How sterling crisis is impacting those looking for a mortgage 

I am appalled by the status of the housing market as a landlord in Tampa. I, on the other hand, was unaffected by Ian's brutality. I have increased the rent on my residences and saved one million dollars for an early retirement at the age of 47, despite the fact that the stock market is not currently performing well for me. No matter what the Fed does, my major worry is that I regularly think about how to take advantage of the market.

Conservatives chose Truss' tax cuts over Rishi's plans to curb inflation. Enjoy

FYI here in France a fixed mortgage (which is all mortgages) is really fixed. Even for 25 years. What you pay doesn't go up for 25 years.

Greece and Italy are in a better situation than the Uk is in at the moment to finance their debts. That just brings home the dire Economic situation the Uk is in.

I'd love to be a fly on the wall when the Daily Mail/Sun/Express/Telegraph/Spectator reading public suddenly awake and have their moment of clarity.

Let me understand, Truss gives a few hundred pounds per year tax cut, while increased interest rates put mortgages up by thousands? This government is economically innumerate

Rates have been artificially low for too long. Governments have been manipulating for too long. Government has put itself in a difficult situation.

The farmer comes with his sickle for the turkeys who voted for xmas

Folks, I think it is worth looking at some facts: 1) the average salary in the UK is around £26k. This equates to a take home of £1795 per month. 2) the average house price is around £283k. Typical best mortgage deals are 2 to 2.5 % above BOE Base rate. So repayments on a new £283k mortgage are about £1650 per month. BOE interest rates are expected to hit 4 % next year. Which means that a typical 25yr rep mortgage on an average house purchase would be £1900 p/m. In other words, an average FTBuyer will have to spend some 105% of their take home pay on mortgage repayments alone....

Tax the poor not the rich says it all.

Interesting, in the USA we have 15, 20, 30 year fixed rate mortgages here. There are no balloon rates since 2009 on houses. Shocked UK still has this type of loan.

Some Tory lemon MP will be trotted out on the airwaves in the morning to tell us all just work harder if your struggling with payments.

House prices need to come down to pre COVID levels , the speculation and frenzy that took place over the last 2 years is unsustainable.

I wonder what proportion of those now crying about their mortgage payments have ever uttered with superiority and derision remarks along the lines of poor(er) people simply having to live frugally within their means or saving for a rainy day?

As a United States resident, what is the deal with these short-term fixed rate mortgage products? Our fixed rate mortgages tend to have a term of 15 or 30 years. Your product looks like an adjustable rate product. This will be a nightmare for those in the process of securing a home loan and someone needs to lose their job for this disaster.

Honestly, I’m sick an tired of how our dear United Kingdom is being run at the moment. I’ve been a tory all my life and graduated from both Eton and Oxford. I’ve believed in free markets and an efficient and slimmed down state all my life. Nonetheless, 12 years of tory government’s have been a disgrace so far. Government spending has been out of control, interests on mortgages have gone through the roof, cost of living has spiraled out of control, the pound has fallen off a cliff and the average Britain now even lags 10% behind France and is on average 40% poorer than the average German. We cannot for the sake of it continue on like that. Our People are amongst the most well educated and honest to god hardest working people on Earth but we are being governed by a lot of self-righteous and only-on-their-own-self-interest-focused government who not only deprioritizes the well of the humble man but also completely disregards the economic reality.

The housing prices are wayyyyy too high. This ensured they had to give away low rates. What did they think was going to happen ?

First BREXIT, then the pandemic and now Trussonomics. The last 5 -6 years have been a traumatic experience.

So we, the state, borrow money from financial institutions to afford tax cuts. This added money will cause inflation and therefore interest to rise. The high interest will cause this added money to flow to financial institutions. I really struggle to see this as anything but a poorly disguised heist.

Too much people borrowing what they can't afford special hogging up properties to rent I do feel sad for those who have 1 house but serves those greedy gits and investors who have pushed houses prices too high making it hard for normal people to own a house no one should take extra loans if they don't have too

Good to have macro situations explained using real life examples. Good also to explain things in understandable terms.

Alarming bond belief! And here I was sitting on the fence (see how this goes) but someone burnt the fence down, I don't need a clairvoyant or a forcatster to tell how this goes or how it's gone, yet again the weakest and the poorest will suffers and government and other corporate identities will profit. Next is the property crash...

The banks don't lend money from customers deposits, if someone goes to the bank for a loan the bank simply pulls the money out of thin air by putting some digits on a screen then give it to the customer which then becomes an asset for the bank and a liability for the customer, that is how money is created.

Scary times. Perhaps thick lizzy is hoping someone in the UK keeps winning the huge euromillions jackpot. We have a pretty good record at winning the 100million + ones. Of course with the cons trickle down economics theory this can only be a good thing for us all and it might even save the day 🙃

So when do you think the IMF will be getting there office space in number 10. Before or after Xmas?

Crazy stuff Being a grad trying to find my footing in these times is extremely difficult

Have they thought about cancelling Netflix though

Torys dig their own hole by electing Truss, what is happening is what Rishi said . Ironic

Its one stressful thing after another at the moment .why can't we live our life's stressfree

Now take a look at TV adverts how they're selling, not only their products but, an unattainable lifestyle where the young are well clothed, have pristine housing fully furnished, have cars and children, and still they have money left to purchase the latest phone and the apps that come with it and a seaside holiday. What economic minority are those adverts directed to? Such advertisements campaigns are more of economic-shaming than anything else.

So wait, fixed rate mortgages only last a few years before the rate changes in the UK? 🤯

If only the UK had nationalized the oil. It would had made a HUGE difference....

Are fixed rate mortgages fix for the entire mortgage term, or are they only fixed for a certain period then reset for another period? In the US a fixed rate is fixed for the entire term of the mortgage (30 fixed is for 30 years.)

In other countries people's spare cash is used to invest in productive assets like businesses which produce, innovate and employ. In the UK its just ploughed into housing, a non productive assest which slowly degrades to rubble over time.

How many people who have a Mortgage asked there lender for a Quote on 10% interest rate hike? Then asked themselves can I afford this House? A lady who arranged ours says shes only heard it a few times in 20 years of being a broker. She said people normally borrow alot more for a bigger House. Shame history is repeating itself.

Every single economist worth their stripes, and all the members of the Bank of England all said not to do this, that the results would be catastrophic, and yet here we all are anyway. Everyone else keeps trying to put out the fire currently consuming the world's economies, and yet the Tories seem perfectly happy to dance around pouring petrol on the flames. I have no idea what is going to happen, but I have a strong feeling it will not end well.

What he said about where banks get money from is flat out wrong. Banks create money from thin air when they loan you money. It DOES NOT come from reserves, and it is astounding to me how many people dont understand this simple fact about our economy.

why so slow. Australia been hiking rates .5 every month. why is uk waiting till November

Remember the interest rate at fifteen 1/2 % ?... used to pay over seven hundred quid on a 37 grand house . I will never forget it . My second marriage 22 years ago they said I could have 150 grand mortgage.... glad I remembered nineties and only borrowed 57 . Every government fks it up .glad I’m near end

So you can’t just give out pay rises because it’ll cause inflation, but you can just slash tax, mostly benefiting the rich, and cause inflation without a care in the world.

Who are these people who can even afford a mortgage I don't know any regular worker who can afford mortgages, people who just got on the property market are completely screw. Big shock it's going to be regular people who are going to be hurt by interest rates.

Interest rates are a difficult situation. Low interest rates are good for those in debt, and bad for those who save, and high interest rates are good for those who save, and bad for those in debt. Some will win, and some will lose, and everything is a compromise on something.

Is it possible that the banks are looking to own all the mortgaged properties, you know, like quoted in the WEF's trademark slogan "Welcome to 2030, I own nothing, have no privacy and I'm happy"?

Exactly higher interest rates will lead to defaults, house repossessions as people won't be able to afford increasing mortgage payments that go up with rising interest rates. This government and bank of England has lost the plot I remember the financial crisis in 2008 where many people lost their homes to banks repossessing their homes as they couldn't afford the higher mortgage payments that went up with increasing interest rates.

The sad thing is, that higher rates, higher mortgage payments means more profits for bankers. Together with the tax cuts, they popping the champagne. I don't understand, why the opposition is not calling for new elects to get this unelected hacks out?

People better hope the rate doesn't hit 15% like it was in the 1980s

There are a lot of things people are not talking about, they blame everything on the tax cut, Inflation is here with or without the tax cut the borrowing will increase it, that's for sure but the BOE will have to rise the interest rate no matter what, in fact, they have to rise it above inflation if they really mean business otherwise they are stuck they can't print anymore and the economy will shrink and recession takes a grip the whole system of the debt-driven economy needs to change.

"Get Brexit done", "oven ready deal", "strong and stable", "Global Britain", etc etc... You've been pooped!

People were scammed, yes scammed with sub 2% mortgage deals for years and when they have to remortgage they wont afford it. Tell me this wasnt calculated.

I wouldn't vote Labour if they were the only party on the ballot

I'm having a moment because the tax cuts sound like U.S. What's next? Paying for your own health insurance? Love my country but oh, don't fiscally be like the USA, please. That is one of the admirable things about your country.

Boris and lizz’s gamble is bringing the country to its knee.

Interesting to see the UK superseded Greece keep up the good work to those Tories brexiteers! how low can you go!

I for one am looking forward to a reduction in housing prices. Everyone paying through the nose for a house and expecting that prices will go up forever is why we’re in this current mess.

Kick back ride out the rest of this year and 2023 the best you can and get ready for a Labour Government in 2024 🎉 Looking forward to buying my gas and electric from GREAT BRITISH ENERGY. Publicly owned energy company, Tories are a dead man walking bruv 😂

Paying more in Mortgages, increased cost of goods due to Sterling plummeting leading imports costing more + infaltion is on the rise and then we get back 1 p on basic tax rate. Welcome to Truss'onimics.

So if your mortgage company gets the money for your mortgage ,is full loan on fixed rate at time of loan an if so why does your interest rate change with rates surely they borrow all the money at a fixed term for the full time term??!!

Someone please explain why the taxes being lower is a negative?

Anyone that takes on a seriously long term financial commitment like a mortgage and stretches themselves to the absolute limit has only one person to blame when shifting interest rates cripple them... it's not like this hasn't happened before, is it?

Very good analyst by the economists. The benefits of giving tax cuts to the English people will be completed exhausted when the banks pass on the heavy increases in mortgage rates to borrowers. This in turn will not affect the pockets of landlords but also tenants as the landlords will pass some of this extra repayments costs onto the Tenant signalling a downturn in overall consumer spending and the English economy

I have lost so many friends and family calling me crazy as I have warned them for 20yrs of my 43yrs this reset was coming. Not so mental now am I right.

Tbh anyone complaining about interests rate about mortateges its on them completely they had a easy life for years which leads to this situation. Interests rates should be higher way before than now and probably we wouln't had this situation at out hands. If anyone disagrees then look at canada they are sitting at 5% aprox and their situation completely fine as for the currency rates, it's increasing day by day.

This is stressful.

Lloyd's bank wants to be the biggest private landlord in the UK with 50k properties by 2030. I'm sure this will help.

Welcome to conservative England

It isn't true that people who lend money for mortgages have to raise that money themselves. What banks do when they give a mortgage (or any debt) is to *create* money.

Another incorrect statement. BOE increasing interest rates to keep pound from dropping. So interest rates will have to go up even more now.

No ones mentioned the cost and number of evictions. You know they've got those projections

WoW😍 GUD NEWS👍️

Shock horror...people living the high life buying on tick(at the expense of those that dont), will have to cough up a more realistic cost of borrowing.

What will it do to house prices?

In Finland fixed rate means for whole loan period, whatever it is then.

As an American, I'm truly confused as how ANYONE in the UK can afford a mortgage?!

You'd think the politicians didn't have your back.. or get paid to have your back 🤣🤣🤣

So will the poundzone break apart? Northern Ireland was likely to leave, but maybe Scotland will leave the poundzone, too.

What does it mean that she's coming out of a fixed rate mortgage?

Kwarts is in cahoots with the banks?.

I agree there is clearly not enough to go around. Good reporting. In fact expert.

The interest rate should be around 5% already, we need to be more aggressive

Follow the american example. buy a tent and live on the streets.

It’s all part of the great reset / great transfer of wealth Remember “you will never own anything” instead you will rent it from a financial institution. Your home, car, holidays will be owned by someone else, all you will be is a series of monthly debits to cover all these rental payments

How are we having a sterling crisis when we were promised all of that abundant, reliable & *cheap* green energy? People choosing between heating and eating. So sad. If only we could figure out what might be causing that.

Insane🤦‍♂️

If you can afford a thousand mortgage a month... ern I can't and I'm going to be ok

Yay! Uk is an emerging market!!

Kwasi and Loopy liz are very good friends

things have been getting worse for the many, but we cant pretend that some of the few are not benefiting from the mayhem , the system will never get fixed , this is what makes the world go round , make peace with it and maintain

You can tell that lady in the beginning is living outside of her means. So much clutter in her house.

Warned all of you about this years ago. That's why we were pushing for Corbyn's policies.

Questions. Are you looking for a mortgage? Did you vote tory? If yes to both of the above. 🤣🤣🤣

While I do feel sorry for those caught up in all of this mortgage rates couldn't possibly stay at historic lows forever and if you can't afford it now you really couldn't afford it back then.

I'm 2 years into a 5 Year Term. First time buyer. Would it be wiser now given the situation to focus on overpaying the mortgage in the remaining time vs renovating?

Chanel 4 needs to talk about Ecosia they are a search engine that plants trees

Looking for, I can’t wait to get rid of mine, 10k to go and thankfully fixed for another 4 years.

weren't looking for a house in the uk anyways😂prices are too damn high better to move elsewhere guys 300k plus for a small house just to own

That economist looks like he hasn't slept for weeks.

When I was in UK. I saw empty boarded up streets under a constant grey sky, litter everywhere. Homeless people sleeping in doorways. Opioid addicts out of their mind and women so drunk they urinated on the streets. It's a sad declined country

For what..?

Woman who has not maintained a check book is budgeting the country’s expenses.

I don’t even understand how and why the UK keeps accepting financial products that are only predatory. The parliament as to be dissolved and a republic must be put adopted!