Most mortgage holders knew this interest rate storm was coming for a year now, I hope people have been putting funds away for this situation when their fixed rate deal ends.
If the Corona House Price thread is anything to go by, the above is a bit of tosh.Originally Posted by hilly10
Many on here thought the Truss rate storm was a blip and rates would be heading back down towards typical ZIRP rates; certainly within the next few months.
Paging Ryan and mr noble.
Yeah they did peddle back 3 months ago, I snapped up 3.8% over 5 years
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Any predictions for mortgage rates in Feb 2026?
That's when my fixed rate at 1.43% ends. :(
It’s all crystal ball gazing right now, but if I were to hazard a complete guess, I’d be saying you won’t get anywhere near as good as that, but probably quite a bit better than what’s currently on offer now.
The BoE are clearly going to aim keep going until they think they’ve tackled inflation (unless of course they do a policy U turn). The way things have gone up so quickly in the last year, who knows it may peak sooner than (currently) predicted and start dropping a year or so from now. As I said all Crystal ball stuff!
Agreed - rates like that are long gone and I doubt they will ever return. I suppose I'd be happy with 3% come renewal.
Sadly, strongly suspect it won't be as low as you currently pay so, if you can afford it, might be an idea to try and get the debt down while your rate is low.
Well done. Nice to have certainty and a modest rate too.
If we get another 2008 melt down then we should see everything fall off the face of the earth again… mainly interest rates again? Ripe for it. Who the hell will be able to afford eating out soon and luxuries? Away at the moment, 3 ppl for 3 games is of bowling just for over 50 quid!! Dinner for 3 close to 60. Just madness.
Flushed it, got an offer 3 months before the end of current offer and at that point was still positive , sighed up on my phone got the offer and literally within days shit hit the fan, I don't get much luck and who knows might still not be great but right now 3.8% feels good.
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I was lucky enough to do the same and booked a 5 year deal in April when the rates had softened temporarily.
It must be really tough for anyone applying for a new mortgage now vs remortgage which is probably stress testing at 10%
Unless we’re away we rarely eat out in the UK these days. Last month went to our favourite place locally and the price was really steep. I guess like most here we can afford it, but the conservative-ish spender in me really struggles to justify these prices. Inflation needs to come down soon, really concerning stuff
Brexit bonus
Decimated staffing levels in hospitality had lead to wages going through the roof to attract staff.
Plus cost of goods going up
How great that's turned out to be.
I don't think we are anywhere near a 2008, bank stress tests are much tougher and in fact today have they have been given a clean bill of health and Footsy surged
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Better yet, build savings up in high-interest accounts whilst leaving the mortgage alone while the rate is low. Pay it off when the fixed rate ends.
FTSE surged also because US inflation is back at 3% meaning US rate increase cycle is likely to end soon (maybe one more hike and thats it in the US)
Yeah saw that tbh needle didn't move much but it's good news
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If you are looking to be very financially successful during your investing life, most millionaires are made during recessions.
Know-it-all-Buffett back again lol.
A bit salty tonight, but you crack on.
If you are feeling salty then take a break.
Can’t decide if you are more all-you-can-eat buffet, or a Mattel Master of the Universe banker wannabe.
Both delivered by Wish.
I will take it as a compliment. As one who contributes to these type of threads I reckon I called the direction bob on for almost 12 months.
But, don’t let facts get in the way with your meagre attempt at some sort of humour.
And, this is about your fourth boring attempt over the last few weeks to be salty with me. You are better than this. And I am thoroughly bored of you.
So bore off and take your continued saltiness to the BP if you must. I won’t be there. Bye.
Last edited by noTAGlove; 12th July 2023 at 21:22.
I sense your hessian shirt is itching your shoulders, and perhaps the underwear too.
Live live to your fullest when you can, and can afford to do so, that bus hitting you might be just around the corner.
Doom & gloom is not a way to live your life, lighten up mood-hoover, have some extravagance!
Even if I had a mortgage I'd still be doing the holidays I did & do, life is for living, not living like a monk to save for the next generation.
You just can’t help yourself, can you!
I tried to spell it out more kindly, but you can you please now just fcuk off as I am really very tired of you. Please stop with your continued sh1t attempts at harassing me.
Oh, and btw I am currently sitting on Patmos typing this. Greek Island hopping with no return ticket. Six weeks off work. Life is good.
If you are ever in this part of the world, I can recommend the island of Leros (photo taken yesterday). Anyway, back to a bit of TZ browsing.
Haha. Live life to the full fella!
PM me some more money saving tips, lol.
Edit : are you and Hood the same person, or forum mates? I saw him off a few weeks ago too with a nice new photo of my 23 plate Volvo , and you just seem to have lazily and unimaginatively copied his spiel. New car and holiday. Beans on toast for the rest of the year! Or maybe I will sign up to meerkat for a free dinner.
Last edited by noTAGlove; 12th July 2023 at 23:04.
Must be having a great time away to go back to April for that one.
Might be worth getting a MiFi device if you're out there for 6 weeks. I got one for Bodrum with 100gb and left it out there for my in-laws. Better than £6.85 per person per day on Vodafone for 20gb each.
Didn't allow VPNs or show pictures hosted by Tapatalk though. Just about to go through the Friday and incoming thread for a look at the pics now.
Just a bit of quality downtime as I have had a lovely 12 hours of uninterrupted chatting with the missus!
Can only assume she was looking over your shoulder when you wrote that
Lol
“Saw him off”
I just didn’t want to hurt your feelings as it was your new car and I was in a good mood that day.
Enjoy the holiday.
House prices might have dropped a bit more and you can pop some Cava.
Thank you. I will.
Fwiw this is the 2 year swap rate over the last decade, this charts at different points in time what on the open financial market it would cost to borrow capital for a two year period. With prime ministers and general elections scribbled on top. Though Cameron only became prime minister in the 2010 election.
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i generally agree with the consensus that the energy price inflation that occurred when Russia went into the Ukraine and everyone stopped buying energy from them is still the primary cause, of inflation, interest rates and hence mortgages. Its why US rates are lower, they produce and consume their own oil and gas, they haven't relied on cheap Russian gas for years.
But surely if it´s that simple why is inflation in Europe gradually gliding down, 7 percent in April, at 6 per cent in May, expected to ease down to 5.5 percent in June but the UK appears resolutely stuck at around 8 per cent...is there a singularity that might help explain the difference...
Freedom to choose.....
A kinder, gentler machine gun hand.
All this talk of increased mortgage rates is putting people into panic mode, including myself. I have a residential and a BTL mortgage fixed until October 27. I bit the bullet and stress tested my residential at 8%. Pressed go on the mortgage calculator peered through my fingers expecting the worst. It's an extra £300 per month at 8%. I don't wish to be gauche but BIG DEAL, that's not even worth a moment's worry. The way the press are making things out I was expecting an extra £2k pcm on top.
At 8% the BTL will tip into a negative monthly yield in that the interest only mortgage will be around £133 more than the current rental but I dare say the rent increases over the next 5 years will at least cover that. In any event I should have enough saved to pay the mortgage off if need be or put whatever needs to go in to get LTV down or whatever although my accountant is advising we keep the mortgage as high as possible for the tax relief such that it is.
Point is it's not armagedon by a LONG stretch.
For you maybe.
If interest rates stay as they are when I remortgage I'd pay another £1250 a month.
Luckily I'm fixed until end of 2026 so hopefully they are lower then
Fingers crossed they are lower by then. I appreciate other's circumstances are different.
maTE YOU´LL BE FINE, farting through silk big fella...you´ve years, literally, to get your ducks in a row...nice one.
Our Cava swilling friend whilst island hopping, with not just an electric Vulva at home, but a 23 plate one (wow, baller!), will be on soon to gloat I guess.
An electric vulva you say? Got to look into getting one of them!
Mrs Mj2k will sort you out from her extensive range.
Hi BC, what tax relief is your accountant talking about, please?
20% on the mortgage element.
Ahh yes, fair enough. I was wondering if you’d missed the memo about not being able to offset mortgage interest anymore.
It’s a kick in the teeth if you’re a higher rate taxpayer. Takes away a big chunk of profit.
I am not sure you ever studied or even understood anatomy.
Are you proud of the new car? It is a 23 plate isn't it?
You like to see reminding us of that fact - is it your first?
What comedy! You are trying to reason with me over anatomy when I am completely taking the p1ss! You fool!
It is always better to remain silent and be thought a fool than to speak and to remove all doubt.
I have now seen you off for the fourth or fifth time. I can’t remember, but I am now having fun with you.
I know you will be back, because you just aren’t clever enough to know when to quit.
As I said, take it to the BP if you must.
The G&D is not appropriate for your continued attention seeking.
Nice work if you can convert 100% of the rent into mortgage interest payments without fees, taxes, wear/tear and voids. And that is before the hassle factor of owning another property for rent.
As you say, for you it may not be an issue as you appear wealthy enough to cope, but I am sure you did not go into this planning for negative investment return or effectively subsiding your renters.
The longish fixed mortgage you have is protecting you from this, so that is a big positive for you.
Many others who are highly geared and coming off, or are shortly coming off very low rates may not be so lucky.
Last edited by noTAGlove; 16th July 2023 at 22:56.
Thought I would pop over to the BOE website just for entertainment value
Anyway don’t worry chaps it’s all in hand.
Buy,sell,buy,print, sell,buy,borrow,sell,print !
When you read this guff make sure you do it in the style of Johhny Ball
https://www.bankofengland.co.uk/mone...itative-easing
QE involves us buying bonds to push up their prices and bring down long-term interest rates. In turn, that increases how much people spend overall which puts upward pressure on the prices of goods and services.
In total, we bought £895 billion worth of bonds. Most of those (£875 billion) were UK government bonds. The remaining £20 billion were UK corporate bonds.
The last time we announced an increase in the amount of QE was in November 2020.
At the moment, inflation is above the 2% target, so we have raised interest rates to bring it back down again.
We have been both increasing Bank Rate and reversing QE – a process sometimes called ‘quantitative tightening’ (QT).
We are reversing QE by selling the assets we purchased. We began doing that in November 2022
We can use our bank reserves to buy bonds
The money we used to buy bonds when we were doing QE did not come from government taxation or borrowing. Instead, like other central banks, we can create money digitally in the form of ‘central bank reserves’.
We use these reserves to buy bonds. Bonds are essentially IOUs issued by the government and businesses as a means of borrowing money.
Now that we are reversing QE, some of those bonds will mature and we are selling others to investors. When that happens, the money we created to buy the bonds disappears and the overall amount of money in the economy will go down.
We’re not alone in using QE. Central banks in many other countries, including the United States, the euro area and Japan have used it too.
Buying bonds supports the prices of other financial assets
QE increases the price of financial assets other than bonds, such as shares.
Here’s an example. Say we buy £1 million of government bonds from an asset manager. In place of those bonds, the asset manager now has £1 million in cash.
Rather than hold on to that cash, it might invest it in other financial assets, such as shares.
In turn that tends to push up on the value of shares, making households and businesses and other financial institutions that own those shares wealthier. That makes them likely to spend more, boosting economic activity.
Last edited by TKH; 17th July 2023 at 05:52.
Ah yes, your seen off phrase that you relish as much as your cava. Yet both Hood and I remain despite your belief you have seen us both off.
Clown.
If I'm what passes for wealthy nowadays I'd suggest we are in trouble (or you need to get out more).
As you point out, repairs, voids, mortgage fees (and also potentially upgrading from current D to C EPC rating if that makes it into law) are all expenses I'm likely and expecting to face (and offset against my tax liability) but this is and always has been a long term investment for me (20 years or so). If I sold now I would get absolutely hosed for capital gains tax.
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