Mortgage rates going up

FTBFun

My mortgage rate could double from its current 4.29% to 8.6% and the interest on my mortgage would still be the same as to rent a property of the same size in my area. Can't say I'm panicking over this one tbh.

wotsthat

Graham_Devon wrote: »

You make it sound as if 8% rates are somehow rare and shouldn't be thought about. Therefore I find your argument that rates at 8% shouldn't be factored in a little worrying.

I've paid 2.5% on my mortgage for three years now and the highest rate I've ever paid was 6.85% (at 95% LTV) since 1992. The average rate I've paid over the last 20 years is probably around 4.5% - and that's based on fairly cautious fixed rates apart from the last 3 years.

So I'd argue that 8% mortgage rates, are in fact, historically quite rare. Build in a buffer by all means but it's a judgement call - if you think mortgage rates are going to leap up then have a massive buffer and a smaller house.

Jimmy_31

Sibley wrote: »

Anyone cheering the rate rises is a scumbag. Savers won't be getting any more interest. This is just classic wishing bad on people on a better position.

Rates wont be going up anyway. Some of the banks putting 16 quid a month on top. That's their lot.

My position is a lot better than pretty much every home owner i know.

This is because i dont own a home.

breadlinebetty

CRASH_BANG_WALLOP wrote: »

Brit1234 really gets up your nose :T

Funny you said that - I've got a very snotty nose today........:D

Jimmy_31

breadlinebetty wrote: »

Funny you said that - I've got a very snotty nose today........:D

Probably not the only snotty thing you have got.

pelirocco

smamst wrote: »

House prices going to tumble on this news.

About bloody time too, enough of this crap of low interest rates and printing money to keep house prices 50% above what they should be.

http://www.dailymail.co.uk/news/article-2109335/Mortgage-rate-rise-hit-millions-Banks-lining-heap-misery-squeezed-families.html

Anyone stupid enough to have bought a house at inflated prices over the last ten years deserves everything that's coming their way.

My Parents in Law bought their house over 40 years ago for £2500.00 , which must mean anyone paying over that amount bought at over inflated preices?


I take it you've never been able to afford a house?

RenovationMan

Jimmy_31 wrote: »

My position is a lot better than pretty much every home owner i know.

This is because i dont own a home.

This seems an odd thing to say as you spend so much time on a house price forum obsessing about buying a house.

The_White_Horse

when interest rates went up to 15% or so in the 80's people have to remember that most people had bought in the 60's or 70's for an absolute pittance on a salary of say, £3k which at the time of the interest rate rises had probably increased to say, £15-20k due to massive wage inflation.

Nowadays, people who earned £45k and bought a house for £200k in 2007 are probably earning the same, if not less. therefore a massive increase in interest rates would kill them. However, if their salaries went up to £250k a year, they would probably cope.

Jimmy_31

RenovationMan wrote: »

This seems an odd thing to say as you spend so much time on a house price forum obsessing about buying a house.

Seems pretty straight forward to me.

suburbanwifey

Jimmy_31 wrote: »

My position is a lot better than pretty much every home owner i know.

This is because i dont own a home.

Its not better to be renting, your rent will increased annually at least every year of your life and you'll pay someone else's mortgage until the day you die. Not sure your position is better than me or others like me, I own my own home, no mortgage. Your situation is better than that? stop knocking people when they are down! There is always someone better off out there isn't there! :cool: