My mortgage crisis: payments have doubled so I'm forced to sell up | Times Reports
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- čas přidán 4. 07. 2023
- With interest rates soaring to levels not seen in 15 years, many households across Britain are struggling to pay their mortgage as lenders hike up rates. Programme manager Danny Bailey has no choice but to downsize as he can no longer meet his monthly payments.
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Basically , mortgage rates have reached their highest point since 1998, spanning 25 years. Considering inflation trends, there's potential for them to rise even further. Just a year ago, a 28year fixed rate was only 6%. This prompts the question: should I wait for a housing market downturn before buying or shift my focus towards the equity market?
The stock market follows a similar pattern, in order to sustain profits, it's crucial to possess a deep understanding of the market.
Indeed, I primarily engage in buy-and-hold, but my portfolio has been in the negative for an extended period. To achieve substantial gains, consistency and regular portfolio adjustments are essential.
I think investing was simpler in the 70s, but it's more complex now. Those consistently profiting today are usually professionals. That's why I've had an advisor for 7 years to steadily grow my retirement portfolio.
My partner is also thinking about taking a similar approach. Could you please provide more details about the advisor who assists you?
Her name is Stacey Lee Decker and she' a genius at her field. You can easily confirm her expertise by searching for her online. She possesses extensive knowledge of financial markets.
Sadly, banks continue to stumble, mortgage rates is on the rise with higher imports and lower exports, yet the FED is to lessen cost. So, where do we grow and safeguard our money now? something will eventually break if they keep raising interests and quantitative tightening.
ideally, you should consider financial planning to get the best results with your money, notwithstanding economy situation
That's fascinating. How can I contact your Asset-coach as my portfolio is dwindling?
Thank you for this tip. It was easy to find your coach. Did my due diligence on her before scheduling a phone call with her. She seems proficient considering her resume.
Back in the day, when I purchased my first home to live-in; that was Miami in the early 1990s, first mortgages with rates of 8 to 9% and 9% to 10% were typical. People will have to accept the possibility that we won't ever return to 3%. If sellers must sell, home prices will have to decline, and lower evaluations will follow. Pretty sure I'm not alone in my chain of thoughts.
If anything, it'll get worse. Very soon, affordable housing will no longer be affordable. So anything anyone want to do, I will advise they do it now because the prices today will look like dips tomorrow. Until the Fed clamps down even further, I think we're going to see hysteria due to rampant inflation. You can't halfway rip the band-aid off.
Home prices will come down eventually, but for now; get your money (as much as you can) out of the housing market and get into the financial markets or gold. The new mortgage rates are crazy, add to that the recession and the fact that mortgage guidelines are getting more difficult. Home prices will need to fall by a minimum of 40% (more like 50%) before the market normalizes.If you are in cross roads or need sincere advise on the best moves to take now its best you seek an independent advisor who knows about the financial markets.
Personally, I can connect to that. When I began working with a fiduciary financial counsellor, my advantages were certain. I got into the market early 2019 and the constant downtrends and losses discouraged me so I sold off, got back in Dec 2021 this time with guidance Long story short, its been 2years now and I’ve gained over $860k following guidance from my investment adviser.
Interesting Josh. I've been thinking of going that route been holding on to a bunch of stocks that keeps tanking and I don't know if to keep holding or just dump them, do think your Inv-coach could guide me with portfolio-restructuring as i wouldn’t mind a recommendation.
Actually, I've shuffled through a few advisors in the past, and “Colleen Janie Towe” remains the most resourceful thus far. Her strategy proves profitable, and sustainable both in a bull & bear market. Most likely, her deets can be found on the net, so you can confirm yourself.
In order to buy cheaply, I'm waiting for a housing crisis after selling a few houses in 2020. I've been considering buying stocks as a fallback. Do you have any advice on when is the greatest time to make a purchase? On one hand, I continue to see and read about traders making more than $$$k per week. On the other hand, I constantly hear that the market is crazy and in the midst of a dead cat bounce. What causes this?
It is true that the US stock market had been on its longest bull run ever, thus the widespread panic and frenzy is reasonable given that we are not used to such unstable markets. However, as you pointed out, there are possibilities accessible if you know where to search; in the past 10 months, I've made over $$$k, and it wasn't a difficult plan of action. Because I understood I needed a solid and reliable strategy to navigate better in these times, I hired a portfolio counsel.
@@TomD226 Recently, I've been considering the possibility of speaking with consultants. I need guidance because I'm an adult, but I'm not sure if their services would be all that helpful.
@lowcostfresh2266 Actually, I'm not sure if I'm allowed to mention this, but I'd recommend looking up Laurel Dell Sroufe because she was a big deal in 2020. She manages my portfolio and serves as both my coach and my manager.
@@TomD226 Laurel Dell Sroufe profile appears to be fairly knowledgeable, therefore I must say that I value the advice. After locating her online, I thoroughly read through her resume, educational background, and qualifications, and I must say that they were quite impressive. We have set up a meeting after she replied to my message.
I’d say in 9 months time, about October November will be when all the interest rates have filtered through & the market has fully adjusted.
Meanwhile put your money in a savers a McCourt spread across many banks to insure you 95k is protected.
You can expect 5% per year & that will cover your rent costs.
I wouldn’t put it in stock market as it’s your money to buy a home. Only put money in stock market you can afford to lose, so disposable income really or savings you are whiling to wait for at least 5 years.
The effects of the downturn are beginning to sink in. People are being impacted by the long-term decline in property prices and the housing market. I recently sold my house in the California area, and I want to invest my lump-sum profit in the stock market before prices start to rise again. Is now the right moment to buy or not?
If you are new to the market, I recommend seeking professional assistance. The most effective approach to creating a well-organized portfolio is to begin with a professional who is knowledgeable about the turbulent yet profitable market.
Over the past three years, I have been working with a professional who has provided daily guidance on my investment decisions. With their expert analysis, I have realized gains of over $1 million. Their insights have helped me avoid losses and capitalize on market breakthroughs, particularly during downtrends.
@@MarkFreeman-xi3rk How can I contact your Asset-coach as my portfolio is dwindling?
Can't divulge much, it's only right you do your due diligence. I'm been guided by “Margaret Johnson Arndt” and most likely, the internet is where to find her deets.
Thank you for this tip. It was easy to find your coach. Did my due diligence on her before scheduling a phone call with her. She seems proficient considering her résumé.
With rates climbing like never before in ’23 coupled with uncontrollable inflation, and our own mortgage at now 7.5% what are the best alternatives/strategies for avoiding a crunch and maximize my $600k savings other than moving in to an RV with my two kids and wife.
You are not alone we can no longer afford our mortgage, husband wants us to travel or relocate/I am proposing cashing in, walking away and renting while putting the rest in the stock market.
In my opinion, home prices will need to fall by at least 40% before the market normalizes. If you do not know whether to buy a house or not, it is best you seek guidance from a well-experienced advisor for proper portfolio allocation. So far, that’s how I’ve stayed afloat over 5 years now, amassing nearly $1m in return on investments
@@PatrickLloyd- I will be glad to enlist the services of a reputable one? How do I go about finding and vetting them. We know the value of a fiduciary as we have a family lawyer and he has hinted on it occasionally, so we began to consider the idea.
''Vivian Carol Gioia'' oversees my portfolio, I'd gladly commend her on a public post, she's reliable and you can find her on the web too. Her reputation as a financial advisor precedes the exemplary service she offers.
@@PatrickLloyd- thanks for putting this out, just found the official site of Natalie Marie Tuttle after inputting her full name on my browser, she is valid
As am American living here in the UK, I have always been dumbfounded on the mortgage market here. 2yr -5yr (rarely ever fixed) and renegotiate multiple times over the course of the loan. Continuously more creative ways of finance and Gov assistance schemes to prop up the house of cards.
After years of research, I have simply come to the conclusion that too much of the UK's wealth is tied up in real estate. "Too big to fail" if you will. In the US, many have a 401k or reasonable pension to rely on for retirement. By contrast, here in the UK it's an insignificant amount comparatively. So, many have been brainwashed into thinking the only way to wealth in the UK is through property. Then, sell up and downsize for your retirement pot. Any sizeable correction in UK housing will basically cripple a generation's retirement and lead to bigger issues. Not to mention the elite class that have no desire to lower their own property portfolio's value.
Sadly you are correct. There is an obsession in the UK that everyone should be poor except for the royals and a few rich friends. Therein lies the problem, we still live in a feudal system with a small nod to democracy. This pack of cards will collapse because it's unsustainable. We do not need one family living in opulent wealth while the rest of us toil away for a pittance at the end of our working lives. Everyone should have the right and ability to live in security and dignity of finances and home
@@mypointofview1111well I agree to some extent. But then there is living with things that you need, and then theres living with excess. If you didnt study or whatever and have a high paying job, dont start getting angry that you cant afford a 3 bedroom house with garden etc etc
A pretty good analysis, in the U.K. we are pretty poor when it comes to investing long term……it’s the exception rather than the norm.
I hear you, but I have seen many examples like my Auntie. Especially in affluent areas of Manchester such as Altrincham, Knutsford, Worsley, etc. She bought in 1989 for 95k, sold the same house for 490k in 2005 (unfortunately she passed away recently). The same property is now worth 1.1 million. Longitudinally in the UK, bricks and mortar always comes out on top, there is simply too much data that shows that - usually tied in with the tag ''Old money.''
Yep, we are religious about our housing sector. People have virtually no more money left over after rent/mortage payments and bills so our high streets are full of cheap tacky nothingness, gambling shops and charity shops that don't have to pay rates.
Back in the day, when I purchased my first home to live-in; that was Manchester in the early 1990s, first mortgages with rates of 8 to 9% and 9% to 10% were typical. People will have to accept the possibility that we won't ever return to 3%. If sellers must sell, home prices will have to decline, and lower evaluations will follow. Pretty sure I'm not alone in my chain of thoughts.
If anything, it'll get worse. Very soon, affordable housing will no longer be affordable. So anything anyone want to do, I will advise they do it now because the prices today will look like dips tomorrow. Until the Fed clamps down even further, I think we're going to see hysteria due to rampant inflation. You can't halfway rip the band-aid off.
Home prices will come down eventually, but for now; get your money (as much as you can) out of the housing market and get into the financial markets or gold. The new mortgage rates are crazy, add to that the recession and the fact that mortgage guidelines are getting more difficult. Home prices will need to fall by a minimum of 40% (more like 50%) before the market normalizes.If you are in cross roads or need sincere advise on the best moves to take now its best you seek an independent advisor who knows about the financial markets.
@@james.atkins88 I will be happy getting assistance and glad to get the help of one, but just how can one spot a reputable one?
@@rebecca_burns14 Personally, I can connect to that. When I began working with “Camille Alicia Garcia’’ a fiduciary financial counsellor, my advantages were certain. In these circumstances, I would always advise getting professional help so they can steer you through choppy markets and just give you indicators and strategies for knowing when to enter and exit the market.
That's all well and good when the house prices I the 90s were pittance compared to now. How exactly does someone starting out now on the ladder afford it?
I paid up all my mortgages in 2yrs while working with a Financial Adviser. I’m 50 and my husband 54 we are both retired with over $3 million in net worth and no debts. We got to realize that the secret to financial freedom is making better investments.
That is so amazing, I’m trying to get onto the investing ladder at 40. I wish at 55 I will be testifying to similar success..
How can I reach this adviser of yours? because I'm seeking for a more effective investment approach on my savings
Natalie Lynn Fisk is the licensed fiduciary I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment..
She appears to be well-educated and well-read. I ran an online search on her name and came across her website; thank you for sharing.
If you're waiting 2 months and have no viewings, you have over priced it, full stop. Every week you wait, the market is dropping away further. The ONLY way to get sold in this situation is to slash your asking price BELOW comparable properties to get competing interest.
Or its a cheaper estate agent that doesn't list on Rightmove, or do any leg work behind the scenes, like calling ex clients?
@@DarkStryder360
It's not even that. Most people are staying away because either they're not secure in their jobs, transitioning through their lives or waiting for the property price crash before committing
@@mypointofview1111nope, I put my house up for sale a month ago and had double digit viewings in a week. Listed at market price. There are plenty of cash buyers out there wanting to waste their money.
@@mypointofview1111nope, I put my house up for sale a month ago and had double digit viewings in a week. Listed at market price. There are plenty of cash buyers out there wanting to waste their money.
Thank you for being there MYSTICFLIP when I wanted you to..... I was lost in this new world that I was hassled to start with ....you not only guided me along the way but you also showed me the proper way....whatever little I have been able to achieve in life is because of you today ..... I want to thank you for being there and showing me the proper way of doing thing for me you are my best guide as you truly showed me the way to life....once again , I would like to tell you a heartfelt thanks for being there.
People pointing out that 5% interest rates are the historical norm need to realise that a) house prices are far higher than they used to be so mortgages are far higher, and b) wages are on average lower adjusted for inflation. So your take home pay and ability to pay higher rates is much reduced. Add on higher utilities and food costs and you're looking at a grim picture for an awful lot of home owners
House prices are higher because interest rates were historically low. When buying a house people were only looking at what would be their monthly mortgages payments and they completely ignored the exhorbitant house price which is quite unreasonable.
Exuberance in housing market made people make dumb decisions like buying houses at eyewatering prices outbidding every other buyers.
@@tomsjose4u that and exponential population increase, government intentionally limiting house building in order to drive up property value and fund pensions/landlords, and cash buyers who could afford it collecting assets. Can also look at foreign investors buying ridiculous over priced properties in big cities etc etc. Rich get richer and average working people are worse off
Boomers know that they are being pretentious intentionally
100% and there are so many more things that people have these days such as mobile phones, computers, internet, sky/cable, cars on PCP or HP, Loans and Credit cards, Store cards etc. an most of these didn’t exist or were certainly not as common in the 70’s, 80’s and 90’s.
For that reason I believe this crash will be the worst in history.
And it’s still early days.
Also it’s home buyers, not homeowners that will be affected, homeowners being mortgage free. The only way a homeowner will be affected is if they decide to sell.
My first house was a run down terrace which i renovated myself. I just saved as i went along, it didnt even have central heating. I wish i could have afforded a new build immaculate semi with a drive. Sometimes we need to start with a terrace, then move up with enough collateral behind us, before moving to a better property. New builds are always overprices, so can easily end up in negative equity.
I remember when I got my mortgage the broker telling me “you can buy a more expensive house you know”. I was the only person he’d spoken to in 3 years who didn’t want to go to the max amount of debt. At that moment I realised how bad it would be when rates inevitably started to rise. What goes up must come down.
Absolutely. This will be painful for a select minority for the next year or 2 short term, and then it will calm down again, most likely to around 4%, maybe a bit lower. 6-7% or more is just unsustainable in the economy, and a massive fall in demand will lower house prices enough combined with cost of borrowing lowering inflation that the BoE will be forced to take action and lower their rates. If you're losing your property as you're remortgaging...tough, sucks to be you, you drew the short straw but also made foolish financial decisions yourself.
@@Dynasty1818 what an amazingly intelligent and balanced conment!
I had the same conversation with an estate agent. He said, "So why are you looking at this if the bank will lend you more?" I said, "Because I don't want the debt."
@@JosephByrne wow I thought I was the only one mate 😂 crazy isn’t it yet also scary for your average normie
Central banks broken projection in transitory inflation. While the political class is decoupling with China. Abs despicable mayhem policies and "Shadow" Government
I can't believe what bank BoE and current Gov have done to this country....someone should be made to answer. Millions of peoples whole lives have been ruined.
I feel bad for this young man. He can potentially rent out one or two rooms of his house to get through this difficult period.
Should be a no brainer. I don't have a mortgage but do it and it helps with the cost of living.
sarcasm? Millions have been priced out of property by hordes thinking the government and Bank of England, and renters owe them a living. Didn't get a long fixed rate when rates were at 300 year lows and government warned that the rates were emergency to bailout bank and property markets? Cry me a river!
I feel bad for him because he is just a normal bloke trying to do a normal thing. If only the country had taken its medicine in 2008 rather than kick the can to this inevitable mess. Personally I will gain from this situation (old cash FTB) but I don’t take much pleasure in watching this.
Perhaps his location is not ideal to attract tenants, but I wonder if he actually considered renting the spareroom?
not if he used help to sell.. ahem, help to BUY sorry 😆
This is terrifying, and the worst part is that it is only the beginning
Not terrifying interest rates have to be factored in when buying
thatcherism prevails selfishness and unchecked greed.
Good. Sadly alot of good people will suffer but as long as the evil lot i.e landlords, corporations, subletters and the immoral suffer all the better
@@kevinwilde absolutely
why do you say this is just beginning? from what i know is the us inflation is coming down, the rate is close to the peak.
Hey Sherry after taking your advice and getting the 51 point increase to my fico score, Mysticflip claimed my increase came from my car payment balance decreasing which I believe was a lie, hoping I'd not realized the real reason it went down and try the process all over again.....makes me realize these companies really wanna keep us down and indebted to them...am I crazy for thinking this way?
A hard working young person with dreams and aspirations wanting to improve his lot, don’t worry Dan you will survive and prosper in the long term, just keeping dreaming and thriving. My life was ripped apart in the property crash of the late 80’s, carried on dreaming and thriving, I learned a lot. Good luck mate!
Exactly why Tories will lose GE, they have nothing to offer people like this. Liz Truss lot to answer for she caused this
Terrible situation to be in
thatcherism prevails selfishness and unchecked greed
This is long term agenda but sheep continue to sleep and call us "conspiracy theorists".
Bitcoin is this generations "own their own home" for wealth generation but 99% of people haven't figured it out yet.
Dreams alone don't solve problems! Adapting with logic is all the young man needs
Banks are selling mortgages. People always say it's a good option to buy at discount, but with the market turmoil and everything at stake in present economy, I'm thinking of buying stable coin to hedge against inflation, or is it all right saving over 350k ?
There are options that spread across multiple banks. I use a non-beginner broker that protest up to 3 million dollars and provide 4.58% returns on cash, it's always a good idea to consider working with an advisor for financial planning
Agreed, financial advisors play a key role in portfolio allocation and i've been using one since late 2019 just before rona outbreak. So far, I'm barely 25% short of $1m ballpark goal after subsequent investments.
@@georgebarret please excuse my curiosily, would you mind sharing more info on your advisor? im in dire need of guidance
My advisor is "Julie Anne Hoover". In terms of portfolio diversity, she's a genius. You can look her name up on the internet and verify her yourself. she has years of financial market experience plus she is also FINRA & SEC verifiable.
@@georgebarret Benevolence, this reference seems valid.. Just inputted her full name on my browser and found her site without sweat, 20 years of experience is certainly striking! very much appreciate it
This is why people should not buy a house that they can not afford. People always get the max mortgage they can.
He could afford it at the time. Just not the £500 increase.
Completely agree (generally speaking). There’s a ‘rush’ to buy a house in the uk without having the necessary financial resources to back you if an event happens, such as the one we are going through now.
I rent a house more than this guy’s mortgage, but I’m able to save the same a mount each month + cover all bills with my partner.
For us, we want to buy our first home once we know we have a healthy deposit and money for repairs etc etc
@@peteg9011 Everyone knew the interest rate would not stay at 1-2% for ever so they should of thought about that before buying what they cant afford.
Every house is expensive nowadays wake up. With your logic everyone would be living on the streets
the problem really there is that social housing is in short supply so what option do they have but to sign their lives away with a mortgage
I really feel for Danny. He’s a really nice lad, got a modest well cared for home, a decent job and drives a sensible Corsa. I’m back at home with my parents as after splitting with my partner 3 years ago and I still cannot afford a home of my own again. I drive a 20yo Volvo V70 and have a good job as an engineer. Yet the house prices where I live (Wirral) are just ludicrous- even trying to rent a place is like a Lottery with people fighting for places. It’s utterly absurd.
Bitcoin is this generations "own their own home" for wealth generation but 99% of people haven't figured it out yet.
How does he not afford 1k a month doing McDonald’s work can afford that
@@lluke18 It will cost near enough to rent.
What are you talking about you get a 2 bed house for 75k by you?
Houses are not selling and people are competing to rent, what the hell is going on?
Unfortunately, this is just the beginning of the crash. The interest rate rises have only started to filter though and there is big property crash on the way!
This is my impression, as waves of people renew, it'll hit them. Especially those that bought during the pandemic madness stimulated by stamp duty holidays... I've read that there will be lower supply which will keep prices from plummeting, but clearly some people wont have a choice to ride it out.
Give it 2-3 years before the true crash happens. I suspect late 2025 to mid 2026
@@eatmycomments We are just at the beginning of it, indeed. More people like him will appear out of the cracks. Wont be long. As we move into a deflationary period, and unemployment will go up (it's impossible for it to not go up as QT will continue), you will see more houses going on the market.
The crash has already happened if you account for property not keeping pace with inflation. Nominal prices will not go down by much but accounting for inflation we have already seen a 10 -15% drop and this is only going to get lower.
@@joemeltingbutter6668 QT ?
I got a mortgage in 2019 with a rate of 1.7% which was phenomenal for the time, but just like this this bloke, was part of the millions or so, who got ridiculously low rates and now will feel the hammer come down on them. We secured a rate for 7.59% which will kick in in November. So from £430 to £744. We actually are going to sell up in April 2025, pay off the mortgage and use the profit of the house to buy our parents council house, which because of right to buy will be £30k.
We're willing to sell up, live with them for two years, ride it out and secure they're future, then get another house, hopefully, when things recover.
I really hope the people of this country start taking politics and the economy seriously - this is all man made, it could have all been avoided if the government brought up interest rates years ago. But people are just not willing to call it out and vote these people out. it doesn't matter what party you vote for, just don't vote for lies. We all know Rishi Sunak is out of his depth, we all know the Tories, the party that's meant to bring down borrowing, make people's lives better. Have absolutely slammed this country to the ground.
30k for a property Gosh lucky you
@@carlagoncalves531 They have lived in there and paid rent for over 30+ years, so the scheme works well in those terms. I won't benefit from it, except for not paying a mortgage for a while. But as long as they have something to fall back on when they're at retirement age, which is not far off.
It’s not the government that controls interest rates, it’s the Bank of England. They have failed us.
I guess you do not understand why rates have increased. The Bank of England had no choice but to raise rates because inflation is out of control in GB. It has come down but is still at 8.5%
you will be living with your parents, do not sell, rent the property and stick to the plan to sell in 2025. you will be better off.
It is unfortunate how mortgage rates work in GB. In the US, you usually get a fixed rate 30-year note. The rate is fixed for the entire 30 years, and it can not increase. However, if rates decrease, you can get a new mortgage at the lower rate, with no penalty.
We call it rip off Britain.
As am American living here in the UK, I have always been dumbfounded on the mortgage market here. After years of research, I have simply come to the conclusion that too much of the UK's wealth is tied up in real estate. "Too big to fail" if you will. In the US, many have a 401k or reasonable pension to rely on for retirement. By contrast, here in the UK it's an insignificant amount comparatively. So, many have been brainwashed into thinking the only way to wealth in the UK is through property. Then, sell up and downsize for your retirement pot. Any sizeable correction in UK housing will basically cripple a generation's retirement and lead to bigger issues. Not to mention the elite class that have no desire to lower their own property portfolio's value.
@@JasRoss touché
We weren’t ‘brainwashed in to thinking that’.
What happens is jews want us all to have hordes of brown and black people (not to mention women) in our work place competing for jobs.
This keeps wages down, so they fiddle with the housing market to give people the perception of wealth as they aren’t well off any other way so stupid people bleibe ‘as long as my house value goes up i’m happy’.
@@JasRoss Excellent points fully agree with your conclusion
This man spends hundreds of thousands of time just to help us. He helps those in need while also helping us. He always puts a smile on our faces and we should appreciate it. Hats off to Him! I love you dude. Crazy I've never payed attention to the MYSTICFLIP on the internet movement when I say ancestral your a gift to our people
So, he sold a house in 2022, and then bought another house!? Extend the term, get a lodger, but selling isn't the answer...
Hope he's reading this.
besides you cannot just sell it so often or you will pay early repayment fee , unless he got a 2y deal
@@flesz_ And the cost of the Stamp Duty. That's a lot of money thrown away.
My heart goes out to you mate. Keep your chin up.
Don't worry a cash rich landlord will buy your home, rent it back to you 50% higher than your previous mortgage repayment. Supply and demand, it's how this countries housing market goes.
Or a landlord has a mortgage on the rental house that needs repaying thus the renter will need to cover rent increases.
0% interest loans weren’t a good idea after all?
They were if your one of the conservative voting cohort!
I worned people about rising rates people with savings would ask me how high would they go i said no more than 5 percent were going in to a deflationary hyperinflationary depression house prices are going to its mean stock markets will falling rapidly amd the gilts yields will spike uncontrollably cash will move from these assets into commodities gold and silver and criptos when the debt market implodes these things will happen people need to have some cash on hand who to blame your lovely representatives and central banks o percent interest and quantitative easing no 1 is held to account whose going to be blamed for persistent inflation we are not the people who caused it
@@jeremiahpoole6526 Yep, I'm sure Labour will solve all our problems, while opening the doors to more "asylum seekers" and "skilled workers".
@@capri2673you mean the millions of fighting age black and brown third World men getting free four star hotels at the expense of guys like this?
Lol
So much sympathy for him, however so many people get the maximum mortgage they can afford so they can get the best house they can afford. They leave not room for a change in circumstances.
You needed to get the best house you could afford as even that was very disappointing.
So what are people supposed to do? Live in cardboard boxes?
He's bought a small 2 bed house and has a vauxhall corsa parked on the drive ?? He's hardly tried to stretch himself ??
@@terryloker2585 I saw the corsa and thought how bad my life would have to be before I had to drive a corsa
@@anthonyfaucy2761 I would suggest they live with parents. People suggest getting on the council waiting list but I would probably be dead before they offered me anything.
At 1% interest rates were only going to go one way - the real issue is that we have added 10m to the Uk population in the past 20 years - basic rules of supply and demand.
Even more interesting the fact that the UK has not had a replacement level birth rate in nearly 50 years. (Quoted directly from the ONS). The explosion in population is purely through migration.
I dont see how a UK population increase is linked to worldwide increase in lending and mortgage rates. Could you please enlighten me?
@@derekcole4949because people living in the UK buy a house in the UK, which increases demand in the UK. Its a bit more convenient having somewhere that doesn't require you to pull out your passport after finishing work for the day.
@sonictelephone1526 Nope. That didn't answer my question😂 a comment about passports made no sense at all.
If anyoncan explain why lending rate increases are linked to population increases then I'm all ears. 🙂
@@derekcole4949 interest rates are going up on every large loans inflicting real pain, the reason the loans are so big is because property is so expensive and the reason property is expensive is because so many people are chasing homes and the reason for that is mass immigration of people that need to be housed.
The fixed rate on my mortgage ended in 2020. I left it on variable rate for a couple of years but last year (2022), I heard and feared that interest rates might go up sharply so I contacted my mortgage provider and remortgaged and got a 10 year fixed rate deal. I'm so glad I done that, sounds like one of the better decisions I've made in my life.
My ARM was going to go adjustable in 2021 I was super tempted to let it, thinking rates would be zero forever, glad I refinanced else I’d be in the same boat as the guy in the video. My payment would have gone up nearly double.
Well done. Great move.
Do you live in the UK?
“I was on a variable” are words you shouldn’t ever hear when it comes to mortgages.
I remember the Bank of England rate reaching 16% during the debt crisis under Thatcher in 90's having my first mortgage in '89. Took 10 years for the value of my home to recover to what I paid. People had to sell up for less than they owed, negative equity, conservative government and it's happening again. Nobody talks of it when remembering Thatcher.
16% rate was only for 2 weeks, they dropped to 10% within months after.
Don't come here with that , better say how much was your mortgage compare to house price
@@Pit5336 i think mine was fixed for 5 yrs at 10% costing £400, that included endowment & insurance if sick paying £100 per month for me & my wife.
Me too I could just afford the mortgage and the bills but had to eat at my parents to still stay in a small 2 bed flat in Leeds with a 42k mortgage and I was on a very good wage as well😢
& your wages were much higher & asset prices much lower. You were the most privileged generation in modern (perhaps all of) history
Funny reading some of the judgemental comments on here - like those people have apparently planned for every eventuality and considered event possible parameter.
Good luck to the fellow. He has a job and appears down to earth and pragmatic about things.
Exactly. His probably earning a good salary based on job title. Karma eventually comes back to the people laughing at others
January 2022, I was screaming from the top of my lungs that we are about to head into a recession - Even had banker friends who believed it'd be a J-shaped event. We should have been in a fullblown recession, but the can keeps getting kicked down the road as BOE and other central banks believe in "soft landings". This is a hard landing that we are getting into and there's no parachute this time.
If he is earning a good salary as a programme manager and can't afford a 1k mortage then I call BS. Either he is ridiculously underpaid and thinks 40k pa is anything more than a starting salary or he is simply complaining about not being able to afford luxuries that he recently could.
This is why I took the hit and absorbed the exit fee on my mortgage and sold my house at full market value end of last year so I wouldn’t face this situation.
The only lesson they should teach at school, but never will is.....'YOU CAN NEVER BORROW YOUR WAY OUT OF DEBT!!!!!'
Literally the economy in a nutshell. Invest in Bitcoin, ETH, Litecoin & XRP. The GBP goes down while Bitcoin only goes up. It’s pretty simple tbh.
@@Karma1st bitcoin only goes up? sarcasm?
government has left the chat
men are not women
@@Karma1stI completely agree. People are gonna scream scam, ponzi but we’ll be the one’s who come out of this financial mess the winners in the long term. If anyone claims bitcoin and crypto has no future are just kidding themselves when you see that the biggest financial institutions and banks getting on board
My advice to him is:
If he can sell now at a price where he doesn't lose money from when he bought, he should SNAP THEIR HAND OFF.
If he can't then he's in trouble with negative equity etc. Whatever he does, he needs to do it fast as the situation is going to explode, especially when the lay-offs from recession start.
couldnt agree more
Really? I think it’s well past that stage now. Keep up, or are you stuck in the Stone Age, Fred?
I feel bad for Danny, he's done exactly what we have all been taught to do, get your foot on the ladder, buy as much house as you possibly can, prices will always go up, you can't lose.
Keeping rates so low after the 2008 crash had been averted was irresponsible, and negligent and like always it's people like Danny who end up paying the price.
I brought below what I could afford.... So myself and my wife could still go on holidays, eat out and enjoy life. We brought it as a home rather than an investment.
If you buy bottom end you win, you buy top end newish stock with top end debt like this guy then you lose. Those new houses are overpriced they are somewhat triple the price of old stock, 2 bed terraced 1920 90k up north, Lichfield same house new build 300k
@undesignated3491 Just bought a house for 130k, people said don't as it not a posh area. But I have a house to live in with a manageable mortgage. I could have bought a £180k house somewhere nicer, did I? No cos that would be stupid on a solo salary.. Always best to buy with the worst case scenario in mind.
I dont think it was ever advised to buy as much as you possibly can. but I agree that keeping interest so low was not great, it enabled people to stretch themselves and borrow too much. if interest was sitting at 3 or 4% rather than 1%, it wouldnt have been as easy for people to borrow so much and leave themselves vulnerable to an interest rise.
I was taught that but refused to play the game like a Muppet. I'm waiting for a collapse when things are more realistic.
Fair play to him for recognising he can’t afford it and downsizing.
Didn’t quite understand why he appeared to make exactly the same mistake again though. Seems to have had a bit optimistic view on interest rates and got caught out on the mortgage second time around.
Yeah I didn't quite get that, they glossed over something major there. Esp as it's only last yr. That's a LOT of money on solicitors and moving expenses and he's no better off.
@@emilyb5557 And stamp duty!
hes a fkwit. Theres many of em.
Yip, better downsize properly and build up slowly.
I'm not sure why people keep referring to some sort of low interest rates or even zero %. I bought my first house in 2021 with 15% deposit and was offered 2.83% as best rate. BOE was at 0.1%.
What you got as 2.83 % is interest swap rate which is always above BOE base rate.
Rents too are crazy. The property we are in is over £1000 a month plus the bills. It's a struggle with 2 incomes and soon we will have a third person helping with rent. This is for a house but I've seen small flats with 1 bedroom now at £800-£900 a month. It is getting to the point for many that it is too expensive to live in this country.
same applies to Toronto and most upscale cities in the US
As others have said rent a room - 400 quid would cover most of the increase.
Needs must, ride it out, think outside the box there is usually a way around things if you aren't too proud to do what needs to be done.
I wish this guy all the best I hope he can figure something out without to sell
People will prefer to moan instead of looking for solutions . Rent a room will be enough to cover the increase . But ohhh the inconvenience………..
@@Jan-iq5smol yeah, no one likes the inconvenience but I, as a female, did it. I had 3 bedrooms and rented 2. I moved into the small back boxroom. Hated it, but least it saved me losing my home. Somethings u do what is needed and just get on with it. Sacrifices are a part of life.
It's not rocket science - unfortunately most people don't like to think or think they know!!
I feel sorry for this lad, he's clearly trying and a productive member of society.
I really feel for the guy. He’s not dripping in jewellery, his house is not decked out with the latest and greatest and he’s got a Vauxhall Corsa on the drive.
Normal, everyday, hardworking people are being fleeced and forced into these situations all over the country, the government needs to intervene.
I’m thanking my lucky stars that my fixed rate ran out in Nov 2020, so I got a fixed 5 year rate then. My only regret is that I didn’t opt for the 10 year agreement.
no one if forced to take on debt, you chose that because you are evil
but mortgages are expensive, you need to be able to potentially be able to afford paying double. if you can't envision this prospect then do not get a mortgage.
@@italianstallion9170 you say that like it’s easy for the average British person to purchase a house who has hundreds of thousands of pounds to spend on a house very low perecentage of people can do this but I do say mortgage is basically a government scam
"the government needs to intervene" it's the government that got us here in the first place sparky. The solution to the problem is more of the problem?
Bitcoin is this generations "own their own home" for wealth generation but 99% of people haven't figured it out yet.
The government has been intervening constantly and keeping the houses overinflated. Stamp duty holidays. Low interest rates. Money printing. Ensuring no new houses are built.
Bloody heartbreaking what's happening to people like this lad
Difficult situation. Hope things improve.
When mine was taken out 5 years ago had to prove I could afford comfortably payments of over 8%.
Exactly. This guy was living in a deluded bubble.
I am pretty certain this will get worse unfortunately
He messed up massively, sounds like he stretched himself to buy the house not factoring in possible interest rises,
He is on a variable rate instead of a long term fix
Rent a room out? 7.5k a year tax free extra income
Saying he messed up massively is a bit harsh, the lenders normally stress test a mortgage at 2% above the current rate, which would have been around 4% not 7%! The BoE were sleeping at the wheel and are actually using the wrong tool to tackle inflation
@@marcsolloway3941 the BOE are still sleeping at the wheel, corporate profits are driving inflation now more so than consumer spending, 1/3rd of UK population doesn't even have a mortgage and are laughing all the way to their banks/investments currently.
i was in the same position as him, i decided against borrowing as much as possible to get the best possible house instead buying something more reasonably priced knowing when something is on near 0% the only way it can go is up
@@ulysees321 It's funny how things come full circle...nobody complained too much for the 12 years or so that savers where getting sweet FA on their hard earned money.
@@kw8757 thats because they all invested in property or AirBNB and now they are fleeing the sinking ship, i use a browser extension called property log and people are dropping 10s thousands on their houses now whilst trying to sell
@@ulysees321 well done, with rates low for the last 15 years or so sounds like you had a crystal ball, when do you think the pivot will be? The government has far too much debt to keep interest rates at 6-7% long term
Lad in my street living with parents just bought a 23 reg Audi while saving for a deposit for a house. Exactly where the youth of today are going wrong as a bigger deposit would mean lower mortgage payments.
it wont make that much of a difference at the moment putting down a bigger deposit, as mortgage rates are currently so high and changing monthly. He probably leased the Audi like many young people do now.
The youth have had no concept of budgeting with cash so have no financial awareness. They think all the materialistic stuff on instascam is normal
I love the way people talk, the average property price where I live is £470,000. Saving enough for a deposit and getting an affordable mortgage is a pipe dream
@@fuzzy5987 Avocados bro.
@@erdevon3257Broad sweeping statements there. Where’s your evidence supporting these claims about young people? Or are you ageist?
Always take out fixed rate mortgages.
“I bought a house at a low interest rate knowing that I couldn’t afford the house at higher rates…but I bought anyway. Now I’m shocked that rates changed and I can’t afford it”
When people like yourself sign up for mortgages you must remember that interest rates can go up as well as down and you should have calculated that if interest rates went up to say 5% could you then manage the mortgage it clearly seems that you cannot so maybe you shouldn't have taken the mortgage out in the first place it was a gamble on your side that doesn't seem to have paid off for you
Imagine thinking interest rates were going to stay at an anomolously low level indefinitely.
don't worry the idiots now are taking 40year+ mortgage and will indefinitely keep house prices up.
Yup, there's going to be a lot of sore moaners.
Yes, I have had hundreds of conversations over the past years, and everyone thought that interest would stay low forever.. Haha, who's laughing now!!!
Pls understand! He is a young lad and that is ALL he has known!
Well the BofE seemed to think they would. When inflation was 6% they were still sitting on their hands with the base rate at 0.5%. That was BEFORE the war in Ukraine.
I hope he reads this;
Rent out the rooms. Your room is now the living room, as and when you want it. You are the live-in landlord.
But... Get a van or camper. That is your new home until the market improves.
I dont want to judge his situation, as he may have a partner or child and he did not mention them.
get a lodger and keep the larger house?
So, in America, variable rates are predatory. We have 30 year fixed rates. Why on earth are these British people signing to a variable rate?
Variable rates historically have always been below Fixed rates. Only people that prefer to pay a premium for the peace of mind choose fixed rates.
If that is the case then how does the FED increasing interest rates reduce inflation?
Two different systems, which you do not get at all. Not surprising as you are an American and you do not look beyond your own shores.
The US Property market will be in freefall in 6 months time. It jumped 45% between 2020 - 2022...it is a bubble that is bursting as we speak.
Those low interest 30 year Govt fixed mortgages are useless when you lose your jobs and forced to sell.
In the UK, there are no fixed term 30 year mortgages, and like the US, there is a property crash as well.
Western developed countries rely on property assets increasing. There was always a reset every 12 years, and it worked fine.
There hasn't been a reset since 1991....and the bubble is huge.
The Govt's need the bubble to burst and get back on track with 12 year resets.
Short term pain....long term gain.
@bricktop7803 Looking past my shore, I see your Country drowning in inflation and a downward spiral of economic doom. "Cheers"
Well you sound like a cocky person. How about this im am American that has lived in the UK for 3 years. I got a solid grasp on your ignorent financial system here.
Why on earth are you forced to remortgage every 2-5 years. The bank makes a killing resetting your interest rate. You will literally pay double for the price of a house because interest rates are always front loaded on debt to insure the lender gets there money first.
The housing problem nis completely different than the UK. Because 2/3 of all the home owners have locked in super low rates on there mortgages. Nobody is willing to move and from a 2% to a 6-7% rate. That means fewer houses are being put on the market.
Get it?
Feel very sorry for this young man and thousands of individuals and families that will be in the same boat. I hope he works it out even if he has to work 7 days a week to pay for it, he's got youth on his side.
The youth is the only thing he has left. We really need to play Robin Hood and take from rich
Why work 7 days a week to pay interest?
@@nickjames2594 Slavery was never abolished. They just renamed it as 'employment'.
Youth will never come back and you waste the prime of your health just trying to get a roof over your head than enjoying life and settling down.
It's all by design.
if you cant soak up 500 quid a month your over leveraged, properties defo gonna reduce
You're
Selling your house and downsizing will incur many costs: solicitors, surveyors, estate agents, removals, maybe stamp duty etc.
Far better to speak to your lender now (before you get into arrears) and investigate the possibilities of future mortgage holidays, interest only mortgage, or extending the mortgage term.
Meanwhile try renting out a couple of rooms. As long as you price reasonable you should have no shortage of potential renters as many buy to let landlords will be drastically increasing their rent.
Also consider getting a job overseas with a package that includes (free) accommodation etc. If you are lucky this may also be income tax free I did this a couple of times in the 80s and 90s).
Long term (ie in 5 years time or so) consider building up a reserve fund of at least 3 months living expenses AND overpay your mortgage - even slightly - each month.
Good luck!
Selling up should really be the last option, as you lose all your equity. Especially if you still have regular income coming in. Really need to consider either (or both) discuss extending the mortgage term, and/or renting out a room (there is a massive renter demand) .
true but his family have advised him its safer to sell. Cant think outside the box, you see. Money is to be saved or spent. Not invested. Thats what this guy has been taught.
Exactly; its not a loss until you realise it. Rent the rooms as you say.
are there condos in the uk?
He could rent out the whole house if need be to give him some breathing space. Many rich people advise to "rent what you own" so your property pays for itself + the benefit of capital appreciation! Unfortunately the government and school tell you otherwise - look at the result!
Lucky guy! I can only dream of being in this position, my mortgage went from £273, to about to tip over £1,000. But I can;t sell…my flat has cladding issues, meaning it has a technical valuation of £0, meaning no lender will provide a mortgage, meaning impossible to sell. Can’t even go out to the mortgage market for the same reason….
Omg
You should stop paying every bill you receive. Council Tax should be stopped because they obviously are partly responsible for your plight because of the gross negligence in ensuring building regulations were adhered to. I'd have stopped paying the mortgage a long time ago.
I remember being in the last interest hike in the 90s,15%. I ended up renting out a room just to help keep the roof over me and my family's head. This maybe some people could think about doing if they have the spare room to do it.
People expect others to fix their issues and/or refuse to accept responsibility for their own actions. "Not my fault I made stupid financial decisions, rates are going up and other bills cuz of the Tories innit" is most people's thinking, because they're idiots.
He's spending more on moving costs and fees than anything else.
I feel bad for this guy and all the folks in the same boat.
If inflation is stripped out of house prices they have been falling in price for a while, currency is really losing a lot a of value with inflation. So house prices are dropping even more.
My wife and I have been preparing for this happening for years. We had a feeling economic uncertainty was coming. We are good with money, so had put money away into an account which we used for mortgage overpayments. Our aggressive overpayments managed to get us a 3.94% interest rate coming off of a 1.94% rate, and as a result, our new payments are £70 less per month. People have sleepwalked into this crisis and are totally unprepared. Resources are out there, like Martin Lewis, but people can’t be bothered to listen, until it’s crunch time.
No. Not everyone can afford to overpay. Not everyone has a crystal ball. Advice has been unclear for long time now. Still is. Don't blame mortgage payers for this mess.
Saving only gets people so far (especially with only one income)! Generating positive cash flow fixes the problem without income being an issue.
Your out-of-the-box thinking and unique perspective turned an otherwise mediocre presentation into a fantastic one MYSTICFLIP . You did a good job of catching the mistakes and keeping us from wasting time and by taking the wrong path. Your attention to detail really sets you apart from the crowd. Great work! Brandon, Your great work has resulted in tangible, beneficial results to me. You’re a force to be reckoned for doing all these beautiful things to my grant MYSTICFLIP
How can people not see what is happening is intentional, it blows my mind … people will be pushed to the edge, this is just the beginning unfortunately
Because so many people overpaid for homes even while loan rates were low, I believe there will be a housing catastrophe because these people are in debt. If housing costs continue to drop and, for whatever reason, they can no longer afford the property and it goes into foreclosure, they have no equity since, even if they try to sell, they will not make any money. I believe that many individuals will experience this, especially given the impending mass layoffs and rapidly rising living expenses.
I advise you to invest in stocks to balance out your real estate, Even the worst recessions offer wonderful buying opportunities in the markets if you're cautious. Volatility can also result in excellent short-term buy and sell opportunities. This is not financial advice, but buy now because cash is definitely not king right now!
You're correct! With the help of an investment coach, I was able to diversify my 450K portfolio across markets and produce slightly more than $830K in net profit from high dividend yield equities, ETFs, and bonds.
@@ThomasChai05 Would you mind providing details on the advisor who helped you? saving for a pension through a corporate program since the age of 18. I hit greater tax along the road, so I increased my company pension with a SIPP (tax benefits). I'm now 50 and would love to expand my finances more aggressively; there are a few automobiles I still want to drive and a few mega-vacations that I still want to take.
You can employ another adviser, but *Camille Alicia Garcia* is my one who provides guidance. She has years of knowledge in the financial markets, and her approach has worked for me in the past, leading to my success. She offers points of entrance and exit for the securities I prioritize.
I located her, sent her an email, and scheduled a call; hopefully, she will reply because I want to start the new year off financially strong.
Imagine being able to ever afford a home lmao. I'm 29 and it ain't happening
This is what renters have had to face for 15 years. I don't remember videos like this back then.
This should be top comment.
Do you want a medal?
@@HumansAreShitFactories Can I have yours?
You don’t have to sell, swap your mortgage to interest only temporarily until mortgages rates fall again
Australia is just about to cop this. The house prices there absolutely dwarf the UK. And yet the property spruikers say prices only ever go up....
Rent it out, take a lodger and get an additional job are the top three bits of advice found below. Having 3 options is pretty good considering buying a new house on a new estate on a short mortgage fix were ill advised.
Why doesn't the UK introduce 30 year fixed mortgages?
You aren't allowed to rent out a mortgaged house without permission from the lender. They can foreclose on the house straight away if they find out and you'll lose the home
@@zuzanazuscinova5209 Why do you think. Greed. No reason why there aren't 30 year fixed mortgages. Its like they were planning this in the UK for decades
Anthony Faucy. Yes you do have to ask permission but this is usually granted. This is a capable young man who should be able to ride out a couple of difficult years.
@@anthonyfaucy2761 UK is greedier than the US?
How can he not afford that if he's a manager though? Rent for a one bed alone in a flatshare in London is at least £800pcm.
You can be a manager of anything nowadays. A title doesn’t mean high pay
@philiphorner most managers are on around a pound an hour more than the staff.
@@chrishart8548he has about a 150k mortgage as you can work it out based on 30/35/40 year terms and 7.9%. That means he is on a salary of 33k. He needs to look at his spending. Like the dog!
@@robertjones2053 but god forbid his dog doesn't have enough room to roam around! that's all he cares about.
@@davidthomas-ot4clI'd think of my dogs happiness too, tbf. Going from a house with a garden, to a flat with nowhere to roam. They're in it together. I'm sure you would say the same about a child
We through everything we could at paying off our mortgage 17 years early, and last year we did that. I'm so glad we did, we're now benefiting from the Rate rises not suffering. I'm not saying this to gloat, but rather to share a good lesson learnt. Keep debt to sensible levels, and pay it off whilst you can and as soon as you can.
New builds near me went for £370,000 3 bed surrounded by 8 other copies of the house in a close. 1 year later? £530,000. And no newbuild since 2000 could merit that price for the materials and lack of build quality.
There are so many more things that people have these days such as mobile phones, computers, internet, sky/cable, cars on PCP or HP, Loans and Credit cards, Store cards etc. an most of these didn’t exist or were certainly not as common in the 70’s, 80’s and 90’s.
For that reason I believe this crash will be the worst in history.
And it’s still early days.
I'm very sorry for this fella, but unfortunately people aren't educated enough to see what mortgage rates used to be, my first mortgage was 7 % my parents was even more than that in the 80,s, buyers beware always factor in increases, buyers have had it good for too long, that's my take on it, all the best
the moment Boris locked us down everyone shouldve known the economy goes belly up, and that means high high inflation , and guess what, the only way to deal w inflation is sky high int rates. But these young tik tokers are way way out of their depth on real economics.
Did you mention uneducated people? Indeed.
A pay £1150 rent for a flat+ bills plus everything else I have to pay for, , still lucky, as I could have ended up paying more.
But I don’t complain, get a second job, part-time, night shift, don’t cry mate!!
First: Stop watching TV (cancel your tv license).
Second: You got a dog, this is taking your money away as well!
Third: Cancel your Netflix and any other unnecessary direct debit!
An the last one: Buy food at discount, or calculate always what is cheaper, and buy only what you need.
We went through exactly the same thing back in the early 90’s, we went from 6% to about 15% in less than 12 months, we had to sell & downsize too. The interests rates have always gone up & down, & in truth they have been unnaturally low since the banking crisis. The lesson I learned was never borrow to your max & don’t keep remortgaging to borrow a bit more as your house goes up in value.
What’s frustrating is that as a Gen X I have seen this multiple times just like the banking industry has but they continue to lend to people like this chap who are borrowing right up to the line of their capacity.
There is no give, no flex so any increase in the interest rate would make that monthly payment difficult - banks know this but continue to get away with lending to those clearly taking on too much.
You are right, it's a cycle and not the first time this happens but back in the 90s the property costs were a fraction of what they cost now. People made less money but the property costs went up disproportionately to the wages since then. In Canada my friend told me about their 1980s recession when the interest rate went up to 25% and how hard that was. I asked her how much she paid for the house - it was 1/12 (yes, twelfth) of the current price. How much were they making? Half of what they make now. My point is, nowadays it's harder to afford a home for a young generation even with low interest rates vs what people call recession and interest hikes in 30 and 40 years ago.
Housing costed 1/5th of what it does now back then. 10% on 100k compared to 7 % on 500k...
@@MrDomestosWC I have to beg to differ, I bought my house at the turn of the millennium & yes there was a massive rise for a very short while, my house went down in value & then stagnated for years. I recently had it valued & it’s gone up by about a quarter. So it certainly wasn’t worth only a fraction of what it is now & I can clearly say my wage before I recently retired had doubled in the last few decades. It’s the banks that cause these problems by lending people too much knowing that interest rates often rise & obviously we’re going to rise in recent times.
I can assure you back in the 70’s when I first got married most working class people I knew never aspired to buy a house because no matter the price they couldn’t afford to save the deposit unless they had above average jobs, or it took them many years to save it.
Just dreadful and its getting worse month by month, the whole situation. If it's not mortgages and rent it's food prices, it's fuel and heating your home (if you can afford one that is). If you do have a job it's the high taxes. I do a few overtime shifts and i'm losing half the money and then pay another 20% when I spend it. How did we allow this to happen? and the rich have never been richer... how did everything trickle up like this and now bang, here we are.
Couldn't have said it better myself, no one seems to care....
Yep .thats the crux of it .Problem is we Brits stuck it up.
Feel sorry for this gentleman. But let's be clear - people are over-leveraged. This is what stress-testing is meant to cover and obviously isn't.
Low interest rates were never ever going to be the 'new norm'.
when i had interest rates at 18% i sold up and bought a bigger home in the country... here in Australia they were way cheaper back then, and even though interest rates dropped down to 5% i always allowed for a 10% rate... and any spare cash went onto the mortgage... so by 38yr old i was debt free and used the freed up income to buy a renovater... never looked back... the problem here is people are having "i want it now" and i need it big and shiny with the latest phone fashion and car...you need to prioritize the mortgage over every thing else.. and be financially responsible.
Moving house costs an absolute fortune with estate agents fees, solicitors fees, stamp duty etc, for most, that additional cost would be better put towards the mortgage until times improve.
I feel for this young man. As far as buying a flat, all I will say is, watch out for the management fees dealing with the property management companies is a potential nightmare.
Emergency interest rates at the lowest level in 300 years, and people assumed they would stay that way and so took out 2 year fixes. Cry me a river!
Also, for the past decade or more, interest rates have been unusually low. They've just returned to a more normal (historically) level. So many complaining people.
I have worked in the mortgage business for the last 30 years and I can honestly say most people are in this situation because they will have used a broker who recommended a 2 year deal. The reason that they do this is so they get repeat commission every 24 months and hate customers who opt for 5 years. They say they get you the best deal but it’s just about which mortgage gets them the best kick back. Ask yourself why didn’t your advisor offer your either a 1.5% 5 year deal or 3% 10 year deal 18 months ago ? Just think how many people would now be sat at home reassured that there payment was secured at a great rate during a period of every increasing rates.
What does not make sense to me is that he says identified that there was a lot of uncertainty over mortgages, so sold his previous house because as he didn't know if he would be able to afford it long term if rates rose. So he identified that rates could rise, yet still chose to not fix his rate on the new house.
He moved into this house in December 2022. Bank rate was 3% at that time.
I suspect he saw a Discount mortgage at 1.9% at a time when fixes were higher and thought 'can't go that much higher, can it?' and opted for that instead of fixing. He is now paying the price for that.
do they even offer 30 year fixed? like for real? It seems insane that so many people would go with short term loans when rates are so low. I'd go 50 years fixed when it was 1.5% if possible! Even if it was 5% fixed 30 years when the rate was 1.5 it'd have been the way to go. Do people here like not understand compound interest?!
The guy is trying to do all the right things, he also thinks about his dog, very commendable, yet gets screwed because of political ineptness.
As a Muslim my parents advised against getting a long term mortgage, as usury (interest) isn’t allowed in Islam, but then also it was near impossible to get a house without borrowing, i was told to get a 15 year mortgage and make any additional repayments when i can afford to. Thankfully i cleared my mortgage in 9 years and now before i reach my 40th birthday i am mortgage free, and live in a decent house worth around £350k.
My advice to anyone with a mortgage is to try and make additional repayments if you can afford to, even if it’s an extra £100, and clear this burden off from your lives.
the issue is that most people who once get on a property ladder only make the bare minimum and spend most of their working lives over leveraged and don't realise that making those same payment over a 30 years period costs more in interest as they are too entitled that a holiday and cars are a necessity of life which they aren't.
yeah, non muslims drink alcohol. they cant afford additional repayments. Its the sacrifice we make.
So you betrayed your faith for material gain?
@@HumansAreShitFactories Like I said it’s near impossible to buy without a mortgage, so you either rent and pay someone else’s mortgage or get your own and hope to clear the balance asap. Having said that the Quran only prohibits usury, which is an extortionate amounts of interest, i was on a 3.5% coming down to 1.57% only. Got lucky.
@@LogicPak You’ve just changed your definition of usury.
It's crazy that the UK market isn't mostly fixed rate. How can you plan your life like this?
You bought a massively overpriced and undersized new build house - already well into the top end of your earnings. You failed to plan ahead - that's not a housing crisis, that's a dumb move.
I don't think previous generations had it easier, I think life in general was harder as we certainly live longer, healthier more entertained lifestyles in many respects today.
But there was a real drive to support home ownership. Lots of construction so homes were cheaper due to volume, lower immigration which helped and although rates were higher, loans were much lower and they had MIRAS so you could offset your mortgage interest against your taxes.
They should bring that back, it would really help.
You hit the nail on the head with immigration , which has increase the population by 9 million in 20 years , in a very small country with limited land of quality or closeness to industry . The young though seem fine with mass immigration so I suppose they are fine with it’s consequences and will continue to vote LibLabCon.
@@pincermovement72 Exactly. Then we also have the low marriage rates, high divorce and increase in one person households = one income, reduced affordability and demand for more housing which in turn pushes property values up.
I can not but help thinking of the 10x of 1000s of young people unable to afford even a basic home. It's almost like we are living in 2 parallel worlds at the same time.
One where all this brutal economic suffering is a reality.... And then another reality where we watch it on CZcams and make sense of it.
Absolutely...Massive wealth grab.
All the smug older subscribers of this newspaper better hope they won't require care in their elderly age, because at this rate there won't be anyone left to care for them. Young people will emigrate or check out of society altogether, if all the incentives of the social contract evaporate.
@@shrunkensimon bro tbh with you... I don't think there has ever been a "social contract"... Despite what they say.
It's world politics coming full circle... And its effects that are being felt.
The tectonic geo strategic changes from.. . The middle east to Eastern Europe are screaming... A new world order.
Britain faces uncertainty because she is no longer a world power and is struggling to carve a new role for herself on the world stage.
This kind of short sightedness will result in another life-long renter. Landlords like Lloyds will be very happy.
Surly when he got the mortgage. He must thought at some point these really low rates
were never going to last....just look at the rates in the past years .