So the mortgage rates are topic of conversation here in the UK and with our mortgage coming up for renewal we thought we’d sit down & share some of thoughts about what to do next!
Hey! Loving your videos . I’m actually a mortgage broker and have started a channel for mortgage hints and tips - Heartland Mortgage Services. Mortgage rates did peak at 7% in September 2022 and have been decreasing and where continuing to decrease but the last week we have seen lenders starting to increase rates slightly - very slightly - so is telling us that it maybe the rates we are seeing now are going to be the new normal for a while until inflation is more under control. And yes many buyers have many questions and everyone has different circumstances! We are offering our clients a review 6 months before their current deal ends and getting them the best deal we can now - if rates do go down between their offer date and when the want to complete we can we do a new deal- meaning they get the security they are protected about rates going up - but also if goes down then you can re do them and not complete on the original ones! Happy to help!
Hey you two! I’ve got a different suggestion, which is what I would do… Elise if you get a full time job (just for long enough to give proof of income for a mortgage), carry on doing your self employed work on the side, so that you can get a mortgage with lower rates. I know it’s not ideal, but it’s just a temp measure in order to get your lower rates. In my opinion, I would not want to leave the housing market, as it may become harder to get back in. Although values might drop, they will go up over time xx
I think what you need to consider is the long term (30 years) Mortgage rates , which are much closer to today's 5% than the odd times we've lived through which bought rate's to a level only seen post WW2. The likely scenario is we will never see rates near 2% again in our lifetimes
I work in the housing industry at the moment and the market is very different to how it was. Personally the company I work for are still seeing lots of people move at the moment and the rates seems to of levelled. It’s a tough decision for you guys and so many people are in the same boat, I think personally to rent would be a big mistake as the rental market has seen a huge increase. If you could sell it and live with family and least you can hold on to the equity. But living with family full time is easier said than done. I am sure you will make the decision that is best for you both😊
I don't know your personal circumstances but on the face of it, if you can't afford your payments and the bank won't make adjustments then tough decisions need to be made. 2nd job, rent out your house or sell. I'd move in with your folks for 12 months or so and save up for another deposit. Houses will likely be a lot cheaper in 12-18 months. Good luck.
@@nsoul4296 we can afford the payments we just think it’s a good time to sell based on the equity gained and re evaluate - I think moving in with folks is the solution 😊🤞🏼
@Elise McCulloch Hi, the time to sell was last summer, I think house prices will slowly decline for the next 18 months and then stagnant for another 12 months before maybe rising in 2026. Good luck, always get proper advice and ensure you do your sums. You can't beat living with parents to save money. Good luck
I’m not sure where you guys live, but I’m buying in Devon right now, & the market is starting to slow compared to what it was, but is still very buoyant. We’re cash buyers & couldn’t get a below asking price offer accepted, so had to pay asking price. We love the house & should be in soon.
The base rate is expected to stay at or above 3.25% until 2026, so your cheapest deals might be just under 3.5% for a residential mortgage. If you can't afford that then sell now, don't wait to put it on the market in spring. This is a straight freefall at least in London where I've been looking to buy. Buyers also won't be messing about with overpriced properties so price it well from the beginning. Be the lowest price in your area with respect to comparables and sell quickly if you can. I've been told flat out by some agents that if I offered 10% below the sellers asking they would probably take it at this point, and most buyers still won't be moving forward to take on the risk at these interest rates.
In Japan Residential fell 85%, commercial 90%, 50 years later still 50% down, World War is inflationary to say the least, I suggest you get advice from someone who knows whats happening, not an estate agent or mortgage broker!! Good luck and sorry
Sell and get out of the market as soon as possible! I'm very convinced that prices will return to at least their pre-Covid level, which is around -25%. That increase is totally unsustainable in the current environment. The question is whether the drop will stop there. Everyone miscalculated that inflation of +10% can be brought down by interest rates of 4%. But much more will come I believe...
Inflation is good for debt on fixed rate....... Salaries also inflate albeit slower, but it all adds up to make the mortgage a lower burden or % of your income
Have you spoken to your mortgage provider about your situation? I can't see rates going down for a while, not with the high inflation we have. It sounds like you bought at the top of the market and stretched yourselves, I think there are many young couples in a similar situation to you. Always get professional advice and best of luck to you.
