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MarkSp
Posted: 15 October 2022 07:56:38(UTC)
#1

Joined: 02/02/2020(UTC)
Posts: 2,201


Rates for a 25k fixed loan over 5 years. All used real personal details and a reason for loan as "Home Improvement"

4.9% - 12.9%

All rates from ordinary names that we all will know well.

Lloyds was the most expensive - supermarket banks were the cheapest

:)
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countrymum
Posted: 15 October 2022 09:14:28(UTC)
#2

Joined: 05/08/2019(UTC)
Posts: 1,489
Proof it pays to shop around!

I does make me ponder. All the people who recycle 0% credit cards - presumably most of those offers are now pulled - so those people have no option but to move onto 4% - 12% loans? Eek.

:(
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ANDREW FOSTER
Posted: 15 October 2022 09:24:13(UTC)
#4

Joined: 23/07/2019(UTC)
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The housing crash and negative equity are on their way.

Plenty of houses in my area dropped asking prices or switched from 'offers over' to 'offers around'. It's just the start, I think it will be in full swing by Xmas.

There is no question in my mind this will happen, it always does.
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Tony Peterson on 15/10/2022(UTC), Martina on 15/10/2022(UTC)
DIY Investing
Posted: 15 October 2022 10:02:35(UTC)
#5

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Interest rates on 2 yr fixed mortgages have gone from 2% to 6% for first time buyers with a 10% deposit.

Borrowing £262,800 over 25 yrs for the average house used to cost people £1113.89 per month. It now costs £1693.22 per month. That's a 52% increase. I can't believe the housing market hasn't already crashed 20%.

And I wonder how many people will still be keen to buy a £50k Tesla on finance in a few months time!
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4 users thanked DIY Investing for this post.
Mr Helpful on 15/10/2022(UTC), ANDREW FOSTER on 15/10/2022(UTC), Martina on 15/10/2022(UTC), DHardisty on 20/10/2022(UTC)
MarkSp
Posted: 15 October 2022 10:10:09(UTC)
#3

Joined: 02/02/2020(UTC)
Posts: 2,201
countrymum;243153 wrote:
Proof it pays to shop around!

I does make me ponder. All the people who recycle 0% credit cards - presumably most of those offers are now pulled - so those people have no option but to move onto 4% - 12% loans? Eek.

:(


I have £14k at 0% for 30 months from Virgin opened in August

The £14k is in NCYF returning 9%

It was rude not to :)
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3 users thanked MarkSp for this post.
ANDREW FOSTER on 15/10/2022(UTC), countrymum on 15/10/2022(UTC), kim shillinglaw on 20/10/2022(UTC)
Easyrider
Posted: 15 October 2022 10:13:55(UTC)
#7

Joined: 09/11/2020(UTC)
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I don't think banking is broken.
Interest rates have simply gone up and we all know why.
This is bound to have a dampening effect on corporate investment, house purchase and consumption.
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Tony Peterson on 15/10/2022(UTC), Thrugelmir on 15/10/2022(UTC), Keith Cobby on 15/10/2022(UTC), Jimmy Page on 17/10/2022(UTC)
DIY Investing
Posted: 15 October 2022 10:20:58(UTC)
#8

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It was broken when we had access to almost free credit. Its becoming increasingly unbroken....which is a big problem for the highly leveraged.

Worryingly credit is somehow still expanding on both sides of the pond. But I suppose that, until the cost of credit exceeds the inflation rate, it will do.
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8 users thanked DIY Investing for this post.
Tony Peterson on 15/10/2022(UTC), Mr Helpful on 15/10/2022(UTC), Tim D on 15/10/2022(UTC), ANDREW FOSTER on 15/10/2022(UTC), Guest on 15/10/2022(UTC), Martina on 15/10/2022(UTC), Newbie on 15/10/2022(UTC), Jimmy Page on 17/10/2022(UTC)
ANDREW FOSTER
Posted: 15 October 2022 10:45:19(UTC)
#6

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DIY Investing;243161 wrote:
Interest rates on 2 yr fixed mortgages have gone from 2% to 6% for first time buyers with a 10% deposit.

Borrowing £262,800 over 25 yrs for the average house used to cost people £1113.89 per month. It now costs £1693.22 per month. That's a 52% increase. I can't believe the housing market hasn't already crashed 20%.


I think the answer is that "low start" mortgages are providing a delayed reaction.

As they expire their terms and either revert to standard variable or there are no re-mortgage opportunities then the cold wind will blow for sure, but that will happen over a 1-5 year time frame.

Combine with energy cost hikes and it is brewing the perfect storm. I expect a large number of re-posessions and personal bankruptcies. I can't see any way this isn't going to happen.
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3 users thanked ANDREW FOSTER for this post.
Tim D on 15/10/2022(UTC), DIY Investing on 15/10/2022(UTC), Easyrider on 15/10/2022(UTC)
MarkSp
Posted: 15 October 2022 11:38:07(UTC)
#9

Joined: 02/02/2020(UTC)
Posts: 2,201

Zombie households

If you were living up to the edge in January then, life will be getting extremely painful.
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DIY Investing
Posted: 15 October 2022 11:56:28(UTC)
#10

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MarkSp;243179 wrote:

Zombie households

If you were living up to the edge in January then, life will be getting extremely painful.


Only anecdotal evidence, but from what I know about a lot of my friends' situation, living up to the edge seems to be the norm, especially for the average 30 something with kids section of the population.

Every big purchase is funded with credit, carrying a credit card balance with no plan for paying it off is normal....messy situation.
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3 users thanked DIY Investing for this post.
Chalky W on 17/10/2022(UTC), Easyrider on 17/10/2022(UTC), DHardisty on 20/10/2022(UTC)
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