Advice with regards mortgage renewal

Altior

https://forums.moneysavingexpert.com/discussion/comment/81944475#Comment_81944475

Yes you still tend to get a new normal as it were, but I lurk a lot on here and many people appear to expect interest rates to come down again (as if 4% is unusually high!) and rapidly. In fact that was the narrative that the great and the good were creating for this year, so I suppose I can't blame people for that expectation.

I'd argue we are still at the lower end re mortgage rates, and the expectation now is that 'government' will always bail people out of trouble. They created the mortgage charter the last time. In fact there has already been messaging around 'low income' folks being helped by the taxpayer with domestic energy costs.

This is an absolutely unheard of scenario, before social media. People were expected to look after themselves, rather than reaching for a government, ergo taxpayer bailout at the first sign of trouble. We had lockdowns and taxpayer funded wages for over a year (not working), bounce back loans with no credit test et al, government backed. I don't see it swinging back in my lifetime, certainly there won't be a huge hike in repossessions, whatever happens.

It is of course, far far deeper than just interest rates. But I am absolutely convinced the the ceiling is a lot lower, and we will never see close to double digit central interest rates again. Just not going to happen in my view.

As an aside, 'we' have witnessed one of the biggest bull runs, if not the biggest in global stock market history. When that does eventually end for real, it's going to be an interesting time to say the least! It will of course have an impact on central rates and a knock on into the mortgage market, credit markets et al.