Three major lenders to raise mortgage rates

[bartelbe]

Reality bites, the mainstream have been acting as if interest rate increases are a temporary blip. This insanity reached its height when mortgage providers started pricing their products as if interest rate cuts had already happened.

The start of rate cuts keeps getting pushed further and further back; we were told to expect multiple cuts this year, which should have already started. Now they are talking of a possible cut at the end of the year, maybe.

Alas there will still be fools who will claim that house price inflation can somehow be magically sustained with interest rates at around 5% instead of 0.25%. 

[Stewy]

1 hour ago, bartelbe said:

we were told to expect multiple cuts this year, which should have already started. 

Agreed ✓ 

[desiringonlychild]

On 4/30/2024 at 8:26 PM, dances with sheeple said:

Fair enough, I don`t think they would have been kicked out very quickly with a new-born infant TBH, and why would the landlord give up a grand a month to have an empty flat sitting unsold for months in a stalled housing market? I get their decision but the timing isn`t very good, they would have done better hanging on a bit IMO.

They can get kicked out. I once viewed a flat where the couple had a young baby and the landlord wanted the estate agent to lie to them that i was an investor who would buy the flat with in situ tenants. I was 26 years old with a baby face, very obvious first time buyer. The estate agent lied to them while playing with the baby who had just learned to walk.The mother was practically in tears , saying she didn't want to lose their home.

I eventually bought an empty flat, a 1930s flat that had been spruced up for sale by a landlord. I found out after moving in that the previous occupants were a young couple with a baby and dog, I found them on Facebook as received a lot of their mail and mailed it back to them. She told me how much she missed the area..

This is in London in 2018/2019. From what I know  the rental market has gotten worse.

Edited May 4 by desiringonlychild

[dances with sheeple]

Just now, desiringonlychild said:

They can get kicked out. I once viewed a flat where the couple had a young baby and the landlord wanted the estate agent to lie to them that i was an investor who would buy the flat with in situ tenants. I was 26 years old with a baby face, very obvious first time buyer. The estate agent lied to them while playing with the baby who had just learned to walk.The mother was practically in tears , saying she didn't want to lose their home.

I eventually bought an empty flat, a 1930s flat that had been spruced up for sale by a landlord. I found out after moving in that the previous occupants were a young couple with a baby and dog, I found them on Facebook as received a lot of their mail and mailed it back to them. She told me how much she missed the area..

This is in London in 2018/2019. From what I know  the rental market has gotten worse.

Do you have any examples with a baby a dog and a cat getting kicked out? I will definitely believe you then. What you are talking about is deception, i am talking about the tenant getting clued up on the law to protect themselves. I still say that the couple in the original post will regret getting into mortgage debt at this stage in the market, even although they have escaped the clutches of the evil landlord, you can`t phone the council to get the bond market to behave.

[dances with sheeple]

6 hours ago, Stewy said:

I don't know anyone getting 0%. Most are at least 5%+.

As usual this forum is polluted by negative bullsh*t from people who want to drag others into their personal depression.

I will add @fellow to my Contrarian Indicator Fool alongside @The Angry Capitalist as useful posters to take the opposite view. Always valuable having people like that ✓✓

🌱

If that is true then rates are going even higher, that will be even more pain and depression for the over-borrowed.

[Dreamcasting]

4 minutes ago, dances with sheeple said:

If that is true then rates are going even higher, that will be even more pain and depression for the over-borrowed.

I love how the central banks have got this divide going on. Get 49% of people screaming for rate cuts because they think 5.25% is high. Get 49% of people thinking 5.25% is right where they need to be. The silent 2% of people know that both cohorts are wrong and that rates should actually be very much higher otherwise this whole charade drags out for years until everyone ends up poor.

 

[dances with sheeple]

49 minutes ago, Dreamcasting said:

I love how the central banks have got this divide going on. Get 49% of people screaming for rate cuts because they think 5.25% is high. Get 49% of people thinking 5.25% is right where they need to be. The silent 2% of people know that both cohorts are wrong and that rates should actually be very much higher otherwise this whole charade drags out for years until everyone ends up poor.

 

I think the BOE are shy to hike, they want to protect the property bubble so it can get started again, but I think the U.S are going to hike and maybe break something (possibly they will break the U.K, LOL) The FED doesn`t seem to care too much about lowering property costs it seems?

[Dreamcasting]

2 minutes ago, dances with sheeple said:

I think the BOE are shy to hike, they want to protect the property bubble so it can get started again, but I think the U.S are going to hike and maybe break something (possibly they will break the U.K, LOL) The FED doesn`t seem to care too much about lowering property costs it seems?

The US and UK have completely different property markets, but you're correct, property isn't high on the agenda as far as the US goes.

The problem in the UK is that's a case of the property market being the economy. This of course needs to change, but i've always found UK workers to be quite lazy, entitled and unproductive. Of course I am just generalising a little and maybe high property prices are part of the reason for this apathy.

[Dames]

45 minutes ago, Dreamcasting said:

..but i've always found UK workers to be quite lazy, entitled and unproductive.

Not on building sites we're not! 

Price work 💪

 

D

[70PC]

Mortgage rates up, valuations down. 

https://twitter.com/moving_charlie/status/1786323688993780073/photo/1

[Tony_Teacake]

1 hour ago, 70PC said:

Mortgage rates up, valuations down. 

https://twitter.com/moving_charlie/status/1786323688993780073/photo/1

It is about the time the banks started to down value these properties as they are a big part of the problem which we have had especially during covid which has massively contributed to this ridiculous house price inflation.

What I still can't grasp is some of the commentators on here still cannot believe we are in a bubble.

[Tony_Teacake]

8 hours ago, Stewy said:

Agreed ✓ 

Keep praying 🙏 🙏 🙏 

[Tony_Teacake]

8 hours ago, Stewy said:

Agreed ✓ 

 

 

[Tony_Teacake]

6 hours ago, Dreamcasting said:

This of course needs to change, but i've always found UK workers to be quite lazy, entitled and unproductive.

I take it you are not from the UK?

[Dreamcasting]

29 minutes ago, Tony_Teacake said:

I take it you are not from the UK?

I am from the UK but spend approx 50% of my time in the US. The difference with US workers is the easy firing and fewer holidays. UK workers tend to be more complacent.

[Tony_Teacake]

1 hour ago, Dreamcasting said:

I am from the UK but spend approx 50% of my time in the US. The difference with US workers is the easy firing and fewer holidays. UK workers tend to be more complacent.

So your generalisation about UK workers being lazy obviously includes yourself.

[desiringonlychild]

18 hours ago, dances with sheeple said:

Do you have any examples with a baby a dog and a cat getting kicked out? I will definitely believe you then. What you are talking about is deception, i am talking about the tenant getting clued up on the law to protect themselves. I still say that the couple in the original post will regret getting into mortgage debt at this stage in the market, even although they have escaped the clutches of the evil landlord, you can`t phone the council to get the bond market to behave.

I am talking about families wanting some stability at this time of their lives. If you can fix a mortgage for 5 to 10 years it doesn't matter how the bond markets behave in that time. For many People that is a game changer..for us personally  that meant our household income going up from 75k to 120k in 5 years plus husband student loan getting paid off..For many other families it could mean the kid going to school so 1k better off every month to pay an increased mortgage if need be. But that 5 years of paying a fixed mortgage in your years of getting established is still worth something, it can help you maintain the status quo while working to increase pay. However if you are moving every year and landlords making your life a misery by messing you around coupled with shortage in rentals that can get you in trouble quite quickly. The council can't do much other than offer you a stay in travelodge.

Edited May 5 by desiringonlychild

[Dreamcasting]

10 hours ago, Tony_Teacake said:

So your generalisation about UK workers being lazy obviously includes yourself.

No, otherwise I wouldn't be running a successful business.

[fellow]

16 hours ago, 70PC said:

Mortgage rates up, valuations down. 

https://twitter.com/moving_charlie/status/1786323688993780073/photo/1

Link embedded below. Quite and interesting anecdote about every lender down valuing £15-£30k. Probably an exaggeration but it gives an indication to which direction the banks think prices are heading.

 

Edited May 5 by fellow

[Tony_Teacake]

1 hour ago, Dreamcasting said:

No, otherwise I wouldn't be running a successful business.

With this comment you said in another thread which was "Most people are fairly dumb which is why you haven't got to be".

 You saying this makes you come across as very arrogant and full of yourself.

[dances with sheeple]

7 hours ago, desiringonlychild said:

I am talking about families wanting some stability at this time of their lives. If you can fix a mortgage for 5 to 10 years it doesn't matter how the bond markets behave in that time. For many People that is a game changer..for us personally  that meant our household income going up from 75k to 120k in 5 years plus husband student loan getting paid off..For many other families it could mean the kid going to school so 1k better off every month to pay an increased mortgage if need be. But that 5 years of paying a fixed mortgage in your years of getting established is still worth something, it can help you maintain the status quo while working to increase pay. However if you are moving every year and landlords making your life a misery by messing you around coupled with shortage in rentals that can get you in trouble quite quickly. The council can't do much other than offer you a stay in travelodge.

 It does matter though if we suddenly go from zero rates back to normal rates before you fix, the people now on fixes fixed when rates were super low, buyers now can`t  afford the monthly payments at todays house prices.

https://www.plumplot.co.uk/London-property-transactions.html

It also matters if you need to sell the house in that fixed period because if rates spike new borrowers are going to be paying more for their monthly debt maintenance than you are and you might not get back what you borrowed for the house.

 

You are just trotting out emotive cliches regarding renting - "Shortage", "Messed around", "Chucked out after a year" , "landlord making your life a misery" etc. etc. This is all the same B.S that the money lenders and their pet media puppets have been trotting out for years to scare people into mortgage debt, and if you look around now the media is full of stories making renting look like a "negative" - I wonder why, LOL.

[winkie]

16 hours ago, Dreamcasting said:

I am from the UK but spend approx 50% of my time in the US. The difference with US workers is the easy firing and fewer holidays. UK workers tend to be more complacent.

We are heading the US way so expect that to change....... consumption economy, all good as long as the population keeps consuming, forever wanting more........ homelessness is however epidemic, health have no access to.... but I suppose they have the space to hide it, always be the saviour politician that will say on their side, vote for them and things will change.

[Stewy]

13 hours ago, winkie said:

We are heading the US way so expect that to change....... consumption economy, all good as long as the population keeps consuming, forever wanting more........ 

I don't see this at all. People are happy with less. Less tat is being consumed as people swap it for experiences. 🌱 

The overstuffed bookshelf is becoming a boomer thing.. millennials tend to be more frugal .. ✓ 

[Social Justice League]

16 hours ago, winkie said:

We are heading the US way so expect that to change....... consumption economy, all good as long as the population keeps consuming, forever wanting more........ homelessness is however epidemic, health have no access to.... but I suppose they have the space to hide it, always be the saviour politician that will say on their side, vote for them and things will change.

The US is going down the tubes because all they have left to continue consuming is printing worthless fiat.  That's it.

It an economic model that a 5 year old could come up with.

'If I keep painting pictures of money I can have as many sweets as I like".

[desiringonlychild]

16 hours ago, dances with sheeple said:

 It does matter though if we suddenly go from zero rates back to normal rates before you fix, the people now on fixes fixed when rates were super low, buyers now can`t  afford the monthly payments at todays house prices.

https://www.plumplot.co.uk/London-property-transactions.html

It also matters if you need to sell the house in that fixed period because if rates spike new borrowers are going to be paying more for their monthly debt maintenance than you are and you might not get back what you borrowed for the house.

 

You are just trotting out emotive cliches regarding renting - "Shortage", "Messed around", "Chucked out after a year" , "landlord making your life a misery" etc. etc. This is all the same B.S that the money lenders and their pet media puppets have been trotting out for years to scare people into mortgage debt, and if you look around now the media is full of stories making renting look like a "negative" - I wonder why, LOL.

But you can do things that mean that you are less likely to move in the short term. My interest  rate doubled from 2% to 4% but even at the higher mortgage rate, my mortgage payment is less than 20% of my nett household income, it was 25% of household income  when we bought in 2019. 

If I was buying today I would buy a share of freehold 2 bed maisonette/terraced house where mortgage payments are not more than 25% of household income, preferably with scope to extend, near schools and  jobs. If you are a youngish couple you could probably live there until the kid starts school even without extension. Even if I got pregnant tomorrow which isn't super likely for me with my fertility problems, it would be 9 years for me in my first home.