If memory serves, mortgage arrears jumped by more than 50% last year, so it's not really surprising sadly.
Mortgage Rate Rises
- Thread starter glenimp617
- Start date
If memory serves, mortgage arrears jumped by more than 50% last year, so it's not really surprising sadly.
Yes I went through the 80's and 90's so know about it but thankfully didn't happen to us.
Caporegime
When we was looking in 2010 lots of repo's going for mental prices.
Detached 4 bedroom houses going for 120k at auction although garden was a little small for us and on a newish build estate so tiny roads and too close together. That house today is easily worth 300-350k though.
Yes, repossessed properties going for peanuts which left the evicted still in debt. We didn't have the help that is in place now, it was pay up or you're out virtually. After that the government at the time told the mortgage lenders to put more help in place and only use repossession as a last resort not the first.
You’re right on some levels I think, but without that “help”, things would be absolutely catastrophic today given how many more multiples of the average salary house prices are today compared to back then.
Personally I would prefer a more natural and better functioning market. One without much in the way of intervention. Things need to be allowed to correct in line with affordability.
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Just be thankful you do have the help, it wasn't very pleasant for millions? at the time
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I’m lucky enough not to need it; but I suspect it’s going to be just as bad for millions more over the next 12 months or so. Even with the “help”.
I suppose there’s one difference this time, in that those at the bottom end of the market have been so priced out that they probably don’t have houses to lose in the first place.
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Now you know why I am building the garden room
Depending on how it's handled the could just be the start of a cascade.
For the in laws?
YOU CAN TAKE MY HOUSE...........BUT YOULL NEVER TAKE..............THE GARDEN ROOM.
House for life yo, just need to update my deeds.
Indeed. Given the lag in how these things have tended to effect economies historically, it’s only around now that I would have expected repos to start ramping up anyway.
I’m not too hopeful of the kind of soft landing in real terms that some people are.
It’s exactly what I’m doing, and who can blame anyone able to for doing so? But it definitely leaves a sour taste in your mouth knowing that you’re likely going to end up profiting while families out there will be suffering.
Yes you will need to save as your house value will go down aswell unfortunately.
yeah, as always, the cash buyer will always win, no need to contend with cray cray % mortgage rates, and with rental prices increasing as well...
Soldato
We've been putting our rates up for the last few weeks, so not sure what that report is in about.
The headline rate isn't always the complete picture either, for example, one of the mortgage offers I looked at the other day, was a loan I want to say about 600k, but the product fee on the offer was £65k.
I can't remember if it was a 2 or 5 years rate, but in either case, the cost of that mortgage was £65k PLUS whatever interest was charged on top, crazy.
Edit: don't forget, that's exclusive of the application fee, valuation fee, solicitors fee, broker fee, so add on all those lol.
Redemption fee, and the cheeky £35 TT fee.
The headline rate isn't always the complete picture either, for example, one of the mortgage offers I looked at the other day, was a loan I want to say about 600k, but the product fee on the offer was £65k.
I can't remember if it was a 2 or 5 years rate, but in either case, the cost of that mortgage was £65k PLUS whatever interest was charged on top, crazy.
Edit: don't forget, that's exclusive of the application fee, valuation fee, solicitors fee, broker fee, so add on all those lol.
Redemption fee, and the cheeky £35 TT fee.
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my home value is immaterial unless i need/want to move
for the forseeable future i have no wish to, and my mortgage is fixed @ 2.35% until july 2032
wtf 65k product fee on a 600k loan!?
Soldato
It's designed to cheat affordability. Because it all has to be stressed against the rate, well you have a slightly lower rate and make it up in the product fee, the overall cost, or profit to lender is the same, but it becomes more affordable.
Yup.........