interest rates have gone up

Prosaic

xtratime wrote:

5.25% isnt that bad.

My first morgage 18years ago was 15.4%.

Blimey that doesn't bear thinking about :eek:

If it goes up to 15.4% I'll be taking the wife & kids to live in a bin outside the Co-Op

realwildone

With all those people moving into the UK and they have to live somewhere I cannot see any crash happening

Do you honestly think Bulgarian, Romanian or people from Huddersfield can really afford our houses. Please use some intelligence

raq

xtratime wrote:

5.25% isnt that bad.

My first morgage 18years ago was 15.4%.

Part of me agrees but when there are a lot of people out there stretched to the max an extra £20.00 a month is alot.

I do hope it doesn't rise much more through the year.

raq

Pobby wrote:

Considering that interest rates between the 1950s to the late 1990s were on average around 8%,this comes as no surprise.

Nobody had the fantastic plastic then did they.. Wish it was still like that

raq

Why do you feel like this then ??/

A lot of people are gutted ( although half of mortgage lenders and loans they have knew this )

HelpWhereIcan

albacore1854 wrote:

No lets.

Doom and gloom is good, lets all watch the smug BTL'ers panic. It'll take more than a coat of magnolia, and some pebbles in the fireplace to keep a roof over their head.

Except I know of some BTL landlords who have geared themselves up to a reasonable level, have their mortgages fixed and have raised cash from equity to invest in property should the property crash happen.

One I know has raised approx 100k from his portfolio in the last 6 mths. The btl mortgages are being comfortably paid by the rent and he has told me he will wait till prices fall then buy some repo's to rent out to people re-entering the rental market !!!

He expects a 'correction' too, but he thinks that the serious btl investor will be one of the last people affected. You never know, it may be people like him who actually put the brakes on any 'crash' before the rest of us end up in the real do do.

talksalot81

xtratime wrote:

5.25% isnt that bad.

My first morgage 18years ago was 15.4%.

About 3 years ago rates were 3.5%. As of yesterday they had risen by 50% over that. So someone borrowing £100k on the new rate system is effectively baying 50% more than on the same amount 3 years ago.

All these changes must be considered relatively, absolute comparison is statistically irrelevant.

raq

talksalot81 wrote:

About 3 years ago rates were 3.5%. As of yesterday they had risen by 50% over that. So someone borrowing £100k on the new rate system is effectively baying 50% more than on the same amount 3 years ago.

All these changes must be considered relatively, absolute comparison is statistically irrelevant.

When you look at it this way it's very worrying

albacore1854

Proven professional property developers, I have no issue with.

What does get on my t1ts is the rush of middle management types that dived in head first, toshed some emulsion about, and regardless of their lack of skill or strategy, made money out of a rising market, and then promptly bored me and others rigid in pubs about how bloomin wonderful they were.

All very well BTL's being on fixed rate, but at some level there becomes a point where buying becomes possible, and attractive for FTB etc, meaning lettings fall, in both numbers and values.

The BTL may then face a dilemma of subsidising the investment, or flogging to protect the roof over their head.

albacore1854

HelpWhereIcan wrote:

One I know has raised approx 100k from his portfolio in the last 6 mths. The btl mortgages are being comfortably paid by the rent and he has told me he will wait till prices fall then buy some repo's to rent out to people re-entering the rental market !!!

QUOTE]

Must be a nice area if you can buy SOME repo's for 100K.

Or if it is, is your mate of same opinion as me that when it starts this crash is going to pale the 90's into insignificance, in terms of the misery it will inflict on those that have taken on larger debt in whatever manner.