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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

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Original poster

Mortgage interest rates in two years… is this likely?

22 replies

uavdp · 22/10/2023 20:10

We are on 2.9 fixed for two more years. Is it likely we will get something similar in two years? V worried as we will definitely have to move if it goes up.

OP posts:

Ofalltheginjoints · 22/10/2023 20:11

Im coming up to remortgaging, I spoke with my mortgage advisor last week who advised no more then a 2yr fix as they are expecting rates to reduce by then however no one can say for certain what will happen.

Original poster

uavdp · 22/10/2023 20:12

@Ofalltheginjoints thanks. Feel a bit hopeless at the moment!

OP posts:

Lighttodark · 22/10/2023 20:14

Nothing I’ve read suggests rates are predicted to fall to those levels and time soon (next 5 years)

Ofalltheginjoints · 22/10/2023 20:15

@uavdp i know how you feel, it looks like my mortgage is going to increase by about £300 a month, im hoping that after 2 years at the new level it will come down but it's going to be a struggle.

Isyesterdaytomorrowtoday · 22/10/2023 20:15

ours has 2 years to go aswell and I’d be amazed if we get anything less than 4%. Would you be able to increase the term at all?

goglen · 22/10/2023 20:16

Not at all anywhere close to that

Sparehair · 22/10/2023 20:16

uavdp · 22/10/2023 20:12

@Ofalltheginjoints thanks. Feel a bit hopeless at the moment!

I think there are two separate questions and the caveat is that no one can say with certainty where rates are going, however, fwiw I would say - will you get a better 2 year fixed rate in 2 years time than now? Yes, I’d think so. Will you get another 2.9%. Sorry but I would be doubtful.

PronounssheRa · 22/10/2023 20:17

Mortgage advisors have a vested interest in encouraging 2 year fixes as it guarantees repeat business. Some were encouraging 2 year fixes when interest rates were at historically low levels, which was terrible advice for most people. The fact is no one really knows.

JJJSchmidt · 22/10/2023 20:19

Can you afford to overpay even a small amount, or possibly do so in the future? When youngest dd goes to school, we are planning to use some of the money we usually pay for childcare towards overpaying the mortgage in hopes that while mortgage rates may be higher, the amount owed will.be that much smaller. If you can get it into the next ltv bracket then all the better.

FallingAutumnLeaf · 22/10/2023 20:34

No, I don't think you will get another mortgage deal below 3%.
Probably lower than current mortgage rates, but no where near the rates seen overvthe last decade.

happylittlesloth · 22/10/2023 20:36

No chance sorry

yogasaurus · 22/10/2023 20:37

yeah, no chance sorry.

PerfectYear321 · 22/10/2023 20:41

YABU for putting this in AIBU

The answer is nobody knows, but if you won't be able to afford it if it goes up (what, not at all?!) then if I were you I would start assuming this will be the case as IMHO you will likely be unlikely to get a 2.9% or lower rate in two years.

shivawn · 22/10/2023 20:41

Our mortgage on the house we're currently buying has a rate of 4.65% fixed for 3 years. I'm hoping that we might get a rate of around 3.65% when the 3 years is up (it would knock €200 off our mortgage), I'm not getting my hopes up for anything lower than that but it's impossible to know.

cestlavielife · 22/10/2023 20:42

Over pay now what you can
Take in a lodger
In 2 years increase the term
You have 2 years to plan

TheBabylonian · 22/10/2023 20:45

Current rates are historically normal, so are most likely to stay around this level for good to be honest. The low rates were an aberration.

LittleRedYoshi · 22/10/2023 20:54

This time two years ago, who would have predicted today's rates? Yes, lots of people predicted rates would rise - but nobody foresaw them rising that sharply. Nobody knows - not even the experts. Nobody.

HamstersAreMyLife · 22/10/2023 20:55

We are also up in 2 years, luckily it was a 10 year fix so we've been able to pay off a bit each year to reduce what we owe. We're currently saving heavily in high interest accounts with an aim to pay it all off right at the end. As others say pay off as much as you can in these 2 years and look for a longer term when you come to renew.

AfterWeights · 22/10/2023 20:59

DH and i both work in finance, DH in the investment/funds space.

We are budgeting that we will have to pay 5%+ when our fix ends in 2 years, and that we will be paying that for the rest of the mortgage (maybe 3-5 more years).

AfterWeights · 22/10/2023 21:00

The Babylonian has it spot on

I can't see how property rises won't slide down. They've been inflated by cheap money for too long.

CaveMum · 22/10/2023 21:01

Very, very unlikely though not impossible. We’ve got used to abnormally low rates over the last 15 years or so. Historically the average mortgage rate over the last 25 years has been 5.6% and that’s what we all should budget for.

CaveMum · 22/10/2023 21:04

I’d just add, if you can afford to overpay now - don’t! Instead pay those overpayments into a high interest account (plenty out there to chose from) and then pay it off your mortgage as a lump sum when it renews. Whenever savings rates are higher than your fixed mortgage rate you should prioritise saving above over paying.

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