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I'm OK mortgage wise. Even with the latest increase, my mortgage will still be less than I was paying in rent 15 years ago when I bought my house. I do feel sorry for some of the kids I work with who've had to take out massive 30yr mortgages just to get on the property ladder, often coupled with absolute rip off Government first homes loans. Some are facing huge increases. I accept that mortgage rates have been much higher in the past, but in those days you could buy a house for 2.5x salary, so monthly payments were substantially lower and a smaller percentage of wage.

I don't have any savings. However, if I did, I doubt I'd be concerned about interest on them. If I had savings it would mean I was bringing in more than enough money to live on, so would already be in a pretty comfortable position.

Does the UK not have fixed mortgage interest rates? Over here the common mortgage terms are 15 and 30 year with fixed interest rates, anyone with sense either took out or refinanced their mortgage when the interest rates were low at 2.5-3%. The problem the housing market is suffering from currently is that people are not selling because their mortgage is at the low rate and they can't match it.

Yep -you can get fixed rate mortgages for 2 to 5 years. I took out a 5 year one when I first bought my house, and when it ended my monthly payments dropped by 30%.

Work colleagues have are coming to the end of their fixed terms, and the cost of new fixed rates are usually higher than the current base rate for obvious reasons.

Yep, banks close branches to force users online, so now a run-on-the-bank is easy, no need to queue in the rain, and 100,000's of customers can withdraw online pulling funds below a sustainable level, some may say "serves 'em right"

In Germany, when buying or building a house, one usually takes out a loan with a fixed interest rate for 10 years. After the very low interest rates of the last few years, this can cause major problems when refinancing.

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Yep, banks close branches to force users online, so now a run-on-the-bank is easy, no need to queue in the rain, and 100,000's of customers can withdraw online pulling funds below a sustainable level, some may say "serves 'em right"[/quote]
[quote=CooperMan]

Interesting point, I hadn’t thought of that. I think I’ll keep my NS&I account open just in case I ever need a safe haven.

Ok, I understand. I refinanced my 30 year loan to a fixed rate 15 year loan at 2.62% so that it would be paid off when I reach 74, this meant I kept my money in my retirement accounts earning an average 6% (even taking into account the downturn). So at 74 I will pay off the mortgage, growing my principal + equity and gaining the tax advantages, it can be good if you are careful and use money to make money.

Boomers eh
They have had the best of the planet, peace time, this country's natural resources (without re investing it), property prices, final salary pensions etc etc. And then they go and inflict the final pain on the following generations with Brexit.

Dragging up 17% interest rates without context of house prices is pointless.

We bought our first house at the age of 20 in 1985 with a deposit that we had saved from our low paid jobs. Within a month of moving in we bought a brand new Ford Fiesta (on the drip) and changed that two years later for a Brand New XR2.

Today, Two 20yr olds doing those types of jobs would struggle to pay the rent (if they could find anything) much less save the 20k deposit for a house.


So far as veg shortages, you aint seen nothing yet. And as far as this countries food production is concerned, it has everything to do with Brexit.

Low mortgage rates for a decade have done more damage to younger generations in the form of housing inflation than relatively higher rates will do now. Rates need to normalise so that housing prices correct. Low rates and QE have caused massive speculative bubbles that have to deflate. It will be painful but there is no other option because the alternative is currency collapse.

Exactly... the new semi we bought in 1977, 122 Lynwood Drive, Merley, in Dorset cost us £12,450. The mortgage was affordable.
The exact same house last sold in October 2017 for £320,000 and is now "worth" £403,000, according to "TheMarket.com"
Based on consumer price inflation it is worth about £100,000.

A young couple today doing the jobs Caroline and I were doing then wouldn't have a hope of affording it now. Hell, I'm not sure we could afford it now.
UK House prices are a rigged market, if houses were built at a rate sufficient to make new houses affordable the resultant price crash would result in millions with negative equity and a banking crash as millions defaulted on their mortgages, so the Politicians dare not let it happen.