Can you cope with 6/7% interest rates when your mortgage expires?

[onthefencesitter]

www.bankofamerica.com/mortgage/mortgage-rates/

American interest rates are at that level now and given the level of tax cuts that are going to be implemented, I think we would be at 6/7% at least by next year, perhaps even 8%

Vote YABU for no.
Vote YANBU for yes

Interest rates certainly look like they are going up.

I am very lucky with what I have. There are people who will have to find a lot of extra money a month.

Plus the cost of increased energy prices
And inflation

Technically we could because i did stress test to 8% but ...i didnt really twig how much food, utilities, council tax and other things we buy would go up too over the ten years of the fix we went for. (Which has 2 years to run).

YANBU. I'm worried. We bought our house with a large mortgage after struggling with secondary infertility for years. Now happily pregnant but means our mortgage fix will expire while still paying multiple hundreds of pounds for second lot of nursery fees, which will massively reduce our ability to shoulder any rises.

We would struggle as our mortgage is quite large, but we would manage. We fixed for 5 years recently so not going to have to worry about it for a while and hopefully interest rates will come down a bit in 5 years time.

Ive recently fixed for 5 years and when my fix ends I'll have 8 years left so hopefully manageable.

We’ll be fine as we only have a tiny mortgage left. We almost went for a dream house, taking on a massive mortgage a couple of years ago. If we’d done that, we would be in serious trouble now.

Our mortgage is in two parts - we ported over at a low rate when we moved and took up the extra separately. We fixed one half (they are roughly equal) last month, when its five years expired, but sadly the other half doesn’t expire till next June, so we will have a significant hike in that one, for sure. We can absorb it, but with everything else going up too, we will have less disposable income - so we won’t be growing the economy at all. Today’s measures look like a disaster for the country.

I fixed for 2 years in January at 1.29% so I'm just going to bury my head in the sand until 2024. 😬

So glad we fixed for 5 years then we have 10 years left and can hopefully extent the term if house prices don't tank

Is there a link anywhere you can add your current mortgage amount into to show what ot would be at the 6/7%?

Thankfully our house sale fell through at the last minute and we avoided increasing our mortgage by a fair whack as a result. I shudder to think what we’d be paying on that at anything above 5%.

We’ve just downsized and reduced our mortgage by a 1/3 and fixed for 10 years. We were on an interest only mortgage before with a much bigger mortgage left to pay so I’m glad we’ve moved when we did

No we would not manage at all - our mortgage would quadruple and be £8,000 per month

We would have to sell

We'll be OK coz we have no mortgage. 😬

DD will be OK ... She has a £150,000 mortgage with her boyfriend. The house cost £200,000, but they had £50,000 between them to put down as a deposit. They are allowed payments for a £325,000 mortgage on their joint salary. So even if mortgage rates shoot up, double - or treble - they should still be able to afford it.

We would manage as our mortgage is small but it would still sting considerably. We bought a cheaper house as we were worried about future rises. Glad we did now (even if it is a bit grotty!)

If you use the top half of this with your mortgage & term left and put the % it tells you what your £ will be

www.moneysavingexpert.com/mortgages/mortgage-overpayment-calculator/

Purs would go from £400 to £756 (8%) which would be doable but would mean cutting back a bit.

Good question. Yes, we will be ok as we only have 9 years left.

That said I'm worried we will have to extend the term to keep the payments affordable. This would feel as though we'd wiped out all the progress we've made.

We've decided to put all our savings and sell the posh car we own outright to halve what is left on the mortgage. Not ideal at all but we are fortunate that we can do something to mitigate the rate rise.

Yes we don’t have long left. (Plan to move though) 😣

We recently fixed for 10 years, which I feel relieved about.

Rates were between 4.75-5.75 during the year after we bought our house, however we didn’t have DC back then, so we had a lot of disposable income.

I've stress tested to 8% but it isn't pleasant, will take our mortgage from £870ish to £2400, we can afford that but will mean a change in lifestyle. We've got 3 years, we are both going to try to get pay rises, really hoping it might peak and calm down by that point though.

Yes but mine was 5% to start as adverse credit

We took a new fix at 2.7% in August for 7 years, which is the remainder of our term. We’re overpaying by 30% pcm and have just made the maximum cap rep we’re allowed for this year. If cost of living really starts to bite we could drop the payments down to the contract level, but paying off the mortgage early is our priority.

At 8% our mortgage would double from £800 to £1600.

We would be stuck as with other bills and childcare we can’t afford that.

Is that interest only? Trying to understand the maths on that!