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Should i panic about mortgage rates? :(

(5 Posts)
pucca Thu 18-Sep-08 22:37:42

Our fixed rate runs out next August, and after the other thread about being able to afford if the rates go up to 15% i am now in a panic.

Is it very likely do you think that they will go up by quite a lot?

Eeeek!

lilymolly Fri 19-Sep-08 07:57:09

we are in similar boat
have mortgage of £195k and our fixed rate runs out in April 09
We are worrying too.

Chocolateteapot Fri 19-Sep-08 08:04:56

Ours ends at the same time and I will admit to swallowing deeply a fair bit. My grand plan is to try to over pay some of the mortgage if possible between now and next year as with house prices going down our loan to value is as well, I'm trying to maintain 75% as the deals are better if you have more equity (I'm stuffed on the 60% ones).

I read somewhere that although Libor has risen sharply this week the fixes are still fairly low as there is a belief that interest rates will go down, how true this is I have no idea.

My plan is to keep an eye on them over the next few months then in February (6 months before the end of our current deal) to start looking. If there is a 10 year fix for around 5.75% mark I am going to do it, as knowing what our monthly payments are is currently more important than gambling on lower rates.

If things look like they are going to be incredibly dire by next August I'm going to think about paying the redemption fee and fixing for 10 years anyway.

Hopefully someone is clued up about mortgages will be along shortly.

noddyholder Fri 19-Sep-08 08:44:04

Interest rates may come down but this is unlikely to be reflected in mortgages.i think rates will be pushing upwards in order for banks etc to re build their books after all this chaos.

fiodyl Fri 19-Sep-08 10:46:43

most of the money for mortgages is borrowed from other banks, which they dont want to do at the moment which is driving the rates upwards.

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