Mortgage Rates Soar - WHAT NOW?

Mortgage Rates have soared this week, so what now for first time buyers and those with mortgages ending in the next 12 months.

Podcast:

Support the channel:

My website:

Collaborations & Business Enquiries:

*None of this is meant to be construed as investment advice, it's for entertainment purposes only. The video is accurate as of the posting date but may not be accurate in the future.

This description contains affiliate links that allow you to find items mentioned on this video and support the channel at no cost to you. The affiliate links allow me to earn a small commission without any extra effort.

[simonwl]

The real issue is property prices being so high. We have been lucky that interest rates have been so low for so long. They were 10-15% in the 70s-90s. However house prices were relatively cheaper in real terms than they are now. If rates remain higher, then this will stimulate sale price drops which is maybe what is needed more than (or as much as) interest rate drops.

[tychan]

Dude, the boring stuff is the bee's knees and on point. I'm currently living in Edinburgh and if the silver lining of cheaper happens...that'll be a God send

[dabe]

Where is the “Don’t Pay” equivalent for food ? They were quick enough to target loss making energy companies but seem awfully silent on the supermarkets making 7/8%

[alexwhitbourne]

Lenders across the board pricing resi 2 year fixed products higher than 5 year fixed over the past few weeks. Seeing mid 5% rates on deals sub 70% LTV already. It's a jungle out there at the moment

[nls]

Thanks for the info, Pete.

Keep up the good work.

[simonwl]

Nice shirt Pete! Don't suppose I can ask where you got it?

This rate hike is going to impact first time buyers the most. The key is to save/invest(?) more for a larger deposit. More folk will need to rent longer now. However, once inflation gets under control, rates will drop again. Fingers crossed that's not going to take too long.

Good point you make about getting rid of debt. Also it's becoming more important to overpay mortgage repayments if able to do so. This will reduce future repayments and facilitate an early redemption.

[jacek_dzieciolowski]

Really nice analysis. Thank you for sharing this content!

[Frankenstein]

I need to buy two properties. Do I secure for 5 years or 2? Interest only or repayment?

[deede]

Could you pls advise on an interest only mortgage that would expire in 8 years time

[nsoul]

Get a lodger, I nearly did that when I got my house.

[BoardsportsGroup]

If morgage rates DON'T increase to 14% aka the Winter of discontent THEN I'd be surprised.

[satoshiblack]

This was on the cards since the lock down, the second the federal reserve printed all that extra money out of thin air how could we not have a global recession, it was just a matter of time and once Russia and Ukraine popped of that was the nail in the coffin, I already new many of the financial institutions and the derivative market were insanely over leveraged so what did they expect to happen. When you see people in the uk with "don't pay uk" campaigns, Chinese people refusing to pay their mortgages, people in Lebanon breaking into banks in broad daylight just to get their own money out yeah some serious times are upon us and we haven't even faced a winter yet, sadly I do t think people really understand the gravity of what's coming, you squeeze the middle classes at your own peril because they are the financial grease that keep your economy turning, they're equivalent to engine oil. I hope everyone fi ds ways to deal to these crucial times we are facing.

[nsoul]

Well done for admitting it's a disaster. I think we're in for a protracted recession and this will be much bigger than 2008 and the 90s downturn. 2008 affected employment and was a banking liquidity issue, my mortgage actually went down during the 2008 downturn and I had more money in my pocket. If you've done your sums and they don't stack up I suggest seeking professional financial advice straight away.
I went for the big short on property equities a few weeks back, aside from that all my money has moved to a cash savings account. The origins of this lay with the previous incumbents when RPI and a similar index were mothballed.
Good advice btw 👍
Best of luck to everyone.

[kevincowan]

I won’t be effected by the rise in the slightest Pete