To be terrified about mortgage

[melodypondisasuperhero]

We finally managed to get our first mortgage last year and now this is happening. Our rate is 3.09% which runs out in August, currently the follow-on rate is 5% but I imagine this will go up several times before the end of the fix. We could manage 6%, probably just about 8%, but any higher than that and I really don’t know.

AIBU to be terrified? Or am I missing something?

Because this Government has screwed people over. If not by mortgages then with cost of living.

Something will need to be done and ASAP.

The impact of their policies are simply shocking.

I totally agree with @HintofVintagePink . Years ago when I got my first mortgage I was asked a similar question in regards to managing any increase in interest rates. I started at about 7-8% and managed the increases that came after. I was prepared as I had my eyes opened to the fact that interest rates can go up as well as down.

Our first mortgage was a 2 year fix. HTH.

Well yeah. I agree with that entirely @Cosmos123 I don’t understand why people keep voting for them myself but that’s unrelated to my comment that you linked.

I just think that when an OP asks if they’re being unreasonable to be terrified about defaulting on their mortgage and seeking reassurance/advice, it’s pretty obnoxious to see so many people responding with smug posts about their fixes.

The Tories have fucked up the economy again. I hope people NEVER forget.

Anyone on a fixed rate that might end soon please pick up the phone to a mortgage broker as you may be able to arrange your next mortgage earlier and secure a better rate.

It is despairing when they do.
The red wall was conned into voting tory.
The tories had absolute zero interest in them then and could not care less about the impact of rising interest now.

I think fixing for a longer period may be worth it . The knowledge of knowing exactly what the mortgage will.be is better than the anxiety of the unknown.

Come out of your equity usually, doesn’t it? Which is why lenders don’t like lending on more than 70% LTV these days.

They can sell a house for 70% of what it’s worth, then they get their loan back and you just lose your equity. House prices falling by more than 30% would be a major crash, we aren’t at that point yet.

In a worst case scenario the banks could offer interest only or extend the mortgage period to make repayments manageable.

This could avoid many repossessions.

Apologies if this is a stupid question. In any job, when you propose something, you will need to back it up with analysis, reasonings, modelling, projection, peer reviews. How is it that KK and truss can just decide on this budget without supporting evidence how they think it will work?

I can’t get off my variable rate as I ran into financial difficulties when I wa a unwell a few years ago

im beyond worrying now it’s been impacting my health it will make me ill and I can’t afford to be. next year I shall be forced to sell or the bank shall sell for me

They know they are here for a limited time so doing all they can to help Gheorghe mates make money and leVe a mess for labour.

*their mates

"But a 2020 study by academics at the London School of Economics examined the impact of such policies in wealthy countries over five decades - and found they failed to significantly boost growth or jobs. They were more likely, the study claimed, to widen the gap between rich and the poor."

@Cosmos123 fine, they can pass whatever policy to scratch each other's back. What i dont understand it, why didnt they have to present evidence of how it would work, maybe some sort of detailed economic projection, some historical successes of similar policies elsewhere,etc.

Here is a taster of what is to come.

My payment is going from £440 to £1020.

if you think gas and electricity is bad, this ticking time bomb is a nightmare!

How is that possible? Can you state your interest rate before and after, and your mortgage amount?

Oh god, this is the stuff of nightmares. I hope you will be able to manage

This sounds awful for you 🙁

Of course they'll forget, just like they forgot all the other times.

It sounds wrong tbh.

This is my very basic understanding of what has happened. Would be happy, delighted even, to be corrected with what I've misunderstood.

Yes the policies are traditionally 'stress tested' by the OBR in terms of social impact etc.

However, ThickLizzie and KK decide "Fuck that .... we'll listen to our disaster capitalist mates ... and do what they want ...." Once that decision was made, it is alleged they then told hedge funds their plan in advance of sharing the lunacy with the electorate. Meanwhile, their mates and now the hedgefund managers set about shorting the £, making £Bs for themselves in the process.

I heard the ex-governer of the BoE yesterday saying (obviously paraphrasing here) .... The BoE has its foot on the brake in a tried and tested way of attempting to reduce inflation. TL/KK/their disaster capitalist mates have their foot full on the accelelartor in an attempt to crash the economy (whilst syphoning off as much as possible for their mates).

So far as I understand it, beyond 'helping out' their mates, they intend (now as a result of their reckless spending/borrowing) now to reduce the state - NHS, education, welfare - just about everything that matters to ordinary people.

Meanwhile, tonight, the IMF have confirmed the UK is an economic basketcase and we're circling the drain towards banana-republic territory.

(*) accelerator

I remember when interest rates were 17% at the end of the 70s. Although I was a child, my parents discussed it so much it became ingrained in my memory.