Interest Rates going back up to normal levels again?

triathlon

Filo25 wrote: »

Personally if it was me arranging a mortgage now at a good LTV level for a long term property, I would strongly consider a 10 year fix, I can't see current rates hanging around for long if we continue to see these upward moves in inflationary expectations and bond yields.

From a political point of view you have the possibility of a Corbyn lead government to consider in 4 1/2 years, I think most would accept that would lead to upward pressure on rates.

As always it is a case of each to their own but there are enough risks around at present to make a 10 year fix attractive to me at least, the likes of First Direct also give you flexibility on overpayments.

If Corbyn gets into power, it's game over for everyone. You just know there are non working, welfare poncing scroungers in Tower Hamlets with huge families who are convinced their mate Jez is going to house them in luxury and gifts.

triathlon

_CC_ wrote: »

There's no fantasy about the much lower repayments many of them have enjoyed over the past decade.

A lot of people would have paid off most or all of their mortgage in that time frame, and we still look to be some way off rates at pre-crisis levels.

You could call most things unrealized "paper wealth". Do you have a pension Crashy? Any investments? Where have you been parking the cash while you've been waiting for this crash for 15 years?

And that's nail on head

Peoples like crashy, bless him, seem to think he has some special inside information that the rest of us do not have. We all know that in so many cases that very first mortgaged home is one big ball and chain and endless sacrifice. But it only takes several years, sometimes less, and the rest of your life is a gravy train.

Thrugelmir

_CC_ wrote: »

A lot of people would have paid off most or all of their mortgage in that time frame, and we still look to be some way off rates at pre-crisis levels.

Considering interest only mortgages were the rage for a decade. Hardly likely. As people leveraged themselves to the limit on the back of ever rising house prices. Then there's the amount of unsecured debt to be considered. Too simplistic to assume low interest rates = mortgages repaid. In an era when real disposable incomes are in decline.

MobileSaver

Thrugelmir wrote: »

Considering interest only mortgages were the rage for a decade. Hardly likely.

Only 20% of mortgages are interest only and only 1 in 10 of those have no repayment plan in place so we're talking a worst case scenario of just 2% of mortgages not being able to be repaid at the term end.

So _CC_ is absolutely correct, the vast majority of people will have paid off their mortgage regardless of your and Crashy's desire for distressed sellers causing a massive house price crash.

triathlon

MobileSaver wrote: »

Only 20% of mortgages are interest only and only 1 in 10 of those have no repayment plan in place so we're talking a worst case scenario of just 2% of mortgages not being able to be repaid at the term end.

So _CC_ is absolutely correct, the vast majority of people will have paid off their mortgage regardless of your and Crashy's desire for distressed sellers causing a massive house price crash.

You can almost feel the potential joy that these people will feel if people were thrown out of their homes. Back in HPC their website is littered with posters who quite blatantly point out that should men, women and children be thrown out of their homes that there will be not an ounce of sympathy from them, Vengers views are even worse at times, bordering on evil, purely because she has been wronged in this world of housing, she thinks the worst crime in the UK today is that of the "working forced renter".

I cannot imagine if she and her cult were given real power to address her or their perceived problem, forced eviction would be just the start I think, her hate of home owners is frightening and her anger at even those on HPC send her off on one for daring to call them innocents, there are no innocents in the home owning world according to her.

qwert_yuiop

triathlon wrote: »

This or any other government is not going to allow the housing market to fall, end of story, stop grasping at straws.

The housing market has fallen before and some time it will fall again, and there will not be anything the government will be able to do about it.
I’m impressed at your trust in the occupant of No. 10, whoever she or he might be.

triathlon

qwert_yuiop wrote: »

The housing market has fallen before and some time it will fall again, and there will not be anything the government will be able to do about it.
I!!!8217;m impressed at your trust in the occupant of No. 10, whoever she or he might be.

Good point, and I remember the misery it caused, the only reason I never got caught up in it was because I got my home 5 years earlier.

The big difference now is that we have 9 men each month who meet at the BOE and who have kept a rock steady economy with the lowest continuous inflation figures in a lifetime, do you really think they are going to vote for high interest rates and the destruction of the UK economy including housing, not a chance in hell, no matter what the reasons

That horrible period wrote the rule book on what not to do, even if it means mortgage debt forgiveness to prevent families being thrown out of homes.

Even now people mis sold interest only mortgages are getting redress

qwert_yuiop

They may not have any choice. They may not be able to control it with as blunt an instrument as interest rates. It is going to happen some time.
As I say your faith is impressive - almost religious, particularly the invocation of hell. A demonstrably untrue one.

Inflation has been low throughout most of the industrialized world over the same period. The Bank of England and their MPC are not the sole reason for the uk inflation rate.

Badegg

Filo25 wrote: »

Personally if it was me arranging a mortgage now at a good LTV level for a long term property, I would strongly consider a 10 year fix, I can't see current rates hanging around for long if we continue to see these upward moves in inflationary expectations and bond yields.

From a political point of view you have the possibility of a Corbyn lead government to consider in 4 1/2 years, I think most would accept that would lead to upward pressure on rates.

As always it is a case of each to their own but there are enough risks around at present to make a 10 year fix attractive to me at least, the likes of First Direct also give you flexibility on overpayments.

Thanks for reply. Will take it into account. Although from first glance it seems Tsb has better 10 year deals?

Crashy_Time

Thrugelmir wrote: »

Considering interest only mortgages were the rage for a decade. Hardly likely. As people leveraged themselves to the limit on the back of ever rising house prices. Then there's the amount of unsecured debt to be considered. Too simplistic to assume low interest rates = mortgages repaid. In an era when real disposable incomes are in decline.

Yep, many people have not even dented their ten year old mortgages IMO. We will see though when rates finally rise who is in trouble or not.