Mortgages and Interest Rate Rises

[WJ99mobile]

My mortgage is up next month.

A jump from 1.64%

2yr fixed 4.55%
5yr fixed 3.86%

I cant see interest rates coming down drastically in 5 years time, and a expected increase announcement this week from the BoE

[TWGL1]

My mortgage is up next month.

A jump from 1.64%

2yr fixed 4.55%
5yr fixed 3.86%

I cant see interest rates coming down drastically in 5 years time, and a expected increase announcement this week from the BoE

Was always going to happen post Covid due to supply and demand factors, causing a surge in inflation

https://www.economicshelp.org/blog/1...gh%20inflation.

[North Cardiff Blue]

My mortgage is up next month.

A jump from 1.64%

2yr fixed 4.55%
5yr fixed 3.86%

I cant see interest rates coming down drastically in 5 years time, and a expected increase announcement this week from the BoE

Because of the uncertainty they try and factor in a bit of extra profit from fixed-rate deals in a rising market, if it was me I would consider a tracker rate if you can get a good one, I think you would gain on a five-year, two year probably there won't be much in it either way?

Harder decision than usual at the moment.

[Pedro de la Rosa]

Harder decision than usual at the moment.

Thanks to your mates

[Former Labour leader]

Thanks to your mates

Less any mortgage payer forgets I will give you 2 names:
Kwasi Kwarteng
Liz Truss

[JamesWales]

Less any mortgage payer forgets I will give you 2 names:
Kwasi Kwarteng
Liz Truss

Interest rates have risen by 3.25% in the eurozone since last Sept when the budget was. In the US by 2.75% In the UK they have risen by 2.5%

I've just gomne through this process. I would lock in at a five year fixed. It'll likely be a better rate and whilst interest rates may fall, I can't imagine it will be by a huge amount - if it is, then it will be because of some huge economic issue that will likely trump any concern over paying a stable mortgage price

[life on mars]

I remember my first house and thinking 9,% was normal.

Today's world is as a result of another Bank of England feck up they kept intrest rates to low for too long after the recession giving folk the wrong perception that they could buy property, grab loans that were probably way out of their league.

Many could end up with difficult decisions now as the payback rises .

Forgetting the mad Truss era, if anyone thought the rates would stay that low forever, they were bonkers or badly advised it's been coming for years.

I see the European and USA banks are also under fire.. for simalair poor decision making, and the madness of their quantative easing policy... Which simply masked the debts.

[bobh]

When I first bought my flat in 1979, rates were double figures.
When I moved to Cardiff in '87, I got a fixed 10" - and rates jumped to 16% in the following years.
I remortgaged in 92(?) after Black Wednesday when rates plummeted.

[NYCBlue]

I got really lucky. I bought my current house at exactly the right time and I refinanced at 2.75%. I don't think I'm going to ever get better than that. Although, I'm pretty sure I'll be dead before it's paid off. Sorry wife and children.

[Vindec]

Less any mortgage payer forgets I will give you 2 names:
Kwasi Kwarteng
Liz Truss

While the pair of them made a right mess of things you have to deal with the facts not political dogma. There's not a huge difference between the UK and elsewhere in Europe. Interest rates in Europe for example are expected to rise to 4% against current UK rates of 4.25% (possibly rising again in the UK later this month) but falling to an expected 2.3% in 2024. Current mortgage rates in the USA are 6.91%

[Michael Morris]

I took a 2 year fixed deal in January, Probably now saving myself £250+ a month. Have a plan to get my mortgage paid off in 2 years times when deal ends. It's become a goal and one that will lift the pressure of work away knowing we are sat on a mortgage free property.

[goats]

Interest rates historically have always hovered around 5% havent they? Seem to remember much higher in the mid 80’s like 15%?
Best feeling ever to get mortgage free……

[The Bloop]

Our first mortgage rate was a capped deal at 7.95%. I remember at the time (late 90s) the broker saying he was in a fixed deal with a rate of about 10 or 11.

[rs3100]

I took a 2 year fixed deal in January, Probably now saving myself £250+ a month. Have a plan to get my mortgage paid off in 2 years times when deal ends. It's become a goal and one that will lift the pressure of work away knowing we are sat on a mortgage free property.

I've set myself a goal of paying off my mortgage by the time i'm 55 (9 years to go). The thought of having a mortgage free property and saving £1200 a month appeals greatly.

[cityhammer]

When I first bought my flat in 1979, rates were double figures.
When I moved to Cardiff in '87, I got a fixed 10" - and rates jumped to 16% in the following years.
I remortgaged in 92(?) after Black Wednesday when rates plummeted.

Pretty sure my first mortgage was at 16%, could only afford it as I had cash back from Barrats for first 2 years and a tapered payment schedule for endowment. Was paying over twice as much per month on £40k than I do now for £70k, but now owe less than £10k so not really an issue.

[Rjk]

I pay more than double what my parents ever paid for their mortgage repayments, on a house that is worth half as much.

[OurManFlint II]

When I first bought my flat in 1979, rates were double figures.
When I moved to Cardiff in '87, I got a fixed 10" - and rates jumped to 16% in the following years.
I remortgaged in 92(?) after Black Wednesday when rates plummeted.

OK Boomer. You could probably still afford family holidays and all the trimming with just 1 income per family working in a factory or a supermarket.

[TWGL1]

Interest rates historically have always hovered around 5% havent they? Seem to remember much higher in the mid 80’s like 15%?
Best feeling ever to get mortgage free……

I’ve managed to pay off two mortgages, it’s hard though and takes commitment but worth it.

For those struggling, perhaps they could consider a cheaper area or location ?

[OurManFlint II]

I’ve managed to pay off two mortgages, it’s hard though and takes commitment but worth it.

For those struggling, perhaps they could consider a cheaper area or location ?

Or pull up their boot straps! Why aren't working family's rich, lazy ****ers!

[TWGL1]

Or pull up their boot straps! Why aren't working family's rich, lazy ****ers!

Huh, it was just a suggestion, and I know a few who have done it , or downsized and it’s the best thing they have done.

Each to their own though of course , and I’d be very careful to judge somebody’s background on a messageboard post if that’s what you’re implying..

[bobh]

OK Boomer. You could probably still afford family holidays and all the trimming with just 1 income per family working in a factory or a supermarket.

You're way off the truth.

[goats]

I’ve managed to pay off two mortgages, it’s hard though and takes commitment but worth it.

For those struggling, perhaps they could consider a cheaper area or location ?

I guess it’s much harder these days. I bought a house in Heath for 52k in 1998, think I was earning about 23/25k then, one of the lowest in the IT office I worked in. Had a 10 yr mortgage but paid it off a bit earlier….house twice salary.

[North Cardiff Blue]

If you doubled the payments of a 25 year mortgage in the 90's you were able to repay it in 7 years, mad but even then not many people could afford to double the mortgage payments.

[Pedro de la Rosa]

I’ve managed to pay off two mortgages, it’s hard though and takes commitment but worth it.

For those struggling, perhaps they could consider a cheaper area or location ?

In the last year alone, house prices have risen by 14% while earnings have FALLEN by 1%.

It is incredibly hard to get onto the housing ladder. The average house price in the UK is 294k. The average salary is around £26k. It has got insane but it's OK, because young people just need to work harder

[Doucas]

In the last year alone, house prices have risen by 14% while earnings have FALLEN by 1%.

It is incredibly hard to get onto the housing ladder. The average house price in the UK is 294k. The average salary is around £26k. It has got insane but it's OK, because young people just need to work harder

A lot of older people appear to have completely lost touch about the reality of house prices in the UK, they in turn vote for politicians who won't do anything about it.