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Post by bancroft on Jun 23, 2023 9:33:41 GMT
What happened to Repayment mortgages, you know the ones, you pay the same amount each month until the end of the mortgage and the property is yours.
I only ask as BBC is full of people saying how their new mortgage rate is killing them and Tory millionaires don't care.
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Post by andrewbrown on Jun 23, 2023 9:38:22 GMT
What happened to Repayment mortgages, you know the ones, you pay the same amount each month until the end of the mortgage and the property is yours. I only ask as BBC is full of people saying how their new mortgage rate is killing them and Tory millionaires don't care. Repayment mortgages are the most common type, but the rate isn't fixed for the duration of the mortgage, but usually for up to 5 years. The problems will arise when people's mortgage deal is up for renewal (like mine is next year). |
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Post by Fairsociety on Jun 23, 2023 9:54:25 GMT
Yes, lots of people are also on 'tracker' mortgages, which basically follows the BoE base rate, so for example, they will have gone from 0.25% to 5%, in terms that is a steep hike, and like andrew pointed out, those who have been on a fixed rate, let's just say 3% will see a big monthly rise, the BoE seen this coming a while back, but just sat and did nothing.
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Post by bancroft on Jun 23, 2023 9:54:56 GMT
What happened to Repayment mortgages, you know the ones, you pay the same amount each month until the end of the mortgage and the property is yours. I only ask as BBC is full of people saying how their new mortgage rate is killing them and Tory millionaires don't care. Repayment mortgages are the most common type, but the rate isn't fixed for the duration of the mortgage, but usually for up to 5 years. The problems will arise when people's mortgage deal is up for renewal (like mine is next year). When did that change they used to be fixed for 25 years? |
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Post by Fairsociety on Jun 23, 2023 9:56:59 GMT
Repayment mortgages are the most common type, but the rate isn't fixed for the duration of the mortgage, but usually for up to 5 years. The problems will arise when people's mortgage deal is up for renewal (like mine is next year). When did that change they used to be fixed for 25 years? To be honest I've never heard of a fixed rate for that amount of years, the most I've seen is five years. |
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Post by Fairsociety on Jun 23, 2023 9:59:10 GMT
If people can, they should just hold their nerve, it will come down again, if they rush out now and changed to fixed rate deals which wont be much less than the 5%, they will kick themselves if it starts falling again, because it's very hard to get out of these fixed term mortgage deals, especially to change them for cheaper deals.
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Post by andrewbrown on Jun 23, 2023 10:17:33 GMT
I'm with Fairsociety here, never seen a fixed rate over 5 years. I'm currently paying 1.59% on my 5 year deal, which is due to expire in the spring. Problem for me is I'll then only have 15 months left on the mortgage, so am presuming that I can't fix it at that point. (Haven't actually checked yet.)
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Post by The Squeezed Middle on Jun 23, 2023 10:21:46 GMT
5% still seems like a bargain to anyone that had a mortgage in the 80s or early 90s.
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Post by Fairsociety on Jun 23, 2023 10:25:24 GMT
I'm with Fairsociety here, never seen a fixed rate over 5 years. I'm currently paying 1.59% on my 5 year deal, which is due to expire in the spring. Problem for me is I'll then only have 15 months left on the mortgage, so am presuming that I can't fix it at that point. (Haven't actually checked yet.) I think what should happen as a emergency measure short term, anyone due to come off fixed rate mortgages should have a automatic 6 month extension to soften the blow, then after the 6 months review it again, I'm reading a lot of people are selling up before they lose their homes which is a terrible position to be in, I just hope they get their act together and help these people, also landlords are having to put rents up to cover the rises, so they might sell up or be faced with evicting renters who can't pay extra rent ... this is what people should be worried about, no bloody daft schools letting pupils identify as cats FFS. |
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Post by piglet on Jun 23, 2023 10:34:34 GMT
Ive paid off three mortgages and am now mortgage free. Its easy, you over pay. Im rolling in cash, ive 32,000 in the bank and get an investment back in december of over 20,000. You are now going to hate me because im well off, and you aint. The truth is im smarter, and dont fritter cash away on sh ite. And yes im a drinker and an ex smoker, foreign holidays, women, cars, you name it.
I grew up poor, someone gave me two bars of a bar six once in 1965 or whenever, thought i was in heaven then. Its my frame of reference. I cant remember who gave it to me, thanks mate, pay it back one day.
Heres another lesson, i loved choc, but lost my sweet tooth when i started work and could afford whatever i wanted. Now i have money, theres nowt to spend it on, if i bought a new watch for two grand, etc, expensive clothes... its spending for its sake. Apart from what you need, you dont need owt else, my watch is a timex, and cost twenty quid from argos, it tells the same time as a two grander.
Whats the lesson then?
Whatever you do in life you will be frustrated.
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Post by The Squeezed Middle on Jun 23, 2023 10:35:19 GMT
People have short memories. I suspected that this would end in tears since I can remember the last time this happened.
Lots of people have enjoyed record low rates over the last 20 years and it was never going to last.
For example, my friend Pete saddled himself with a £600k mortgage. He and his wife already owned a house that they could easily afford but mortgaged themselves up to the hilt because "It was cheap" as in fixed at 1.5% for 5 years.
That was just over three years ago. Now they're shitting themselves because in 18 months they could be looking at 5 or 6% which will more than double their repayments and bankruptcy beckons.
Silly people.
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Post by Fairsociety on Jun 23, 2023 10:57:13 GMT
People have short memories. I suspected that this would end in tears since I can remember the last time this happened. Lots of people have enjoyed record low rates over the last 20 years and it was never going to last. For example, my friend Pete saddled himself with a £600k mortgage. He and his wife already owned a house that they could easily afford but mortgaged themselves up to the hilt because "It was cheap" as in fixed at 1.5% for 5 years. That was just over three years ago. Now they're shitting themselves because in 18 months they could be looking at 5 or 6% which will more than double their repayments and bankruptcy beckons. Silly people. I think it's unprecedented that mortgages have ever gone up 13 times in as many months, that has to be a first.
I am fortunate enough to own my house outright, but if I decided to sell it I dread to think if someone had to mortgage it what their monthly mortgage would be, and that would be if they managed to get the best deal on the market.
I am sure people signing mortgages 13 months ago, who had afforded it, did not expect it to go up every month thereafter, so it's not irresponsibility or irresponsible lending, it's just sheer bad luck.
After this what I would like to see happen is the BoE being more accountable, and measures put in place that would restrict them from rates rises more than maximum 5 times in one year, allowing 13 rates rises in succession is absolutely reckless on the part of the BoE, all because they've fucked up.
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Post by piglet on Jun 23, 2023 11:06:51 GMT
The mortgage companies play dirty, paying off the mortgage on my current home the TSB made it almost impossible tp pay it off, they want you to stay in their tentacles, they did it by ignoring your emails, saying they havent the staff.....so you keep paying.
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Post by Handyman on Jun 23, 2023 11:14:15 GMT
5% still seems like a bargain to anyone that had a mortgage in the 80s or early 90s. Yes , much higher than today most got through it, the problem is we have to get inflation down but there is no quick way to do it , it will take at least 2 years |
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Post by Handyman on Jun 23, 2023 11:17:19 GMT
The mortgage companies play dirty, paying off the mortgage on my current home the TSB made it almost impossible tp pay it off, they want you to stay in their tentacles, they did it by ignoring your emails, saying they havent the staff.....so you keep paying. I reduced the length of my mortgage by paying off the principal an extra payment at the end of each financial year, |
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