Two-year fixed-rate deals hit 7%

Zammo

http://news.bbc.co.uk/1/hi/business/7471631.stm

Two-year fixed-rate deals hit 7%

The interest rate on the average two-year fixed-rate mortgage has risen above 7%, according to the financial information service Moneyfacts.
It means these loans are at their most expensive since February 1997.

Not looking good is it?

:rotfl:

drbeat

Green shoots? Perhaps the seeds were upside down... lol

WTF?_2

Zammo wrote: »

http://news.bbc.co.uk/1/hi/business/7471631.stm



Not looking good is it?

:rotfl:

What a pity - if the people currently struggling to pay had only sold about a year ago they'd be looking at cash in the bank earning at least 6% interest and could most likely be renting at a considerable amount less than their mortgage payments currently are (assuming they have a repayment mortgage - if they have interest only they are renting).

LillyJ

2 year fixed rates are funny things to be going for though at the moment if you ask me.

puddy

i remember when i bought my first (this) property in may 97 my fixed rate mortgage was 7.48%, i earned a lot less then too, i managed though

Zammo

jenner wrote: »

i remember when i bought my first (this) property in may 97 my fixed rate mortgage was 7.48%, i earned a lot less then too, i managed though

Yeah, probably because prices were 60% lower than what they are now.

drbeat

!!!!!!? wrote: »

What a pity - if the people currently struggling to pay had only sold about a year ago they'd be looking at cash in the bank earning at least 6% interest and could most likely be renting at a considerable amount less than their mortgage payments currently are (assuming they have a repayment mortgage - if they have interest only they are renting).

I agree with your posts with regards to the current state of the market. However, the people you refer to most likely thought that they had finally got on the ladder and things would remain good! Perhaps they'd never experienced a recession like the one in the late 80s early 90s or perhaps they did experience it but thought it was only a tory side effect.

Either way I truly believe that the vast majority aren't that interested in this stuff like we are - bulls and bears. I honestly think that those in trouble did not think this would happen and were lulled into the false sense of security that this govt has fed to them!

The majority of truly wise people I have met - with regards to house prices and the economy - are those who were born during or just after WW2. They saw this !!!!!! regardless of tory or labour govts that they lived through. Some either bit the bullet and rode the storm or others recognised the cycle and figured out how to take advantage of the next one.

Whatever happens you can be sure that some of the losers of this cycle will turn out to be the winners of the next.

:T

LillyJ

In my opinion if people haven't checked they can afford repayments if interest rates rise at least to 12-15% then they have been a little bit silly. We all know this has happened in the past and unless you have fixed for the life of the mortgage it is a little short sighted to only look at the 2 year fixed rate when interest rates were really low.

My friend is just coming off a 4. something % deal, but he wasn't stupid and can afford the new amount. He also split up with his partner but can maintain the house (he has a fairly modest wage but didn't overborrow) on his own.

That is due to forward planning on his part!

Treadmill

Interest rates won't hit 12-15%, 100s of thousands of houses would be repossesed if they did

Zammo

Treadmill wrote: »

Interest rates won't hit 12-15%, 100s of thousands of houses would be repossesed if they did

LOL. Blind faith. I like it.

LillyJ

Treadmill wrote: »

Interest rates won't hit 12-15%, 100s of thousands of houses would be repossesed if they did

Maybe, but lets face it, the ones who have checked probably sleep better at night than the ones who 6.5% would tip them over the edge.