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Debate House Prices


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Mortgage rates going up

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Comments

  • Rochdale_Pioneers
    Rochdale_Pioneers Posts: 2,469 Forumite
    Part of the Furniture Combo Breaker
    Pimperne1 wrote: »
    Are you saying you have had the place for in excess of 5 years and the value of your house over your mortgage is either 8% or -6%?

    Yes. Very little selling up here, so we're either just ahead of negative equity it just in it depending on which sale you use as a valuation guide
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    ILW wrote: »
    Obviously not been using the windfall of low rates to overpay.

    The past 3 years have given borrowers ample time to put their financial affairs in order. Low rates were never going to last for ever. So if someone hasn't taken advantage to pay down their debt and spend the money elsewhere they only have themselves to blame.
  • ess0two
    ess0two Posts: 3,606 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    ILW wrote: »
    Obviously not been using the windfall of low rates to overpay.

    ?? is this a pre-requisite of low rates.
    Official MR B fan club,dont go............................
  • ILW
    ILW Posts: 18,333 Forumite
    ess0two wrote: »
    ?? is this a pre-requisite of low rates.

    No, but don't complain that you are in NE and that a rise in rates is going to be uncomfortable.
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    ess0two wrote: »
    ?? is this a pre-requisite of low rates.

    Far easier to make significant inroads when interest rates are low rather than higher.
  • ess0two
    ess0two Posts: 3,606 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    ILW wrote: »
    No, but don't complain that you are in NE and that a rise in rates is going to be uncomfortable.


    I aint,just asking though.
    Official MR B fan club,dont go............................
  • ILW
    ILW Posts: 18,333 Forumite
    ess0two wrote: »
    I aint,just asking though.

    My comment related to a post by RochdaleP
  • Rochdale_Pioneers
    Rochdale_Pioneers Posts: 2,469 Forumite
    Part of the Furniture Combo Breaker
    Don't worry about me - can afford much bigger increases than this. I'm trapped in that I can't remortgage and choose not to sell and get myself in debt in the process, not trapped as in any increase makes me insolvent. Planning to ride this out anyway, the current policy of not bothering with house building will mean prices have to ho back k up when the economy starts to recover as demand once again outstrips supply.
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Rochdale_Pioneers wrote: »
    Planning to ride this out anyway, the current policy of not bothering with house building will mean prices have to ho back k up when the economy starts to recover as demand once again outstrips supply.

    I thought that the economy was doomed due to the imposed austerity of the current Governments measures.

    There's no riding out a rise in interest rates. Cheap money has gone, no longer. On the horizon a new dawn is arising.
  • HAMISH_MCTAVISH
    HAMISH_MCTAVISH Posts: 28,592 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    "Halifax is in a unique situation as far as its old SVR is concerned. It is the only major lender with an SVR cap which its mortgage conditions allow to be changed. It can do this by giving 1 months notice and allowing those borrowers affected the opportunity to redeem their mortgage within 3 months without paying any ERCs.

    "The other major lenders which had an SVR cap, Nationwide and Lloyds TSB/C&G, whose cap is 2% above Bank Rate, had no wiggle room in their contracts and so no opportunity to increase the cap. This is why such a large proportion of borrowers with these lenders are now staying on their SVR of 2.5%. It is also why these lenders introduced a new "SVR" for both new borrowers and existing customers taking a product transfer from 2009 and 2010 respectively; this new revert to rate has been at 3.99% ever since it was introduced.

    Thankfully, not all major lenders are in a position to rip off the public in this way.
    “The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.

    Belief in myths allows the comfort of opinion without the discomfort of thought.”
    -- President John F. Kennedy”
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