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Original poster

What do you think will happen to mortgage interest rates? Wth the

179 replies

PeepsAndSheeps · 28/04/2022 09:14

What do you think will happen to mortgage interest rates? This is my first time having a mortgage during any type of a financial crisis. They've been going up recently, I assume that's set to continue?
Is there a point at which they can't go any higher? I know there were interest rates of 14/15% in my folks day.

OP posts:
Thread gallery
5
maryandtrees · 29/04/2022 20:35

I am remortgaging at the moment. There aren’t any deals under 2%. We are fixing at 2.3.

Horcruxe · 29/04/2022 20:58

I managed to fix for 5 years for under 2% interest, with a 85% ltv a couple of months ago.

Will see what happens but if interest rates shoot up, am in a position to overpay and make it manageable when the fix ends.

sonicred · 29/04/2022 21:07

@ChiswickFlo yep but don't have a 60%LTV

I remember when the banks gave interest on your savings.

i'm not sure i was born then! 😆

sonicred · 29/04/2022 21:08

@maryandtrees is that 2 or 5 yrs?

GreenLunchBox · 29/04/2022 21:11

MidnightMeltdown · 29/04/2022 19:58

Inflation is high at the moment, the traditional way to combat inflation is to raise interest rates...

But this isn't traditional inflation. Inflation is being driven mainly by the cost of imports (primarily energy prices). How is raising interest rates in the UK going to combat that?

Thank you..... someone who gets it!!!! Everyone else seems to be parroting what the BoE says.

GreenLunchBox · 29/04/2022 21:12

Maybe not the BoE, but the govt/ BBC/ usual commentators

GreenLunchBox · 29/04/2022 21:16

Another reason I wouldn't rush to overpay the mortgage if you can get better return on investment elsewhere is that inflation soon makes mortgages seem very small.

sonicred · 29/04/2022 21:23

Aren't the markets suggesting a recession is looming? the drop in sterling?

GreenLunchBox · 29/04/2022 21:26

sonicred · 29/04/2022 21:23

Aren't the markets suggesting a recession is looming? the drop in sterling?

Yes, of course. We'll, I'd assume they are.. I'm not an economist but any fool can see that's on the horizon if not already here!

Westair · 29/04/2022 21:27

We have a 10% deposit and are fixing for five years at 2.49%. After five years, even if the house is valued at the exact same price (i.e. no appreciation), we will be able to remortgage at 75% LTV.

GreenLunchBox · 29/04/2022 21:28

Westair · 29/04/2022 21:27

We have a 10% deposit and are fixing for five years at 2.49%. After five years, even if the house is valued at the exact same price (i.e. no appreciation), we will be able to remortgage at 75% LTV.

This sounds sensible and a good deal. Bite their hands off.

Beachbabe1 · 29/04/2022 21:36

Westair · 29/04/2022 21:27

We have a 10% deposit and are fixing for five years at 2.49%. After five years, even if the house is valued at the exact same price (i.e. no appreciation), we will be able to remortgage at 75% LTV.

Is that HSBC? We have just gone for the exact same deal!

GreenLunchBox · 29/04/2022 21:37

Westair · 29/04/2022 21:27

We have a 10% deposit and are fixing for five years at 2.49%. After five years, even if the house is valued at the exact same price (i.e. no appreciation), we will be able to remortgage at 75% LTV.

I've just gone on a comparison site and calculated a deal on a 50% deposit fixed for five years and the best I got was 2.23% with a £999 fee.

Do you mind saying who you've got this deal with @Westair

HenryCavillsWife · 29/04/2022 21:39

Just paying the official amount and no more is like just paying the minimum amount on a credit card bill

Except it’s not. What you’re describing sounds more like an interest-only mortgage.

Repayment mortgages get repaid within a specific timeframe even if you pay only the standard amount. Minimum payments in a credit card have no agreed timeline.

GreenLunchBox · 29/04/2022 21:42

Beachbabe1 · 29/04/2022 21:36

Is that HSBC? We have just gone for the exact same deal!

Show quote history

I've just gone on the HSBC site and put in a 50% LTV and got this (see screenshot)

You guys must have got amazing deals that no longer exist so snap them up at all costs!

What do you think will happen to mortgage interest rates? Wth the
Starseeking · 29/04/2022 21:44

When I first started looking for houses a year ago, I wanted a 2 year fix. Now I've opted for a 5 year fix, plus will be overpaying by about £800 per month, to reduce loan size and build my equity quicker.

GreenLunchBox · 29/04/2022 21:46

Starseeking · 29/04/2022 21:44

When I first started looking for houses a year ago, I wanted a 2 year fix. Now I've opted for a 5 year fix, plus will be overpaying by about £800 per month, to reduce loan size and build my equity quicker.

If that was me I'd be investing that £800 a month, but each to their own

over2021 · 29/04/2022 22:02

Our initial rate in 2016 was 2.79% fixed for 5 years (80% LTV). We remortgaged in June last year for 5 years at 1.57% (60% LTV) which I'm thankful for but suspect that when we come to remortgage in 4 year we will be looking at no less than 5% which will be a real shock to the system given the rates we've always been used to!

Starseeking · 29/04/2022 22:24

My mortgage will be eye-wateringly large @GreenLunchBox. Following my relationship breakdown it'll just be me servicing it, so I'm keen to put a lot of distance between me and the debt mountain. Objectively, I can afford it as I am a very high earner, and have no other debt, but on paper

Original poster
PeepsAndSheeps · 30/04/2022 07:15

What sort of investment do you mean @GreenLunchBox?

Aside from pensions I don't much about them.

OP posts:
Beachbabe1 · 30/04/2022 07:19

GreenLunchBox · 29/04/2022 21:42

I've just gone on the HSBC site and put in a 50% LTV and got this (see screenshot)

You guys must have got amazing deals that no longer exist so snap them up at all costs!

Show quote history

I went with a broker. They get the best deals that you wont see on websites.

tomatoandherbs · 30/04/2022 07:46

I can’t believe that a poster on here has been accepted for a 90/10 mortgage. I honestly thought that the industry had been tightened up and a minimum of15/85 unless a specialist mortgage company

Spectre8 · 30/04/2022 07:59

Overpaying has the biggest impact in the first 5yrs of your mortgage as your interest paying back is much higher and therefore you save more over the life of your mortgage.

sonicred · 30/04/2022 08:53

I can’t believe that a poster on here has been accepted for a 90/10 mortgage. I honestly thought that the industry had been tightened up and a minimum of15/85 unless a specialist mortgage company

I think there are now more smaller deposit mortgages available. Aren't some backed by the gov?

MrOllivander · 30/04/2022 08:57

I'm fixed for 5 years but at 5.2% because it's an adverse credit mortgage