Topic: The 'Eeeek...buying/saving for a house' thread

[Drinks Sangria]

10- year fixes are currently lower than 2-5 year ones.

Annoyed at myself for not finding the few grand needed to get out of my mortgage a few months back. I could’ve probably swung it but held money back for doing up the house instead. We’re now going to be remortgaging roughly a year from now and it could be an absolute shitshow.

I’m not sure I’d personally get myself into a 10 year fixed, but a good 5 year, definitely.

[killer-heels]

Annoyed at myself for not finding the few grand needed to get out of my mortgage a few months back. I could’ve probably swung it but held money back for doing up the house instead. We’re now going to be remortgaging roughly a year from now and it could be an absolute shitshow.

I’m not sure I’d personally get myself into a 10 year fixed, but a good 5 year, definitely.

10-years does seem extreme but I saw some at around 3.5% right now, which sounds awfully tempting.

[rawcusk8]

£2.6k

Thanks mate.

[sattapaartridge]

House prices rose so high because of the low interest rates, now that they are high, its going to suck for those re-mortgaging in the short term, but i cant see the interest going higher under a labour government. This is why i wouldnt recommend fixing your mortgage for 10 years. I managed to get 2% for 3 years just before this shit kicked off. I have my fingers crossed!

If it does stay high, house prices will crash. And that is something the banks definitely dont want. Lower valued properties with lower loans, lower aggregate interest rates etc. its a downward spiral. there was a reason it was important to stimulate growth in the housing market during the pandemic with the stamp duty holiday.

[Drinks Sangria]

Honestly the way this mini-budget has been handled, the banks have become the new kingmaker with the next party in power. They will be looking to shoe the Tories out very shortly. This could heavily influence an early election. Satta is right, the one thing the banks won’t want and can’t cope with is a near-terminal decline in property values. 5% would be a correction, 10% a disaster, 20% an economy-tanking catastrophe.

I agree with Killer that the 10 year fixed at that rate is tempting, but also that there genuinely is likely to be enough change coming that accepting a fairly crap 2 year fixed at like 4% might be the money saver in the long run. I’d take a 5 year fixed at that rate, not a 10 year. Economies have a somewhat cyclical nature and there’s hopefully big change coming that will precipitate some actual good news for the first time in over a decade, politically.

[.adam]

Or, as as a potential counter-point, zoom out...





The period of low interest rates since 2009 is the outlier. If the era of quantitive easing is over, maybe we're returning to the 'old normal' of interest rates somewhere around the 5% mark.

[killer-heels]

Or, as as a potential counter-point, zoom out...





The period of low interest rates since 2009 is the outlier. If the era of quantitive easing is over, maybe we're returning to the 'old normal' of interest rates somewhere around the 5% mark.

But houses have never been as overvalued.

[Graeme]

My fixed rate ends on December 31st. Mortgage payments will be going up £232.55 a month from January. My rate is going from 1.78% to 4.46%

Fixing for 5 years, can get 2 year fixed for 5.06% but there’s nothing to say this mess will be sorted out by then so will take the security of lower payments for 5 years rather than higher for 2 and not knowing after that. Tory twats.

[sattapaartridge]

My fixed rate ends on December 31st. Mortgage payments will be going up £232.55 a month from January. My rate is going from 1.78% to 4.46%

Fixing for 5 years, can get 2 year fixed for 5.06% but there’s nothing to say this mess will be sorted out by then so will take the security of lower payments for 5 years rather than higher for 2 and not knowing after that. Tory twats.

hopefully your loan is low mate. ive got £210k to pay off still. 5% will destroy me.

[Elmo!]

Yeah feeling pretty grateful housing is fairly affordable up around mine, and that I didn't overstretch myself when I bought 3 years ago.

Got 2 years left on fix and should only have about £70k left to pay off by then. Putting those figures into a calculator on todays rates would put my payments up by about £40-50pm so not too bad. Still a bit annoying as you expect to get better interest rates after the first fix and moving into a better LTV bracket...

[frag]

My fixed rate ends on December 31st. Mortgage payments will be going up £232.55 a month from January. My rate is going from 1.78% to 4.46%

Fixing for 5 years, can get 2 year fixed for 5.06% but there’s nothing to say this mess will be sorted out by then so will take the security of lower payments for 5 years rather than higher for 2 and not knowing after that. Tory twats.

Exact same boat as us, ours is going up by £221. We've been abit loose with money this year, so tightening that up with a few bills dropping away in Jan should help limit the impact. Awaiting on job promotion outcome, and suddenly feel the pressure on that.

I can't imagine how this is hitting people in worse situations than ourselves.

[Graeme]

Exact same boat as us, ours is going up by £221. We've been abit loose with money this year, so tightening that up with a few bills dropping away in Jan should help limit the impact. Awaiting on job promotion outcome, and suddenly feel the pressure on that.

I can't imagine how this is hitting people in worse situations than ourselves.

Yeah I’m in a similar boat, we can absorb the cost but it’s still a pain in the arse. I work in Local Government and our pay award from April 2022 looks set to be finally agreed which will cover off the cost but it’s still frustrating.

[BarryCrocker]

hopefully your loan is low mate. ive got £210k to pay off still. 5% will destroy me.

That's £202 per week just to meet the interest payments.

Down here in Oz the average mortgage is $600k. With the rate rises this year alone (May-Oct) repayments have increased by about $824 per month.

[Graeme]

hopefully your loan is low mate. ive got £210k to pay off still. 5% will destroy me.

£166k. Property value about £300k. We do have a help to buy equity loan (20%) to consider at some point but we are only 2 years in so another 3 interest free on that yet.

[killer-heels]

Mine is up almost £400 if i were to fix as of today and I dont fix until 1st April. Eek.

The thing that is concerning is that when I fix Ill have to factor in 2 x childcare costs, something which i never have had before. So I dont know whether i will get screwed over by affordability checks.

[Elmo!]

Mine is up almost £400 if i were to fix as of today and I dont fix until 1st April. Eek.

The thing that is concerning is that when I fix Ill have to factor in 2 x childcare costs, something which i never have had before. So I dont know whether i will get screwed over by affordability checks.

The tip I read is that you can generally start getting offers 6 months before your current fix ends and lock in the rate without having to commit, so you can probably start looking round and getting offers now, and lock them in and then you can wait and see if you get any better offers in the coming months.

[killer-heels]

The tip I read is that you can generally start getting offers 6 months before your current fix ends and lock in the rate without having to commit, so you can probably start looking round and getting offers now, and lock them in and then you can wait and see if you get any better offers in the coming months.

Yep. Thinking of getting a tracker mortgage as well.

[Drinks Sangria]

On Adam’s point, it’s an interesting thing to think about. The economy only copes if you can get something concomitant on savings with inflation remaining low. In this economy with massive inflation and next to zero earnings on savings, I’m not sure many can afford for those sort of outcomes.

The economy is in literal tatters. It’s a joke. How millions can’t see the truth about this government in painful.

[rawcusk8]

Hello all, do the stamp duty cuts apply to second time buyers? It’s hard to keep up with exactly what the hell is going on with all these cuts and u-turns.

[.adam]

Hello all, do the stamp duty cuts apply to second time buyers? It’s hard to keep up with exactly what the hell is going on with all these cuts and u-turns.

Yes, the stamp duty changes are effective to all buyers and has not be reversed in the recent bout of u-turns.

Here's a good page which summarises:

https://www.gov.uk/government/publications/stamp-duty-land-tax-reductions-for-residential-properties/stamp-duty-land-tax-reduction-threshold-changes

[killer-heels]

So i spoke to L&C, to remortgage we were rejected on affordability. Need to push our term from 18 years to 22 to make it affordable. Also i get the pleasure of paying £300 a month extra.

[Drinks Sangria]

So i spoke to L&C, to remortgage we were rejected on affordability. Need to push our term from 18 years to 22 to make it affordable. Also i get the pleasure of paying £300 a month extra.

Feel for you mate, that’s shite. I think we’ll be in the same boat come September next year. We’ll still owe £180k or so then and probably will have to go up from our 23 years to 30 just to avoid selling the place. We absolutely cannot afford for the mortgage to leap £400+ which is what it would do if we go from our current to 6% or above.

I also have my first house that I rent out, I’d imagine that will go from being a nice little bit of income that pays my half of the mortgage to being an additional cost or at the very best, breaking even and making no money.

Modern life has enough worries and anxieties without worrying that something like a 5-year bad patch for the economy could make you mortgage prisoners that massively impacts your potential future affluence. We’re lucky, we’ll probably find a way to scrape by. I feel so bad for people who took what were affordable mortgages where they stretched a bit on house value and will now be fucked by this government of ours.

The argument of 6% is historically about right for mortgages is utterly stupid. During those times, savings gave a hell of a lot more than 0.1% and it was £100k for a big luxury family house, whereas that now gets you a small 2 up 2 down in a small northern town. Higher percentages but on far less money. Nowadays most people’s homes are £250k+ having put down the standard 10%.

[WillG.LFC]

Historically high interest rates comparative to today also had lower house prices against income. The way we are heading we would have both, house prices need resetting and to be lowered. Can be like 10 times salary now can't they?

[Drinks Sangria]

Historically high interest rates comparative to today also had lower house prices against income. The way we are heading we would have both, house prices need resetting and to be lowered. Can be like 10 times salary now can't they?

This is the issue. People saying ‘oh it’s normal I had a mortgage of 10% in the 80s.’ Yes Graham that house was also a four bed detached in leafy suburbs that cost you £70k when you were earning £25k a year. Now, people earning £25k a year with a partner on the same are in a smaller, less intrinsically valuable house but it’s worth £300k instead.

Wages have stagnated horribly. House prices are higher than ever. Interest on savings is lower than ever and now the interest rate is rapidly spiralling upwards. Something needs to be done. The Tories wanted to crash the economy short term so they could hoover up more assets easily, it wouldn’t surprise me if this whole thing was done as a short term alleviation of the housing shortage (for their buying purposes), as stupid and moronic as that sounds.

We need a reset. House prices need to be more stable and rise more slowly, wages need to catch up, housing solutions for those in need have to improve, massively.

[Millie]

This is the issue. People saying ‘oh it’s normal I had a mortgage of 10% in the 80s.’ Yes Graham that house was also a four bed detached in leafy suburbs that cost you £70k when you were earning £25k a year. Now, people earning £25k a year with a partner on the same are in a smaller, less intrinsically valuable house but it’s worth £300k instead.

Wages have stagnated horribly. House prices are higher than ever. Interest on savings is lower than ever and now the interest rate is rapidly spiralling upwards. Something needs to be done. The Tories wanted to crash the economy short term so they could hoover up more assets easily, it wouldn’t surprise me if this whole thing was done as a short term alleviation of the housing shortage (for their buying purposes), as stupid and moronic as that sounds.

We need a reset. House prices need to be more stable and rise more slowly, wages need to catch up, housing solutions for those in need have to improve, massively.

I had a £40,000 mortgage in the  early 90's.  The rate went up to more than 10% and I was not earning anything like 25K, more like 9 to 10K.  But I agree with your comments about the current situation.

[The G in Gerrard]

It's abit shit ain't it.

[Drinks Sangria]

I had a £40,000 mortgage in the  early 90's.  The rate went up to more than 10% and I was not earning anything like 25K, more like 9 to 10K.  But I agree with your comments about the current situation.

Tbf I was directly using an example I know of - my Grandad at the time. Still lives there, huge family home in south Liverpool but I appreciate that isn’t applicable to everyone. That still seems a difficult hike based on your wage at the time. I suppose the subsequent huge jumps in value would have helped but we only can cope with what we know at the time.

I hear people now saying ‘well you obviously haven’t stress-tested your means if you can’t afford your mortgage with the new rates.’ To that I say: fuck off. What a ridiculous argument. If mortgages are once again going to go as high as 10 - 12%, I reckon about half the country would be in perilous trouble. Houses simply aren’t a price anymore where most can cope with a huge leap in monthly payments.

The sooner a general election, the better. It’s embarrassing the Tories can keep having leadership contests, they are simply not governing at present. It will take Labour some time to mop up the mess but I’d far rather Starmer’s unflashy, competent-feeling team were at the helm than this absolute rabble.

[The G in Gerrard]

What could Labour do to address current property market issues & would they?

[Drinks Sangria]

What could Labour do to address current property market issues & would they?

It’s hard to pin down specifics without doing a deep dive, but some of the more promising points centre around the following:

Increased corporation tax

A ‘standard of living contract’ between the government and the public (essentially a promise to nationalise parts of energy and travel, as well as inflation-containing measures, banning zero-hours contracts, definitive ban on selling parts of the NHS away and selling of high street spaces to developers)

Linking nationalised energy to UK production to create more jobs and diminish dependence on overseas markets

Everything else though seems built around pledges as opposed to anything tangible. They do still have to come out with their manifesto though. We’re heading for a decade-long recession and whilst Labour won’t magically stop that from happening, they will hopefully stop the slide rather than welcome and encourage it as the Tories do.

[killer-heels]

Feel for you mate, that’s shite. I think we’ll be in the same boat come September next year. We’ll still owe £180k or so then and probably will have to go up from our 23 years to 30 just to avoid selling the place. We absolutely cannot afford for the mortgage to leap £400+ which is what it would do if we go from our current to 6% or above.

I also have my first house that I rent out, I’d imagine that will go from being a nice little bit of income that pays my half of the mortgage to being an additional cost or at the very best, breaking even and making no money.

Modern life has enough worries and anxieties without worrying that something like a 5-year bad patch for the economy could make you mortgage prisoners that massively impacts your potential future affluence. We’re lucky, we’ll probably find a way to scrape by. I feel so bad for people who took what were affordable mortgages where they stretched a bit on house value and will now be fucked by this government of ours.

The argument of 6% is historically about right for mortgages is utterly stupid. During those times, savings gave a hell of a lot more than 0.1% and it was £100k for a big luxury family house, whereas that now gets you a small 2 up 2 down in a small northern town. Higher percentages but on far less money. Nowadays most people’s homes are £250k+ having put down the standard 10%.

Said in the other thread I had to jack it up to 25 years and will pay £275 a month more than I do now. I also need to start overpaying to get it back to the lower term which means in terms of disposable cash I’ll be down £500 a month.

[The G in Gerrard]

It’s hard to pin down specifics without doing a deep dive, but some of the more promising points centre around the following:

Increased corporation tax

A ‘standard of living contract’ between the government and the public (essentially a promise to nationalise parts of energy and travel, as well as inflation-containing measures, banning zero-hours contracts, definitive ban on selling parts of the NHS away and selling of high street spaces to developers)

Linking nationalised energy to UK production to create more jobs and diminish dependence on overseas markets

Everything else though seems built around pledges as opposed to anything tangible. They do still have to come out with their manifesto though. We’re heading for a decade-long recession and whilst Labour won’t magically stop that from happening, they will hopefully stop the slide rather than welcome and encourage it as the Tories do.

Didn't Tories try increased Corporation Tax and then reneged on it?I'd be surprised if Labour follow that route.

It's a shit show ain't it and younger population and people wanting to move up the property ladder are fucked.

[Drinks Sangria]

Said in the other thread I had to jack it up to 25 years and will pay £275 a month more than I do now. I also need to start overpaying to get it back to the lower term which means in terms of disposable cash I’ll be down £500 a month.

That’s shit, it really is. I think a lot of us are lucky in that a £100/£200 rise a month can be stomached even if it’s not great, but £500 a month is terrible. That would be crippling to myself and my partner of my rental also stop yielding money. Any social life or activities done for enjoyment would go out the window. We would literally just be working and going home so I really do feel for people in that position. Unless you’re wealthy, £500 is a lot of money.

Didn't Tories try increased Corporation Tax and then reneged on it?I'd be surprised if Labour follow that route.

It's a shit show ain't it and younger population and people wanting to move up the property ladder are fucked.

We’ll see what they commit to in their manifesto and what they actually commit to if they get in. I’ve read a few articles recently saying that more than the boom in the 90s and early 00s, this last boom coupled with economic collapse will ruin the property market for first time buyers.

I mean my first ever mortgage was 1.8% on £79k lending. That was only a little bit over £100 a month in interest on a £400 a month mortgage. Manageable, services the debt and enabled me to still have a standard of living whilst taking first steps onto the property ladder. If the interest levels on mortgages go to 8% as predicted, that’s £526 a month just on the interest for that same property and same lending. That’s more than my entire mortgage was. You’ll be looking at £700 a month mortgage for small houses that are probably not suitable for a family. It’s sickening. There has never in my lifetime been a worse time to be growing up.

[The G in Gerrard]

We were fortunate that our current mortgage deal runs until 2024. Can push that to the side and not think about it.

Want to move to larger property but keeping current property to rent is a mind boggling exercise.

Unless kids are lucky to be well off or get financial assistance from parents then I can't see how they will afford houses in the future.

Do you trust any manifesto?

[Drinks Sangria]

We were fortunate that our current mortgage deal runs until 2024. Can push that to the side and not think about it.

Want to move to larger property but keeping current property to rent is a mind boggling exercise.

Unless kids are lucky to be well off or get financial assistance from parents then I can't see how they will afford houses in the future.

Do you trust any manifesto?

If we’re using any of the last two governments as a yardstick absolutely not   

Unless there’s a huge turnaround in the next few years, excusing those with help from their parents, 99.9% of kids aged probably 13 - 21 at the moment will only know home ownership much later than traditionally or not at all.

[The G in Gerrard]

If we’re using any of the last two governments as a yardstick absolutely not   

Unless there’s a huge turnaround in the next few years, excusing those with help from their parents, 99.9% of kids aged probably 13 - 21 at the moment will only know home ownership much later than traditionally or not at all.

Very true.

We are fortunate to be with a good combined salary and still it isn't easy for us. God knows how others will achieve anything.

[bradders1011]

We moved in a month ago and I've just received a letter from HMRC with a bill for "Land Transaction Return" tax. The amount billed is the same as the itemised Stamp Duty line on the completion statement from my solicitor.

Is this the same thing and I need to contact HMRC that it's been paid or is it something over and above stamp duty I need to pay?

[Craig S]

We moved in a month ago and I've just received a letter from HMRC with a bill for "Land Transaction Return" tax. The amount billed is the same as the itemised Stamp Duty line on the completion statement from my solicitor.

Is this the same thing and I need to contact HMRC that it's been paid or is it something over and above stamp duty I need to pay?

It is the same thing, i would contact your solicitor.

[bradders1011]

It is the same thing, i would contact your solicitor.

Cheers, they're sorting it.

[west_london_red]

We moved in a month ago and I've just received a letter from HMRC with a bill for "Land Transaction Return" tax. The amount billed is the same as the itemised Stamp Duty line on the completion statement from my solicitor.

Is this the same thing and I need to contact HMRC that it's been paid or is it something over and above stamp duty I need to pay?

Same thing happened to me, I suspect the solicitors were sitting on the money to earn some interest before sending the money to HMRC.

[Mark Walters]

Same thing happened to me, I suspect the solicitors were sitting on the money to earn some interest before sending the money to HMRC.

This also happened to me with a solicitor I used more than once.  At the time (2015), the seller's solicitor had complained about him transferring money late.  He'd mentioned it to me at the time and I thought "why are you telling me this? What's it got to do with me?".  I think the complaint went all the way to the top because this year I was refunded over £800 from the solicitor with no explanation at all!