Mortgage Rates going UP, UP, UP

carolt

ad9898 wrote: »

Quite correct, long term renting wouldn't be something that would be of interest to me, it's good to 'use it' to protect yourself from the falls which I still think have a significant way to go, but I wouldn't want to be hamstrung long term by a landlord's whims, I will buy when the time is right, that time just isn't now.

Well said; my views entirely.

I've never understood why some on here seem to interpret advice not to buy NOW as meaning not buy EVER.

It's just there are better and worse things times to do things, and in housing terms, that can easily mean a difference of 100 grand, or a lifetime spent squeezing into a tiny house, when a wait of a year or two could mean substantially less debt and/or a much nicer place to live long-term.

For the record - I don't think renting is always better than buying, as some strange people (eg Dan) have suggested recently; I do think that there are unusual times in history, like now, when it makes short-term sense to wait before buying - as a FTB.

(Obviously for those already on the ladder, the decision of whether to buy ie move, are entirely different.)

I do sympathise, lostinrates - I've had those days too, but then those who bought at the peak in 2007 and are now stuck in some entirely unsuitable shoebox they can't sell, probably have those days far more often. At least you still have choices open to you, and many, more wonderful ones, may yet open up.

I'm lucky in that I really don't want to buy for another yer and a half or so, for pesonal rather than financial reasons. Really hope that the housing market comes to meet me at about that time; also that my dream house doesn't come on the market before then, a that would put me in a bit of a pickle.

Gorgeous_George

Mortgage rates are rising to a more sustainable level. 5.79% is not high.

When the BofE base rate rises to 5%, it is likely that the economic woes of the credit crunch/recesion will be largley consigned to history; as competition returns to the mortgage market, margins of 1% will be the norm once more.

So, I don't see mortgage rates rocketing skywards any time soon.

I'm certainly not rushing to fix.

GG

Graham_Devon

Dithering_Dad wrote: »

How long with that take?

10 months.

IveSeenTheLight

Gorgeous_George wrote: »

Mortgage rates are rising to a more sustainable level. 5.79% is not high.

When the BofE base rate rises to 5%, it is likely that the economic woes of the credit crunch/recesion will be largley consigned to history; as competition returns to the mortgage market, margins of 1% will be the norm once more.

So, I don't see mortgage rates rocketing skywards any time soon.

I'm certainly not rushing to fix.

GG

Interesting viewpoint GG

I have two mortgages that will come out of the benefit period at the end of the year.
One is a tracker now at 0.76% which means the SVR will be higher and I will end up paying more.
Another is at 5.5% which is currently likely to go lower due to the SVR so no real difference.

I'm unlikely to get a tracker at the BoE + 0.26% like I currently have so my options really are to fix or stay on the SVR.

The option I am going to pursue is to get a mortgage in principle and sit on the SVR, then if there is an indication of rates rising, I take up the fixed rate mortgage agreement.
If the agreement runs out, then I request a new mortgage in principle.

In theory, I have nothing against fixing at 5-6%, but if I am paying less then surely I should.

I'm interested in your thoughts on when the BoE will rise.
Currently I believe I have the oppertunity to pay off both the mortgages in the next 5-6 years.
It certainly would be great if the interest rate was the current low for that time, somehow I dont think it will be though.

Snooze

Dithering_Dad wrote: »

I've never been to Japan, and I suspect that getting a work permit would be difficult, Mrs Dither and the kids would probably be against it, we'd struggle because we don't speak the language but I think the most overriding reason why our personal circumstances simply couldn't dictate us buying in Tokyo in 1989 is because we just don't own a time machine.

:rotfl::rotfl::rotfl::T

Rob

socrates

Dithering_Dad wrote: »

Only a tiny minority of potential FTBers on here will be buying with cash. Most will have at least 60% LTV mortgages, and in their case a few percentage points on a mortgage will make a significant difference to their finances.

'Most will have at least 60% LTV' - where did you get your statistics from- thats a sweeping statement.

Following the Mortgage Board - most have around 20% maximum or are you saying that prices are going to drop say that their 20% will become 40%?

StevieJ

socrates wrote: »

'Most will have at least 60% LTV' - where did you get your statistics from- thats a sweeping statement.

Following the Mortgage Board - most have around 20% maximum or are you saying that prices are going to drop say that their 20% will become 40%?

'Most will have at least 60%

I took that to mean that most will have at least 60% e.g. 60 or 70 or 80 or 90 (% LTV) but probably not 100 at the moment.

Hence

in their case a few percentage points on a mortgage will make a significant difference to their finances.

Unless of course you are saying that most have 80% to put down

socrates

Its difficult putting into words on here and things get mistaken - from what I have seen most FTB's have 20% deposit.

Obviously if prices continue to decrease then their deposit will go up BUT people are saying inflation will then start to kick in - so its a catch 22 situation.

Dithering_Dad

socrates wrote: »

Its difficult putting into words on here and things get mistaken - from what I have seen most FTB's have 20% deposit.

Obviously if prices continue to decrease then their deposit will go up BUT people are saying inflation will then start to kick in - so its a catch 22 situation.

Sorry, probably poor use of language

As steve correctly states. I meant that most FTBers are unlikely to have more than 40% deposits.

LittleMissAspie

It's still better to wait because you will need to borrow less. Interest rates are up and down like a yoyo over the whole term of a mortgage. Someone buying now when rates are low will face higher rates later, and someone buying later when rates are higher will face lower rates later on too. It all equals out. The price you pay for the house is what matters.