Cost of living crisis.

[Tommy G]

14 minutes ago, The Year Of The Fox said:

https://news.sky.com/story/lenders-cut-mortgage-rates-as-experts-predict-more-reductions-in-coming-weeks-13041303
 

Finally the tide seems to be turning 🙌🏻

Good news, want to move this year...I hope prices continue to tumble and rates become more preferable, a perfect storm. 

[leicsmac]

Could it be that in the near future it's actually possible for a single person making 25k a year and with a decent sized deposit to actually get on the housing ladder in the general Leicester area without shared ownership or having to redecorate the whole place before moving in? Glory be.

[ramboacdc]

It's good that they are helping remortgage rates. I bet the banks are more concerned with people defaulting and want to get it locked in at least a bit. New buyer rates will be interesting, mostly because I am looking to get one haha. 

[Zear0]

38 minutes ago, ramboacdc said:

It's good that they are helping remortgage rates. I bet the banks are more concerned with people defaulting and want to get it locked in at least a bit. New buyer rates will be interesting, mostly because I am looking to get one haha. 

People aren't moving much currently as prices haven't really moved a great deal. Banks don't want to lose their existinf customers as they're not getting new ones in at a typical rate so offering better deals for remortgages currently. 

[The Year Of The Fox]

2 hours ago, Innovindil said:

Looking like mine has timed itself quite well, luckily. Mine is due to renew in November. Wasn't looking forward to a £300/month increase tbh 

Mine went up £280 PM when my deal expired in October, but risked a tracker mortgage. Looks to have paid off thankfully 

[The Year Of The Fox]

2 hours ago, Tommy G said:

Good news, want to move this year...I hope prices continue to tumble and rates become more preferable, a perfect storm. 

Thats our hope too. I’m moving into the Mrs council house and renting mine out. Her rent is over 50% cheaper than my mortgage. Let the rates tumble and buy somewhere together.
 

The only caveat to your scenario is that the house prices will rise again  

[Nalis]

Five year of 3.94% is pretty good to be fair. 

[grobyfox1990]

5 minutes ago, Nalis said:

Five year of 3.94% is pretty good to be fair. 

Risky doing anything 5 years long in this environment imo. What’s the split between 5 and 2 years? Worth taking out a 2 year and using the difference in payments to overpay and therefore roll into a lower LTV product in two years time? 

[Steve_Walsh5]

13 minutes ago, The Year Of The Fox said:

Thats our hope too. I’m moving into the Mrs council house and renting mine out. Her rent is over 50% cheaper than my mortgage. Let the rates tumble and buy somewhere together.
 

The only caveat to your scenario is that the house prices will rise again  

Why not move her into your house and give up the council house for a family or single parent that might need it?

[The Year Of The Fox]

Just now, Steve_Walsh5 said:

Why not move her into your house and give up the council house for a family or single parent that might need it?

Because my house isn’t big enough with her 2 kids thanks 👍🏻

[kenny]

4 minutes ago, grobyfox1990 said:

Risky doing anything 5 years long in this environment imo. What’s the split between 5 and 2 years? Worth taking out a 2 year and using the difference in payments to overpay and therefore roll into a lower LTV product in two years time? 

2 year mortgages are nearly 6%.

 

The 5 year rate assumes it will come down over the next 12 months. 

[grobyfox1990]

1 hour ago, kenny said:

2 year mortgages are nearly 6%.

 

The 5 year rate assumes it will come down over the next 12 months. 

Resi 2 year fixes are nearly 6%?!? Fair enough, had no idea 

[kenny]

17 minutes ago, grobyfox1990 said:

Resi 2 year fixes are nearly 6%?!? Fair enough, had no idea 

They are gambling aren't they. Over the next 2 years the base rate will be 5% for the majority so it will stay high.

 

Over 5 years they are expecting it to drop so you get a better price.

 

Ours expires this month, am tempted to pay for a couple of months at the variable rate to see if the base rate drops by 0.25% which would be a big saving over 5 years.

[Tommy G]

3 hours ago, The Year Of The Fox said:

Because my house isn’t big enough with her 2 kids thanks 👍🏻

Steady you will be blacklisted for putting your family first, how dare you 

[Nalis]

11 hours ago, grobyfox1990 said:

Risky doing anything 5 years long in this environment imo. What’s the split between 5 and 2 years? Worth taking out a 2 year and using the difference in payments to overpay and therefore roll into a lower LTV product in two years time? 

Fair points but even if interest rates go down in the next 5 years, they would need to go down by some distance to make 3.94% a terrible rate when you consider how crap the 2 year rates currently are.

 

To compare, I'm currently paying 2.85%  on 5 years when tied in during summer 2022 when the bank of england rate was less than 2% at the time, which I'm try to overpay when possible. All considered though, I guess I dont have to worry about it now in comparison to other posters scenarios.

[Innovindil]

1 hour ago, Nalis said:

Fair points but even if interest rates go down in the next 5 years, they would need to go down by some distance to make 3.94% a terrible rate when you consider how crap the 2 year rates currently are.

 

To compare, I'm currently paying 2.85%  on 5 years when tied in during summer 2022 when the bank of england rate was less than 2% at the time, which I'm try to overpay when possible. All considered though, I guess I dont have to worry about it now in comparison to other posters scenarios.

Will all come down to how the economy is doing over the next year. If it remains flat lined or even blips into recession then the BoE will have no choice but to slash interest rates quickly and hope that the greedy ****ers fueling inflation stop taking the piss. 

 

Backed themselves into a pretty shit corner by targeting interest rates instead of telling the government outright that they needed to do something about rocketing fuel and energy prices, the main drivers, or excuses, of inflation. 

[Tommy G]

Didn’t mean to raise your blood pressure this early @ozleicester

[Babylon]

14 hours ago, Nalis said:

Five year of 3.94% is pretty good to be fair. 

That's pretty much what mine was when I bought 12 years ago. People have gotten way too used to mega-cheap credit. 

[fox_up_north]

Car insurance renewal came through. Up 42% to £300. Pffffft. I'll do some shopping around.

[David Hankey]

5 minutes ago, fox_up_north said:

Car insurance renewal came through. Up 42% to £300. Pffffft. I'll do some shopping around.

I'm afraid we're paying for all those uninsured bastards who are driving around without a care in the world.

[bmt]

5 minutes ago, fox_up_north said:

Car insurance renewal came through. Up 42% to £300. Pffffft. I'll do some shopping around.

Mine went up like 110% to £700 (on an 18 year old 1.4 litre diesel car worth about £300), and that was after shopping around. 5 years no claims, had my license 14 years, never made a claim on insurance etc. Good luck!

[bmt]

Just now, David Hankey said:

I'm afraid we're paying for all those uninsured bastards who are driving around without a care in the world.

I think a lot of the increased premiums are also because of the difficulty the insurance companies are having making money on their investments currently too. I feel like the 'increased risk' argument is an oversimplification to avoid any questions asked by customers.

[Steve_Guppy_Left_Foot]

Profiteering arse holes I’d put it down to more than uninsured drivers. More and more drivers are going to be driving uninsured because a tin can with wheelie bin lids for wheels costs 3 grand to insure when it’s worth the 50 p

[Ric Flair]

6 hours ago, David Hankey said:

I'm afraid we're paying for all those uninsured bastards who are driving around without a care in the world.

Electric cars is the biggest driver (excuse the pun) and they are forcing that across the risk pool.

[Lako42]

On 03/01/2024 at 21:34, grobyfox1990 said:

Risky doing anything 5 years long in this environment imo. What’s the split between 5 and 2 years? Worth taking out a 2 year and using the difference in payments to overpay and therefore roll into a lower LTV product in two years time? 

Not really risky if it's a rate you are happy with. 

 

People obsess over mortgage rates but if that rate is comfortable then it's fine. 

 

No of can predict the future and if the rates drop to 2% then it's annoying but if it affordable then that's all you can do at that stage.