UK Landlord Forum / Life

Gah!

Don't even talk about a 15% rate rise! You might give them ideas!

You're right, mind, that people think rates are high atm but that they have been much higher previously. I'd be stuffed if rates went to 15%, because I'd have to sell and nobody would be in a position to buy. I guess I could rent it and move out.

Thing is, I held off buying for a long time because I knew the market was over inflated, but its taken a very long time for this correction to come and in the meantime you miss out not only on the growth of the property sector but also on your life. You can't just wait a decade to buy somewhere to live without it having some impact on the way your life goes.

Worrying ... very worrying.


V

I don't think rates will hit that high again anytime soon. I mean, it's only 5.5% now, and everyone is screaming that it's too high. If anything, it will lower.

I think MOST people will be screwed if interest rates get that high. I know I would be.

You def did the right thing by biting the bullet and buying. Too many people wait for years and years and they end up missing the boat. 5 years later, they're in a worse position than before.

Have you worked out what % you can comfortably deal with? Probably worth doing, so you know when to bail out. Scary thought, but sensible.

14-15% and i would walk, hand in the keys and go and live in Canada.

Bt the way anyone no what sauce to put with rice and fish ?

14-15%? Man, that's still a lot, B. I don't think I would be prepared to pay that much, even if I could.

It all depends on what you think is value for money.  I think that paying over my figs, would not be value for money.  Ok my houses are worth something and will always rise, but how much to keep um,  The other thing to take on, is no one else would buy your house at rates of a high caliber. so you would be stuck.
So fag when would you bail out son !

Well, it depends how much the increase would affect my rental income.

I imagine landlords would increase rent if rates hiked up. I basically wouldn't pay more than £150 per month out of my own pocket per property.

Ye good call, my places are my pension, so i guess, how much would i pay into a pension and how much over would i pay on a rate rise.  Ok 25 quid and thats it, lol

I've not really calculated what percentage would be a problem. I think the rate changes to date would have pushed my monthly costs up about £100 if I wasn't on a fixed rate, and I could probably take about another £150-£200 a month before it got really painful. That said, if I was in that position it might actually not be in my interests to own somewhere any more, and I'd definitely be looking into what rental revenue I could get for it and maybe moving into a smaller place myself.

The thing is there's not a lot I can do about it if it does go through the roof - as long as its bearable I'd keep paying, and by the time it isn't it isn't. Am hoping the place sells down in Cornwall as that way I'll be able to put a chunk of capital in and reduce my exposure to rate changes. We're getting the new agents engaged now so hopefully we will see some movement in spring.

Of course if rates went up then rents would go up too, but I think in the end affordability would bite and it would have to reach a level it couldn't exceed (not without having places sitting empty). If a fairly established IT manager can't afford somewhere to live, there's a lot of other folks who are going to be pretty stuffed first.


V

15% is very high .. seeing that its only a quarter of that atm .

Personally I dont think it will ever be that high .