So how do you (and your family) intend to ‘hold you nerve’?

The mortgage rates are going up in a lot of countries. Certainly they are here in Australia, a lot and we have a Labour government. They have gone up a lot more under them than they did under the previous government. They can’t handle money well, unfortunately. All mouth and no action. You will see.

I remember so well our experience of this in 1971. Awful. Cut everything back to the bone but I was a SAHM and managed to find an evening job to ease the situation. Yep...pretty grim and I will never forget it. Interestingly, I went back to my prestigious line of work in a law office until I discovered that working for the same hours in a sweet factory paid twice the salary. No contest and a memorable time indeed.

I too suffered with mortgage costs in the early 70s I got an evening job too. My son and 2 GS have each just bought homes and are hoping (praying) that things settle a bit before their fixed rates deals end.

My 72 year old husband is working from home…. in between hospital admissions! The aim is to help out with a house for one of our sons. The move from a flat to house is problematic.

Not suffering from any mortgage increase my DH is a mortgage broker and fixed ours last year he suspected they would rise back in Feb of last year and we have made overpayments to reduce the mortgage to a car loan.
He had planned to retire this year and has now had enough of it having been a Financial advisor or a Mortgage Broker for the last 40 years.
Just our luck everything is going tits up with interest rates and inflation but we will survive we always have.
If we run short we will get other jobs as neither of us are old enough for state pension just yet but probably more likely to be me as I am still physically fit.

What does 'hold your nerve' even mean in this context?

I haven't got a mortgage as I could afford to buy my flat outright when I downsized. My ACs are on fixed mortgages so fine for now.
Think it's very patronising of Sunak to tell people who are struggling to hold their nerve.

My son is on a fixed till March. Hopefully things might of settled a bit by then 🤷‍♀️

winterwhite

What does 'hold your nerve' even mean in this context?

I think it means 'Just die quietly'

Just listening to the discussion on food inflation. And, all I keep thinking is that, as far as the government is concerned everything ( not just food prices) is the fault of everybody else. Never anything to do with their policies* ( or, heaven forbid, the elephant in the room, brexit).So, what is the point of having them? What do they actually do?
*or lack of them….

I saw Sunak telling everyone to hold their nerve. How dare he.
The economy etc will recover but in the meantime there are millions of people affected by the increased mortage payments and utilities and the cost of food. It will take a number of years before people fully recover from this. It's definitely not a case of hold your nerve.

I think he meant, dont ask for big pay rises, take things on the chin, and all will be well.
Well that might work fine and be all well for him. He disregards any people suffering, meanwhile.

It’s important to remember that historically, 5% is still a very low rate to pay.
As we all know, interest rates have been abnormally low for a good number of years so those paying mortgages have had it very easy during that time, compared with savers who have had to endure a pitiful amount of interest on their money.
Now the balance is shifting so again there will be some winners and some losers. Nothing abnormal in that.

With regard to rising food prices, I heard on the radio earlier that the price of raw materials is dropping, and the government is making sure that supermarkets are not ripping customers off by not lowering their prices.

I’m waiting for someone to come up with another ‘Dig for Victory’ campaign…. That’s if we have any allotments left.

ronib

I’m waiting for someone to come up with another ‘Dig for Victory’ campaign…. That’s if we have any allotments left.

Keep Calm and Carry On

nanna8

The mortgage rates are going up in a lot of countries. Certainly they are here in Australia, a lot and we have a Labour government. They have gone up a lot more under them than they did under the previous government. They can’t handle money well, unfortunately. All mouth and no action. You will see.

Thankfully we don't have a mortgage now but I so hear a lot about the mortgage/loan rates going up over there, nanna8, they are higher than here, causing sales to fall through, the difficulties in obtaining a mortgage and the problems with more people wanting to rent than rental properties available.

JenniferEccles

It’s important to remember that historically, 5% is still a very low rate to pay.
As we all know, interest rates have been abnormally low for a good number of years so those paying mortgages have had it very easy during that time, compared with savers who have had to endure a pitiful amount of interest on their money.
Now the balance is shifting so again there will be some winners and some losers. Nothing abnormal in that.

With regard to rising food prices, I heard on the radio earlier that the price of raw materials is dropping, and the government is making sure that supermarkets are not ripping customers off by not lowering their prices.

This is true.👍🏻
I think ‘hold your nerve’ means hang on in there it won’t be as bad forever?
Me and DP still have a mortgage to pay, fixed until next year thankfully.Our savings earn virtually nothing.
We shop around, Aldi, Lidl mainly at the mo.We cut out many little luxuries just for now.We’ll weather the storm.

JenniferEccles

It’s important to remember that historically, 5% is still a very low rate to pay.
As we all know, interest rates have been abnormally low for a good number of years so those paying mortgages have had it very easy during that time, compared with savers who have had to endure a pitiful amount of interest on their money.
Now the balance is shifting so again there will be some winners and some losers. Nothing abnormal in that.

With regard to rising food prices, I heard on the radio earlier that the price of raw materials is dropping, and the government is making sure that supermarkets are not ripping customers off by not lowering their prices.

Agreed.

The 2-3% rates seem to be oddly low, historically.

We paid 5% in the late 50s, £500 yearly salary.

My husband had a second job, was building his business, can be done.

It’s important to remember that historically, 5% is still a very low rate to pay.

We took our first mortgage in 1981. It was around 14%. By the end of that year the mortgage rate had gone up to around 18%. It was hard going. When DH retired from the Army in 1985 we paid a large chunk of it off with his gratuity, and then the endowment mortgage paid the rest off. That was a huge weight off our minds while both of us were still working and the children in further education. Both my adult children have been fortunate enough to have paid off their mortgages.

We took our first mortgage in 1981. It was around 14%. By the end of that year the mortgage rate had gone up to around 18%. It was hard going. When DH retired from the Army in 1985 we paid a large chunk of it off with his gratuity, and then later paid it off. That was a huge weight off our minds while both of us were still working and the children in further education.

Sorry for the duplication🤪

and then the endowment mortgage paid the rest off.

We had two endowments, one for the main mortgage and one for an extension - both failed to deliver.
Legal and General did the decent thing and made up the shortfall to bring the smaller endownment up to the equivalent of the loan, but Axa did not. We vowed never again to take out an endowment.

It's very patronising of Sunak to tell people to hold their nerve.

We’ve been here before about mortgage costs on another thread recently. You could only borrow up to 3.5 times main salary plus 1 times second salary years ago, so your debt burden for your mortgage was capped. Typically lenders will now let you borrow between 4-4.5 times your joint income for a mortgage. That is a massive difference in the percentage of income spent on mortgage repayments, and means that when rates rise you are disproportionately affected.

"Keep calm and carry on up the Kyber?" Yours or your relations. It's going to be the purse of Mum and Dad again.