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

I have a let flat which I was keeping for my child, about to become 20. He's says he doesn't want it so I'm going to sell it before 2024 when the fix ends.
Or when the tenants give notice which will probably be next year. Residential mortgage. Nearly paid off.

Yes. You're meant to stress test your mortgage.

No. We’re moving ASAP.

Thank goodness we fixed for another five years earlier this year.

Yes. I’m very risk averse financially.

Just about to fix before our current fix expires in December, thankfully. If not would manage at the expense of kids activities, holidays etc. Small mortgage, and only 10 years left. Our circumstances are about to change in the next 12 months with no childcare bill and me returning to employment after a few years of sahm and graduating next year.

I'm quite old so we are fortunate that ours is paid off. I would love to make some money on our savings though so - being completely - selfish a rise in interest rates will be really good for us. When we did have a mortgage though we did pay higher rates than they are currently.

Yes. I will have 9 years left in 4 years time (at the end of my fix) and my payment at 8% would go from £600 to £870. I save that amount into my pension so it could be diverted, or my back up plan if not longer earning as much is to extend the mortgage, or get a lodger. I am quite risk averse, so bought a much smaller house on my divorce than I could have done.

Thankfully we fixed for 10 years a couple of years ago at 2%. Once the 10 years has finished we will hopefully only have a couple of years left.

Our five year fix expires next summer, we are dreading it!!! We were hoping to release some equity for home improvements but will probably have to rethink it now.

We're lucky enough to have fixed for five years just before the rates started climbing, we've only got a small mortgage left and have savings so we'll probably just pay it off when the five year term finishes. I know we're lucky.

We fixed for 5 years last year at a good low rate. Beginning to wish we had fixed for 10 years but didn't know if we would want to move in about 5-7 years so didn't want that gamble. If rates are going up and up we won't be moving so wish we had fixed for longer.

@TheWeeDonkeys

Thank you. Our mortgage amount is similar. It's such a jump. We can manage but like you say it does mean cutting back.

I suppose the next two years until our fixed rate ends is to save as much as possible to make a lump sum payment so we can have a smaller mortgage as possible.

Might be worth remortgaging now sucking up an early repayment charge to lock in a 5 year rate

Yes, but with the combined increases in gas and electricity, I think everything together will make things tighter. Fortunately our nursery bills will reduce in one year, then disappear altogether the year after that which will help hugely.

Our 5 year fix is just coming to an end and we should be refixing in the next month, so I'll hopefully be going for another 5 years.

Our 5 year mortgage (of a 30 year term) expires just after I stop paying nursery fees (for the first time in 10 years). So that’s where my extra funds will come from.

We are trying to over pay as much as we can do now at the lower rate of interest.

We fixed last week for 10 years at 3% as realised rates would be going up again this week. Should have done it sooner as our previous fix had finished a little while back and I'm sure we'd have got a better deal, but at least we know where we are now.well only have a couple of years left after that. We would not have been able to afford much higher rates.

I'm really worried. Single parent/carer with a large interest only mortgage due to divorce and having to give up work to care for my child. I get some help with the interest but it's a loan charged to my house and I have to pay the extra which on a limited fixed income is difficult. The only positive is that I have significant equity, around £260-300k. I'm in the Home Counties.

I am currently considering selling and relocating and buying outright if that's possible. I am absolutely overwhelmed with what to do and nobody to share that worry with. I don't know where to start to make that decision. Absolutely terrified with how things are going in this country and particularly after today's horrific budget.

Paid the early repayment charge to get out of our fix earlier this year as could see things were only going up. Managed 1.9% for 10 years and feeling so relieved now. Our mortgage is already high, over £2000 a mo

Jesus Christ. I have been following a chap online who has been in the property game for years and he said house prices could drop by 40% and is expecting recent FT buyers to be in negative equity. I have been following this for a while and expected this, but the rate in which things are declining is quite shocking. I hope you can manage the increase. I hate the way in which home ownership has become a lottery.

Thats terrifying. I have two years left of a fixed rate but am going to try and pay it down as much as I can. Current mortgage 648. I can not fathom being able to afford £1300 a month.

When we bought rates were generally around 5% and they've sat at a falsely low level since the financial crash. I think its awful that lenders haven't had to consider the return to normal rates when assessing affordability to repay.

At 8% our mortgage would be 2k a month.
Yes we could afford it. But it wouldn't be pretty.

On the basis of advice on here we bought out early, paid a fee and fixed for 10 years. I thank my lucky stars every year (a) we had money to buy out and (b) I read Mumsnet.

Currently saving £30k over the 10 years so THANK YOU MUMSNET

Just about. We're currently fixed for 5 years ( 4 and a half years left). By the time we need to remortgage our youngest will just have started school so we can afford it as we will be past the extortionate nursery fees.
However there is a fair amount of work that needs to be done on the property and a mortgage hike like that would eliminate any potential work on the property