Interesting thoughts on the property market. I’m coming up to selling my property but we have yet to sign contracts. Worrying times as we are very close to the finishing line but they could of course pull the plug due to the increase in interest rates. However, I clutch to the idea that the couple buying my property are high income earners and that the reduced taxation on their income will compensate for the increase in interest. Is this a valid counter argument to property buying, even though it’s only short term?
Their mortgage deal is presumably locked in at this point? Oh... I suppose they may have gone for a tracker if they were insane or something...
Interesting thoughts on the property market. I’m coming up to selling my property but we have yet to sign contracts. Worrying times as we are very close to the finishing line but they could of course pull the plug due to the increase in interest rates. However, I clutch to the idea that the couple buying my property are high income earners and that the reduced taxation on their income will compensate for the increase in interest. Is this a valid counter argument to property buying, even though it’s only short term?
You'd hope if they needed a mortgage that was already sorted, so hopefully you'll be fine.
Interesting thoughts on the property market. I’m coming up to selling my property but we have yet to sign contracts. Worrying times as we are very close to the finishing line but they could of course pull the plug due to the increase in interest rates. However, I clutch to the idea that the couple buying my property are high income earners and that the reduced taxation on their income will compensate for the increase in interest. Is this a valid counter argument to property buying, even though it’s only short term?
and depending on the value of your property they will be saving a chunk on Stamp Duty which if sensible they can offset against any increased mortgage costs BUT surely if they have been offered a fixed deal previously that will still hold?
As from tomorrow their fixed rates for a House Purchase are as follows (all with a £999 product fee)-
2 & 3 year - 5.59% 5 year - 5.19% 10 year - 4.89%
The interesting thing (apart from the fact these are around 3.5%-4% more than 12 months ago) is that these are for ALL LTV's up to 85%. So makes no difference if you are putting down a 15% or 50% deposit.
wow. My daughters fixed is due next month. Currently at 1.24%. She is in for a nasty shock! Out of interest what is their variable rate?
Their variable rate (SVR) is 5.24%
Their rate switch/product transfer for those coming to the end of a fixed are slightly different to the above rates and do differ depending on LTV. Their 2 &3 fixed on a rate switch is 4.84% or 4.89% depending on LTV. 5 year is 4.44% or 4.59% depending on LTV.
Or you can gamble & go for their tracker rates which have no early redemption penalties, in case you think that this could all be over in 12 months or so & don't want to be tied into 5% rates for some time. Only do a 2 year tracker - ranging from 0.94% above base (60% LTV) to 1.34% above base for 85% LTV.
I'm hoping to get a mortgage in 2024, as we should have saved 25-30% by then, but this news is scaring the life out of me, more so will I havee to go to 50%,which will set us back years.
Already priced out of London and most of the south, Gloucester or Worcester were the areas we had picked out, I will be watching t goings on very closely over the next year but becoming really fearful that things are going to get worse. Already worried that despite having 2 kids we might have to settle for a 2 bed as it is.
I'm hoping to get a mortgage in 2024, as we should have saved 25-30% by then, but this news is scaring the life out of me, more so will I havee to go to 50%,which will set us back years.
Already priced out of London and most of the south, Gloucester or Worcester were the areas we had picked out, I will be watching t goings on very closely over the next year but becoming really fearful that things are going to get worse. Already worried that despite having 2 kids we might have to settle for a 2 bed as it is.
Trying times.
I really wouldn't worry right now, 2024 is still well over a year away and a lot could change.
Make sure you are making the most of these higher interest rates, get the best interest rate you can on your deposit savings, assuming you are holding them in cash and keep saving.
Did anyone else on here buy saga shares when they were floated a few years back,looks like they are on the brink,and our hard earned money has been lost.
Did anyone else on here buy saga shares when they were floated a few years back,looks like they are on the brink,and our hard earned money has been lost.
I dipped in and out in late 2020/early 2021 as thought they were cheap at around £1.40 which at the time proved right as sold for a reasonable profit.
They are now just under £1 predominantly driven by their insurance arm. I don't know what you paid, but I don't see them coming back massively anytime soon, it's a bit of a failed business really and were impacted a lot by COVID.
I wouldn't be surprised to see them sell of their insurance division and stick to Holidays. I don't think they are about to go bust, and not sure what they floated at, but I wouldn't expect much of a return if you paid more than £2 anytime soon.
Well, my share / Fund portfolio has and continues to take a hammering. My share Isa down by 8% in less than a week. Fortunately that’s personal savings not a pension pot, I kept my DB pension as my life security. How are others faring in this shit storm…… ?
Meeting my pension advisor in person for the first time tomorrow, having started with them 15 months ago. Investment is down 8.58% since opening on 30 June 2021, so I’ll be ordering some very nice wine with the lunch that she’s paying for!! 😉
A further drop to 9.29% down today…I hope she’s got a good limit on her credit card!!! 🤦🏻♂️
I'm not an IFA so maybe take this with a pinch of salt. However if you're invested in funds 20 seems way too many. 5 or 6 should be plenty to give decent diversification. If it's direct investments I would wonder whether that's right from the limited amount you say or whether some funds might be better, particularly if you are worried about the downside.
As an IFA I disagree. I would usually recommended somewhere between 12 & 15 funds in a portfolio ; a couple of US equity funds, 3 UK equity funds, a European equity fund, an Asia pacific fund (maybe inc Japan but of not then a separate Japanese fund) a commercial property fund & then 4 bond funds. That is for a 60/40 moderate risk portfolio.
But I'm in the minority as the advisor market seems to be going down the route of multi-asset funds. But even if I do this I would usually recommend 2 or 3 multi asset funds, maybe 4 depending on the amount being invested.
Yes, it’s pretty much this. Had a good chat with the advisor yesterday. Nothing I wasn’t really aware of already, but she’s sending me across a full report on the portfolio later. She did have a copy with her yesterday, but I was staying out (to drown my sorrows) afterwards. Have to keep remembering that this is a 30-40 (hopefully) year investment and we’re going to have periods like this.
Well, my share / Fund portfolio has and continues to take a hammering. My share Isa down by 8% in less than a week. Fortunately that’s personal savings not a pension pot, I kept my DB pension as my life security. How are others faring in this shit storm…… ?
My Pension remains up since May/June but only by a little over 1%, was a lot more! My ISA down about 1%. Mines propped up by the S&P 500 funds which are about 1/3rd doing well (up about 9%)
Markets go up and down, so to me I don't worry with big rises or falls, on the falls I try to buy a bit more, on big rises I try to bank a bit but never easy.
Well, my share / Fund portfolio has and continues to take a hammering. My share Isa down by 8% in less than a week. Fortunately that’s personal savings not a pension pot, I kept my DB pension as my life security. How are others faring in this shit storm…… ?
My Pension remains up since May/June but only by a little over 1%, was a lot more! My ISA down about 1%. Mines propped up by the S&P 500 funds which are about 1/3rd doing well (up about 9%)
Markets go up and down, so to me I don't worry with big rises or falls, on the falls I try to buy a bit more, on big rises I try to bank a bit but never easy.
Well, my share / Fund portfolio has and continues to take a hammering. My share Isa down by 8% in less than a week. Fortunately that’s personal savings not a pension pot, I kept my DB pension as my life security. How are others faring in this shit storm…… ?
This year I bought some equities, which previously I steered clear of, in search of reliable income. Nearly all of them have been hammered, the only exception being P&G, and to a lesser extent Citibank, bolstered by being US stock. The one that has been specifically trashed by Kwarteng is called Primary Health Properties, reccoed by a Lifer but entirely my own choice. It had bumbled along for years at around 140p delivering a steady dividend, and in summer even announced an increased dividend.Then came Kwasi the Nutjob and it dived this week to a four year low. I tried to "buy the dip" at 118p and have been rewarded by seeing it dip further to 107p.
I'm hoping to get a mortgage in 2024, as we should have saved 25-30% by then, but this news is scaring the life out of me, more so will I havee to go to 50%,which will set us back years.
Already priced out of London and most of the south, Gloucester or Worcester were the areas we had picked out, I will be watching t goings on very closely over the next year but becoming really fearful that things are going to get worse. Already worried that despite having 2 kids we might have to settle for a 2 bed as it is.
Trying times.
It’s in your favour if house prices do drop. Keep saving and aim higher when you do start looking
Did anyone else on here buy saga shares when they were floated a few years back,looks like they are on the brink,and our hard earned money has been lost.
I dipped in and out in late 2020/early 2021 as thought they were cheap at around £1.40 which at the time proved right as sold for a reasonable profit.
They are now just under £1 predominantly driven by their insurance arm. I don't know what you paid, but I don't see them coming back massively anytime soon, it's a bit of a failed business really and were impacted a lot by COVID.
I wouldn't be surprised to see them sell of their insurance division and stick to Holidays. I don't think they are about to go bust, and not sure what they floated at, but I wouldn't expect much of a return if you paid more than £2 anytime soon.
I paid 1.85 that is the before consolidation price so reckon around £20.00 plus.Just got all the brochures trough the door,had a bit of spare cash and dived in,I am certain thousands of us oldies have had their fingers well and truly burned,luckily i asked for more but it was over subscribed.
BoE to buy bonds. FTSE100 running back turbo on the news. £ getting ready to take another nose dive
Umm...still below 7,000...
not for much longer
Well, I've had lunch and the graph is pointing back downwards again...
But you got the sterling prediction right at least. Below 1.06 again. Thankfully I managed to move some cash earlier in the week to the safe haven known as the Czech koruna. What a time to be alive
My 7 year fixed term mortgage runs out in December. 1.99 per cent. Luckily Santander got in touch in July offering a switch to a new product and I accepted in early September. 3.5 per cent for three years. We should be able to pay it off when this one runs out.
I am just shy of my 3rd decade on this earth, and I am just curious to hear the opinions of those in this thread who might have a longer memory - Is this the worst economic impact by a government in post-war history?
The 2007/8 financial crash was largely down to the world economy crashing than Blair+Brown cocking it up from what I understand and I'm not sure if Major is generally accepted to be at fault for Black Wednesday in 1992? Or were Thatcher, Wilson and Heath's situations more dire than the current?
I might be being dramatic as it all seems pretty damn dire right now, but just curious on others views on the question.
Might be more of a question for the House of Commoners...
BoE to buy bonds. FTSE100 running back turbo on the news. £ getting ready to take another nose dive
Umm...still below 7,000...
not for much longer
Well, I've had lunch and the graph is pointing back downwards again...
But you got the sterling prediction right at least. Below 1.06 again. Thankfully I managed to move some cash earlier in the week to the safe haven known as the Czech koruna. What a time to be alive
I am just shy of my 3rd decade on this earth, and I am just curious to hear the opinions of those in this thread who might have a longer memory - Is this the worst economic impact by a government in post-war history?
The 2007/8 financial crash was largely down to the world economy crashing than Blair+Brown cocking it up from what I understand and I'm not sure if Major is generally accepted to be at fault for Black Wednesday in 1992? Or were Thatcher, Wilson and Heath's situations more dire than the current?
I might be being dramatic as it all seems pretty damn dire right now, but just curious on others views on the question.
Might be more of a question for the House of Commoners...
Black Wednesday in 1992 was interesting and forced the government into a u-turn - so the impact was short lived. This may well be the same if Truss and Kwarteng swivel but they may well try to ride it out. In reality a u-turn from them now would be 'unspinnable'.
Comments
Already priced out of London and most of the south, Gloucester or Worcester were the areas we had picked out, I will be watching t goings on very closely over the next year but becoming really fearful that things are going to get worse. Already worried that despite having 2 kids we might have to settle for a 2 bed as it is.
Trying times.
Make sure you are making the most of these higher interest rates, get the best interest rate you can on your deposit savings, assuming you are holding them in cash and keep saving.
They are now just under £1 predominantly driven by their insurance arm. I don't know what you paid, but I don't see them coming back massively anytime soon, it's a bit of a failed business really and were impacted a lot by COVID.
I wouldn't be surprised to see them sell of their insurance division and stick to Holidays. I don't think they are about to go bust, and not sure what they floated at, but I wouldn't expect much of a return if you paid more than £2 anytime soon.
Markets go up and down, so to me I don't worry with big rises or falls, on the falls I try to buy a bit more, on big rises I try to bank a bit but never easy.
Kwarteng can do one with final effect.
But you got the sterling prediction right at least. Below 1.06 again. Thankfully I managed to move some cash earlier in the week to the safe haven known as the Czech koruna. What a time to be alive
The 2007/8 financial crash was largely down to the world economy crashing than Blair+Brown cocking it up from what I understand and I'm not sure if Major is generally accepted to be at fault for Black Wednesday in 1992? Or were Thatcher, Wilson and Heath's situations more dire than the current?
I might be being dramatic as it all seems pretty damn dire right now, but just curious on others views on the question.
Might be more of a question for the House of Commoners...