Took out a huge mortgage (mortgage which is a staggering x5 single wage earnings on interest-free mortgage loan!!) 5 years ago to buy my family home. And during that time, was happy that interest rates remained low. During that time, I always intended to overpay or set aside some money but never got round to doing that. Instead, I used any spare money to renovate the home. It meant that during those 5 years, I only ever paid the interest and not the capitol off. I now know that I'll never be in a position to pay off the capital with such a high mortgage.
I feel that it is a matter of time interest rates will go up. Even just a 0.25 rise will mean hundreds of pounds increase in monthly payments and I'm worried about affordability. I am cashing in from the renovations I made to the house and downsizing to a more affordable house (on repayment only - yay!!). However, I could continue 'coasting' along and being blaise about my state of affairs.
Is anyone else out there in a similar position? What are you intending to do about it and are you worried?