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

[PeepsAndSheeps]

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.

You asked what the problem was, I’ve told you

People are allowed to give their opinions on Mumsnet. It’s kind of what it’s for.

@GreenLunchBox has posted some of the most sensible posts on this thread, IMO in a thread jam-packed with utter nonsense at times!.

This is an interesting article on cost-push inflation.

What @GreenLunchBox said was entirely correct. Raising interest rates won’t help the problem with inflation that we’re currently seeing.
That doesn’t mean interest rates won’t be raised, and she was clear about that in her posts.

Thank you @ReadyToMoveIt and @NoWordForFluffy

Some people are unbelievable

Raising interest rates won’t help the problem with inflation that we’re currently seeing.

why raise them then?

I don’t know, I’m not the BofE

Really? thought you were Mr Bailey in disguise! t's confusing though as in theory they shouldn't be raising them.

No, they shouldn’t.

hence why I asked the question because I don't understand the motivation.

Honestly I have no idea. Like @GreenLunchBox says, it will only push more people into hardship.

I'm perplexed why posters are getting angry with random people on the internet when even the BofE/ government don't have the answers

What's happening?!😂

I hope you don't think i'm angry because I'm not. As I said I genuinely don't understand so was looking for insights.
Not convinced the BOE know what they are doing tbh, they seem to be on the back foot.

The BoE have very limited ways to try to resolve the situation. If you read the link above about cost-push inflation, it's the government which needs to step in, not trying BoE.

'Trying'? 'The'. Autocorrect is bonkers.

We fixed for 5 years in Feb at 1.29% 60% LTV which I’m now grateful for. However, we took out a large mortgage as we kept cash back as our house needs some work (extension etc).

We fixed primarily because we have high nursery fees now (1800 a month) though these will drop a little this coming September, then a little more the following sept when DC1 starts school) then plateau at around 1100 a month until DC2 starts school Sept 2025.

Even though we have headroom as we won’t have nursery fees come sept 2025 (and will have about 18 months before fixed rate comes to an end then), I am definitely concerned about the future and once our works are done I think we will probably try to pay down a lump sum each year

I am concerned about the economy as past 2 year we seem to feel worse off due to cost of living.
2022 energy has gone up from £120 to £260 and octopus actually wanted suggested £350 and husband says no.
We use more electricity than gas.
oven and hob is electric thinking getting a air fryer and instant pot as they use less electricity.

Food bill us a struggle as we large family of 6 the only way we manage is I shop around, batch cook. I try and cherry pick reduced or offers and buy value lines.
Not convinced aldi and lilds are cheaper than some of bigger stores anymore

Buses for my kids to get to school £82 now rising to £120 sept when my son starts seniors.
Have 2 children starting new school this year so uniform costs.

Hoping to find a job when youngest starts school we have no family nearby and the last few years with covid and schools it must be a nightmare for working parents.
I worked part time temp in2020 .
Nursery school just announce 2 unexpectedly days closest as they doing consultation to decrease staff hours.

We on 5 year fixed mortgage but ends December 2023.
We had hoped to remortgage a desperate need 4th bed youngest still our room.
I'm a bit weary as all construction has gone up so much and we want a 2 story extension. Including new bathroom and kitchen.

Not sure we can try and remortgage now?
We have rather a lot on the credit card as non essential commission based retail means husband's income already suffered.
Could also so with replacing car for petrol and they bring in clean air zone in summer £9 drive into city centre.
We only run 1 car.
We trying to grow more at allotment.
No holiday this year.
We buy most of family's clothes 2nd hand.
We are not massively boosting the economy as we hardly ever eat out or get takeaway.
Or buy clothing/ books/ furniture brand new.

We doing everything thing we can buy scared government have no plan.
Also raising interest rates won't work.
This is a completely different mess to the 80s I was a kid then.
We ere impacted by 2007/2008 downturn we had 3 small kids then.

Aim this year was clear credit card.
Next year try and save for used car and try overpay mortgage before we refix.

The cost of building work has really skyrocketed. I wouldn't be choosing to do anything for the next few years if I could avoid it.

Interest rates have just gone up 0.25% to 1%, the highest since 2009.

www.bbc.co.uk/news/business-61319867

I am SO angry with the vendor who pulled out of my purchase just over 2 months ago. Strung me along for 7 months, then decided she didn't want to move after all.

Because of her I wasn't able to move as planned, and although in theory I'm in the process of buying a different house now (which is also dragging on), this one isn't a forever home like the last one was, if you see what I mean.

Also I expect the new house will likely complete (if it does) in the next couple of months, meaning my mortgage product will likely be withdrawn.

I could scream with frustration, and am so so cross. I need a place to vent!!!

That really sucks. We had that happen to us in august last year after spending 6k in fees. I was raging. I also found out through various contacts that they had no intention of moving at all, even talked to our surveyor referencing the house they were “thinking of buying” rather than “the house we are buying”, 3 weeks prior to completion!

absolute cunts

I'm feeling your pain on that! Did you end up buying somewhere else @gracedentssketty?

@Starseeking - yes thankfully in Feb but we were stuck in an awful rental flat with 2 under 3’s and no outdoor space until we did. I honestly don’t know how our marriage survived (add to that we had also sold our house in sept 2020 with nowhere to go, missing out on it rising by about 200k then being beasted by the upward movement so have lost out on about 300k!)

really hope yours completes in time so that you get the mortgage offer.

im never buying again until we are very very old and wrinkly and want to downsize!

To be honest I'm almost certain the product will be withdrawn as it was 1.89%, so the margin is much smaller than the bank would like. They'll probably be looking to increase it to over 2% I expect. On my huge mortgage it means I'll probably be paying back until I'm 80!

P.S. @gracedentssketty most of the old timers in houses near me seem to be doing equity release, so no one's downsizing unless carried out in a box!

Increased interest rates helps to reduce the massive £500 billion bill for lockdown, vaccines, furlough etc. By increasing the interest rate, the debt can be partly inflated away. Back in 2020 I knew there would be financial pain ahead, because it's simply not possible to print huge amounts of money without suffering the consequences later. And unfortunately I expect the situation with interest rates to get worse before it gets better.