Anyone care to speculate on the mortgage situation next summer? I'm losing my mind with worry

[bellamas]

@anotherklutz Lender have been extending their remortgage times the last week or so. Might want to check on MSE. They have a list

 

[anotherklutz]

@bellamas Don't think mine was one unfortunately but I'll look it up. I logged into my online account the other day and it said 3 months still (I'm sure it was 6 months before mind so I'm lost of how its shorter)

 

[bellamas]

@anotherklutz Who are you with?

 

[anotherklutz]

@bellamas Principality

 

[hebraic]

@anotherklutz Nobody is saying rates of 15-16%

People speculate 6-7% mortgage rates in the next 2 years before dropping back down to 4s-5s

Banks are offering 5 year fixes from 4.5%. Banks know more than the Reddit users. If they felt rates would be 16% soon there’s no chance they’d offer 4.5% for 5 years.

 

[cmarie212]

@anotherklutz Rates of 16% are impossible without taking the economy down with it.

 

[outofthedarkness]

@cmarie212 What everyone who likes to fear monger forgets to say is that when interest rates were this high, interest could be offset against tax.

It's not exactly a like-for-like comparison!

 

[nmuhammad]

@cmarie212 Nothing is impossible mate. Many things that have happened over the last few years would be considered impossible prior to them happening. But look where we are!

 

[cmarie212]

@nmuhammad What has happened that would be considered impossible?

 

[nmuhammad]

@cmarie212 Having our movement restricted for the best part of a year due to covid 19.

 

[luciddreamer]

@nmuhammad Apples and oranges.

 

[racetech]

@luciddreamer In this case the apples partly caused the oranges, so not that different.

 

[faller]

@cmarie212 please don't tempt the gods of fate

 

[anotherklutz]

@cmarie212 I'm hoping the government won't allow it to get that bad but I genuinely don't understand enough about how all this works. All I know is that people seem to think that the government won't do anything to help this situation and will just let it free fall. Honestly though, I don't know much about it.

 

[latyneyez]

@anotherklutz

people seem to think that the government won't do anything to help this situation and will just let it free fall

Which people?

 

[anotherklutz]

@latyneyez Most people you speak to in my area, it's a fairly deprived place for context.

 

[julia736]

@anotherklutz I.e. they're not politically informed and they don't understand how the financial system works.

 

[latyneyez]

@anotherklutz Doesn't mean they're right. Do they understand it better than you, or do they just sound like they do, or think they do? None of us has a crystal ball, but the commenter above is right - interest rates spiking to that degree would have massive ramifications which would help nobody. Yes they've been that high in the past, but the financial backdrop was incredibly different, both nationally and internationally.

 

[cmarie212]

@anotherklutz It's pretty simple - interest rates of 16% would sink most current mortgage payers. People talk about rates being 15% in the past but that at that time the amounts borrowed compared to wages were much smaller.

Also no serious player in the markets or banks is predicting 16% or anywhere near that.

 

[cierrahopes]

@anotherklutz Has your house not gone up in value? If your house has gone up to 200k (not unrealistic over the past 4 years), you could be looking at 65% LTV and better rates