Fixed rate mortgages below 2% axed from the market as interest rates continue to rise

Rich2808

theartfullodger said:

In November 1979 under Thatcher's government BoE base rate hit 17%.

I had a for then large mortgage. Was "lucky" as building society only demanded 15%...

Good luck you young folk...Could get much worse

How big was your mortgage in 1979? Presumably not £250,000.

Its all relative!

My parents bought in the early 1970s - his mortgage near the end in the early 1990s when rates were much higher than now was £50 a month! And they bought a 3 bed house in London.

london21

theartfullodger said:

In November 1979 under Thatcher's government BoE base rate hit 17%.

I had a for then large mortgage. Was "lucky" as building society only demanded 15%...

Good luck you young folk...Could get much worse

Hopefully gets better before it gets worse.

A lot of people will struggle even at 7.5%

Sarah1Mitty2

youth_leader said:

I'm sorry my daughter has just missed the boat, she and her boyfriend have been saving really hard for two years.  

What will they do now?

Thrugelmir

nicknameless said:

Thrugelmir said:

nicknameless said:

Richiem1987 said:

AFF8879 said:

I’m currently fixed until late 2026, guess we all now need to overpay as much as possible until our fixes end! As it seems rates are only headed in one direction.

Is the correct course of action. 

Err no - not for most.  Overpay low interest debt which is inflating away?  Not on your nelly.

Low interest debt for how long?  Perhaps global markets will tank. Then a double whammy. Leveraging has always been a double edged sword. Magnifies both gains and losses. 

It would have to be a pretty stupendous tank to negate gains from the recent bull market.  Past returns are no indication and all that and investing not for everyone.  Was just pointing out that this (often) received wisdom is nothing such.

Cash is king. Numbers on a piece of paper or a screen mean very little. When stock markets become detached from financial reality, i.e. the trading performance of the actual companies invested in. Then one knows that it's only a matter of time. History repeats itself over and over. Hence why the four most expensive words in the English llanguage are said to be the quote "This Time is Different". 

nicknameless

Thrugelmir said:

nicknameless said:

Thrugelmir said:

nicknameless said:

Richiem1987 said:

AFF8879 said:

I’m currently fixed until late 2026, guess we all now need to overpay as much as possible until our fixes end! As it seems rates are only headed in one direction.

Is the correct course of action. 

Err no - not for most.  Overpay low interest debt which is inflating away?  Not on your nelly.

Low interest debt for how long?  Perhaps global markets will tank. Then a double whammy. Leveraging has always been a double edged sword. Magnifies both gains and losses. 

It would have to be a pretty stupendous tank to negate gains from the recent bull market.  Past returns are no indication and all that and investing not for everyone.  Was just pointing out that this (often) received wisdom is nothing such.

Cash is king. Numbers on a piece of paper or a screen mean very little. When stock markets become detached from financial reality, i.e. the trading performance of the actual companies invested in. Then one knows that it's only a matter of time. History repeats itself over and over. Hence why the four most expensive words in the English llanguage are said to be the quote "This Time is Different". 

Sorry but what are you talking about.  You keep your money in cash?  If that's the case perhaps it's you who is detached from reality lol.

There are so many contradictions in that it is laughable.

Nobody is denying corrections / crashes / market cycles.  Are you denying that markets over time deliver better returns than cash or is this time different?

Regardless, you missed my point entirely.  Sticking spare money in the mortgage at such low rates is not the most financially productive approach.

Wrong forum, wrong discussion.

Sarah1Mitty2

nicknameless said:

Thrugelmir said:

nicknameless said:

Thrugelmir said:

nicknameless said:

Richiem1987 said:

AFF8879 said:

I’m currently fixed until late 2026, guess we all now need to overpay as much as possible until our fixes end! As it seems rates are only headed in one direction.

Is the correct course of action. 

Err no - not for most.  Overpay low interest debt which is inflating away?  Not on your nelly.

Low interest debt for how long?  Perhaps global markets will tank. Then a double whammy. Leveraging has always been a double edged sword. Magnifies both gains and losses. 

It would have to be a pretty stupendous tank to negate gains from the recent bull market.  Past returns are no indication and all that and investing not for everyone.  Was just pointing out that this (often) received wisdom is nothing such.

Cash is king. Numbers on a piece of paper or a screen mean very little. When stock markets become detached from financial reality, i.e. the trading performance of the actual companies invested in. Then one knows that it's only a matter of time. History repeats itself over and over. Hence why the four most expensive words in the English llanguage are said to be the quote "This Time is Different". 

Sorry but what are you talking about.  You keep your money in cash?  If that's the case perhaps it's you who is detached from reality lol.

There are so many contradictions in that it is laughable.

Nobody is denying corrections / crashes / market cycles.  Are you denying that markets over time deliver better returns than cash or is this time different?

Regardless, you missed my point entirely.  Sticking spare money in the mortgage at such low rates is not the most financially productive approach.

Wrong forum, wrong discussion.

Would a better way be to build a cash pile and leave it in Premium Bonds or an ISA, and then start making overpayments when mortgage rates start going up? 

Thrugelmir

nicknameless said:

Thrugelmir said:

nicknameless said:

Thrugelmir said:

nicknameless said:

Richiem1987 said:

AFF8879 said:

I’m currently fixed until late 2026, guess we all now need to overpay as much as possible until our fixes end! As it seems rates are only headed in one direction.

Is the correct course of action. 

Err no - not for most.  Overpay low interest debt which is inflating away?  Not on your nelly.

Low interest debt for how long?  Perhaps global markets will tank. Then a double whammy. Leveraging has always been a double edged sword. Magnifies both gains and losses. 

It would have to be a pretty stupendous tank to negate gains from the recent bull market.  Past returns are no indication and all that and investing not for everyone.  Was just pointing out that this (often) received wisdom is nothing such.

Cash is king. Numbers on a piece of paper or a screen mean very little. When stock markets become detached from financial reality, i.e. the trading performance of the actual companies invested in. Then one knows that it's only a matter of time. History repeats itself over and over. Hence why the four most expensive words in the English llanguage are said to be the quote "This Time is Different". 

Regardless, you missed my point entirely.  Sticking spare money in the mortgage at such low rates is not the most financially productive approach.

Wrong forum, wrong discussion.

I probably invested in my first private equity investment before you were even born. Little point in trying to teach me to suck eggs. 

aoleks

I've put my spare money in stocks (the big ones). I know they're down, but it's basically buying the dip. they'll grow nicely after a few years. the rest, I invested in the house.

I'm letting inflation eat away some of my debt as most of it is 0% long-term stuff.

lookstraightahead

This should be of no surprise to anyone. No one should get into any type of trouble as the banks 'stringent affordability checks' are watertight (😏🙄). 

aoleks

lookstraightahead said:

This should be of no surprise to anyone. No one should get into any type of trouble as the banks 'stringent affordability checks' are watertight (😏🙄). 

they kind of are. I'm imagining if people were to get in trouble, they'd have quite a few buffers...

phone contract, nespresso subscription, amazon prime, netflix, crypto, waitrose etc.

plenty of stuff that can be cut before people decide not to pay their mortgage. and what's the alternative, anyway? living in a shared house that costs more than your mortgage? the street? get real.