will a nov rate rise affect you?

moneysavinmonkey

just wanted to gather a straw poll opinions as to how a rate rise in nov will affect people... generally i hear people saying they are on fixed rates so it doesn't matter...

for me it just makes a house purchase even more unaffordable...
and renting even better value!! :rotfl:

Guy_Montag

Means my savings will increase marginally quicker. No closer to buying a place though, get them up to 6.5%.

mr.broderick

nah it wont affect me i won a 0% mortgage 2 years ago with c & g

dougk_2

I'm not sure a rise in interest rates will necc. mean renting is a better deal. There is a big chance that a LL will pass the extra costs on. Also I suspect as house prices continue to rise , so will the cost of rent. Given the lack of Council/HA homes (more seem to be sold under RTB than are built) the low cost rental options are fast dissapearing.

Guy_Montag

I'll move out before my landlord puts up the rent, neatly leaving him with a void, but I'm pretty sure he bought my place with cash. While the latest entrants to the btl game may have to put up rent, those who bought a few years ago won't need to.

Where I live there is glut of btl property, so I'm not too bothered.

lilyann1

Yes affecting us quite badly,as we got our mortgage agreed to move house back in April,when rates were 4.5% and we got a 3 yr fixed agreed at 4.69%.So far that 3 yr fxd is now at 5.54 and that is before the next rate rise.
We may have to apply for a 2 yr fxd deal at 5.09% and have to get it agreed before the rate rise.
Our chain keeps breaking down and so the mrtge agrrement has been extended twice but they will not extend it any more.
So i am not happy at all about these rate rises and the house will cost us about another £80 per mth than originally planned.

Guy_Montag

lilyann1 wrote:

So i am not happy at all about these rate rises and the house will cost us about another £80 per mth than originally planned.

Money straight into my savings account. Mwah hah hah hah hah <-evil laugh

lisyloo

I just applied for a fixed rate (which is now reserved) so I am not worried.
My savings will go up.

I did this because I think rates will rise further after November so I think I have put myself in a good posistion for the next 2 years anyway.

dunstonh

Wont hit me much at all. Indeed, I would like to see a couple more percent on as that would help create a flood of properties on the market and bring down house prices which would help first time buyers. It would also allow me to move into buy to let and buy properties at a lower value and get a much better rental yield.

moneysavinmonkey

dougk wrote:

I'm not sure a rise in interest rates will necc. mean renting is a better deal. There is a big chance that a LL will pass the extra costs on. Also I suspect as house prices continue to rise , so will the cost of rent. Given the lack of Council/HA homes (more seem to be sold under RTB than are built) the low cost rental options are fast dissapearing.

my rent is fixed until february but i suppose there is a possibility that the landlord could then try to raise it...

they would have to justify this to me though e.g put in a new bathroom or I would just move on... I would disagree that rental options are fast disappearing - there always seems to be plenty of places available in my imediate area + in my current flat i even got a discount on the advertised rent.

sm9ai

More money for my savings

Landlords will not pass on the extra costs as tenants wouldn't accept it. Did landlords ever lower the rent when interest rates went down?