In todays news...

[mangocrazy]

250k at 1% for 25 years is £940pcm and 280k total paid
250k at 6% for 25 years is £1611/483k

Not quite doubled, but not far off.

Mate, honestly, I don't know why we bother.
They literally haven't got a clue and yet all they want to do is tell you you're wrong all the time.

Come on, you love it. You love the opportunity to feel all superior. It's what gets you off.

[Greenman]

Banks have always made it super clear how future interest rate changes will effect your payment IME. You don't have to be a financial advisor, you just have to be able to look at two numbers planted right under your nose!

If you can't think 6 years down the line WTF are you doing borrowing money over 25 years?

As that is the only option!

Id like to see some sort of model put in place as to where banks contact their customers to forewarn them about possible hikes in interest rates and advise them according, not just say, 'oh yeah your gonna pay double next year as we are a bunch of robbing cunts' how is that a sustainable model?

What's the excuse this time for them hiking up the interest rates then, War in Ukraine, Covid, Bank CEO wants a new yacht?

As an aside, i rang the bank this week to try and extend my mortgage a bit, i have £200k equity in the house and they wouldn't even let me extend the mortgage an extra £10k! Even the advisor was shocked that i didn't get approved and blaimed the current high interest rates.

It's all a total con!

[Yambo]

Inflation is sky high,

Lol! You have no idea what sky high inflation is.

[JackyJoll]

OK, fair cop. I had forgotten the power of compound interest.

Don’t buy a house until you remember it.

[mangocrazy]

Inflation is sky high,

Lol! You have no idea what sky high inflation is.

Yup - 23% in 1975.

[Mr. Dazzle]

OK, fair cop. I had forgotten the power of compound interest.

It makes investments great and mortgages shit

Exact same maths as the fabled R value during 'rona.

[mangocrazy]

OK, fair cop. I had forgotten the power of compound interest.

Don’t buy a house until you remember it.

My days of house-buying are over. Three is enough for anyone.

[JackyJoll]

OK, fair cop. I had forgotten the power of compound interest.

Don’t buy a house until you remember it.

My days of house-buying are over. Three is enough for anyone.

Are you living a throuble life of trigamy?

[cheb]

I stopped buying when my next move was to have to sell them all and buy a hotel.

And I'm firmly in the tough titties for you camp. You want to whine about not being able to afford your mortgage payments then paste your accounts on here, I'll bet there'll be a few things that aren't actual necessities. I'm an ex debt collector from the late 1980s who sold his bike because it was either that or not afford the mortgage.

Bluntly, if you haven't the wit to realise that interest rates might increase from an historic low then you're are stupid.

[mangocrazy]

Don’t buy a house until you remember it.

My days of house-buying are over. Three is enough for anyone.

Are you living a throuble life of trigamy?

More likely infamy...


Infamy! Infamy! everyone's got it infamy! (© Kenneth Williams)

[Yambo]

Inflation is sky high,

Lol! You have no idea what sky high inflation is.

Yup - 23% in 1975.

Pretty sure that Potter was probably using a potty back then. Government figures for inflation here in Turkey say it's 39.6% and dropping. I don't think that even the people who spout those numbers believe them. I'm buffered by the exchange rate (all my money is sourced in UK) but I still know it's way higher than 39%. I'm not going to even try and put an actual number on it but probably double that.

[mangocrazy]

Lol! You have no idea what sky high inflation is.

Yup - 23% in 1975.

Pretty sure that Potter was probably using a potty back then. Government figures for inflation here in Turkey say it's 39.6% and dropping. I don't think that even the people who spout those numbers believe them. I'm buffered by the exchange rate (all my money is sourced in UK) but I still know it's way higher than 39%. I'm not going to even try and put an actual number on it but probably double that.

Good grief. That's heading towards Weimar Republic levels. What's driving that?

[Potter]

Lol! You have no idea what sky high inflation is.

In 2023 I know what it is and I'm using it in the context that you won't see double digit UK base rates this year or the next, so going from 0.1% to +5% is "sky high" - but I'm not welded to it, if you'd prefer we'll just call it a small blip, we'll call 15%+ on your food bill a gentle rise, and the economic crisis is nothing compared to "The War" when no doubt you survived on nowt but a ferrets leg sandwich and a sup of piss from a rusty old BV.

[Yambo]

Yup - 23% in 1975.

Pretty sure that Potter was probably using a potty back then. Government figures for inflation here in Turkey say it's 39.6% and dropping. I don't think that even the people who spout those numbers believe them. I'm buffered by the exchange rate (all my money is sourced in UK) but I still know it's way higher than 39%. I'm not going to even try and put an actual number on it but probably double that.

Good grief. That's heading towards Weimar Republic levels. What's driving that?

The recently re-elected president does not believe that using interest rates to control inflation is a good thing. He has a guru who tells him this sort of thing. I have no idea what triggered the inflation, I'm no economist and I'd rather build a boat than study economics but there's no denying it's here. One could even say it's sky high.

[Mr. Dazzle]

As that is the only option!

Id like to see some sort of model put in place as to where banks contact their customers to forewarn them about possible hikes in interest rates...

That's the thing though, they do...they asbolutely do!

They warn you when you take out the mortgage. I can obviously only speak for my own bank, but they also warn you when they think big rate changes are coming. I've been getting letters often (not to me personally, generic "all customers" stuff) saying "Rates are rising", "find out how we can help" and so on. I also get the same sort of advice and info every time I log in to the banking app.

I really don't see how anyone can complain they weren't told about this. In one ear and out the other, as my Mum always says.

[The recently re-elected president does not believe that using interest rates to control inflation is a good thing.

I was reading a thing the other day about how something like 80% of UK mortgages are fixed rate now, whereas it used to be like 10-20%. Therefore interest rates don't have the effect they used to, at least not immediately.

Kinda contradicted by recent news articles of course!

[Ant]

I wonder if the monthly repayment figures we're hearing about are those who own maybe only 10% of their property, if that? Plus interest only mortgages?

[Le_Fromage_Grande]

In the early 90s interest rates hit something like 15%, lots of people (including my friend Dave) had their houses repossessed because they couldn't pay the mortgage, it took Dave years to get past this economic issue, at no point did Dave ask for a handout from the Government to help him out, he got on with working and sorted himself out financially, as did lots of other people.

In the mid 90s I had negative equity and outgoings more than my incomings, I had to borrow money to get through this period and spent years paying it off.

And now you want people who went through house repossession and negative equity to pay the mortgages of people who aren't prepared to go through the same shit as we did.

[Potter]

I was reading a thing the other day about how something like 80% of UK mortgages are fixed rate now, whereas it used to be like 10-20%. Therefore interest rates don't have the effect they used to, at least not immediately.

Kinda contradicted by recent news articles of course!

It's like spending all night in the pub drinking twenty pints of strong larger, putting your empty glass down at 11pm and then needing to be sober for the drive home at a quarter past - and your mate says he has a magic cure, drink a pint of soda water with a lemon in it and you'll be right as rain in ten minutes

The UK is pissed as a newt on QE and it's not getting sober any time this year.

[Ant]

In the early 90s interest rates hit something like 15%, lots of people (including my friend Dave) had their houses repossessed because they couldn't pay the mortgage, it took Dave years to get past this economic issue, at no point did Dave ask for a handout from the Government to help him out, he got on with working and sorted himself out financially, as did lots of other people.

In the mid 90s I had negative equity and outgoings more than my incomings, I had to borrow money to get through this period and spent years paying it off.

And now you want people who went through house repossession and negative equity to pay the mortgages of people who aren't prepared to go through the same shit as we did.

That 15%, what was the amount of money which the mortgage was for?

[Yambo]

In the early 90s interest rates hit something like 15%, lots of people (including my friend Dave) had their houses repossessed because they couldn't pay the mortgage . . .

It's hard to forget that. I was sort of lucky in that my mortgage wasn't huge and I was paying it with my army pension (that I started receiving the day I left) which also wasn't huge but a very useful addition to the income. We had to top up a bit but Mrs Y was working as well as me and we had no real difficulties.

We'd been clearly warned though that rates could go up or down as Dazzle has said and it was not a surprise nor did it lead to me asking for government assistance.