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Original poster

Are mortgage rates going to rise more?!

173 replies

Namechange1377 · 31/01/2023 20:21

A dream house has come onto Rightmove, forever house material, We have joint income of £3700 monthly.
If we sell our house for £290,000, have deposit of £135,000, the house we would like is £465,000 and on a mortgage of £330,000 we are looking at roughly £1600 monthly mortgage payments, Fixed rates are 4.89% or tracker at 3.94% £1400. (35 years)

I know no one has a crystal ball, but what are opinions- are mortgage rates going to stabilise? Are they going to rise?

Should we fix, should we track?
Is mortgage of £1600 insane?!

OP posts:
Pugsley87 · 31/01/2023 20:22

Namechange1377 · 31/01/2023 20:21

A dream house has come onto Rightmove, forever house material, We have joint income of £3700 monthly.
If we sell our house for £290,000, have deposit of £135,000, the house we would like is £465,000 and on a mortgage of £330,000 we are looking at roughly £1600 monthly mortgage payments, Fixed rates are 4.89% or tracker at 3.94% £1400. (35 years)

I know no one has a crystal ball, but what are opinions- are mortgage rates going to stabilise? Are they going to rise?

Should we fix, should we track?
Is mortgage of £1600 insane?!

In not dissimilar position so watching with interest!

Dadadaa · 31/01/2023 20:24

Also following out of interest

Marmaladesarnie · 31/01/2023 20:27

I could have posted similar but I don’t think we are going to do it. The house is pretty close to dream house but not exactly. I also want to live, holidays, days out, buying things we need.
If either of us lose our jobs or try to change careers will be glad we didn’t stretch too thinly.

Ive no crystal ball though so maybe it will be a big regret!

Babytwodue · 31/01/2023 20:27

£1600 is a biggg mortgage, especially over 35 years.
From what I’ve read they are expecting them to settle, even drop by mid-end of the year, but, honestly, who knows, if it was me I wouldn’t be committing to that big a mortgage (but I’m not a risk taker) 😬

kitcat15 · 31/01/2023 20:28

I wouldn’t do it on your incomings….no way

kitcat15 · 31/01/2023 20:29

35 years 😱

Marmaladesarnie · 31/01/2023 20:29

Also are you sure you’d get a mortgage that size? Our income is similar and we can’t get that much (granted I’ve been looking at 25 years)

TheDogIsTooEarlyForTea · 31/01/2023 20:30

No one knows but my guess would be they will settle/drop a little BUT I would also guess that job security is going to drop through the floor as the economy continues to tank.

I'd not voluntarily take on more bills unless they could still be covered for several months by one wage/savings.

TokyoSushi · 31/01/2023 20:30

Not a boast at all but our joint income is £5.7K per month, our mortgage is just about to go up to £1279 and with the spiralling cost of everything else, that feels too much!

I think £1600 is too high...

LookingOldTheseDays · 31/01/2023 20:30

They are predicted to go up by 0.5% on Thursday. If that does happen, the fixes that are currently on offer are also likely to go up to some extent.

BHRK · 31/01/2023 20:31

No way would I pay that % of my income on a mortgage. And 35 years? How old are you?

LookingOldTheseDays · 31/01/2023 20:32

Also, at 43% of your income, I'd say a mthly payment of £1,600 is too much. It leaves you with no financial resilience, no slack in case anything happens to disrupt your earnings.

Original poster
Namechange1377 · 31/01/2023 20:32

@Marmaladesarnie nationwide are offering 5.5 x income :)

OP posts:
JaninaDuszejko · 31/01/2023 20:32

Our take home pay is double yours and our 20 year mortgage much less. Admittedly we were told the bank would lend us double but I'd rather have more flexibility in my investments and not pour everything into property.

Original poster
Namechange1377 · 31/01/2023 20:33

@BHRK late 20s and early 30s

OP posts:
Original poster
Namechange1377 · 31/01/2023 20:34

Half of me is thinking no way too high and the other half is thinking go for it. 😂

OP posts:
hennybeans · 31/01/2023 20:34

Do you have young dc and a huge childcare bill that might be ending soon? Or will you have dc in the future and need to pay for childcare that you don’t pay for now? Are maternity leaves a possibility? Are your jobs secure? Likely to be promoted/ increase earnings or have you hit the ceiling?
Those are what I would be thinking about. In my opinion, that mortgage payment would be too high in that income. Unless you’re just starting out in your careers and it’s likely to go up.

BurbageBrook · 31/01/2023 20:34

I don’t think it’s that high, actually. It still leaves you with £2k a month for bills and living expenses.

Hedgehogproblems · 31/01/2023 20:35

That is way too much on that income. I’d be stressed. Our income is similar and mortgage is £400. We do live in the grim up north though!!

LeatherSoledShoes · 31/01/2023 20:35

I've fixed today at 4.25% for five years. Rates are forecast to peak at 4.5% later in the year, but who knows! The IMF's prediction for the UK is grim.

I think it is tight on your income too, my income is more than yours, my mortgage repayments are 25% of my salary. I wouldn't want to be paying any more than that and I live alone so only cost of living for one to factor in.

Sarahconnor1 · 31/01/2023 20:35

The BoE base rate is likely to go up again on Thursday, so I expect mortgage interest rates to follow.

Whether the base rate continues to go up is guess work, but most are predicting slower rises this year followed by a small decrease or settle.

TheFlis12345 · 31/01/2023 20:37

I wouldn’t at that interest rate and at your income level. Our 25 year mortgage is £2150 per month, at a lower interest rate than you are being offered and that feels high even when our take home is around £2.5k a month higher than yours!

Chevyimpala67 · 31/01/2023 20:37

I'd never go more than 3 x income.

Just because you can borrow it doesn't mean you should

Your dream home will come with higher Council Tax, higher energy bills, higher maintenance bills etc

I think interest rates will be raised a few more times to counteract rampant inflation

Locsup183 · 31/01/2023 20:38

I thought current fixed rates had factored in the suspected base rate rises through 2023? Tbh, it’s all a giant windy never ending piece of string… 😭😭

CatOnTheChair · 31/01/2023 20:38

I think it depends on your plans for the next 10 years - approaching maternity and childcare, or about to come out of that period (or child free).
It is a very big proportion of your income. Interests rates are unlikely to drop back to where they have sat for the past 13 year. 4 or 5 % mortgages are much closer to the historical average.
I don't think I'd stretch that far, and definitely not if babies are in the future plan.

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