Remortgage woes

[Beebo]

A thread to help me and others navigate the current choppy waters in the mortgage market.

So let’s hear tales of any renewal quotes, and how you will cope. I could afford a few hundred pounds increase but anything more would be a real struggle.

My mortgage renews in November 2024. I was hoping rates would fall by then, but it looks like they will remain high until at least 2025.

I know “high” is a relative term.

I have lived here for 18 years but I couldn’t currently afford to buy the house I live in if I was 20 years younger and had to buy it for current prices. Which is a major issue with the current housing market.

 

[Bonefish Blues]

This is the true economic timebomb of the moment. I'm lucky - still have one, but balance is small and it's fixed low until almost its end, but this will affect hundreds of thousands.
USA largely fixed this issue way back in history. We didn't

 

[T4tomo]

My renewed in May this a year, I thought I'd renewed at the peak and was unlucky, but they have gone up since.

continually thumping up interest rates when most mortages are 2 to 5 year duration fixed rates is a very blunt economic tool.....

 

[Alex321]

I'm lucky enough to have paid off my mortgage several years ago, but you are right about "high" being relative. I remember living through the 1980's with a mortgage, and rates being around 13-15%.

And yes @T4tomo is also right that raising interest rates will not have nearly as much effect nowadays with so many on fixed term mortgages (apparently it is something in the region of 85% of UK mortgages are currently on fixed rates - those weren't an option for most of the time we had a mortgage).

 

[rockyroller]

we refinanced about 8? years ago & it was a giant pain in the butt compared to when we had done it 10? years previous

one foot in front of the other. stay on top of your tasks. stay on top of the ppl who are working at your financial institution(s). everybody needs to be supervised. you'll get thru it

 

[Sterlo]

I'm lucky enough to have paid off my mortgage several years ago, but you are right about "high" being relative. I remember living through the 1980's with a mortgage, and rates being around 13-15%.

And yes @T4tomo is also right that raising interest rates will not have nearly as much effect nowadays with so many on fixed term mortgages (apparently it is something in the region of 85% of UK mortgages are currently on fixed rates - those weren't an option for most of the time we had a mortgage).

Indeed, we had the famous "get an endowment and have a bucket load of money left over at the end" mortgage. Then about 5 years before maturity, having to take out an extra loan to pay the shortfall. I remember 15% rates in the late 80's.

 

[Slick]

Indeed, we had the famous "get an endowment and have a bucket load of money left over at the end" mortgage. Then about 5 years before maturity, having to take out an extra loan to pay the shortfall. I remember 15% rates in the late 80's.

I had 2 endowments.

 

[fossyant]

We're OK, no mortgage - paid it off before I was 50, and no intention of getting another. Been in our house since we got married and it's a modest 3 bed semi. Two of my siblings have massive mortgages - £400k plus, not going to be fun when their fixed terms end, both secured at low rates.

 

[Gunk]

Wrong forum, they’ve all paid their mortgage off and got thousands in the bank!

 

[Sterlo]

I had 2 endowments.

So you were well endowed?

 

[Peter Salt]

Wrong forum, they’ve all paid their mortgage off and got thousands in the bank!

Don't want to come across as a snob, but deciding to never get in debt, and own outright all I got was definitely a right one. Thought that in 2009 and once again now.

 

[Alex321]

Don't want to come across as a snob, but deciding to never get in debt, and own outright all I got was definitely a right one. Thought that in 2009 and once again now.

That was only ever an option for those who either were happy to rent housing for life, or had a sizeable chunk of money as inheritance.

The rest of us had to have a mortgage at some point, as nobody with only the money they earned could generally afford to buy a house outright. Saving enough to buy a house was never really an option, as house price growth has generally outstripped inflation.

 

[Beebo]

Don't want to come across as a snob, but deciding to never get in debt, and own outright all I got was definitely a right one. Thought that in 2009 and once again now.

That’s fair enough, I dont have a credit card and never buy anything on credit

But buying a house for cash is simply impossible for all but very few people.

 

[fossyant]

That’s fair enough, I dont have a credit card and never buy anything on credit

But buying a house for cash is simply impossible for all but very few people.

One of my bosses admitted he has a mortgage he'll never pay off ! Now that is bonkers !

 

[Sterlo]

That’s fair enough, I dont have a credit card and never buy anything on credit

But buying a house for cash is simply impossible for all but very few people.

I would agree on a first purchase, we were mortgaged initially and stayed in it until it was paid off but we saved everything we could and bought our current property mortgage free and will be doing so again when we move in a couple of years. One of the main issues is people wanting the best from the start and over stretching their budgets instead of starting with something a bit more basic and building up.