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😔

People choose different options. It's your choice. Dh Fixed a few years ago, for a 10 year term, till the end of our mortgage. So we know ours won't change. Some people think that's risky.

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

the ratio to house prices is more important

Someone above mentioned fees. I'm always amazed at how often people look at the mortgage deals but forget about fees. I do a TCO calculation for mortgage and fees over the period of the loan, and the zero fee mortgages always work out cheaper (mortgage under £150k and 17 years remaining).

Some people even add the fee to the mortgage, which is good for the bank.

It’s basically everyone that’s fixed rates ends this year that will be impacted isn’t it.

yes that's the issue.

I also think it's mentally quite hard for people to get around paying more money on just interest as it feels like a waste

Same! Fixed for five years ends in November. It’s terrifying really.

Not always. I was with nationwide and could only secure a rate 2 months in advance with the same (long story re. Why I had to stick with them).

If I hadn't inherited enough money to pay my mortgage off a couple of years ago, I wouldn't have enough money to pay it now. It's that simple. I sympathise with anyone in this position.

I'm afraid I can't contribute due to my age, mortgage repayment amount and when my mortgage will end. Someone will just shout 'smug' because in this one regard, I'm doing better than they are. Guess what, there's hundreds of thousands of people doing better than me for lots of reasons, I'm not bitter about it though.

Fixing is really down to timings
Within 12 months it's gone from ridiculously low interest rates to what feels like high ones (although historically they are probably still below average). If your deal is only coming to an end this year, you wouldn't have been able to fix at a lower deal without paying an early repayment penalty. It can happen to anyone (and has happened to me before, several times). I suspect a lot of people fixed around 5 years ago when rates were below 2% and many will now be coming to an end at the worst possible time, especially given all the other shit that's making living much more expensive.

Yep, that's us, five year fix coming to an end in September, interest rate will at least double and we can't really extend the term as it currently runs to our expected retirement age.

Those figures are wrong. I just checked them.

£70k at 15% £828
£280k at 5% £1588

Take inflation into account - £1 in 1991 is worth £2.75 now. - so that £828 now becomes £2277.

On a fix

I pay £1600 pcm, I'm fixed for 3 more years, but if I took the exact same amount now it would be £2180 pcm.

Our fixed rate ends on 31 March 2023. We fixed 6 months ago @4.95% and our payments are increasing by £25.
We are coming to the end of our mortgage, just under 5 years left so not a huge mortgage.

So thankful as with everything else going up, to have a big hike in the mortgage would be a massive game changer

Also got very lucky with the timing and length of mortgage.

I fixed on a five year deal and got 4 years left.

We also got semi-lucky with the timing of our previous 5 year fix ending in September just gone. We booked another 5 year fixed deal in the summer, but our rate went up from 2.2% to 3.45% which was another £150 a month.

As somebody said up thread, based on my previous experiences, I was looking forward to a reduction in payments as the capital has been paid down. No such luck. I feel for those who have been impacted to a greater extent than we have and count ourselves ‘lucky’ that it wasn’t as bad as it could have been.

Our fix ended last year and monthly payments have gone up by over £400 on the new fix. It's taken a few months for everything to catch up cost wise and admittedly now that it has caught up (utilities, rising food costs, fuel etc) we have had to cut back on a lot - we won't have a holiday, only doing food shops online so I'm not tempted to add random crap in, dyed my hair back to its natural colour so I don't have to have maintenance etc.
We don't have any other debt apart from the mortgage and don't want that to change.

Are you on a tracker op?

How does it affect the days? I'm on a fixed rate and the rate goes up at renewal and we pay more but it doesn't affect the days.

The days = todays

On a variable interest only. The last 12 months have seen me go from £350 to £1100. I can't fix as it's joint with ex-husband who is taking full advantage of the rates to try to get me to a point where I can no longer afford it and I'm forced to sell

I managed a 5yr fix at 1.5% 18mths ago, so thankfully not needing a fixed rate again for another few years. Feel for people who are facing huge hikes.

How come people seem to think it's horrific if a mortgage goes up by £400 or so but then tell renters- well that's what the market is so you just have to pay it or move somewhere cheaper- owners rarely mention the word horrific on those posts. Not trying to be goady but bear a thought for renters who need to renew and get asked for £500 a month more- happens a lot with nicer family sized houses. We were once told in Oxford (despite being 100% up to date on rent) in a very nice house that we couldn't renew after 12 months unless we paid £500 a month more and 12 months upfront !!! for no other reason than the university had offered the agent 12 months upfront for overseas professors coming over.

Our fix was due to end in May but we refixed early last month for five years. It's £120 more per month than we were paying but at least we know what we'll be paying.

We've always been fixed. I prefer knowing exactly how much to budget for. Our last fix finished in November and the new fix gave us an increase of £10 per month. It will see us to the end of our mortgage in 3 years time.