Rising interest rates

[Orangesandlemons77]

So it looks like there might be more interest rate rises coming, just wondered how it will impact on people. How will it impact you?

I have a 2 bed flat and was looking at moving to a 3 bed flat before I have a child. DH says its insanity to even think of moving at a time when interest rates are 7 %. I tend to have your view that it may be easier to move up as we have been overpaying on our mortgage. Both 2 and 3 bed flats in London are on the cheaper end and are often owned by landlords.

Fixed for 5 in 2019. Should have fixed for 2 and then remortgaged in 2021.

Deal expires in August 2024.

@NonagonInfinityOpensTheDoor times are tough, please take all the help you can possibly get.

I hope things get better soon. Please try to stay strong but don't try and do it alone.

We are shitting it, fixed rate runs out in July. We have 2 different mortgages expiring then. We couldn’t renew yet as the ERC was too high and our IFA was adamant it wasn’t worth it. Bastard.

We will have 13 months of nursery remaining then, so will be racking up the credit to stay afloat until school starts. We were hoping that the end of childcare would make things less tight but it seems that the £600 we save on childcare will all go on the mortgage instead.

@NonagonInfinityOpensTheDoor I hope you’re OK. I work in the sector that deals with loans etc. Please reach out to your lender if you’re struggling with repayments. They actually do have a legal duty to help and there are mortgage holidays and other breaks you can negotiate. They have a mandate surrounding vulnerable customers. Sending ❤️ as I’ve been there. You can also reach out to organisations such as the Money and Pensions Service and the Financial Conduct Authority helpline x

We just fixed for 5 years, we did it as soon as we we’re legible. It’s a higher interest rate than we had as it was after the August rise, but very glad we did as now have peace of mind for the next 5 years as it’s affordable for us at this rate.

If your fix comes to an end in a few months can’t you re-fix now before the next rates rise? We re-fixed 6 months in advance of our fix ending.

If it’s any consolation for you there’s probably about to be a massive house price crash.

I'm in a horrible situation. I am going to have to sell and relocate far from everybody I know and my family in order to get rid of mortgage. I'm a non working parent/carer on a limited income. I get some "help" from the DWP in the form of a charge on my house towards my interest but it's currently half my payment. I'm going to be on my knees soon. I've decided today to cut my losses and sell my home. I am terrified. I do have significant equity of around £270k but that goes nowhere in the South East. Single parent with nobody to bounce this off or share the load. I fought so hard in court to keep the family home to provide stability for my child but it's all fucked now.

We just remortgaged (had to pay an early repayment charge) but we managed to lock in at 3.5% for the next 5 years instead of the 4.5% we could have been looking at even 24h later. It's an extra few hundred a month and I'm breathing a huge sigh of relief we can absorb that cost.

We fixed for 10 years at 2.39% 3 years ago. At the time, we were strongly encouraged to fix for 5 years at 1.79% and I had my wobbles over it but DH was right to insist we stick to the plan. We have 13 years left on mortgage and have been overpaying.
If we continue as we are, we will have a very small mortgage in 7 years time which we should be able to clear outright. Fingers crossed. 🤞

What a staggeringly stupid comment.

Even those who may have fixed or nearly paid off their mortgages are likely to have kids who will now struggle even more to afford to buy a house/pay their mortgage.

Ours expires in April 2023, I'm currently just not thinking about it and hoping something works out 😟

How does that work? (sorry if it’s a stupid question). Do you just get approved for it and start it later? What happens if your circumstances change before it starts?

I feel like every month it'll get a bit worse as interest rates go up and more people come off their fixes. I think it's going to be painful and we'll see civil unrest when people start losing their homes.

news.sky.com/story/pain-for-mortgage-holders-as-investors-bet-bank-of-england-to-raise-rates-even-higher-12705939

To stop the pound sinking further and causing higher inflation there are two options:

1. The Government needs to stop printing money/ increasing debt by either raising taxes or cutting spending or a bit of both. If for political reasons it won't do this then
2. the Bank of England will keep increasing interest rates.

Same 🙁

I no longer have a mortgage, but when we did, we went through some horrendous interest rate rises. Sometimes we timed it lucky with fixing. I totally understand why everyone fixes on mortgages when they hear 'interest rates' but it's much wider reaching - hot on the heels on covid and Brexit, I can't see how this isn't going to impact on (mostly) small businesses and prices for all of us. It's depressing that we have two years of a government that looks as if it could crumble at any time - not even a month in.

Of course most people haven't.

And how much did you have to borrow? Because that's what really matters.

Thank fuck we didn't move 6 months ago ongoing purchase was downvalued by 50k so we stayed put in our 3 bed semi. We have been wanting to upsize for ages but glad we didn't take the plunge mortgage £300 a month fix ends in 2024 we have very low outgoings compared to salary. I've been getting angry we missed the boat and being sensible it seems to have paid off for once..

im actually getting more and more worried as time goes on. We’ve been right royally shafted as a population. Unless you own your house outright or are sat on a pile of cash worth more than your mortgage. You’re going to suffer.

we’ve just fixed for 5 years. Expiring autumn 2027. But if rates peak at 6-8% in 2023. I can’t see them coming down to the rates we’ve been used to ever again. They might be down to 3-4% but that’s still higher rates than many have ever been used to.

I remember fixing my first mortgage at 1.x%. We will never see those rates again.

@UserNameNameNameUser

How does that work? (sorry if it’s a stupid question). Do you just get approved for it and start it later? What happens if your circumstances change before it starts?

My 5 year fixed rate of 1.29% ends on 31 December 2022. Bank have just invited me to choose a new deal. I've opted for another 5 years at 3.99% (best rate I could get).

I had an option whether I wanted it to start in October, November or December.

@TheFormidableMrsC I know how hard you fought. It's not bloody fair!! You've been through enough shit already!

is there no way you could stay by letting out a room (preferably family or friend, but a female lodger might be ok too). People will be looking when they can't afford to rent alone anymore.

I understand if DC wouldn't cope because of issues.but if they would cope I'd try it.

Personally I'd hate it too, but if it was that or moving away I think I'd have to give it a go.

best wishes 🌷

It's good to hear a 'good' story! Fingers crossed you are able to overpay & finish it off!!

I should have re fixed in January, but I didn't. (Overseas family dilemma means I'm constantly trying to balance fixing at a good rate & possible ERC).

in fact I should have fixed for 10 years when I previously fixed for 2, but..hindsight.

I fixed at 2.48 a few months ago for 5, so just have to hope that was the best choice 🤞🏼 I'd have fixed for 10 without the family dilemma issue!!