Z4-forum.com

Posted: **Thu Nov 02, 2017 7:15 pm**

My god,

Watching the news you would think its gone up 10%. Financial collapse imminent.

"ooooh,im not gonna be able to go out,im having to tighten my belt now".....Mortgage risen by £40 per month..

Are these people for real ?

I would suggest if your short of £10 a week and your mortgage is on the line,even after a 10 yr unprecedented low in interest rates then you need to have a serious look at yourself.

Posted: **Thu Nov 02, 2017 7:48 pm**

Sadly it’s another feeding frenzy for Daily Mail style journalism....

I’m with you. The additional cost is approx £6 per week per £100k mortgage. Or less than a packet of fags to put it into a context more easily understood by the kind of people that whip up a storm. I’m of an age where my parents’ generation can remember interest rates of 14% or thereabouts in the 80’s and that would be something to get worked up about!

Chris

Posted: **Thu Nov 02, 2017 8:02 pm**

Here's the bit i don't get so financial or business brains feel free to offer insight

they were dropped to stimulate economy on the back of the 2007 financial collapse in order to stave off a full blown recession but the country as it is right now ( for the middle 80% ) doesn't exactly scream out buoyant , vibrant or prosperous so what has suddenly gone right to make the boffins think that the policy of the last decade has succeeded & begin the steady rise ? which i suspect will take a good few years to reach a possible 2-3% so hardly enough to thrill savers

Posted: **Thu Nov 02, 2017 8:11 pm**

Z4M-2006 wrote: ↑Thu Nov 02, 2017 7:15 pm My god,

Watching the news you would think its gone up 10%. Financial collapse imminent.

"ooooh,im not gonna be able to go out,im having to tighten my belt now".....Mortgage risen by £40 per month..

Are these people for real ?

I would suggest if your short of £10 a week and your mortgage is on the line,even after a 10 yr unprecedented low in interest rates then you need to have a serious look at yourself.

Having survived 15% mortgage rates in the 80's with a young family it was a huge relief when rates fell into single figures but the difference then was that the average income to house price ratio was a lot lower than today. People need homes and with the average house price now being nearly 10 times the average wage, ridiculously large mortgages are having to be taken on over extended time periods to enable youngsters to get a foot on the housing ladder. Had it not been for super low rates over the past ten years a lot more would have been consigned to renting. I think the affordable housing shortage in the UK (either to buy or rent) has for many young families squeezed disposal income after housing costs are met to very modest amounts. A quarter of a percent increase in bank rate is probably easily affordable by most but it's where the rate is going to go and how fast is likely to cause some anguish in more than a few households.

Posted: **Thu Nov 02, 2017 8:18 pm**

Journalistic muppetry

Posted: **Thu Nov 02, 2017 8:25 pm**

I heard it had gone up, luckily I'm on a good variable rate of base rate plus 1%, so my mortgage will go up about £22 I reckon. As I already overpay it won't make any real difference. I feel sorry for those on fixed rates these days..

When we bought in 2007, I had a self cert mortgage at 6.19% fixed for 3 years, which was actually a pretty good deal at the time, but then the rate dropped and I was stuck with it. When I came off it in 2010, and onto the variable rate my payments dropped by nearly £500 a month, now THAT change in rate made a difference.

Fwiw I don't think the rise today will do anything to improve matters, but I also sent see it making things worse.

Luckily I'm not a big saver, but I do feel for the likes of my parents who have a few quid in the bank and are getting the likes of 0.39% on reasonably big balances. Tbh though I can't see the banks passing on the full raise to savers, but I bet they will to borrowers!

Mike

Posted: **Thu Nov 02, 2017 8:32 pm**

Its mostly the 'middle men' that will soak this up anyway not the poorer who are renting. I rent a couple of properties and whilst the rental mortgage will probably go up a couple of quid a month for me, I can hardly go knocking on my tenants door crying that I immediately want an extra £15 a month. I have a personal relationship with them, whereas the banks and Building Societies will already have their letters in the post by tomorrow morning.

My tenants are already on a fixed 12 month agreement, so it will be the landlords who soak up the difference short term. The banks will benefit and the renters wont be affected for upto another year.

Posted: **Thu Nov 02, 2017 8:54 pm**

Will have to drive in comfort mode now for the first mile to save the pennies

Only joking

Posted: **Thu Nov 02, 2017 9:03 pm**

Ducklakeview wrote: ↑Thu Nov 02, 2017 8:25 pm I heard it had gone up, luckily I'm on a good variable rate of base rate plus 1%, so my mortgage will go up about £22 I reckon. As I already overpay it won't make any real difference. I feel sorry for those on fixed rates these days..

When we bought in 2007, I had a self cert mortgage at 6.19% fixed for 3 years, which was actually a pretty good deal at the time, but then the rate dropped and I was stuck with it. When I came off it in 2010, and onto the variable rate my payments dropped by nearly £500 a month, now THAT change in rate made a difference.

Fwiw I don't think the rise today will do anything to improve matters, but I also sent see it making things worse.

Luckily I'm not a big saver, but I do feel for the likes of my parents who have a few quid in the bank and are getting the likes of 0.39% on reasonably big balances. Tbh though I can't see the banks passing on the full raise to savers, but I bet they will to borrowers!

Mike

Why sorry for those on a fixed rate?

They are so low these days and offer stability which is what some people want.

Posted: **Thu Nov 02, 2017 9:05 pm**

srhutch wrote: ↑Thu Nov 02, 2017 9:03 pm
Ducklakeview wrote: ↑Thu Nov 02, 2017 8:25 pm I heard it had gone up, luckily I'm on a good variable rate of base rate plus 1%, so my mortgage will go up about £22 I reckon. As I already overpay it won't make any real difference. I feel sorry for those on fixed rates these days..

When we bought in 2007, I had a self cert mortgage at 6.19% fixed for 3 years, which was actually a pretty good deal at the time, but then the rate dropped and I was stuck with it. When I came off it in 2010, and onto the variable rate my payments dropped by nearly £500 a month, now THAT change in rate made a difference.

Fwiw I don't think the rise today will do anything to improve matters, but I also sent see it making things worse.

Luckily I'm not a big saver, but I do feel for the likes of my parents who have a few quid in the bank and are getting the likes of 0.39% on reasonably big balances. Tbh though I can't see the banks passing on the full raise to savers, but I bet they will to borrowers!

Mike
Why sorry for those on a fixed rate?

They are so low these days and offer stability which is what some people want.

They may be "low" but most, if not all are higher than the std variable rates available, as above mine dropped £500 a month when I came off a relatively good fixed rate.

Mike

Posted: **Thu Nov 02, 2017 9:13 pm**

Fixed rates just above 2% aren’t that much higher than the 1.5% you are paying now. Probably only those on a 5/10 year fixed that will be paying higher rates and maybe losing out. But as said young folk starting out want stability which is where fixed rates definitely have there use.

Posted: **Thu Nov 02, 2017 9:41 pm**

I've just moved house in the last couple of months and we are currently on a 5 years fixed rate of 2.29%.

The jump of 0.25% obviously doesn't affect us, but i do worry how much they will rise by the time my 5 year fixed rate is up. All the talk seems to be of gradual rate rises, so i'm hoping it won't be too high!

Posted: **Thu Nov 02, 2017 9:50 pm**

Our mortgage has gone up by 50% today. Now 0.75%, don't know how we will cope. Hopefully the kids can sub us a couple of quid.

Posted: **Thu Nov 02, 2017 10:13 pm**

I think part of the worry here is simply the notion of change its self. We have a generation who have seen no change in interest rates - for some this will represent a third of the mortgage life on a thirty year mortgage. Having lived through the interest rates of the 80's and 90's (at one point hitting 16% for a few days if I remember correctly) the situation at the moment is still quite stable.

A coming off a fixed rate is a shock if you don't think about it until it ends. As with all finance it takes work to calculate the 'what if's' and to make changes to spending less or changing providers or products. People are too willing to live for the moment rather than anticipating the worse. Perhaps I can say that because I've been through the good and bad times. I've counted rounds of bread and biscuits to get to the end of the week and had two jobs at the same time for a while in the 80's. I don't think the 80% in the middle will be as squeezed as they may think.

Posted: **Thu Nov 02, 2017 10:30 pm**

Crazy Harry wrote: ↑Thu Nov 02, 2017 10:13 pm I think part of the worry here is simply the notion of change its self. We have a generation who have seen no change in interest rates - for some this will represent a third of the mortgage life on a thirty year mortgage. Having lived through the interest rates of the 80's and 90's (at one point hitting 16% for a few days if I remember correctly) the situation at the moment is still quite stable.

A coming off a fixed rate is a shock if you don't think about it until it ends. As with all finance it takes work to calculate the 'what if's' and to make changes to spending less or changing providers or products. People are too willing to live for the moment rather than anticipating the worse. Perhaps I can say that because I've been through the good and bad times. I've counted rounds of bread and biscuits to get to the end of the week and had two jobs at the same time for a while in the 80's. I don't think the 80% in the middle will be as squeezed as they may think.

If referring to my comment I didn't say the middle 80% of the country would feel squeezed

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