Losing homes from rent increase or Mortgage hikes ?

[LukeD]

THis has become a daily conversation ..... Not that it truly worries me .But Jesus , we know more than 20 people that really could be homeless this time next year .Fixed rates from £1100 a month now been told to expect £2k . Ok, some have been silly and over cooked their finances etc etc .And are left with a few hundred per month . But some wont have a penny spare. Same for renting . The increases are NUTs .And many a landlord bailing out . Ugly times for sure . The worst is someone who was on a "0.9" fixed (I never knew it could even be that low !) and she was "running tight" . 2 kids .Both parents work . But the % they have managed to "reserve" for December means they will be paying 1400 a month more . The level of stress is destroying families . Her Husband is already drinking too much due to the stress .

 

[nicebutdim]

There'll be a lot of people in similar situations, but for many it could have been avoided.

Bad luck will play a part for some, but a lot of people fail to heed lessons from the past - including very recent past - and relied on a crazy assumption that incredibly low interest rates were here to stay.

All that 'free' covid money blown on fancy gardens, luxury goods and tat could have been put to better use, like paying a chunk off mortgages or into savings.

Retraining has meant a sizeable hit in earnings for me, but I'm frugal, live in a modest home and save excess income.

I'm not unsympathetic, especially to those for whom life has been unkind, but a lot of people ought to be asking questions of themselves and not of the government.

 

[LukeD]

There'll be a lot of people in similar situations, but for many it could have been avoided.

Bad luck will play a part for some, but a lot of people fail to heed lessons from the past - including very recent past - and relied on a crazy assumption that incredibly low interest rates were here to stay.

All that 'free' covid money blown on fancy gardens, luxury goods and tat could have been put to better use, like paying a chunk off mortgages or into savings.

Retraining has meant a sizeable hit in earnings for me, but I'm frugal, live in a modest home and save excess income.

I'm not unsympathetic, especially to those for whom life has been unkind, but a lot of people ought to be asking questions of themselves and not of the government.

I agree.... many of them have 40k cars on finance and designer this that and the other .

 

[Dustydazzler]

Jokers at my bank recently sent me a letter warning me my 1% fixed rate will be ending soon and if I do nothing my mortgage repayment will go from £600 to £1750...

jokers expect me to pay £1750 a month , I will be paying the entire balance off the day my fixed deal expires

 

[Dustydazzler]

THis has become a daily conversation ..... Not that it truly worries me .But Jesus , we know more than 20 people that really could be homeless this time next year .Fixed rates from £1100 a month now been told to expect £2k . Ok, some have been silly and over cooked their finances etc etc .And are left with a few hundred per month . But some wont have a penny spare. Same for renting . The increases are NUTs .And many a landlord bailing out . Ugly times for sure . The worst is someone who was on a "0.9" fixed (I never knew it could even be that low !) and she was "running tight" . 2 kids .Both parents work . But the % they have managed to "reserve" for December means they will be paying 1400 a month more . The level of stress is destroying families . Her Husband is already drinking too much due to the stress .

I know someone who was on a tracker at 0.01% above BoE base rate so in effect they had their mortgage on 0% finance up until very recently

 

[LukeD]

wow...£1150 extra is certainly not "change" ..

 

[Dustydazzler]

wow...£1150 extra is certainly not "change" ..

from 1% to 6.99% variable , I laughed my arse off when I read the letter from the bank

 

[LukeD]

In see this really ending up in tears ...suicide , divorces , children suffering etc etc :-(

 

[Dustydazzler]

In see this really ending up in tears ...suicide , divorces , children suffering etc etc :-(

Yet I still hear from the older people I work with that they had it much rougher in the 1980s when their mortgage rate shot up to 18%.

They forget that a house in the late 1970s would have cost them about a tenner

 

[LukeD]

1946 a 4 bedroom house in the world famous but absolutely tacky Bishops Avenue in North london cost exactly £3k . My great Aunt wanted to buy one .But transport into central london was poor so she bought on the Finchley road . Houses in that road could not sell as no one had £3k . But she had saved hard . .Years later 1/2 the garden was sold off for £400k and a house built on it . Early 70's the original house and other side of the garden was sold for £2.3 million . A new house was built and this sold for recently £19million . The house will be demolished and something just as tacky built again. Its madness . Only good news is banks hate been landlords/estate agents . so with luck its still a 2 year process before people really "get kicked out "

 

[Dustydazzler]

My dads old boss , back in the late 1950s he started to buy up a load of empty shops on the Kings Road in Chelsea. At one point he owned something like 6 or 7 shops with the 3 or 4 flats above. He rented some of the shops out with some of the flats and the rest he just left empty. He paid something like £5000 per shop with the flats above, these were big old units.
I think by the time he sold the last one fairly recently he made something like a total of £70,000,000

 

[mattybram]

There'll be a lot of people in similar situations, but for many it could have been avoided.

Bad luck will play a part for some, but a lot of people fail to heed lessons from the past - including very recent past - and relied on a crazy assumption that incredibly low interest rates were here to stay.

All that 'free' covid money blown on fancy gardens, luxury goods and tat could have been put to better use, like paying a chunk off mortgages or into savings.

Retraining has meant a sizeable hit in earnings for me, but I'm frugal, live in a modest home and save excess income.

I'm not unsympathetic, especially to those for whom life has been unkind, but a lot of people ought to be asking questions of themselves and not of the government.

I have to agree to an extent.

But also unfortunately, a lot of people who will be hit by this will be first time buyers who effectively have to mortgage themselves to the hilt simply to get on the ladder...then a couple years later they are now getting blasted by super high interest rates.

Those people weren't in the housing market to learn from past events.

Unless rates drop I'll be paying a stupid amount extra on my mortgage at the end of this year. Luckily, from a few smart property purchases/sales in the last 10 years we didn't have to take out a vast mortgage on this property...so we should be able to afford it.

But if I think about the same happening when we purchased our first (tiny, run down) flat and how much we had to pay for that/vs how much we were earning we would basically be homeless - but that was the only way we could buy.