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]

Re: Mortgages and Interest Rate Rises

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]

Re: Mortgages and Interest Rate Rises

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]

Re: Mortgages and Interest Rate Rises

Harder decision than usual at the moment.

Thanks to your mates

[Former Labour leader]

Re: Mortgages and Interest Rate Rises

Thanks to your mates

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

[JamesWales]

Re: Mortgages and Interest Rate Rises

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]

Re: Mortgages and Interest Rate Rises

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]

Re: Mortgages and Interest Rate Rises

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]

Re: Mortgages and Interest Rate Rises

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]

Re: Mortgages and Interest Rate Rises

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]

Re: Mortgages and Interest Rate Rises

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]

Re: Mortgages and Interest Rate Rises

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……:thumbup:

[The Bloop]

Re: Mortgages and Interest Rate Rises

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]

Re: Mortgages and Interest Rate Rises

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]

Re: Mortgages and Interest Rate Rises

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.