. 

The writing isn't on the wall I'm afraid. Furlough extended until Spring at which point pretty much all restrictions bar possibly masks on the London Underground will be lifted. 

Unemployment will rise, but I'd expect it to be well on the road to recover within 12 months. 

Pray tell, what property taxes? The only thing possible right now is CGT and there's a jolly easy way of avoiding that little rascal which kills also supply. Don't sell!

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That wishful thinking quite frankly. The mortgage companies cannot deal with the demand now so this is plain old pick of the punters. 

The writing isn't on the wall I'm afraid. Furlough extended until Spring at which point pretty much all restrictions bar possibly masks on the London Underground will be lifted. 

Unemployment will rise, but I'd expect it to be well on the road to recover within 12 months. 

Pray tell, what property taxes? The only thing possible right now is CGT and there's a jolly easy way of avoiding that little rascal which kills also supply. Don't sell!

Professional investors -especially foreign- have been and will continue to be squeezed through tax. I also believe a mansion tax / council tax rerating isn't entirely off the cards for the Tories. Ultimately if you rule out raising NI, VAT and income tax where else do you go? Also property is the least mobile asset of all and therefore impossible to avoid. 

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Professional investors -especially foreign- have been and will continue to be squeezed through tax. I also believe a mansion tax / council tax rerating isn't entirely off the cards for the Tories. Ultimately if you rule out raising NI, VAT and income tax where else do you go? Also property is the least mobile asset of all and therefore impossible to avoid. 

Print. Lower govt borrowing costs through QE. 

Fact is rising taxes into a recovery (and recover we shall - fairly rapidly I'd bet) isn't a good idea. Pre-Covid we were borrowing very little so balancing the books shouldn't be hard from 2022 I'd say. 

So far this year we've seen property taxes lowered by up to £15k. SDLT is a nonsense tax anyway, it puts the brakes on downsizing and relocating. I'd quite like it to be abolished altogether with the exception of 2nd homes, property bought in a company and overseas 'investors'.

Fiscal drag is anothe3r cheeky way of raising taxes without 'raising taxes' Labour did this for pretty much the full tenure. Keep thresholds and rates flat and let payrises and inflation do the rest. 

Pension relief of 40% is likely to go, other tax free incentives are likely to follow. 

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I’ve tracked Barclays rates for almost 5 years, current rate on a 5 year fix 60% Ltv is 1.43% , lowest I’ve  seen it in 5 years.  In 2018 it was around 1.79%

75% ltv is not far behind either.

Which suggests the increased rates at high LTVs isn't about providers being unable to cope with the number of mortgage application at all. It's about managing risk. 

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The bank of England asked the banks if they were ready for negative interest rates recently, didn't they? 

They wouldn't be doing that if interest rate rises were coming. 

Yep. I will worry when my 2% 5 year fix end in 2023. They might be all fighting to pay me for my mortgage by then. 

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  • 439 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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