Debate House Prices


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Interest Rates going back up to normal levels again?

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  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
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    The-Joker wrote: »
    The problems from 2008 were just pushed into the future, all they can do is keep kicking the can

    The problems were clearly identified at a G20 summit in May 2010 (if I recall correctly). The global financial system simply couldn't cope with the recapitisation of the major banks balance sheets (Basle III), at the same time as addressing all the other issues that existed. Basle III implementation was extended in time scale. In fact still ongoing now. While Central Banks took it upon themselves to stabilise the financial system. The can while being kicked is progressively getting smaller.
  • Glover1862
    Glover1862 Posts: 410 Forumite
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    Filo25 wrote: »
    I know the feeling! :rotfl:

    How far in advance can you lock in a remortgaging deal, I know for new mortgages it can be up to 6 months, is it similar on a remortgage?

    Normally 4 months on remortgages.
  • economic
    economic Posts: 3,002 Forumite
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    i remortgaged last year October to a two year fix at 1.54% (plus some cashback of £300). It was a no brainer at the time when trackers were also going for the same rate.
  • triathlon
    triathlon Posts: 969 Forumite
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    Arklight wrote: »
    On the forum hpc.co.uk they are celebrating this news. They are cheering!

    I cannot count the amount triggers that is going to kick off this inevitable property crash.
    The good old USA is light years away from our economy. I am over there all the time, usually North Carolina and Kentucky and sometime Tennessee, you can still buy property there for less than $150,000's that would make your eyes pop out, outstanding looking and in forests, on lakes etc. And Yanks do not have the same mortgage debt levels as us, not the ones I know anyway.

    In the UK the housing market and more importantly the mortgage market is far more important here than there, it is too big to fail, and that's an understatement. All the under 40's I know have mortgages in the £100,000's.

    I can see maybe a few 0.25% increases over two years, and that's it.
  • Crashy_Time
    Crashy_Time Posts: 13,386 Forumite
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    triathlon wrote: »
    I cannot count the amount triggers that is going to kick off this inevitable property crash.
    The good old USA is light years away from our economy. I am over there all the time, usually North Carolina and Kentucky and sometime Tennessee, you can still buy property there for less than $150,000's that would make your eyes pop out, outstanding looking and in forests, on lakes etc. And Yanks do not have the same mortgage debt levels as us, not the ones I know anyway.

    In the UK the housing market and more importantly the mortgage market is far more important here than there, it is too big to fail, and that's an understatement. All the under 40's I know have mortgages in the £100,000's.

    I can see maybe a few 0.25% increases over two years, and that's it.


    Yes, that is why they are going to hike rates before us (we will follow) and their job numbers today kicked off a bond market sell off (meaning higher mortgage rates down the line) Your observations have anecdotal value only, they mean nothing in the bigger picture of how rising mortgage rates will crash the UK housing market. How do you think the BOE will pull off the feat of ignoring US rate hikes and global bond rates?
  • triathlon
    triathlon Posts: 969 Forumite
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    Crashy_Time wrote: »
    Yes, that is why they are going to hike rates before us (we will follow) and their job numbers today kicked off a bond market sell off (meaning higher mortgage rates down the line) Your observations have anecdotal value only, they mean nothing in the bigger picture of how rising mortgage rates will crash the UK housing market. How do you think the BOE will pull off the feat of ignoring US rate hikes and global bond rates?

    The UK markets are pricing in or have priced in two very small rises already over the next 2 years, hardly a worry, and anyway the £ has been getting stronger, not weaker against to USD.

    It's a classic case of when your Mum screamed at you "would you jump in the river if they told you", just because the Yanks have to raise rates does not mean we have to, this is not pre 1990's anymore, we are not pegging the $
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
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    triathlon wrote: »
    The UK markets are pricing in or have priced in two very small rises already over the next 2 years, hardly a worry

    Still come as a shock to many people. Many of whom are being squeezed financially. With low pay rises and increased pension contributions.
  • chucknorris
    chucknorris Posts: 10,786 Forumite
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    Crashy_Time wrote: »
    Yes, that is why they are going to hike rates before us (we will follow) and their job numbers today kicked off a bond market sell off (meaning higher mortgage rates down the line) Your observations have anecdotal value only, they mean nothing in the bigger picture of how rising mortgage rates will crash the UK housing market. How do you think the BOE will pull off the feat of ignoring US rate hikes and global bond rates?

    But the thing is Crashy that although the party of low interest rates might end soon, it will have lasted over 10 years! People like you, who substantially stored their wealth in cash, and actually lost out on one of the biggest windfalls ever (it has made us many £100k's on top of normal decent profit). It isn't the start of something bad, it is the start of a return to normality from something fantastic for those (not you) who were already invested. You lost out, big style!
    Chuck Norris can kill two stones with one birdThe only time Chuck Norris was wrong was when he thought he had made a mistakeChuck Norris puts the "laughter" in "manslaughter".I've started running again, after several injuries had forced me to stop
  • triathlon
    triathlon Posts: 969 Forumite
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    Thrugelmir wrote: »
    Still come as a shock to many people. Many of whom are being squeezed financially. With low pay rises and increased pension contributions.


    That's fair enough, and you then have to wonder why people stretched themselves that much. But still not much of a worry for the vast majority
  • Badegg
    Badegg Posts: 29 Forumite
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    hi guys, was hoping for some advice. what are peoples thoughts on getting a fixed 10 year mortgage? im thinking of getting a 3bd flat for myself & wife (expecting child soon) and the place were looking at could potentially serve us well until 11+ for the kids (many good schools around)...my only concern is that we wouldnt be able to BTL it if circumstances changed...im still fairly new to mortgages but would be a pain to have to pay a fee to do that...would it just make sense to do 5 years instead? on the other hand im a very pessimistic person by nature and just expect rates to rise a lot (especially if it is to strengthen a weakening pound due to brexit fall out etc). besides how much lower could they go? many thanks for advice. we'd be looking at a 60-70% ltv @ 200-250k area most likely. the monthly expense for 5 yr quotes seem very reasonable and would probably be overpaying if it makes sense...
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