One in Five could not afford food if payments rise

ILW

chucky wrote: »

Where are mortgage rates at the moment compared to the last few years?

Way below average (depending on what you mean by last few years) Most of the complaints are from people saying they will have to pay 4% or less.

alleycat`

chucky wrote: »

Where are mortgage rates at the moment compared to the last few years?

From my memory:-

New rates are not vastly different (fixed rates) but the fees and the LTV's are less attractive.

Trackers are better in terms of "current cost" but track at a much worse value to BOE Base Rate.

For example:-

In 2007 you could get a tracker at BOE +.59% (which would have been around 5.59% total).

Now you can get a tracker a BOE +3.x% (so in the high 3's low 4% range).

So trackers are technically cheaper right now but an inferior position "when" rates rise.

That's my "arm chair" view of the world anyway.

alleycat`

Graham_Devon wrote: »

Yes, I'd agree.

I assumed you were suggesting something, rather than just making an obvious statement.

Probably why this forum would work better at a table in the local with a pint of whatever we all enjoy

chucky

ILW wrote: »

Way below average (depending on what you mean by last few years) Most of the complaints are from people saying they will have to pay 4% or less.

Well we are talking about people now, who are probably ones who have been paying their mortgage for the last few years.

Average SVR'S was only about 1% lower than it was 3/4 years ago so around 4%/4.5% for about 30%/40% of people, majority or close to it would probably be on fixed rate mortgages. So not sure that many are benefitting from these really low rates that are way below average.

StevieJ

alleycat` wrote: »

So trackers are technically cheaper right now but an inferior position "when" rates rise.

That's my "arm chair" view of the world anyway.

True, but when rates rise significantly margins will fall IMHO.

PasturesNew

I am close to somebody who is in a good job and didn't overstretch themselves. However, fuel costs have increased, their pay has been frozen and - the worst bit - their employment expenses system changed radically, causing them an extra £300-400 fuel cost per month to do their job. They'd struggle because with all the changes, including that one, they're probably spending £600/month more now than they were when they bought the house 2 years ago.

2010

One in Five could not afford food if payments rise.

Can`t see how they`ll starve if they bit off more than they could chew in the first place.

ILW

chucky wrote: »

Well we are talking about people now, who are probably ones who have been paying their mortgage for the last few years.

Average SVR'S was only about 1% lower than it was 3/4 years ago so around 4%/4.5% for about 30%/40% of people, majority or close to it would probably be on fixed rate mortgages. So not sure that many are benefitting from these really low rates that are way below average.

You are working within a very small (and unusual) time frame. How do current SVRs compare to say 10 or 15 years ago?

Anyone who based their finances on a mortgage rate of less than 5% for an extended period was taking a big gamble and should not be complaining.

alleycat`

2010 wrote: »

One in Five could not afford food if payments rise.

Can`t see how they`ll starve if they bit off more than they could chew in the first place.

I'm waiting for the humorous comment about how they could all stand to eat less anyway as we are all obese too.

chucky

ILW wrote: »

You are working within a very small (and unusual) time frame. How do current SVRs compare to say 10 or 15 years ago?

Anyone who based their finances on a mortgage rate of less than 5% for an extended period was taking a big gamble and should not be complaining.

Most people's mortgages won't be less than 4% I imagine unless their on nice trackers or good fixes.

You do realise that people can fix their mortgages so that they have fixed repayments and they won't go up?