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😔

Luckily £0 as I fixed last Aug for 5 years which I was able to lock in during May 22.

I only ever fixed for 2 years prior to that, I'm wondering whether I should have gone for 10 this time but hey ho.

OH fixed last Nov a year early due to the forecast interest rate rises and paid a penalty (which has been worth it).

Got lucky and I fixed at 1.69% just as my deal ended post covid for 5yrs. So another 2yrs left to go. But to be honest I am not worried about the rate I might get as its too far to predict. However when I first took my mortgage about 10 yrs ago rates were around 3% to 4%. Think my first mortgage was 3.64%. So even if in 2yrs when I have to renew its around that figure I know I can afford it.

Just lucky timing for me.

Nothing currently but only through chance (rather than superior intellect as some would have it) as we opted to fix for 5 years when we got the mortgage, so have 2 years left.

We'd be in trouble if that weren't the case and I really feel for those who are having to find that money now on top of everything else. I do worry about the situation often and the future.

@OnTheBoardwalk

That's definitely a good option, IF you can, you can always change it back when you're in a better position.

I can't extend mine without a LOT of hassle, because it's already until my retirement age & only in my name.

(Fortunately I'm ok, unless I move as I have a 5yr fix (fairly recent) and it's not a big mortgage, but others might not be in the same position & unable to extend. Well worth it if you can though. Obviously more expensive, but as a stop gap IF people are on the edge)

I've spent 15+ years fixing and paying a much higher rate than those who didn't. Now my fix on half my mortgage is coming to an end just at the wrong time and I'm likely to now pay more than those who fixed a year ago. Whatever I do, it's always wrong!

What an arse

💐

And how would you have avoided this if your fix ended in Dec 2022?

It's kind of a silly answer that you fix to avoid a rise when the rise happens at the time your fix ends!

I had a period of this when we fixed and then interest rates plummeted. We were stuck with another few years of high interest while others couldn't believe their good luck 😬🫣

Mine too. No early repayment penalties, either .

Yes this is a UK special..

I'm amazed that's allowed, with the massive impact an unstable housing market can have on the rest of the economy.

One lender last week changed its rules by the way to allow 20% rather than 10% repayment a year without penalty (not mine)

I don't think it is easy to compare to earlier times really as so much changes. We were paying about 17% at one point - have had a mortgage since 1984. At another time we had borrowed 4x my full time salary and not onyly was it interest only but part of the interest was deferred and added to the loan (I can be a bit of a risk taker). IT was the only way we could afford or 1990 house. Then we had Black Wednesday in 1992 when rates went up 5% in a day although they then dropped a bit. We also locked in on a "buy to lose" (as I call it )flat in the 80s at 10% for 10 years - not a great deal that turned out to be when rates then went right down!

I am going to try to pay the rest of mine off this year if possible (as I am getting older now and my lender keeps reminding me mine is interest only now and do I have a means to repay it.

Which lender?

It's NatWest.

Yes, Nat West (not my lender). I just looked it up and it was not last week (which was my recollection) but since February https://www.yourmortgage.co.uk/news/natwest-to-allow-annual-overpayments-of-20-of-mortgage-balance/

@DashboardConfessional
@Xenia

i wonder if others will follow?

not that it'll help me (or many others I suppose). I'm hoping to move, so I'm not paying down my existing mortgage so I can port more at a lower rate & take out a smaller amount at the higher rate.

I can't find anything to buy though, there's just nothing coming on the market (not much outside my price range either)

We are with pepper money we fixed for two years and they won’t fix us again so we go variable rate in June. My husband is self employed with what will be three years of accounts, we could only find one lender before. Have to wait until he files, then try to remortgage. But pepper have said the rate increase would b 700 if not more. That’s a fortune for us. @Monstermoomoo i feel you!!