To ask how much your mortgage has gone up by?

[jaychops]

Fixed rate due to expire early next year so starting to prepare myself! We owe circa 180k on a 300k-ish property. 22 years left on mortgage and don't want to extend. Currently pay 850 per month. Eek.

Out of interest, how long are you all fixing for? My (enormous) mortgage is valid till 2027, thank god - surely things will improve by then??!

Ours went fron £728 per month to £840 per month. But we were making payments a of £1000 per month anyway so the actual amount we pay has not changed. We are obviously overpaying less of the capital - which is a bit of a first world problem.

I’ve just fixed our at 4.75 for 3 years as our deal runs out in September. It will go up around £300 which is ok

From what I understand they’d likely cancel out yeah. High house prices can’t continue if rates are so high, high rates make monthly payments so high so people will be forced to buy cheaper properties or not buy at all so house prices will definitely fall. Stay where you are! Sounds like a lucky position to me

For those pondering on what to do.

The money markets are currently indicating that UK interest rates will have hit 5.75% by February 2024, up from 4.5% today.
https://www.theguardian.com/business/live/2023/jun/15/interest-rates-to-remain-high-carney-ecb-fed-mortgages-business-live

I'm not a fan of people claiming they know what interest rates will do in the future but things look hairy. Base any decisions on what you are comfortable living with, rather than hope.

There is also no incentive to buy right now. We could do it, just, affordability assessment says so. But we will lose 600, possibly 700 a month from our budget just to say we have a mortgage. Not worth it when our rental is secure. We could utilise that money so much better - enjoyment of life, investments and savings elsewhere, make having a young family easier as we’ll have a bit more in our pocket for when my income is reduced by maternity leave. It’s a no brainer for us but it’s sad that it’s that way.

I'm not sure this kind of comment is helpful. If people can't afford more, they can't afford more.

I can't work out whether its bad or good either (I was interested in upsizing).

But I can tell you when I was buying in 2019 and mortgage interest rates were 2.05%, everyone was advising me to future proof as much as possible by buying a 3 bed house with big garden as a FTB. As moving is expensive. Future proofing is good in the sense that if you get stuck in a property, you are fine but generally larger homes are more expensive so there is also a bigger mortgage. And most FTBs don't have much equity. If you are in a small home, its more uncomfortable but generally smaller mortgage. Where I am (London suburbs/SE), the larger properties in a less popular location are always more expensive than the smaller flats and houses in a more popular location cos people really prize space and this was exacerbated by the pandemic.

I think people will think twice now about stretching themselves for more space..

That is terrifying.

our fixed term ends at the end of July and was £850 per month £550k house/ £220k mortgage and will be going up to £1200 per month on a 5 year fixed rate so an increase of £350 per month. We waited hoping the rates would come down but our independent advisor said the market is too unpredictable and the rates are unlikely to go back down to below 4%

We have 27 months left @1.42% and will have 4 years remaining on the mortgage. Have been overpaying whilst rates have been going up too. We wanted to move to a nicer property once the fixed rate ended but that is probably not going to happen any time soon as we will need to save more and have increased payments 😔

Took a 5 year fixed at 3.99%. This started beginning of May. Went up £282 per month extra on a £250k mortgage. I'm working four extra hours a week now which including the pay rise I got, thankfully covers it.

Yes, very worrying, I feel we're heading into a really bad period.

Should I pay early repayment charge of 8575 if I am due to remortgage next year. My current interest rate is 2.05%

@TheFlis12345 Really similar to you! We bought last autumn and fixed at 3.25% for 10 years.
Everyone tried to talk us out of fixing for so long but for us, we’re hoping to have our second child within the next couple of years and we know that the deal we have is affordable for us while I’m on maternity and if I return on reduced hours afterwards. Seemed like the right thing for us to do and I’m glad that we did because things are getting a bit out of hand 😳

Very similar figures to you expect we are on a 5 year fox ending November 2025....very much hoping rates have come down by then

You need to do the maths, you have only given one figure - what is the comparison?

See a broker.

Yes, I think I will stay where I am. It's not ideal but I guess it will allow me to build a bigger deposit and (hopefully) ride out this bad financial period. I'm just hoping that things do eventually reverse in the not too distant future and that I get on the property ladder at some point.

Broker said it wasn't a good idea and I should overpay. I have been overpaying, an extra £1250 per month.

I did the comparison, it doesn't mathematically stack up but I don't know what the rate would be in Jan 2024 (earliest I can fix).

I can’t envisage any scenario whereby you would want to pay to get out of a mortgage which is hugely under the current market rate.

My son is buying
big deposit 52k and has access to another 20k if needed
his plan is to buy the a three bed 2 reception and rent out one of the rooms if he needs to

he is looking at the 300 325 price and has made an offer yesterday

he has already got a MIP at 4.9 valid till September so he can wait if he needs to

he did say to the estate agent his offer is good till Monday and then once the next rate rise happens he won’t buy it so it’s up to the sellers if they want to lose the sell- they want to downsize

they have been on the market for a month will lots of views but no offers so if they want to sell my son is a good buyer
it was up at 325 and he offered 315

Ours has gone up around £200 from around 1k to 1.2k now

We went from below 2% deals to 3.5% on average

We have 60%ltv our mortgage outstanding is around 220k

I broke my old fixed rate last year before the rates started rising and re-fixed for 5 years at 2%. Maybe I should have fixed for longer, hard to know really but we'll likely upsize before this fixed rate ends anyway.

Our payments went up 23% and that was in September last year just after the first increase, nowhere near what it is now.

One of mine went up from £665 pcm to £3,850 pcm whilst I was waiting to remortgage it.

Now I think it’s circa £3K but that is partially repayment whereas the original one was interest only.