Mortgage rates could reach 7% by christmas

Ouch. A lot of pain.

Yes, I am. We are fixed for a further 4 years so are one of the lucky ones but im worried about people that aren’t and what things will look like when we come to remortgage. The lovely FTB’s that bought our old house only fixed for 2 years and have a year left - this was at the advice of their mortgage broker. They had saved and saved for years to be able to get a deposit together and were already cutting back when they bought our old house as the rates had gone up to the 4 percent mark. I hate to think how they will manage a rate of 9 % and how millions of others will. That being said, I don’t think that rates will ever go as low as they were (the 1/2%), but I would hope they would settle somewhere around the 3/4 percent mark eventually.

So glad we haven’t bought. We’re first time buyers and were whiskers away from getting caught up with high rates. It is not worth it, not now, especially not if you can’t buy your long term home as a first purchase (which many cannot). We’ll be staying in rented for now, not letting it affect our other plans for kids etc. we have a deposit and we’ll watch and wait. I feel it’s going to really sting people who bought in 2018/2019 and fixed for 5 years, or those who bought in 2021/2022 and fixed for 2 - especially if since then those people have had children or reduced their working hours or literally whatever else. Ouch. It’s horrible something has got to change. Even if rates just go back to 3 or 3.5% that would be so much more comfortable

@FlyingSoap - but what happens when your rent goes up or your LL is forced to sell due to increased mortgage rates?!

Exactly what I was thinking. You can watch and wait but doesn’t mean you’re in a good position either.

It's a bit of a myth that all landlords actually have a BTL mortgage. Many are accidental landlords through inheritance/divorce, or can buy cash or have either a very low mortgage or have paid it off.

Many won't need to raise the rent.

We’re lucky ours won’t as housing association

Or what @Darkandstormynite says

Worried here too, we'll be out of our fixed rate in August 2024. We had plans for a holiday abroad next summer but we're not booking anything now, but going to wait and see what happens.

I think that's the intention, even though it hasn't been specifically voiced.

This couldn’t actually happen, could it?

I cut my losses and paid the fee to get out of our deal early when rates started to rise. Speak to your lender, speak to a broker and work out whether it’s worth doing the same - could save you a lot of pain.

Those of us who remember mortgage interest rates of 15% aren't surprised by the prospect of a 9% rate. I am in the fortunate position not to have a mortgage, but when I did have one, I based all my calculations on an average rates of 10%, even though it was far lower than that (5% felt like a very low rate then). Younger people who have taken out mortgages relatively recently have been taken by surprise - which shows why it's a good idea to do some research into the past as well as your own optimistic future predictions.

If it's any consolation, I also own rental properties and am neither selling nor increasing the rent - so not all private renters will be screwed.

Just because they don’t need to won’t mean they don’t in a landlords market.

Our fixed rate ends in just under 2 years.

We are in the very fortunate position that we should be able to clear the remaining mortgage then (I sold my BTL this year releasing equity), but this will take some serious saving, so no holidays except camping and one UK short break, no luxuries, curtailed one of our shared hobbies, and all renovations are on hold (32 year old kitchen, which I think was the budget line back in '91).

But it will be worth it not to pay whatever percentage mortgages might be by then. We would be stupid not to put everything into achieving this.

We are due to remortgage start of next year and it’s utterly s**t. Just try to ignore all the ‘I remember when rates were 15%’ or ‘you should have stress tested’ or ‘I don’t have a mortgage’ or ‘people should have realised rates were historically low’ comments. They aren’t helpful to your situation. It’s rubbish, it really is. But you honestly aren’t alone. And here’s to hoping things won’t be as bad as some people think.

Also, 15% rates years ago are irrelevant because property prices were so much lower and much more affordable on normal salaries. Inflation and house price growth alongside rates rising = literally terrifying

Try to ignore all those spouting off about their multiple rental properties also. So much damage done by BTL and then make out they should win landlord of the year award because they aren't putting up rent.

I'm buying a property right now. It's scary but I'm also concerned that my landlord will sell up and I'll be left with the prospect of paying 1400 pcm rent as opposed to a mortgage payment of only 20 more than my current rent.
I'm lucky that my landlord doesn't have a BTL mortgage but they could issue me with notice at any point.

My mortgage rate due to finish in Dec 2024 is 0.99%!! I know I took it out at the best possible time (Dec 2021), but talks of 9% is madness!

We’re bloody fortunate we’ve paid off due to DH’s age, he’s 12 yrs older than me. Step son is stressed because they are due to renew their mortgage I September.

They do want to cause a recession...

Our 5 year fix ends next April, in that time we’ve had a child and I’ve gone part time. We’ve thrown any spare cash we have at the mortgage and have managed to pay over £80,000 off it. With rates rising from under 2% to 5.5% we were looking at our monthly repayments reducing by £300 so we’ll be able to weather the storm.

We’re now actively starting to cut back so we can pay as much off as possible before we remortgage. We grew up poor so it’s always been very important for us to be financially comfortable.