ChaoticMusings

Maddog wrote:

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Syl wrote:

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Maddog wrote:

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Syl wrote:

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The Bank of England has hiked interest rates by 0.75 percentage points to 3% – the eighth rise since last December and the biggest since 1989.

Not good news for the millions of people with a mortgage.
This on top of huge increases in the general cost of living means more people will be in for a hard winter.

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 Are all of your mortgages adjustable? 

 

Our central bank did the same thing 2 days ago. Our real estate market is in a free fall.  Of course that will eventually help people get into cheaper housing. Doesn't help the people that just purchased though. 

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 Adjustable, as in lengthening the time you pay back?

I imagine they still are, and I bet a lot of people will be doing that if they can't meet the rise in payments,

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 Adjustable in the rate. Most mortgages are fixed over here. So if you have a mortgage, the rate doesn't change. 

 

 Now if you need a new one, then you have to pay current rates, which are through the roof..

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 Gotya, yes, people can have fixed rates, like fixed rate savings, they can be a blessing or a curse....specially in these times.

I was talking to a neighbour, her fixed rate is due to end, she reckons her mortgage will be hundreds extra per month from next January.

Maddog wrote:

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Syl wrote:

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Maddog wrote:

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Syl wrote:

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Maddog wrote:

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Syl wrote:

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The Bank of England has hiked interest rates by 0.75 percentage points to 3% – the eighth rise since last December and the biggest since 1989.

Not good news for the millions of people with a mortgage.
This on top of huge increases in the general cost of living means more people will be in for a hard winter.

---

 Are all of your mortgages adjustable? 

 

Our central bank did the same thing 2 days ago. Our real estate market is in a free fall.  Of course that will eventually help people get into cheaper housing. Doesn't help the people that just purchased though. 

---

 Adjustable, as in lengthening the time you pay back?

I imagine they still are, and I bet a lot of people will be doing that if they can't meet the rise in payments,

---

 Adjustable in the rate. Most mortgages are fixed over here. So if you have a mortgage, the rate doesn't change. 

 

 Now if you need a new one, then you have to pay current rates, which are through the roof..

---

 Gotya, yes, people can have fixed rates, like fixed rate savings, they can be a blessing or a curse....specially in these times.

I was talking to a neighbour, her fixed rate is due to end, she reckons her mortgage will be hundreds extra per month from next January.

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 Our fixed rates are until the loan is paid for. Fixed as in never changes. 

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 The average mortgage here,is around 20 or 25 years I think So...if you arrange a mortgage when interest rates are high, wont that mean you carry on paying at the high rate even when interest ratese are very low?

The rates have been so low over the last few years...I remember they were around 16% when we bought in the 80's....bad luck if you take a 20/25 year term out then.

Syl wrote:

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Maddog wrote:

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Syl wrote:

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Maddog wrote:

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Syl wrote:

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Maddog wrote:

---

Syl wrote:

---

The Bank of England has hiked interest rates by 0.75 percentage points to 3% – the eighth rise since last December and the biggest since 1989.

Not good news for the millions of people with a mortgage.
This on top of huge increases in the general cost of living means more people will be in for a hard winter.

---

 Are all of your mortgages adjustable? 

 

Our central bank did the same thing 2 days ago. Our real estate market is in a free fall.  Of course that will eventually help people get into cheaper housing. Doesn't help the people that just purchased though. 

---

 Adjustable, as in lengthening the time you pay back?

I imagine they still are, and I bet a lot of people will be doing that if they can't meet the rise in payments,

---

 Adjustable in the rate. Most mortgages are fixed over here. So if you have a mortgage, the rate doesn't change. 

 

 Now if you need a new one, then you have to pay current rates, which are through the roof..

---

 Gotya, yes, people can have fixed rates, like fixed rate savings, they can be a blessing or a curse....specially in these times.

I was talking to a neighbour, her fixed rate is due to end, she reckons her mortgage will be hundreds extra per month from next January.

---

 Our fixed rates are until the loan is paid for. Fixed as in never changes. 

---

 The average mortgage here,is around 20 or 25 years I think So...if you arrange a mortgage when interest rates are high, wont that mean you carry on paying at the high rate even when interest ratese are very low?

The rates have been so low over the last few years...I remember they were around 16% when we bought in the 80's....bad luck if you take a 20/25 year term out then.

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 You can always refinance a high interest rate when rates drop. 

 

That was probably half the loans we did during the pandemic. People refinancing their loans to rates below 3%. Now they are locked into that rate. 

 

It's the people borrowing now that are screwed. An average mortgage payment is $1000 higher than it was a year ago.  

Syl wrote:

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You know a lot more about it than me, it's what you do isn't it?
I wish I had known you back when I was arranging my own mortgage...but that was 1981, you might have still been at uni.
We had a tracker mortgage, (I think it was called) probably paid a lot more than we should have.

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 My clients are mostly bankers and mortgage companies. I value properties based on comparable data and economic conditions. 

 

Daughter number 2 works for a mortgage company doing loans for folks. 

The cold weather has come at last. I think Manchester has had enough rain in a week to last a month.
November has been unseasonably warm till now...and I know a lot of people have refrained from putting their heating on because they are afraid of the energy cost.

Not sure about others, but our monthly electricity bill isn't so shocking. The gas is from a different supplier, not due till January...I think that's going to be the biggie.

Maddog wrote:

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My heat goes on when the inside of my house drops below 68°F.

Texans aren't built to huddle around our homes in sweaters and blankets. We are civilized. 😉

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 Mine kicks in at 71f...it used to be higher, but I lowered it.

I hate wearing warm clothes in the house, I wear strappy Tees all year round.....mind, if the bills get as high as predicted, I may have to get a cardi out.

Magica wrote:

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It's going to be -10 over the next week or so. It's freezing here. We've had a few mild winters, now going to be a long cold one. It's good for killing chills, bugs and virus's though.

Might get a white Christmas! Yeah 🍙🌨 not good if you're travelling though.

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 Viruses thrive in cold weather, because the cold hardens the outer membranes of the cells and make it harder to destroy them.  Also, we produce more mucous in the nose and throat and this enables to germs to linger for longer.  

Normally if I get cold I turn the heating right up for a while then turn it down and it stays warm. Not right now, it starts to feel cold again quite quickly! 

Digger wrote:

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Magica wrote:

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It's going to be -10 over the next week or so. It's freezing here. We've had a few mild winters, now going to be a long cold one. It's good for killing chills, bugs and virus's though.

Might get a white Christmas! Yeah 🍙🌨 not good if you're travelling though.

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 Viruses thrive in cold weather, because the cold hardens the outer membranes of the cells and make it harder to destroy them.  Also, we produce more mucous in the nose and throat and this enables to germs to linger for longer.  

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 Oh I always thought it killed germs.  See you never stop.learning in life