Considering you remortgage every 2/5 years, the initial term doesn’t really matter at all and people fixate on it way too much.I'd see this as good news. In other countries where house prices are not so out of sync with wages it's the norm to sign up for a long mortgage.
It makes sense as the prices depend on how expensive it is to borrow money. So many have taken out huge debt based on the old days of near 0 interest rates.
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Record demand for 35-YEAR mortgages as rates keep rising: Proportion of first-time buyers taking out lengthy loans doubles in just two years amid fears of debt timebomb
- Spreading out loans makes them more affordable for buyers in the short term
- But homeowners will accrue thousands of pounds more debt on the interest - https://www.dailymail.co.uk/news/ar...ing-lengthy-loans-doubles-just-two-years.html
I’ve always thought it strange that these longer fixes aren’t available as readily in the U.K. as they are in other places. In the US I’m pretty sure people often fix for their whole mortgage term.D'yknow what I totally misunderstood that headline
I thought it was people fixing for 35 years. People in other countries with sane housing markets fix for the entire term which I think is sensible. This jumping every 2-5 years is a very risky game.
As many of those who fixed 2 years ago for 0.5% are going to find out as their rate jumps to 5.5%
I guess the the issue with these longer terms is that they would have a much larger impact on house prices when the rate increases. If I had to fix for my whole term, I wouldn’t have bought when I did, and would’ve instead waited to see if rates dropped.They do in France also. It makes sense as when you buy it the price is very dependent on the rate.
Risky game taking something out for 40 years but only fixing for 2. But people like to take their chances aka gamble.
Have you got cavity wall insulation? It could be where the pipe went in.View attachment 2218776
Does anyone know what this is? On the wall outside my house
I think I worked out that it’s a outdoor temperature sensor for the boiler (google lensed it so hopefully that’s correct)Have you got cavity wall insulation? It could be where the pipe went in.
Agree, it can't suddenly switch from one system to the other. Should have been gently reformed over many years rather than leading us to where wer are today. But there's no interest in long term and sustainability.I guess the the issue with these longer terms is that they would have a much larger impact on house prices when the rate increases. If I had to fix for my whole term, I wouldn’t have bought when I did, and would’ve instead waited to see if rates dropped.
the government and banks will use any means to prop up the U.K. house market I guess.
My immediate thought was that it was an outdoor temp sensor. They are actually a good idea and relatively cheap.I think I worked out that it’s a outdoor temperature sensor for the boiler (google lensed it so hopefully that’s correct)thank you
Shortly after I bought my first house, back in the 80’s, mortgage rates rose to nearly 15%. That is mind boggling!Looks like these people bought a second home in East London on an interest only mortgage that has risen from 1% to 5%. From the sounds of it they've been letting it out on air b&b but are now trying to sell it.
They say they're waiting for rates to drop and calling the current rates mind boggling. The current rates are the return to the norm imo. They could be waiting years for rates to drop, and I doubt they're dropping back to the 1% they had before.
Not suprised they've not had any offers, could get a second bedroom for that price.
‘Our mortgage went from £400 a month to over £2,000 — we’re in hell’
Across the capital, prospective buyers and remortgaging homeowners are finding themselves slapped with mind-boggling lender rates and deals being withdrawn at the eleventh hour. Claire Cohen speaks to those in crisiswww.standard.co.uk
Check out this 1 bedroom apartment for sale on Rightmove
1 bedroom apartment for sale in Wadeson Street, London, E2 for £450,000. Marketed by Purplebricks, covering East Londonwww.rightmove.co.uk
Because of the debt to income ratio of a mortgage now, a 5% rate can hit harder than the 15% of the past.Shortly after I bought my first house, back in the 80’s, mortgage rates rose to nearly 15%. That is mind boggling!
It was still pretty painful, believe me! I think I was only earning £8k at the timeBecause of the debt to income ratio of a mortgage now, a 5% rate can hit harder than the 15% of the past.
Here’s an interesting article about it https://mashroom.com/blog/mortgage-rates-from-bad-to-worse-22209
Definitely, but it’s just as difficult for people on 5% rates now.It was still pretty painful, believe me! I think I was only earning £8k at the time
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