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Debate House Prices
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How high would base rates have to rise before..
HAMISH_MCTAVISH
Posts: 28,592 Forumite
.....you'd be in danger of losing your house due to the increased payments, assuming current level of income.
Mortgage holders only please.
Mortgage holders only please.
“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”
How high would base rates have to rise before you couldn't pay the mortgage? 83 votes
3% or lower
4%
4 votes
4%
6%
5 votes
5%
3%
3 votes
6%
6%
5 votes
8%
7%
6 votes
10% or higher
72%
60 votes
0
Comments
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Impossible to answer, depends how much the bank absorbs
This is a system account and does not represent a real person. To contact the Forum Team email forumteam@moneysavingexpert.com0 -
Well it's pretty pointless asking us. Half of us pretend to be uber rich. The other half don't have mortgages and are mocked by those pretending to be uber rich.0
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10% or higherJoe, you devil you....
No, with your current deal, current margin above base, current income.“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
10% or higherHAMISH_MCTAVISH wrote: ».....you'd be in danger of losing your house due to the increased payments, assuming current level of income.
Mortgage holders only please.
If rates go back to around what they were in 2007 (around 6%) ill be back to not making any massive overpayments on the morgage every month.
If they go to 10% I will have to take drastic action, like only having 1 week in the Maldives every year.0 -
10% or higherI've put 10% as my situation is completely different to those who bought within a few years of peak.
Research in the public domain suggests nearly a million mortgage holders are on a financial knife edge, just a couple of percent increase on say a balance of 130k+ would undoubtably push them into hardship.0 -
Too simplistic a question.
As an example I know someone in the public sector whose pay is frozen next tax year. They are also losing a weighting allowance of a net £25 per month and will be incurring increased staff car parking charges of £35 per month.
So next tax year they are a net £60 down on take home pay. That's without the increased cost of vehicle fuel, electric and gas, and food.
A rise in interest rates while being absorbed. Is still going to be painful.0 -
If my mortgage rate hit 12% then I'd have to start cutting back elsewhere. Up to that point I could just stop saving/repaying. SVR is currently 4.2something
Edit: That's assuming no pay rises though, I'm due 8% this year, dunno how to work that out.This is a system account and does not represent a real person. To contact the Forum Team email forumteam@moneysavingexpert.com0 -
10% or higherIf the base rate rocketed, I would pay off a substantial part of my mortgagesChuck Norris can kill two stones with one birdThe only time Chuck Norris was wrong was when he thought he had made a mistakeChuck Norris puts the "laughter" in "manslaughter".I've started running again, after several injuries had forced me to stop0
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10% or higherIndividually its a meaningless poll.
The problems and the repos come from knock on effects.
If the population spend more on interest, they spend less elsewhere. That money spent elsewhere is what pays peoples wages. If that is reduced then layoffs come, layoffs lead to problems and repos.
So some people may end up losing their home after just a 2% increase despite currently feeling safe.0 -
10% or higherif base rate hit 12% It'd p1ss me off as my overpayment would be entirely interest and then i'd have to spend my own funds on overpayment which would then impact my holidays
and assuming by a 10% rise you don't mean base rate goes upto 0.55%0
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