Mortgage rates could reach 7% by christmas

I think it's a bit naive to say that because not all rental properties are mortgaged, there's no need for rents to rise. I own my rental property outright but have my own residential mortgage and that will hit in 2024 when my fix ends and will severely impact my income.

I've no current plans to shift the pain and raise the rent as they are good tenants and to me that's worth more than an extra £100 a month or so. However it's easy to see how these costs will be passed on to those who can least afford them in many circumstances.

For the first time, we were “lucky” and fixed for 5 years at 4.1% last month. We only managed to buy for the first time two years ago, I’m 43.

This is a really helpful post.

I'm in a very very lucky position - I nearly moved house in 2021 and extended my mortgage significantly, but I had a Bad Feeling and decided not to, worrying that rates might rise. Ultimately a very lucky guess, rather than saying anything magic about me.

It really worries me - so many people have had to extend themselves to afford anything at all.

We're just about to start our new 2 year fix at 4.9% and I was annoyed. Feeling quite lucky now.

Pointless information though because I'd bet my hat the gap between earnings and amount borrowed/house prices was a lot less too.

My parents had a house in France and they told me the rate was fixed for the full mortgage term of 25 Years. It does make sense to me. You should know what you're paying when you buy something.
I can't think of anything else that changes the cost of something after you have signed a contract.
Mortgages are such a scam!

Martin Lewis is on tonight at 8 to discuss mortgages

Ppl on low rates now need to stop over paying and out that into a savings account until end of current term

I've been trying to buy for the last year (ftb, but in 40s) it's hard to know what to do, the market around here is still very lively, so no reductions. Can't wait forever but equally seems a bit mad to buy now, am still looking for now.

Rather like this.

Mine is 0.94% and due to expire in August 2024.

We will have to sell the house if rates are 9% by then. To be honest we might have to sell anyway as even at 7% we will struggle. We have a £200k mortgage with 20 years left on it, things aren’t looking good for us.

Yes this is all very true!

My 2 year fixed comes to an end in October, I'm currently on 3.14%, they've offered me 5.12%. I'm in shared ownership and they put our rent and management fees up this year too. I'm now paying in rent/mortgage/management fees what the mortgage on my old 3 bed house was, which apparently I couldn't afford on my own salary.

I'm actually worried about what will happen if stuff keeps going up and doesn't start coming down(everything has gone up this year). I don't want to have to rely on handouts from my parents (even though they've said they'd help) but the alternative really isn't an option.

I'm very worried. I moved house recently and ported my 1.79 % mortgage for the largest part of my purchase (£100,000) which runs out in June next year. Im fixed in for five years for the £90,000 part at 4.43%. I think rates will just keep rising and wish I'd fixed the whole lot at 4.43. Im squirrelling away around £200 a month into a Natwest digital saver which is at 6.5% in the hope that if rates do go up then I will be able to add to my payment every month using this money which is so far £2k and will hopefully be around 4.5k forecasted by this time next year. I don't know why they think this is a good idea, people are going to lose their homes if this carries on and the UK is already non a social housing crisis!

https://www.money.co.uk/mortgages/buy-to-let-mortgages/statistics
this is not the only source that I've seen the 60% figure from btw.

also I know lots of lls who own outright are selling as many of them are at an age to retire, they need lump sums to fund their retirement and/or to fund their children's deposit. some rushed to sell before the 4000 cgt cap came into effect, some are still selling now despite the new cgt cap in fear of a market crush in the near future. also some are simply fed up as they entred the industry when were very few regulations and got used to that norm, now can't cope with the tighened regulations and the heat directed towards them. so lls are selling even if they aren't being pushed financially.

as for the profiteering part, it's only the case for lls who raise rents for existing tenants when they didn't need to. for lls who's empty properties are seeking new tenants, it's a different picture. a friend of mine got a job in london and needed accommodation last minute. she had to bid for her studio as so many people were fighting for one. the ll set a reasonable price but people just started to offer ridiculous money for it to be able to secure it. seems to me more people these days are attracted to london bristol Edinburgh etc. compared to even a decade ago. also there are a lot of baby boomers, a lot of them had children, so now there are even more of us millennials at a home buying/renting age. airbnb didn't help either.

We are right in the thick of it and one of those being discussed as
'Some homeowners could.. '. Going 1% to 5.9% in November. No choice as can't afford to pay the whole lot off. We saved for years to buy our first small flat, did it up ourselves then moved to a modest 3 bed semi which we have similarly done up. Not over stretched, driving a 15 year old car, not flashy life styles. Both work full time and two primary kids at the local state school so add on whacking childcare and summer care costs. We couldn't actually afford to rent a 3 bed semi where we live! Our LTV is 60% so we tick all the boxes of things we could be doing right, but yet we will see our monthly payment go up by just short of £2000 in November. As a family of 4 this is going to be a bumpy road.

I just can't find anything online about mortgage interest rates being predicted to reach 9% but would be interested if anyone else can find a reference to it?

I am so tired of the comparisons with the 1980s

It's really alarming. We are halfway through a 5 year fix at 1.6% at the moment so will have remortgage at the end of 2025 and I'm already worrying. Fortunately our DD goes to school in Sep 25 so we will save a few hundred on childcare, but we have written off having another child as we just don't think we could afford childcare for a second on top of anymore than 5% mortgage rates.

Things are incredibly tough at the moment with reduced hours and childcare while DD is little, I was hoping for a bit of let up when she goes to school but I guess that won't happen now.

It does annoy me when people say young people were naive, should have looked at past rates etc - we were stress tested by our mortgage company but the rates seem to have gone beyond that. And the alternative was stay in rented accommodation which is like hens teeth in our area and twice as expensive as our mortgage is currently so we wouldn't have been in any better position. Our house is very bog standard and it's not like my generation had any choice over what they cost.

Same. Not heard 9pc mentioned anywhere yet. I’ve seen stuff online about possibility of 7pc but not higher

There will be a recession. Anyone in or adjacent to the financial services sector knows this and has for a while.

It really shouldn’t be affecting people’s huge life decisions, I’m so sorry you’ve had to choose between another child and having a comfortable lifestyle - nursery fees and mortgage rates are just so high. I suppose it’s a saving Grace for you about the timing of your child going to school!

We are soon to TTC and yet to buy a house (waiting till 2025 to buy) but may well stop at one with this being the main reason, I’m not naive about how expensive life is and will inevitably get more so

My 5 year fix expires 31 Dec this year. Spoke to broker today and have now fixed for 2 years at 6.24%. Was on 2.14 %. This was the best deal our broker could find and with our existing lender. Was advised to stay away from 5 year deals for now. It's still an extra £190 a month though. Not as bad as many I realise but will mean we will need to cut back on other things where we can. Don't have lot of spare money and don't go out loads or have many luxuries or fancy holidays as it is so it's going to be really tight.

Is there a link to a story which says it could be 9%? Sorry if I’ve missed it but that’s what I expected to see in the OP based on the title of the thread