[NotGotABimmer23]

Originally Posted by un1eash

Just checked dates, my application was submitted on 31st Jan. Base rate increase happend on 3rd Feb. Offer for mortgage wasn't until 14th Feb and I added the fee to the mortgage.
I did use a broker so maybe it's a different process.

Just because base rate went up doesn't mean mortgage rates necessarily follow right away. That rate increase would have been fully priced in anyway.

[un1eash]

Originally Posted by kylemacca01

Just because base rate went up doesn't mean mortgage rates necessarily follow right away. That rate increase would have been fully priced in anyway.

HSBC put their mortgage rates up the day the base rate went up both times, even have a popup on the mortgage page directing you to a bank of England information page on how the rise could impact your mortgage.

[SuperHamz]

Originally Posted by un1eash

I'm pretty sure my rate was locked in once my application had been submitted as that's the rate on the application and my mortgage in principle.

Well I hope you're right as the MIP was at a decent rate.

[KRS_SN]

Just a quick thank you to everyone who responded to my query. Especially who recommended an immediate 5 year fix.
2 months on and 5 year fixed rates with £999 booking fees are up from the 1.74% I locked them on to 2.44% as of today.
I'm not glad that they are rising as it is going to cause pain to many. Just thankful that for the moment I'm ok.

[Scoobyd]

Originally Posted by KRS_SN

Just a quick thank you to everyone who responded to my query. Especially who recommended an immediate 5 year fix.
2 months on and 5 year fixed rates with £999 booking fees are up from the 1.74% I locked them on to 2.44% as of today.
I'm not glad that they are rising as it is going to cause pain to many. Just thankful that for the moment I'm ok.

Good work on getting it sorted on time. Would have been costly to sit on your hands, especially with more rate rises expected to come.

[JustChris]

Originally Posted by KRS_SN

Just a quick thank you to everyone who responded to my query. Especially who recommended an immediate 5 year fix.
2 months on and 5 year fixed rates with £999 booking fees are up from the 1.74% I locked them on to 2.44% as of today.
I'm not glad that they are rising as it is going to cause pain to many. Just thankful that for the moment I'm ok.

Hmm 1/2 percent rise now has me thinking the market believes next month or the next will see a further .25 to 1.25.

I feel we will race to 2% rates at perhaps by H2 2023.

[Rbrown]

Originally Posted by KRS_SN

Just a quick thank you to everyone who responded to my query. Especially who recommended an immediate 5 year fix.
2 months on and 5 year fixed rates with £999 booking fees are up from the 1.74% I locked them on to 2.44% as of today.
I'm not glad that they are rising as it is going to cause pain to many. Just thankful that for the moment I'm ok.

Good job.

We have recently renewed our mortgage with Santander for 7 years. You can only guess interest rates will go up.

We are in the fortunate position that our mortgage is well under control and will be cleared by the end of the 7 year period.

I do feel for those who have had to pay over the odds for houses - especially those starting out on the property ladder. There are new build houses near me that are going for huge prices!

Will be trying to set aside money for my kids to help them with properties. Strange times ahead!

[Pond]

Just to add a little context to this talk of mortgage rates:

The interest rate on my first mortgage in 1990, was 11% flat rate, not APR. My girlfriend and I were paying nearly 70% of our joint income (after tax) just to pay the interest as repayment mortgages were just too expensive to afford.

Also as a saver rather than a borrower now, the interest rates being so low for so long has not helped at all.

[Sennen]

The good news is the Rental market has never been so bouyant

I had notice handed to me on a property back in March and I had a bidding war between 5 prospective Tennants. We are not talking about a 'low end' property here either the previous Tennant was paying £2200 pm. The final outcome was that the property was vacant for only 3 days (unheard of at this end on the market) and the rent ended up at £2600 per month.... should take care of the 10% inflation

There is going to be quite a few repos I am afraid as many have overstretched themselves and they are going to end up in the Rental sector so why we will be seeing house prices decrease rental incomes will go up which suits me just fine

[MashinBenzin]

Originally Posted by Sennen

The good news is the Rental market has never been so bouyant

I had notice handed to me on a property back in March and I had a bidding war between 5 prospective Tennants. We are not talking about a 'low end' property here either the previous Tennant was paying £2200 pm. The final outcome was that the property was vacant for only 3 days (unheard of at this end on the market) and the rent ended up at £2600 per month.... should take care of the 10% inflation

There is going to be quite a few repos I am afraid as many have overstretched themselves and they are going to end up in the Rental sector so why we will be seeing house prices decrease rental incomes will go up which suits me just fine

It's heart warming when people share their good luck stories in such a humble way, whilst taking a good-natured and sympathetic swipe at those less fortunate.

You're a scholar and a gentleman.

[isleaiw1]

Originally Posted by Sennen

The good news is the Rental market has never been so bouyant

I had notice handed to me on a property back in March and I had a bidding war between 5 prospective Tennants. We are not talking about a 'low end' property here either the previous Tennant was paying £2200 pm. The final outcome was that the property was vacant for only 3 days (unheard of at this end on the market) and the rent ended up at £2600 per month.... should take care of the 10% inflation

There is going to be quite a few repos I am afraid as many have overstretched themselves and they are going to end up in the Rental sector so why we will be seeing house prices decrease rental incomes will go up which suits me just fine

If more properties in the rental sector, after repo, why will rents go up?

[gangzoom]

Originally Posted by KRS_SN

It's got your approval so is signed and sealed.
Ps I've deleted the alleged word from my dictionary,it's no good :-)

Its amazing how things can change quickly.

We fixed at 2.25% rate for 10 years end of last year, the same product with Barcalys is now in June 2022 is 3.7%, and 4% is been quoted for some products. I think we all knew rates would go up, but its happening quite quickly now. If the BOE raises rates again over the next few months the historical rates of 5-6% products cannot be far away.

The impact of going from 2%-6% on monthly costs is pretty staggering for anyone who has never seen rates >2%.

£400K loan on a 2.25% product over 25 years = £1,175, at 6% = £2,577!!! An extra £1,400/month or nearly £17K of post tax pay per year for pure interest/cost for no additional equity

There is going to be major 'correction' going on very soon.

[SantaEugence]

Surely a property crash is inevitable now. Houses were already unaffordable for first time buyers, with interest rate increases on top I can see a big slump coming on, finally.

[isleaiw1]

Originally Posted by SantaEugence

Surely a property crash is inevitable now. Houses were already unaffordable for first time buyers, with interest rate increases on top I can see a big slump coming on, finally.

Just remember that a house price slump brings a mixture of joys - negative equity for some, repossessions, loss of confidence, inability to take money out on your mortgage for home improvements, or fun stuff, damaged retirement plans.... and therefore the world for many people becomes a worse place with the knock on effect of the above...

Believe me having seen the world in the early 90s when house prices crashed, its not just good news for people... and not even youngsters as if the economy tanks due to the lack of confidence in the markets, it can be their careers most badly damaged...

With inflation at 10%, then if prices dont go up for 2 years that is a correction and probably the best way for it to happen for the economy....

And as has been said interest rates today are still low. I remember them going up 3%age points in one day in the 90s....!!

ETA its not the mortgage payment that is the issue now as much as the deposits for first time buyers - my son, a first time buyer will be paying less for his bought flat than his current rent....

[isleaiw1]

Originally Posted by gangzoom

Its amazing how things can change quickly.

We fixed at 2.25% rate for 10 years end of last year, the same product with Barcalys is now in June 2022 is 3.7%, and 4% is been quoted for some products. I think we all knew rates would go up, but its happening quite quickly now. If the BOE raises rates again over the next few months the historical rates of 5-6% products cannot be far away.

The impact of going from 2%-6% on monthly costs is pretty staggering for anyone who has never seen rates >2%.

£400K loan on a 2.25% product over 25 years = £1,175, at 6% = £2,577!!! An extra £1,400/month or nearly £17K of post tax pay per year for pure interest/cost for no additional equity

There is going to be major 'correction' going on very soon.

So presumably you wont be adding that big extension if you think prices will correct?

[SantaEugence]

Originally Posted by isleaiw1

Just remember that a house price slump brings a mixture of joys - negative equity for some, repossessions, loss of confidence, inability to take money out on your mortgage for home improvements, or fun stuff, damaged retirement plans.... and therefore the world for many people becomes a worse place with the knock on effect of the above...

Believe me having seen the world in the early 90s when house prices crashed, its not just good news for people... and not even youngsters as if the economy tanks due to the lack of confidence in the markets, it can be their careers most badly damaged...

With inflation at 10%, then if prices dont go up for 2 years that is a correction and probably the best way for it to happen for the economy....

And as has been said interest rates today are still low. I remember them going up 3%age points in one day in the 90s....!!

Very valid point, but the last 10 years have done absolutely zero to help anyone get on the housing ladder. I read a stat the other day saying the average deposit required for a single first time buyer on a median salary is £75k.
So something has to change, this could be it

[isleaiw1]

Originally Posted by SantaEugence

Very valid point, but the last 10 years have done absolutely zero to help anyone get on the housing ladder. I read a stat the other day saying the average deposit required for a single first time buyer on a median salary is £75k.
So something has to change, this could be it

well some of those will be helped with that by the bank of Mum and Dad (other couplings are possible) which might depend on equity in their own property. A price cash may dry that up (that confidence thing again) and so no one is better off....

There have been schemes to help, my son is using one. But they were badly thought out and have driven up prices as a result!

The solution is more houses. Need to put supply and demand in better balance. If prices crash, speculators will jump on them and hold them until prices rise. They arent always the nicest people with the best interests of others at heart, as we know

[JustChris]

Originally Posted by SantaEugence

Surely a property crash is inevitable now. Houses were already unaffordable for first time buyers, with interest rate increases on top I can see a big slump coming on, finally.

Brace Brace Brace

[Pond]

The rising costs in building houses; materials prices are staggering, and increased labour costs may prevent a housing 'crash' IMHO.
Developers will still require to make a certain % profit on new builds, so this could keep the market more bouyant than it may otherwise be.

Admittedly the housing market needs to cool a bit; around here the prices are madness. I live in a traditionally quite cheap area compared to where I come from in the home counties; our prices have risen by an average of 30% in eighteen months, more for houses in the villages and in the sticks as the WFH brigade want them all. All being fuelled by the greedy, clueless estate agencies.

People always say that estate agents don't affect house prices, it's purely driven by the market. That is simply not true. Estate agents do affect prices and in times like these actively 'encourage' vendors to keep pushing the boundaries of price, so they can get a bit more of their parasitic commission.

I have been actively in the housing market for 30 years, as I renovate and build houses as a hobby. I will not move again until things settle down.

As said earlier in the thread, I used to pay a mortgage at 11% base rate. I worked 60 hours a week minimum, paid my mortgage and bills and bought food. Then did it again the following month.

[JD6]

Originally Posted by Pond

Admittedly the housing market needs to cool a bit; around here the prices are madness. I live in a traditionally quite cheap area compared to where I come from in the home counties; our prices have risen by an average of 30% in eighteen months, more for houses in the villages and in the sticks as the WFH brigade want them all. All being fuelled by the greedy, clueless estate agencies.

People always say that estate agents don't affect house prices, it's purely driven by the market. That is simply not true. Estate agents do affect prices and in times like these actively 'encourage' vendors to keep pushing the boundaries of price, so they can get a bit more of their parasitic commission.

I have no axe to grind, but I don't think that's a fair criticism of estate agents. They are engaged by the vendor and the primary concern is to maximise sale price. If agents listing properties at inflated prices results in them selling for more, then they're doing their job in my view.

I agree with you that the market is pretty crazy, just that prices are down to supply and demand, rather than agents in my view. If one agent were to value properties lower than the others on principle, I don't think they'd be in business for long.

[Pond]

Originally Posted by JD6

I have no axe to grind, but I don't think that's a fair criticism of estate agents. They are engaged by the vendor and the primary concern is to maximise sale price. If agents listing properties at inflated prices results in them selling for more, then they're doing their job in my view.

I agree with you that the market is pretty crazy, just that prices are down to supply and demand, rather than agents in my view. If one agent were to value properties lower than the others on principle, I don't think they'd be in business for long.

I didn't mean that estate agents are singly responsible; yes the market is supply and demand to a massive degree.

As you can probably tell I really dislike estate agents as a job (not going to call it a profession). I have dealt with many, many of them. Unfortunately they have a monopoly so with buying and selling houses it is unavoidable.

I have never, ever had dealings with one who knows anything about property, or cares. They are pure parasites as they provide nothing that can't be done by the vendor.
I have always ended up doing their work for them and then paying them 1-2% for the privilege.
They don't sell anything. You cannot sell a house, it sells itself.

Anyway back to mortgages: luckily I don't have one anymore

[KRS_SN]

Originally Posted by Pond

I didn't mean that estate agents are singly responsible; yes the market is supply and demand to a massive degree.

As you can probably tell I really dislike estate agents as a job (not going to call it a profession). I have dealt with many, many of them. Unfortunately they have a monopoly so with buying and selling houses it is unavoidable.

I have never, ever had dealings with one who knows anything about property, or cares. They are pure parasites as they provide nothing that can't be done by the vendor.
I have always ended up doing their work for them and then paying them 1-2% for the privilege.
They don't sell anything. You cannot sell a house, it sells itself.

Anyway back to mortgages: luckily I don't have one anymore

Small grain of truth there. Last time we sold we got a great offer and the EA boss was keen I accept. I said to him please tell the buyer I will only accept their offer plus 15k. The buyer agreed.
The boss had a long grumble about how now he would be under pressure from future clients to attain that price for my type of property and for him volume was probably more important than the final price achieved and %from that etc. Almost felt he wasn't really working for me.