Mortgage rates

I'm fortunate in that I paid my mortgage off sometime over Covid - but before that I was on a *15 year* fixed at 5.x% (can't remember the exact amount). I spent every month cursing that I'd signed at that rate - especially as it was much lower for practically the entire duration - but there was always the chance that it would get a lot higher again, I just didn't expect it to take so long.

 

I got a 10 year fix in 2009; then look what happened.

 

I keep seeing that quoted and whilst it may be correct, if you have maxed yourself out then you have no room to manouvre . Result debt, lower living standard and misery.

 

Don't disagree, but if you've bought a house at 3 x your annual salary, the high interest rate is going to be less impactful for you than if you've bought one at 7/8x your annual salary.

 

There wasn’t much risk to me fixing at 2.64% though, there wasn’t really anywhere for it to go much lower to and I was ok with the risk of potentially paying extra for the stability. I bet you did a lot kicking yourself in hindsight but at least you were never at risk of losing your home so it was a sensible decision even if it didn’t feel that way later.

 

Would you not have been better remortgaging and just eating the early repayment charge? You could then have overpaid each month so that you were still paying the same amount but were reducing the amount owed faster.

 

I agree with Jamdrop and Barnsley Reds. I know quite a few landlords ranging from one chap who as dozens of properties to a guy who owns one. Nearly all of these properties are the equivalent to first time buyers houses. For the sake of this post I will say they are all terraced houses.
A good friend of mine owns 4 terraced houses, so to me that is 4 first time buyers who have lost out. The supply as been artificially reduced because he as taken them out of the market. He as no intention of selling any time soon, a first time buyer is more likely to sell that same property within a shorter time period in order to move up the ladder thus keeping the entry level properties turning over.
Anybody wishing to purchase buy to let in my opinion should have to pay a hefty second property tax on purchase and a hefty capital gain on sale.
There are many ways of providing for our kids other than strangling the first time buyers market

 

Unfortunately, a couple of years after signing it I was made redundant and took a job immediately with a big pay cut (~£12-14k) which took me from keeping my head above water to "Oh Crap!" over the course of the next 2-3 years. The resulting financial fall out left me with a trashed credit score for the next 6+ years so I couldn't get a better deal until it wasn't worth the hassle.

It was 7-8 years before I recovered to the same income level - and that was working 2 jobs - and 10+ before I started earning more from one job. By then I was down to a year left.

 

Private rental is basically a transfer of capital from the younger/poorer to the older/richer.

 

Fixed at 1.04%, amazing deal. Bought a new property but needed to renovate it. It was only the rates at the time that made that an affordable option.

So need to sell the other before the fixed rate ends.

Think my first mortgage back end of 90's was about 6% so massive difference.

Inflation is starting to fall so cannot in any way see interest rates going up by more than say another 0.5% before it's properly under control.

 

You seem to completely miss the point, it's people treating property as an investment that is the problem. Yes there will always need to be a rental market, but this should be approached from the perspective of social housing as a fundamental human right. By selling off social housing to buy to let parasites, sorry, "investors", and forcing up the price of properties across the board there's now a generation that will not be able to get on the housing ladder. Hopefully the interest rate increases will bankrupt some of the scumbags and push house prices down.

 

Going back to the historic affordability of houses, another thing to consider was when I brought my first house you could claim tax relief on your mortgage payments. MIRAS mortgage interest relief at source was abolished in 2000.

 

Gilts are now higher than they were under Truss and Kwarteng following a sharp rise in the last week - and expected to rise further. This is likely to force another rise in interest rates.

 

How do I contact you for advice?

 

Send him a private message (start a conversation from his profile page) in the first instance.

My wife's friend has two properties on buy to let along with a holiday flat that she pays interest only on as she knows she will be able to sell for a huge profit. Two of her kids have followed suit and own properties on buy to let mortgages.

It f'ing stinks that there are 10 families paying more than they would for a mortgage to rent from these people. The only rental option should be social housing run on not for profit/charitable basis imo.

 

I occasionally think of setting up a "social housing charity", where people put in a small amount each month and the money buys cheap houses/flats, do them up then house the really needy for a fixed term to get them back on their feet. It'd probably need 10,000+ people at £10 per month to be able to help enough people, but I just don't have the time at the moment.

 

Hi mate, can have a look at it if you like. Can secure a deal now and if rates drop look to move you onto a cheaper deal with that lender. With many lenders (not all), mortgage offers are valid for 6 months.

 

Not really I know people who are relatively young and have rentals (their not all driving Bentleys) I know older people private renting. They can't really get a mortgage or want one because of a separation and what they could afford to buy they wouldn't want to live there. So your analogy is untrue. Obviously there are people with a big property portfolio making millions. But the self employed bloke who's bought one for a pension later on in life is hardly living it up when he's got all the maintenance of the property to consider and the morgate on it.

 

I didn't say it was exclusively age. As for the last sentence, the tenants will be paying the mortgage and, indirectly, the repairs.