[Finance] Base rate increase.

[ChickenBaltiPie]

our monthly payment is likely to go up by £500. Let that sink in

Mine has gone up this month by £900!!! Let ‘that’ sink in!

Can anyone beat that?! I live alone! If I can get through the next few years and hang onto my house, it’ll be a miracle!

 

[rogersix]

The BofE should take no share of blame?

I’d of thought the biggest commitment would be at the front of any financial planning, so I don’t see busy lives as an excuse….it’s been said by many experts that ‘cheap’ money wasn’t going to last forever….What I do agree with you on is the people who have fixed and who have just come out of it or are close to expiry …they did what they thought was the best.

At the end of the day houses in most parts of this country are just too dam expensive and more need to be built for the private market….social housing etc this government and previous ones over the last thirty years plus have failed miserably to sort that out.

the daily mail wont allow house prices to fall, ever. it's an intractable problem

 

[Live by the sea]

Mine has gone up this month by £900!!! Let ‘that’ sink in!

Can anyone beat that?! I live alone! If I can get through the next few years and hang onto my house, it’ll be a miracle!

Could you rent out a spare bedroom ?

 

[Farehamseagull]

Mine has gone up this month by £900!!! Let ‘that’ sink in!

Can anyone beat that?! I live alone! If I can get through the next few years and hang onto my house, it’ll be a miracle!

Have you gone on to the lender’s variable rate then?

 

[Curryisgreat]

Could you rent out a spare bedroom ?

Are you finally looking to move out of your grandad’s basement? Whilst I can’t answer for him I’d suspect he’d rather be repossessed that have you as a lodger.

Ever considered showing some empathy? You weren’t looking to help with that comment, much as your previous comments have not been helpful. But you know that.

Anyway, I’ll desist before I enter the trolling territory…

 

[Live by the sea]

Are you finally looking to move out of your grandad’s basement? Whilst I can’t answer for him I’d suspect he’d rather be repossessed that have you as a lodger.

Ever considered showing some empathy? You weren’t looking to help with that comment, much as your previous comments have not been helpful. But you know that.

Anyway, I’ll desist before I enter the trolling territory…

Eer I was looking to help . What’s wrong with renting out a spare bedroom especially if you live by yourself ? Would cover most of the £900 shortfall if you live in central parts of Brighton and hove

What’s with the personal attacks on me ! Anger management issues perhaps ..

 

[LamieRobertson]

Eer I was looking to help . What’s wrong with renting out a spare bedroom especially if you live by yourself ? Would cover most of the £900 shortfall if you live in central parts of Brighton and hove

What’s with the personal attacks on me ! Anger management issues perhaps ..

Renting out a bedroom is something I’ll most likely have to do when I finally pack up work (probably in my 70’s) ….I currently do in a more non commercial way to my ex …so for me personally it’s needs must, as I’m in a shared ownership situation…mortgage will be paid off but I’ll be paying an ever increasing rent on the portion I don’t own ….it’s the way it is and I’m grateful I’ve been able to live here for the last 35 years

 

[dazzer6666]

The increases are really tough for some.…….anyone sensible would have factored in some degree of margin to cover rate increases when taking out their mortgage (and the affordability regs include this too), but getting hit with it at precisely the same time as the price of almost everything else has rocketed is creating a real squeeze for millions. The final turd in water system now would be a price crash causing extensive negative equity (as we had in the early 90s).

 

[Triggaaar]

The rate rises aren't just pushing up mortgage repayments, they're pushing up rent costs too.

 

[Machiavelli]

The BofE should take no share of blame?

I’d of thought the biggest commitment would be at the front of any financial planning, so I don’t see busy lives as an excuse….it’s been said by many experts that ‘cheap’ money wasn’t going to last forever….What I do agree with you on is the people who have fixed and who have just come out of it or are close to expiry …they did what they thought was the best.

At the end of the day houses in most parts of this country are just too dam expensive and more need to be built for the private market….social housing etc this government and previous ones over the last thirty years plus have failed miserably to sort that out.

To repeat. It's not 30 years. It's 43 years. The key manoeuvre was one of Thatcher's first acts, the Housing Act of 1980. This effectively ended local councils building houses overnight, and the UK's housebuilding was slashed in a short space of time. It hasn't recovered since then, despite all sorts of claims by governments to do so. The only way to deal with the issue is to reverse that terrible act. I doubt Liam Halligan would want to confront that, because it is yet another uncomfortable fact for his ideological framework.

 

[Mancgull]

I doubt whether interest rates will go up any further now. ( just my opinion). The fact that they only went up 0.25% this time and the potential negative effect on the wider banking system ( see Deutche Bank) will make a further increase will push some banks into financial problems and the Uk into a potential recession. I think the current rate of 4.25% base rate may stay for a while, before they eventually dip.

 

[LamieRobertson]

To repeat. It's not 30 years. It's 43 years. The key manoeuvre was one of Thatcher's first acts, the Housing Act of 1980. This effectively ended local councils building houses overnight, and the UK's housebuilding was slashed in a short space of time. It hasn't recovered since then, despite all sorts of claims by governments to do so. The only way to deal with the issue is to reverse that terrible act. I doubt Liam Halligan would want to confront that, because it is yet another uncomfortable fact for his ideological framework.

Erm

i said 30 years plus….so I’d take that includes your 43

didnt mention Liam H at all so not sure what your point is

I think we can both agree more homes need to be built

Have a great Sunday

 

[Shropshire Seagull]

The rate rises aren't just pushing up mortgage repayments, they're pushing up rent costs too.

Indeed, but what might happen to rent costs once the mortgage rates begin to fall later this year and into next / beyond.
Can't imagine landlords lowering rents mid-tenancy ....

 

[Triggaaar]

Indeed, but what might happen to rent costs once the mortgage rates begin to fall later this year and into next / beyond.
Can't imagine landlords lowering rents mid-tenancy ....

Well some landlords will have had massive mortgage cost increases, and the market will not bear them putting up rents to match (other landlords may have been protected from cost increased (fixed rates etc) but they'll put up rents just because they can).

Consequently I don't expect rents to increase as much as some mortgages will, so if mortgage costs fall again, rents may not be far off the market level.

Then we have to factor in that wage increases probably won't keep up with inflation, in which case there could be a lot of people who won't be able to afford their rent, which should push rents down. In other words, who knows?

 

[dazzer6666]

Well some landlords will have had massive mortgage cost increases, and the market will not bear them putting up rents to match (other landlords may have been protected from cost increased (fixed rates etc) but they'll put up rents just because they can).

Consequently I don't expect rents to increase as much as some mortgages will, so if mortgage costs fall again, rents may not be far off the market level.

Then we have to factor in that wage increases probably won't keep up with inflation, in which case there could be a lot of people who won't be able to afford their rent, which should push rents down. In other words, who knows?

Obviously there are local variations but in Burgess Hill there’s still significant excess demand for rental properties (particularly at the entry level end) - as long as that’s the case rents aren’t going to fall. Property sales have slowed right down though - houses on our road very rarely come up for sale and usually sell immediately, we’ve had two on the market for over 6 months.

 

[Uncle Spielberg]

Anyone need advice on options please PM me or e mail me

glovergareth6@gmail.com
07527 138547

 

[LamieRobertson]

Well some landlords will have had massive mortgage cost increases, and the market will not bear them putting up rents to match (other landlords may have been protected from cost increased (fixed rates etc) but they'll put up rents just because they can).

Consequently I don't expect rents to increase as much as some mortgages will, so if mortgage costs fall again, rents may not be far off the market level.

Then we have to factor in that wage increases probably won't keep up with inflation, in which case there could be a lot of people who won't be able to afford their rent, which should push rents down. In other words, who knows?

Depends on the ‘rent’ ….my rent won’t ever go down ….it’s inflation plus linked

 

[Triggaaar]

Depends on the ‘rent’ ….my rent won’t ever go down ….it’s inflation plus linked

If your rent is controlled, then presumably the increases are limited too, so yours doesn't fit the scenarios we were discussing (ie, some people mortgages have gone up £900 a month, and some landlords may put up rents a lot to combat the increase in their mortgages).

 

[LamieRobertson]

If your rent is controlled, then presumably the increases are limited too, so yours doesn't fit the scenarios we were discussing (ie, some people mortgages have gone up £900 a month, and some landlords may put up rents a lot to combat the increase in their mortgages).

Fair enough….I’ve commented out of context.

Re your point about rents possibly falling….I just don’t see it when demand is exceeding supply

 

[Triggaaar]

Re your point about rents possibly falling….I just don’t see it when demand is exceeding supply

Note that I wasn't saying falling from where they are now. More a case of if rents go up a lot (to combat the cost of borrowing increases) and we get enough of a recession that people can't afford the rents, meaning demand at the high prices falls.

I wouldn't be surprised if we get very difficult economic issues in the next decade.