How much is your mortgage increasingly by because of days interest rate rise

[Birthdaygirltoday33]

With inflation, council tax, bills and everything else...it feels never ending😔

Oh my god! Hope you're alright @Monstermoomoo that's horrific

@FijiSea we have secured a new deal but it doesn’t start until our last deal finishes and we can cancel it with no charges.

Ask your current bank if you can do something similar; i think most of the large banks allow this.

They're available but interest rates have been so low that for a number of years they haven't been particularly cost effective as variable rate mortgages have tended to be lower. I fixed mine for 5years when the rates started going up at the end of last year and even then the rates went up by over 1% from me making the initial call to getting an appointment to do the application. I'm fairly lucky that mine has stayed within the amount I used to transfer between accounts each month anyway (and my mortgage is fairly small) so I'm not noticing the slight increase but for people who are coming to end of fixed term periods they could be in for a big increase.

Yes @Tellyaddict123 , we have already got a provisional quote and with increase in interest rates will be around an extra £160 a month.
That might not seem a lot but with everything else going up substantially it will really impact us.
If it was just the mortgage without my gas and electric doubling etc then food and fuel we would be ok, but it’s everything compounding.

£0, not smug, but we got lucky with the timing as our fixed rate as running out earlier in thw year and we fixed for 5 years at 3.3%. Previously we had always fixed for 2 to 3 years.

You might have a nasty shock at the end of your fix though. They do end!

We haven’t had any energy price increases yet as our fix has continued through the recent energy crisis. But I do realise that when it does end we will be paying more! Fixes are not (usually) for life and each decade sometimes I have avoided big rate changes and sometimes not. It’s mostly luck.

Nothing at the moment but we paid to come out of our last fix early and fix again last September. Literally the day before all the mortgages were pulled and came back at much higher rates after Truss's fuck up. That added about £100 to our monthly repayment but meant we have a fix much lower than if we were fixing now (our original fix was due to end this summer).
We're lucky to have been able to afford the charge to do this though.

@FijiSea ive heard the rates might decrease….i shall keep my fingers crossed for you and I!

We were fortunate to fix for 5 years in late Sept 21, so we're still on 0.75% interest. I'm trying to save as much as I can now so that when the time comes in three years time, we'll be braced for the huge shock to the system.

I was always told fix for 5 years, because in that time there's always time for the market to crash and recover.

It has bitten us on the ass though. When we bought our first house, we were tied in for 6% interest for 5 years. Literally three weeks later, the crash of '08 happened and interest rates plummeted.

My personal view is I always want to be long-term fix to protect myself and know what my outgoings are.

They're saying it might be peak interest rates so hopefully they'll come down again... I'm on fixed rate for a while but I know for people who's fixes end around now it'll be rough going.

We have always gone for trackers at just above BoE base rate and have done so for almost 20 years, saving us SO MUCH compared to people who’ve fixed - even at 2%, that was more than we were paying for decades.

So although our percentage increase has now gone up it’s still nothing like the money we’ve saved by NOT fixing in the past. And because we threw money at it while rates were so low we’ve only got 50k left to clear.

fixing is not always the better deal, banks do it because THEY tend to win, not you.

I'm on a new tracker as it happens. It's for two years and no product fee. At the time and thanks to Liz Truss's tanking of the economy the fixed rates were higher than the interest rate is likely to be in around 18 months. So it's a gamble but not a huge one because it's not a long term deal.

A lot of fixed rate mortgages available at the time were higher interest + product fee so for two years they weren't that attractive.

I think over the next few years the rate will be generally in the 3’s- so lower than they are now but not really low like they were.

The 5 year fixes are lower now than the 2 because they have already factored in the projected decreases to some extent.

We actually have 2 different mortgage products on our house, the biggest one is the one that we have just fixed for 5 years at 4.13% (no fees- could’ve been 3.99% with fees). We have another fixed that runs out next year and we are gambling on leaving that until it expires as we might save 1% over fixing that now once you consider the ERC too. But it’s a risk.

I don’t think the difference will be vast though.

I sucked up the ERC once when the rates were really low because it paid us to do so. So even a fixed can be got out of. If rates suddenly go back to sub 1% we will switch again. But I doubt that’s going to happen sadly!

Our fix is coming to an end in the next few months and our payments are likely to go up from roughly £1150 to around £1550. We're considering extending the term to reduce the impact, or possibly going for a tracker rather than a new fix as consensus seems to be that rates will peak soon.

Well obviously, but then we'll pick a new fix for 2 or 5 years so we can budget for it. No shock rises when BOE raises interest or anything.

Same as with gas/electric, we're fixed and then will deal with increase when the fix ends

Mine has gone up by £300 a month. Really painful!

Excellent point TellyAddict about the huge 90s interest rate rises. Also loads of people didn’t manage to cope with it back then. I know two families with kids personally that lost their homes. It has absolutely scarred the kids.

I also worry about rent rises because of this. Something that the wealthy home owning Tories in government won’t have anywhere near their radar. Rents will go up massively as costs or perceived costs go up for landlords, and as there is less rental supply as landlords are forced to sell because of interest rate rises.

I know at least one landlord who already has a house for sale because they can’t afford mortgage repayments. It’s not selling because surprise, nobody else can afford it either. Is this when housing prices (to buy) will fall? What will happen to renters then? Why is the government not funding more local authorities to build more affordable homes? Feels like all this is inevitably what happens when people vote for politicians that are millions of times wealthier than themselves.

Snap. And because of this we’ve been able to overpay quite a bit too.

I think the increase equates to about £10/month off the top of my head.

I have some BTLs (can't sell them, cladding issues, can't remortgage them either for same reason as they're currently worthless, don't yell at me for being a landlord, I married them) so are all on SVRs.

After today's decision I will go from subsidising them by £1100 a month to about £1600 a month. Yippee!!

I get that but wages were a lot lower as well.

my first house cost me 32k,( two bed terrace) I bought it by myself. Interest rates were something like 7%.

yes I was lucky to get my first house when property was so cheap but my wages were 10k a year, I bought that house on my own. My mortgage was something like 210 a month and I think I cleared £700 a month. So I had £510 a month for council tax, house insurance, life insurance, water, gas, electricity, food and I ran a car. Times were tough. I had to get a lodger.

I'm still I told you so-ing my husband because I wanted to arrange a 10 year fix last Feb at 1.89%.

Bloody idiot wouldn't just let me sort it. With savings, it would have taken us to the end of the mortgage, and we were obviously never going to get significantly better.

That’s what everyone else is doing? How are you doing anything different? You make no sense whatsoever.

Because the OP is saying they are seeing an increase today because of the interest rate hike, which means they aren't on a fix.i am saying i don't understand or know anyone who isn't on a fix, which is why the effect on my payments right now doesn't change

We booked a new 5-year fixed mortgage in August/September that started 1st March when our previous fix ended. So we have gone from 1.89% to 3.41% with our payment increasing £120 a month (with additional £15k borrowing).

Yep you are right and it’s shit