Mortgage rates gone up.

BettiePage

http://news.sky.com/skynews/article/0,,30000-1246986,00.html

Will this affect you?

jpwhittle

thankfully it wont affect us we have a fixed reate mortgage for 5 years at 5.99% i know it sounds high but on there it said about a 7.25% mortgage so im better of than most and i have a loan in my mortgage so i could clear the debts and afford the house.

SHEARERBOBS

Oh hells bells, yes. My mortgage will go up, it's £340 now. And my whopping homeowner loan will go up too :eek:

just when i thought i'd join here and get my life on track they do this....gits

anh1904

We hear about inflationary pressures, wage inflation etc. and the B of E usually say that it is an anti-inflationary measure when they increase the rates.

But the increase in prices is not, in my opinion, largely demand driven. i.e. it is typically fuel and mortgages that have gone up considerably, giving artificially high inflation numbers.

Then in the luxury sector, the "City Bonuses" this year have been so high that property, at whatever price, has caused house price inflation.

Increasing rates at this time is likely to cause significant hardship for those carrying high debts (and you can pick u any newspaper to realise the numbers are huge and increasing) and Mr Joe Average as he struggles to bring up a family and provide for them.

At the start of the year, there were reports about the large number of likely bankrupcys and IVAs this year, a figure which may now start to look very conservative if this rise is a sign of things to come.

Very very worrying.

BettiePage

Thank you both for your views.

SunderlandBlackCat

anh1904 wrote:

But the increase in prices is not, in my opinion, largely demand driven. i.e. it is typically fuel and mortgages that have gone up considerably, giving artificially high inflation numbers.

These aren't actually included in the governments inflation figures IIRC.

The rise won't increase my mortgage payments as I am already overpaying but it will make those overpayments less effective.

Snaggles

I'm on a fixed rate too, but it expires in July - right in the middle of my maternity leave eek!! I could do without a big hike in my mortgage payments this year, but we will cope......I hope...!

pollyanna24

At the moment, not affected, but in April 2008 when my fixed is up, I will be effected. Not by not being able to pay (unless rates go mad), but as previous poster said, my overpayments will be less effective.

david_hellier

Buy to let landlords will panic and start to dump property because tenants will become more difficult to find and manage. This will trigger house a price fall and negative equity. Yields are already very low.

bananakinz

This rate won't affect us, thankfully, we are on a fixed rate that started on 4th Jan - I arranged this one just before the rates went up in Oct/Nov - phew!

ZTD

The increase in interest rates won't affect me that much. My mortgage will go up from 5.5% to 5.75% which is only a 5% increase in interest payments. Mortgage might go close to £200 pcm.

SunderlandBlackCat wrote:

These aren't actually included in the governments inflation figures IIRC.

Mortgages aren't included, but fuel affects the cost of everything you buy.

However rising prices are not inflation (though you are expected to believe they are), they are just a sympton.

Inflation is always and everywhere a monetary phenomenon in the sense that it is and can be produced only by a more rapid increase in the quantity of money than in output...

Milton Friedman - The Counter-Revolution in Monetary Theory (1970)