To be worried about interest rates rising and the effect on a large mortgage payment each month...

[NovaMN]

Worrying financially. So many of our household bills have gone up and now interest rates again which will increase the mortgage.

Stupidly we've not long moved.

Can I rest and not worry about having to sell?

I simply commented on another PP's post, empathising and recognising historic interest rates (15%).

I also recapped and said but this thread is about this mortgage.

No I don't have a full fixed rate mortgage. I have two mortgages on my current house, part variable and part interest only. Complicated by divorce and mortgages moved around.

Ok so the variable part you should be able to switch to a fixed rate with you current lender.

Personally I would overpay the interest only part to reduce that capital owed.

I can't afford to overpay any of it.

I can look at a fixed rate for the variable. Still more than I'm paying now, but will protect me for a little while. Listening to the news, interest rates expected to rise from 0.75 today to 2.00 by the end of the year.
Feeling stretched thinking about it.

How is it possible you've moved from a 1 bed to a 4 bed but the mortgage is less per month?? That makes no sense unless you moved with the same size or smaller mortgage than before. Or you were somehow paying a really high 5%+ interest rate and you're now on 1%?

They could have gone from a mortgage with say 10 years left and extended it to 25

You are wise to be thinking of it, yes get it fixed if you can.

If not, try to economise in any way you can to help later.

The whole cost of living issue is a nightmare

Ok. It sounds like you might be best speaking to a mortgage broker. Sometimes, and I emphasise that word, it saves you substantially to remortgage the whole lot. If you are struggling they can look at the term too.

If you have 2 parts one of them fixed you’ll need to stick with the same provider or move the lot. Sticking with the same provider will be easier, quicker and probably cheaper as it will cost you to exit your other fixed rate deal.
I would book an appointment with their mortgage advisor asap. You don’t have to move products but you can see what they have and what difference that makes to you.
Given your anxiety around a 25bp rise I’d strongly suggest that you need to fix so you know what you’ll be paying for whatever term you choose.

@NovaMN

I can't afford to overpay any of it.

I can look at a fixed rate for the variable. Still more than I'm paying now, but will protect me for a little while. Listening to the news, interest rates expected to rise from 0.75 today to 2.00 by the end of the year.
Feeling stretched thinking about it.

You can also enter the higher interest rate into a calculator and work out how many more £ per month 2% will be, this might be useful as you can start to try to put a bit away each month towards it.

Do you have any discretionary spending you can trim?

@GreenLunchBox

How is it possible you've moved from a 1 bed to a 4 bed but the mortgage is less per month?? That makes no sense unless you moved with the same size or smaller mortgage than before. Or you were somehow paying a really high 5%+ interest rate and you're now on 1%?

They could have gone from a mortgage with say 10 years left and extended it to 25

I've explained. Mortgage rate on the one bed was 15% at the time (early 90's). By the time we sold and bought the four bed the rates had dropped significantly, so the mortgage payments each month were less on the four than the one...

@alwayswrighty

Ok. It sounds like you might be best speaking to a mortgage broker. Sometimes, and I emphasise that word, it saves you substantially to remortgage the whole lot. If you are struggling they can look at the term too.

Thanks, yes that would simplify the 'two' mortgages too.

Now for looking at other savings. Is there a 'likely' increase in mortgage interest rates...to what?

Can you imagine my 90's 15% rate now.....😱

So you've been paying mortgage payments for around 35 years😳....I took my first mortgage out in 1990 ....4 homes late ...we paid our last payment 9 years ago ....hope you won't be paying for any more years

@NovaMN make sure you looks at what your early repayment charges are. You may find it’s not worth switching for the money you’d have to pay out

@kitcat15

So you've been paying mortgage payments for around 35 years😳....I took my first mortgage out in 1990 ....4 homes late ...we paid our last payment 9 years ago ....hope you won't be paying for any more years

Sadly life doesn’t always work out as you hope it will. My mum got her first mortgage when she was 19, is still paying a mortgage now and is mortgaged until she’s 70, so she will have to keep working until then.

@kitcat15

So you've been paying mortgage payments for around 35 years😳....I took my first mortgage out in 1990 ....4 homes late ...we paid our last payment 9 years ago ....hope you won't be paying for any more years

Yep!

DH ran off with his colleague, I had to buy another house and bring up three DC's alone.

Is your interest only on variable or fixed rate?? Whether you have a repayment mortgage or interest only you can fix or be on variable rate (or tracker) for both those types of mortgage.

You really need to get some advice you seem really clueless about something that is worrying you greatly - I mean that kindly. Get some advice and you won't need to worry so much.

Interest rates need to rise. Low interest rates have contributed to the huge rise in house prices.

@NovaMN I think it is exceptionally unlikely to go back to the 15% days.

Re: my earlier suggestion. A mortgage broker will be able to calculate if it is the best financial decisions for you. You need to speak with one because they can do the calculations and will take into account your early repayment charge.

We have a few years left on a 10 year fix. People scoffed when we took it as it wasnt the lowest rate!!

Thank you @alwayswrighty