£618 to £966

[Returnofrros]

Cost of £150k repayment mortgage from start of lockdown to now.

[islaydarkblue]

Cost of £150k repayment mortgage from start of lockdown to now.

The interest rates at the beginning of the lockdown were ridiculously low and now they are returning to a more realistic level.
When the base rate was reduced from 6% to 0.5% in March 2009 it was stated at the time that it was a drastic short term measure and there was no mention of it remaining in place until December 2021.
Thanks to these ridiculously low mortgage rates and property prices rising quite a few home owners have borrowed against the value of their home and taken out a second mortgage to purchase a rental property (s).
Now the ‘chickens have come home to roost’ and thanks to the rapidly increasing interest rates these people have overstretched themselves and they are looking for a government handout because they cannot afford to pay their new mortgage rates.
I have also read young people who have a mortgage stating that they have never known ‘high’ interest rates.
If they had done their homework they would have discovered that mortgage interest rates of under 6% is low compared to the mortgage rates around 1990 when it was 15%.

[BCram]

Wonder what happened to mortgage business during WW1 and WW2. The property market probably had to mothball itself. Think Ukraine is much more of a problem than MSM are thinking.

[The AuldYin]

When folk were getting PPI payments did they use the money to overpay their mortgages or insure against rising interest rates? Did they f*ck they treated it as a lottery win and spunked it on holidays to Benidorm and tattoos thinking they were sticking 2 fingers up at the financial industry well f*ck them all.

[Returnofrros]

When folk were getting PPI payments did they use the money to overpay their mortgages or insure against rising interest rates? Did they f*ck they treated it as a lottery win and spunked it on holidays to Benidorm and tattoos thinking they were sticking 2 fingers up at the financial industry well f*ck them all.

I remember a stat from my working days that less than 0.2% of mortgages are ever overpaid.

The terminology is wrong, it should be called reducing the interest and more people might (not many) do it......but you can seriously save yourself thousands by overpaying.

Aulder folk used to call whole of life policies death policies, insurance industry changed the terminology to life policies and sales shot up in the 60s and 70s........words.

But I kinda agree with yet sentiment, dosent help though.

[BCram]

When folk were getting PPI payments did they use the money to overpay their mortgages or insure against rising interest rates? Did they f*ck they treated it as a lottery win and spunked it on holidays to Benidorm and tattoos thinking they were sticking 2 fingers up at the financial industry well f*ck them all.

Unfortunately I fear it will be the financially prudent who will suffer and the financially feckless will be given support to ameliorate the difficulties they face at the hands of the awful capitalist system.

[The AuldYin]

I remember a stat from my working days that less than 0.2% of mortgages are ever overpaid.

The terminology is wrong, it should be called reducing the interest and more people might (not many) do it......but you can seriously save yourself thousands by overpaying.

Aulder folk used to call whole of life policies death policies, insurance industry changed the terminology to life policies and sales shot up in the 60s and 70s........words.

But I kinda agree with yet sentiment, dosent help though.

I had a clause written in to my mortgage that I could pay up to 5% of the original mortgage yearly with no penalty and managed it most years. People seemed determined to borrow as much as possible over as long a period as possible for the smallest possible payments. I thought awe that carry on stopped when the industry had it's collar felt after the financial crash in 2007 but has it f*ck, have you seen some of these PCP car things? Eye opening stuff.

[Returnofrros]

I had a clause written in to my mortgage that I could pay up to 5% of the original mortgage yearly with no penalty and managed it most years. People seemed determined to borrow as much as possible over as long a period as possible for the smallest possible payments. I thought awe that carry on stopped when the industry had it's collar felt after the financial crash in 2007 but has it f*ck, have you seen some of these PCP car things? Eye opening stuff.

Yeah I have.

Own my car, an auld ane, would never entertain PCP.

Mortgage advisers, so called independent mortgage advisers always seem to "recommend" 2 year deals.....then get more commission and fee in 2 years time.

10 year deals shuda been flying off the shelves the last few years but they haven't been as banks and so called independent advisers rarely recommend them.....self interest unfortunately and lure of repeat business.

[Returnofrros]

Unfortunately I fear it will be the financially prudent who will suffer and the financially feckless will be given support to ameliorate the difficulties they face at the hands of the awful capitalist system.

Financially prudent .....never catch on.🙄

People seem desperate for stuff nowadays.

And I've said on here before basic finance should be taught at school.....which I believe would lead to a lot more financially prudent people.

Dealt with folk who have literally earned millions over the course of their career and still have debt, loans and cc everywhere.

I've dealt with folk in very menial low paid jobs who have squirreled away large sums of money.

[islaydarkblue]

Financially prudent .....never catch on.��

People seem desperate for stuff nowadays.

And I've said on here before basic finance should be taught at school.....which I believe would lead to a lot more financially prudent people.

Dealt with folk who have literally earned millions over the course of their career and still have debt, loans and cc everywhere.

I've dealt with folk in very menial low paid jobs who have squirreled away large sums of money.

When I was at primary school we were taught to save for a ‘rainy day’.