- Reaction score
- 5,173
Think of it on these terms inflation is going up and by next spring could be anything around 6 or 7 % upwards.
The bank of england have to counter this by raising interest rates. It wont jump from current levels to say 5% overnight but within 2 years it will go up a few percent.
The effect will be tracker mortgages will go upwards.
New mortgages will have this factored in by the lenders.
All those who have stretched themselves to the limit on mortgages, especially help to buy are in for a rude awakening. Reposessions will go up. Property will correct itself on prices as at present levels they are not sustainable.
I personally look forward to it as i have a nice tidy deposit sitting there for the right.property.
I do believe mortgage lenders are meant to stress test you for rates at 5% when deciding affordability... Not sure if this is still done?
The bank of england have to counter this by raising interest rates. It wont jump from current levels to say 5% overnight but within 2 years it will go up a few percent.
The effect will be tracker mortgages will go upwards.
New mortgages will have this factored in by the lenders.
All those who have stretched themselves to the limit on mortgages, especially help to buy are in for a rude awakening. Reposessions will go up. Property will correct itself on prices as at present levels they are not sustainable.
I personally look forward to it as i have a nice tidy deposit sitting there for the right.property.
I do believe mortgage lenders are meant to stress test you for rates at 5% when deciding affordability... Not sure if this is still done?