[Finance] Base rate increase.

[dazzer6666]

What do you mean, the increased monthly repayment due to higher interest rates? It goes to the bank. That's the most galling thing - £500 a month extra, and not a penny of that extra fee goes towards my house.

….the bank that has to pay more for the money it’s lending. True, margins will increase as rates increase but it’s not all ‘profit’.

 

[SK1NT]

@Uncle C i don't know where the resentment comes from? Please tell me what you would have done out of the 3 options below:

Rent: Rents are almost always considerably more expensive a month than getting an actual mortgage.
Buy: The average house in the South East is over £450k (Fact: google it) that means for most people getting a big mortgage. Even if you have been lucky enough to get help from parents or have been very good at saving for a deposit.
Homeless.

Now my example. I was in a flat for 15 years over paying my mortgage whilst rates have been low. I have been with my same partner for 21 years. We have done everything by the book. (what i mean by that is... study, save, get good jobs, get on the property ladder, have kids later in life) We got on the ladder young together (i was 26 she was 21) however 15 years later had a 6 and 2 year old and had to get a house for the space. Houses here, where we have friends and family are minimum 750k (that's for crap btw. Also prices in the SE are still very high) however we needed the space for growing kids. We had no option, we were forced into a big mortgage. Tell me what other options did we have? Move to Hull? Stay in a tiny flat with 2 kids? or maybe we shouldn't have had kids. I am a higher tax payer and my misses is a teacher? What have we done wrong to be put under such financial pressure my whole life and the foreseeable? We have old cars, don't smoke, don't do drugs, a holiday once every 5 years....

I haven't had a payrise in 2 years. When i asked my manager he said "well IT is over paid, look how much teachers and nurses get". How can i be overpaid when i live a frugal life and just scrape through month to month. I am not overpaid... nurses and teachers are grossly underpaid.

The system is broken and your views are bloody awful. Oh and for the record my flat went up by about 130k in 15 years. That is pretty much what all houses in my area went up by since covid.

The bottom-line is i would rather have a better way of living and live in a house that costs 100k than have the financial pressures i have now but live in a million pound house.


I just want to say that i am still one of the lucky ones... I have a nice house.

 

[Berty23]

The point about rent being higher than mortgage is so important. My next door neighbours were renting and their rent was about 1350 a month I think. Their landlord needed the capital and sold them their 4 bed and it now costs them about 1000 a month. It is far cheaper for them to be paying off a mortgage than to be paying off someone else’s. My neighbour had previously owned a place so had capital but how are people who rent supposed to save for a deposit?

The people renting are paying someone else’s mortgage so they get more money so they can get another property and do the same. Yes they pay some capital gains but that’s fine when property price keep going up. And so the people in my dad’s generation (boomers with nice final Salary pensions (yes I know not all but loads compared to other generations)) can get more money and make life harder for the younger generations who have will have to work longer.

 

[Seagull27]

….the bank that has to pay more for the money it’s lending. True, margins will increase as rates increase but it’s not all ‘profit’.

Yes, sorry, wasn't meaning to suggest that the banks are being greedy here - just that the homeowner isn't somehow benefitting by paying a higher monthly fee, as that money is purely additional interest.

 

[drew]

….the bank that has to pay more for the money it’s lending. True, margins will increase as rates increase but it’s not all ‘profit’.

So the institutions that supply money to the banks are making more profit without doing anything extra for it?

 

[Seagull27]

@Uncle C i don't know where the resentment comes from? Please tell me what you would have done out of the 3 options below:

Rent: Rents are almost always considerably more expensive a month than getting an actual mortgage.
Buy: The average house in the South East is over £450k (Fact: google it) that means for most people getting a big mortgage. Even if you have been lucky enough to get help from parents or have been very good at saving for a deposit.
Homeless.

Now my example. I was in a flat for 15 years over paying my mortgage whilst rates have been low. I have been with my same partner for 21 years. We have done everything by the book. (what i mean by that is... study, save, get good jobs, get on the property ladder, have kids later in life) We got on the ladder young together (i was 26 she was 21) however 15 years later had a 6 and 2 year old and had to get a house for the space. Houses here, where we have friends and family are minimum 750k (that's for crap btw. Also prices in the SE are still very high) however we needed the space for growing kids. We had no option, we were forced into a big mortgage. Tell me what other options did we have? Move to Hull? Stay in a tiny flat with 2 kids? or maybe we shouldn't have had kids. I am a higher tax payer and my misses is a teacher? What have we done wrong to be put under such financial pressure my whole life and the foreseeable? We have old cars, don't smoke, don't do drugs, a holiday once every 5 years....

I haven't had a payrise in 2 years. When i asked my manager he said "well IT is over paid, look how much teachers and nurses get". How can i be overpaid when i live a frugal life and just scrape through month to month. I am not overpaid... nurses and teachers are grossly underpaid.

The system is broken and your views are bloody awful. Oh and for the record my flat went up by about 130k in 15 years. That is pretty much what all houses in my area went up by since covid.

The bottom-line is i would rather have a better way of living and live in a house that costs 100k than have the financial pressures i have now but live in a million pound house.

Perhaps @Uncle C is suggesting that as well as saving for a £40k deposit, prospective homeowners should continue paying high rent fees until they have enough saved to cover an interest rate rise as well (so in my case, on a 2 year fix that would be an extra £12k). And yet people suggest anyone could buy a house as long as they cut out the luxuries, like avocado and Netflix.

By the way - if my manager had responded to me like that when asking for a payrise, I would've been straight onto job applications elsewhere.

 

[SK1NT]

Perhaps @Uncle C is suggesting that as well as saving for a £40k deposit, prospective homeowners should continue paying high rent fees until they have enough saved to cover an interest rate rise as well (so in my case, on a 2 year fix that would be an extra £12k). And yet people suggest anyone could buy a house as long as they cut out the luxuries, like avocado and Netflix.

By the way - if my manager had responded to me like that when asking for a payrise, I would've been straight onto job applications elsewhere.

Put it this way i am purely getting what i want out of this job now. My manager is a prick. Another stressful thing in life that i have to suck up because i am mortgages to the hilt.

 

[rogersix]

Find me one home owner that says "my house has gone up in value by xxx thousands of pounds but that makes me sad"

blimey, this is only counting!

 

[rogersix]

Its your estate thats gone up in value.

"Anyway, where's this property price crash you promised us ?"

It was forestalled by all the mugs that bought houses believing that interest rates would stay below 1% forever. I never believed there would be that many people putting their heads in a noose, but now we are seeing the consequences.

Wont be long before they start to blame it all on the Tories.

there's a lot of hatred in this post,

so the crash is just around the corner then?

just after the banks crash, again, i'd guess

the tories are only responsible for the good times! and it has always been like this!

 

[rogersix]

You claim the average person is incapable of seeing that an interest rate of zero can only go one way. And you call me condescending.

OK lets not blame the Tories but lets blame the Banks. It typical that some peple cant take resposibility for their own actions

boris johnson? rees mogg?

 

[Live by the sea]

And even then the only way to realise a profit is to move somewhere cheaper. Despite what @Uncle C states - most people don't see their home as something to make a 'profit' out of.

You will be surprised how many do utilise property prices to their advantage , I’ve just exchanged on my flat ( never buying a flat again but that’s a different story ) it’s gone up a bit since I bought it but like many flats compared to houses not a huge amount .

I’m buying a small cottage in Sussex . It’s not been modernised in years so I’m going to hopefully extend it to make it bigger and more open plan to make it more appealing to what a family would want & put in new bathroom & kitchen. & hopefully squeeze an en-suite In for the big bedroom

When It’s done which I hope will be by the end of the year , I’m going to sell it at hopefully a decent profit .

If all goes well , I will rinse and repeat !

 

[Westdene Seagull]

You will be surprised how many do utilise property prices to their advantage , I’ve just exchanged on my flat ( never buying a flat again but that’s a different story ) it’s gone up a bit since I bought it but like many flats compared to houses not a huge amount .

I’m buying a small cottage in Sussex . It’s not been modernised in years so I’m going to hopefully extend it to make it bigger and more open plan to make it more appealing to what a family would want & put in new bathroom & kitchen.

When It’s done which I hope will be by the end of the year , I’m going to sell it at hopefully a decent profit .

If all goes well , I will rinse and repeat !

But your acting like a property developer just using your own home to do so. A vast majority of people don't do that - they buy a property to live in, make a home. Most property developers don't use their own home - they use other properties - I was a property developer for 8 years and would never have dreamt of using my own home.

 

[dazzer6666]

So the institutions that supply money to the banks are making more profit without doing anything extra for it?

They’re obviously getting a better return on their deposits…....……and the banks typically widen their margins as rates increase (watch what happens any time there’s a base rate increase - borrowing rates always immediately go up by at least the same amount, credit interest rates not so much, and usually a time lag).

 

[Curryisgreat]

But your acting like a property developer just using your own home to do so. A vast majority of people don't do that - they buy a property to live in, make a home. Most property developers don't use their own home - they use other properties - I was a property developer for 8 years and would never have dreamt of using my own home.

You will be surprised how many do utilise property prices to their advantage , I’ve just exchanged on my flat ( never buying a flat again but that’s a different story ) it’s gone up a bit since I bought it but like many flats compared to houses not a huge amount .

I’m buying a small cottage in Sussex . It’s not been modernised in years so I’m going to hopefully extend it to make it bigger and more open plan to make it more appealing to what a family would want & put in new bathroom & kitchen. & hopefully squeeze an en-suite In for the big bedroom

When It’s done which I hope will be by the end of the year , I’m going to sell it at hopefully a decent profit .

If all goes well , I will rinse and repeat !

Are you f***. You just post utter horseshit from your grandad’s basement to get a rise out of people who are genuinely concerned about their financial well-being.

You must feel so proud when you drift off to sleep surrounded by wankstained tissues…

 

[Westdene Seagull]

Are you f***. You just post utter horseshit from your grandad’s basement to get a rise out of people who are genuinely concerned about their financial well-being.

You must feel so proud when you drift off to sleep surrounded by wankstained tissues…

I'm hoping that wasn't aimed at me ?

 

[schmunk]

I'm hoping that wasn't aimed at me ?

 

[Curryisgreat]

I'm hoping that wasn't aimed at me ?

Certainly not Sir. Still getting used to the quote function.

Was aimed at Live by the sea who seems to be permanently winding people up. Funny sometimes, but not on this occasion when there are posters here genuinely adversely affected by all this…

 

[Westdene Seagull]

Certainly not Sir. Still getting used to the quote function.

Was aimed at Live by the sea who seems to be permanently winding people up. Funny sometimes, but not on this occasion when there are posters here genuinely adversely affected by all this…

You've got to remember - he's an American snob ( whoever would have thought those two words could go together ! ).

 

[Curryisgreat]

You've got to remember - he's an American snob ( whoever would have thought those two words could go together ! ).

I’m not entirely sure he is though. I suspect he’s never been to America and has developed an odd internet persona from his grotty wankchamber.

I could be wrong though.

 

[Shropshire Seagull]

@Uncle C i don't know where the resentment comes from? Please tell me what you would have done out of the 3 options below:

Rent: Rents are almost always considerably more expensive a month than getting an actual mortgage.
Buy: The average house in the South East is over £450k (Fact: google it) that means for most people getting a big mortgage. Even if you have been lucky enough to get help from parents or have been very good at saving for a deposit.
Homeless.

Now my example. I was in a flat for 15 years over paying my mortgage whilst rates have been low. I have been with my same partner for 21 years. We have done everything by the book. (what i mean by that is... study, save, get good jobs, get on the property ladder, have kids later in life) We got on the ladder young together (i was 26 she was 21) however 15 years later had a 6 and 2 year old and had to get a house for the space. Houses here, where we have friends and family are minimum 750k (that's for crap btw. Also prices in the SE are still very high) however we needed the space for growing kids. We had no option, we were forced into a big mortgage. Tell me what other options did we have? Move to Hull? Stay in a tiny flat with 2 kids? or maybe we shouldn't have had kids. I am a higher tax payer and my misses is a teacher? What have we done wrong to be put under such financial pressure my whole life and the foreseeable? We have old cars, don't smoke, don't do drugs, a holiday once every 5 years....

I haven't had a payrise in 2 years. When i asked my manager he said "well IT is over paid, look how much teachers and nurses get". How can i be overpaid when i live a frugal life and just scrape through month to month. I am not overpaid... nurses and teachers are grossly underpaid.

The system is broken and your views are bloody awful. Oh and for the record my flat went up by about 130k in 15 years. That is pretty much what all houses in my area went up by since covid.

The bottom-line is i would rather have a better way of living and live in a house that costs 100k than have the financial pressures i have now but live in a million pound house.

Crikey, I see many parallels in your story to my own but I'm probably 25 years further on up the road.
63 and retired. 2 girls, both married, and a long time career in IT.
At 42 I moved (work relocation) from Sussex to Shropshire. Bought a bigger 4-bed for £144k and sold my Burgess Hill 4-bed for £250k.
5 years later I gave up a reliable perm role with HMRC and went contracting. This gave me the work-life balance I sought with the income that enabled me to only work 60% over the next 15 years, pay off the mortgage and stash a descent wedge into a SIPP.
We had some struggles, family holidays were mostly UK based and 2 oldish cars.
But now we've come out the other side. We visit relatives in Sussex 2-3 times a year but Shropshire has been our "home" now for 22 years and whilst I miss Sussex, there's no doubt that I financially made the right decisions for my family.
There are other (difficult) choices ...