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😔

I don’t think people would realise just how much inflation has eroded our money. You’re definitely not comparing like for like.

Yes you’re correct fixing mortgage rate means different things in the UK v US.

In the UK it means to fix for 2, 3 or 5 years then you have to remortgage based on the prevalent rages at that time while in the US it means fixing for the life of the mortgage.

They also have variable interest mortgages called ARM (Adjustable rate mortgage) but given the low rates in the past few years it just made sense to fix in the US.

Difference is based on how mortgages are funded in both countries.

So glad we came out of our fixed early pur mortgage rate was agreed im November we've started it this month and its gone up £400 a month
Our broker was worrying if we'd left until May we could be looking at £700/750

Feel very sorry for people with this its very tough

@hattie43 oh I agree totally, I've posted about this on the thread with the lady who is loathe to move out, I've had lots of very good landlords, including current ones. This was more about the odd few who insist on posts to renters that it's market forces and if it goes up by £500 so be it- or move out

With HSBC they allowed you to fix a new deal then pay a chunk off the day the deal started. It was a few years ago now but I think most lenders follow this rule.

You can usually repay 10% once a year without penalty. I have paid the penalty sometimes as even that can be worth it - you need to compare 5% penalty on the sum compared with the interest you would be paying on that sum you otherwise might pay off and not just one year of interest but longer.

We paid the 10% extra a year but every time we came out of a fix and into another one on one particular day in that switching period you could pay off as much as you liked. I always did it over the phone with HSBC.

We're fixed until November. Preemptively shitting ourselves for then though 😬

Fixed for 10 years few years back. But we always worked out what we could afford for a mortgage on 5% interest. As before the ridiculously long period of low interest rates, most mortgages were around 5%

£0. Thank fuck that in 2019 I took out a 5 year fixed rate. My fixed rate will finish just before DS starts school. I don’t know how I would have coped paying a higher mortgage and nursery fees!

I’m thanking my lucky stars I took out a 29 year fix and still got 4.5 years left. Trying overpay nuts while I can but as a single parent with everything increasing it’s not easy. I felt for anyone whose fix is coming to an end and dread the day mine does!

• overpay bits not nuts 🤦‍♀️🤣

Ohhh that's really good to know! Our mortgage is with HSBC, so will look into this. Thanks!

Ours is fixed at a cracking rate for another 4yrs but if it went onto the SVR rate tomorrow it would go up by £400pm which is terrifying

Ours is increasing by £300, our fixed mortgage rate has come to an end. With the new rise we are veering into debt and may be forced to sell.

Well the context is twofold:

yes there are a lot of people on fixes but they have terms of 2 and 3 years (most common) to 5 and 10 years, so obviously lots have come up for renewal.

There are also a lot of people on trackers (base rate plus 0.25% or 0.5%) because interest rates were so low/zero, it wasn’t worth fixing as fixing would mean a higher rate. That is now impacting people a lot since the base rate went up.

None as we are fixed at 0.95 for another 4 years, but we have decided to act as though it has already gone up. We are going to cut back our fun budget and retirement savings and put £500/month aside for when it does go up at the end of the term. We're going to put it in our 5% savings account. At the end of our fix we will use the ~£27k to either pay down the mortgage in a lump sum or withdraw an amount monthly towards the excess mortgage. What we do depends on which % rate is higher- savings or mortgage.

We renewed ours last month, up from 1.89% to 4.28%. Trimmed some time off the term. Extra 400 a month.

@swingersnotroundabouts

what an utter bastard!

do you have kids? Does he even think about them (if you do)?

have you looked at losing the battle to win the war? (In this case, giving up the house, taking your share and buying something he can't fuck with?)

but there's a particularly hot spot in hell for the twat!!

🙄🙄🙄

Maybe, you know, it's not those of us on this thread telling renters that????

I have as much sympathy for rents going up, as mortgages going up, if not more.

@Hedjwitch that's a nice position to be in 😊. Is your house one you're happy to stay in? I've chosen not to over pay mine because I really want to move and as I can
port my mortgage (on a fairly low rate (2.48) it makes more sense (to me anyway) to save instead of overpay & reduce the second chunk of the mortgage that will be on a much higher interest rate.

@MarchMadness23 You are probably right- have seen it on so many other threads though ! It's shitty all round to be honest unless you've got a small mortgage and/or have owned for years

I was lucky to fix at 1.75% 18 months ago and have been able to overpay a couple of quid but I’ve now had to stop this over the recent months

based on current interest rates if my fix was to stop now I think I’d have to remortgage for a longer period

0 fixed for another 3 or 4 years I think.

@Tellyaddict123

But wages were a lot lower. My first job paid £12k (city of london) similar job now (graduate) pays £32k outside london. £40-46k in London, have a dsd currently applying.