We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
Debate House Prices
In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non MoneySaving matters are no longer permitted. This includes wider debates about general house prices, the economy and politics. As a result, we have taken the decision to keep this board permanently closed, but it remains viewable for users who may find some useful information in it. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
If you where buying today at what rate would you stress test?
geoffky
Posts: 6,835 Forumite
If i was needing a mortgage and buying today i would be stress testing my affordability rates at 10%. what rates have you or will you plan for withing the first ten years of the mortgage?
It is nice to see the value of your house going up'' Why ?
Unless you are planning to sell up and not live anywhere, I can;t see the advantage.
If you are planning to upsize the new house will cost more.
If you are planning to downsize your new house will cost more than it should
If you are trying to buy your first house its almost impossible.
Unless you are planning to sell up and not live anywhere, I can;t see the advantage.
If you are planning to upsize the new house will cost more.
If you are planning to downsize your new house will cost more than it should
If you are trying to buy your first house its almost impossible.
0
Comments
-
10% sounds good, although I'm hoping to buy outright, however if I can't it will only be a 10-20% LTV, so rates won't have me too worried. I think it's good advice though Geoff for everyone taking out a mortgage to factor the rate you say.0
-
Geoffky,
Past performance is no guide to future performance, but you would be wise to look at the rates in the 80's.
http://www.assetsure.com/mortgage-interest-rates.htm0 -
As I read the thread title I thought 10%.....what do they say - fools seldom differ?0
-
I'd say 10% is about right these days. I doubt many can survive past 6% though!!0
-
8% for me, however I would be looking for a 10 year fix well below this.'Just think for a moment what a prospect that is. A single market without barriers visible or invisible giving you direct and unhindered access to the purchasing power of over 300 million of the worlds wealthiest and most prosperous people' Margaret Thatcher0
-
If i was needing a mortgage and buying today i would be stress testing my affordability rates at 10%. what rates have you or will you plan for withing the first ten years of the mortgage?
Does your model factor in what might happen to the larger economy should interest rates hit 10%? Or is it a rather simple, hold other variables constant one?Favourite hobbies: Watersports. Relaxing in Coffee Shop. Investing in stocks.
Personality type: Compassionate Male Armadillo. Sockies: None.0 -
Does your model factor in what might happen to the larger economy should interest rates hit 10%? Or is it a rather simple, hold other variables constant one?
Yes, could be in response to full blown asset inflation
'Just think for a moment what a prospect that is. A single market without barriers visible or invisible giving you direct and unhindered access to the purchasing power of over 300 million of the worlds wealthiest and most prosperous people' Margaret Thatcher0 -
I bought 3 and a half years ago and made the mortgage broker work out what our repayments would be at 8%, he thought I was mad!!Please remember other opinions are available.0
-
We will stress test 10-15%, i have tried to explain this to my work colleagues (ie dont assume ur mortgage rate will stay at 5% for the life of the loan).
I was taken back by the responses such as "they (banks) cant increase mortgage rates until the interest rate (BoE base rate) has caught up with it". i used the example of all the fixed rates being increased this week but it fell on deaf ears.
sometimes i think ignorance really is bliss. well until the base rate goes up!0 -
Without being rude...
Stress testing at 15% is stupid. If we do get to that level of rates, the lack of food in the supermarkets, rioting, etc ,would probably be more of a worry.
There would be millions of people simply unable to make payments on their mortgages. The system would be broken.0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 352.1K Banking & Borrowing
- 253.5K Reduce Debt & Boost Income
- 454.2K Spending & Discounts
- 245.1K Work, Benefits & Business
- 600.7K Mortgages, Homes & Bills
- 177.4K Life & Family
- 258.9K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.2K Discuss & Feedback
- 37.6K Read-Only Boards