nod Posted June 20, 2023 Share Posted June 20, 2023 Mortgage rates are set to rise again Whilst I understand putting interest rates help cut spending This time seams totally different from previous times With most people’s spending is on Essentials Food and heating Am I missing something So far we have held back on putting rents up But an £800 rent will have to go up to a £1000 and that leaves us standing half the cost Will that help lower inflation? Whilst the government claims to have no sway over the Bank of England They should step in and stop this madness Link to comment Share on other sites More sharing options...
Thorfun Posted June 20, 2023 Share Posted June 20, 2023 if BoE put up the rates by up to .5% as the reports are saying my self-build mortgage will go up to 8.5%! and it's not a small mortgage either. and @Nickfromwales chastises me for not wanting to spend £15 on electrical fittings. 🤣 Link to comment Share on other sites More sharing options...
eandg Posted June 20, 2023 Share Posted June 20, 2023 When we acquired the land for our site I was prudently budgeting at 2.5. When we complete later this summer it'll be 6% or thereabouts. For us (£275k mortgage over 25 years) that's £538 extra a month we need to find - or an additional £11.3k in pre-tax earnings just to stand still and all just going into the financial services ether. Link to comment Share on other sites More sharing options...
markc Posted June 20, 2023 Share Posted June 20, 2023 Anyone else remember interest rates around 15% ? When you got 10%+ on your savings. mortgages were roughly £10 per month per £1000 borrowed 2 1 Link to comment Share on other sites More sharing options...
jayc89 Posted June 20, 2023 Share Posted June 20, 2023 Hospitality is booming which is causing some skewed figures. Many people are struggling, but there are still people out there with money to spend. 1 Link to comment Share on other sites More sharing options...
nod Posted June 20, 2023 Author Share Posted June 20, 2023 56 minutes ago, markc said: Anyone else remember interest rates around 15% ? When you got 10%+ on your savings. mortgages were roughly £10 per month per £1000 borrowed Yep I took my first mortgage out at 12% which quickly rose to 15% The problem we have now is that house prices are based on extremely low rates 1 Link to comment Share on other sites More sharing options...
Big Jimbo Posted June 20, 2023 Share Posted June 20, 2023 It's the reason i walked out of my job in banking. There was no mercy. Can't pay, take the house back off them. I believe that when the shite hit the fan in Ireland, the banks ended up owning more property than the general public. From memory, my first mortgage was £325 per month against a take home pay of about £1000. However, a tenner a month to the gas and electricty covered it. Petrol was about 75pence a gallon, a decent second hand car, about 3 grand. Now a bloody coffee is about 4quid. 3 Link to comment Share on other sites More sharing options...
Big Jimbo Posted June 20, 2023 Share Posted June 20, 2023 45 minutes ago, jayc89 said: Hospitality is booming which is causing some skewed figures. Many people are struggling, but there are still people out there with money to spend. Travelodge is booming. Bookings up year on year. However about 30% of the bookings are paid for by the Local Authority, housing homeless families. 1 Link to comment Share on other sites More sharing options...
JohnMo Posted June 20, 2023 Share Posted June 20, 2023 1 hour ago, markc said: Anyone else remember interest rates around 15% ? When you got 10%+ on your savings. mortgages were roughly £10 per month per £1000 borrowed Bought my first house at about 15% interest, (100% mortgage) new house off plan, got a good discount to have no heating and unpainted internally. Got a full heating system from the local recycling (or dump as it was known as then). But was cold and skint for the first 6 months. Would be outcry now if a 20s something, even thought about doing the same. 4 Link to comment Share on other sites More sharing options...
LA3222 Posted June 20, 2023 Share Posted June 20, 2023 (edited) It is a fact of life that the BoE has one hammer - interest rates. When inflation is low, they lower them to encourage spending, when inflation is high they raise them to stop people spending. Inflation is rampant.....no matter the source of that inflation the bank only has one tool in the bag and unfortunately, their only tool hits a very specific target - the common man/woman on the street. There is absolutely no other tool available to them and they will continue to use it until Inflation drops. The repossessions/bankruptcies are just collateral damage. It sucks ass but that is the way that life works at the minute. My mortgage is howling and I dislike it as much as the next person but there is no option other than to ride it out as best as can be done. Edited June 20, 2023 by LA3222 2 Link to comment Share on other sites More sharing options...
jayc89 Posted June 20, 2023 Share Posted June 20, 2023 When we moved in March 2021, I thought I only took out a 2 year fixed, turned out I actually took out a 5 year fixed. So I'm alright, Jack. We rent out our old house, it had a year left on it's existing deal before we moved it to a BTL last year, repayments went up £50 which we passed on to the tenant, their response - "Oh, I thought you'd have increased it more than that"! I work from a shared office space in York once a week or so, it's slap bang in the middle of the city and after lunch the streets are packed with shoppers, people out eating/drinking, more so since the weather's been nice and this is in the middle of the week. IIRC, I saw something suggesting that way back when, most people were on tracker/variable mortgage rates, so when rates increased, a lot of people felt the pinch quickly, however these days, much more are on fixed rates so there's a lag between interest rates going up and those fixed rate deals ending, when consumers start to feel it. Link to comment Share on other sites More sharing options...
Nickfromwales Posted June 20, 2023 Share Posted June 20, 2023 3 hours ago, Thorfun said: if BoE put up the rates by up to .5% as the reports are saying my self-build mortgage will go up to 8.5%! and it's not a small mortgage either. and @Nickfromwales chastises me for not wanting to spend £15 on electrical fittings. 🤣 There's a big difference between being tight and being homeless. For the record, keep paying your mortgage, ok!! 1 Link to comment Share on other sites More sharing options...
Nickfromwales Posted June 20, 2023 Share Posted June 20, 2023 1 hour ago, Big Jimbo said: Travelodge is booming. Bookings up year on year. However about 30% of the bookings are paid for by the Local Authority, housing homeless families. ...which is just bloody lunacy!?! Link to comment Share on other sites More sharing options...
Pocster Posted June 20, 2023 Share Posted June 20, 2023 My total mortgage costs from 12 months ago have gone up 25k 😢 boe has very simplistic tools at their disposal. Bang rates up to stop some of us spending to bring inflation down and ultimately on the way an engineered recession. How else can you control the inflation monster ?. Still ( on the not very bright side ) inflation does erode debt …. Link to comment Share on other sites More sharing options...
Pocster Posted June 20, 2023 Share Posted June 20, 2023 2 hours ago, Big Jimbo said: Now a bloody coffee is about 4quid. Cheap coffee then ! You need to go to artisan ( the what ? ) coffee shops - where us people of great ( little ) status go . (expletive deleted) the mortgage have a coffee Link to comment Share on other sites More sharing options...
Sparrowhawk Posted June 20, 2023 Share Posted June 20, 2023 3 hours ago, jayc89 said: Hospitality is booming which is causing some skewed figures. Many people are struggling, but there are still people out there with money to spend. We're on holiday in Scotland and restaurants with mains in the £16-25 band are busy. It's crazy. Us? We go to the Co-op and get their very good pizza for £6.45. Or if in a city and feeling flush, M&S Food hall. For £25 you can get a better meal for 2 than most reasonably-priced restaurants will serve. Link to comment Share on other sites More sharing options...
Pocster Posted June 20, 2023 Share Posted June 20, 2023 Soon we won’t be able to afford our rent / mortgage afford food afford gas afford electric afford fuel At least the suns out ( though I’m sure someone will piss on that and say it’s raining where they are ) 1 Link to comment Share on other sites More sharing options...
SteamyTea Posted June 20, 2023 Share Posted June 20, 2023 3 minutes ago, pocster said: At least the suns out ( though I’m sure someone will piss on that and say it’s raining where they are ) Not seen that for over a day now. Link to comment Share on other sites More sharing options...
Big Jimbo Posted June 20, 2023 Share Posted June 20, 2023 1 hour ago, Nickfromwales said: ...which is just bloody lunacy!?! And i believe owned by an American Bank. Link to comment Share on other sites More sharing options...
Nickfromwales Posted June 20, 2023 Share Posted June 20, 2023 54 minutes ago, Big Jimbo said: And i believe owned by an American Bank. Even better....🤷♂️🤦♂️ Link to comment Share on other sites More sharing options...
joe90 Posted June 20, 2023 Share Posted June 20, 2023 (edited) 1 hour ago, pocster said: At least the suns out ( though I’m sure someone will piss on that and say it’s raining where they are ) Raining here!(the garden needs it) Edited June 20, 2023 by joe90 Link to comment Share on other sites More sharing options...
JohnMo Posted June 20, 2023 Share Posted June 20, 2023 Was supposed to be raining here for the last 3 hours, but still dry. Link to comment Share on other sites More sharing options...
ProDave Posted June 20, 2023 Share Posted June 20, 2023 11 hours ago, markc said: Anyone else remember interest rates around 15% ? When you got 10%+ on your savings. mortgages were roughly £10 per month per £1000 borrowed Yes I do. On the news today they were saying how terrible it was that the average renter would be paying about 28% of their salary on rent. I raise you when I was paying 50% of my salary on my mortgage. 1 Link to comment Share on other sites More sharing options...
Brickie Posted June 21, 2023 Share Posted June 21, 2023 17 hours ago, JohnMo said: Would be outcry now if a 20s something, even thought about doing the same. This would be massively overshadowed by the astonishment at a 20 something (without a massive lump in from their parents) actually being able to afford a property. 1 Link to comment Share on other sites More sharing options...
jayc89 Posted June 21, 2023 Share Posted June 21, 2023 Inflation stays at 8.7%. Quote Airfares, second-hand cars, live music events, and the price of computer games all fed into the rapid pace of price rises. Baring cars, all things people typically wouldn't be buying in a recession. The crux of it is, not enough people are yet feeling the pinch. 3 Link to comment Share on other sites More sharing options...
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