Mortgage options changing fast, what to do

[IucyB]

After being in rented for a long time (fled DV) I am finally in a position to buy a small flat (before I get too old for a mortgage, I'm a first time buyer). I have had my offer accepted and am now sorting out mortgage. Of course with the turmoil in the markets (due to the horrific war going on. I know that I am privileged to be even buying somewhere to live) this is not a great time to look for a mortgage. Some of the mortgage products I was considering have been withdrawn from the market.

I wonder what everyone else is doing - waiting to see if things get any better, getting a mortgage now in case things get worse etc. Any thoughts on what is going to happen in the mortgage market if the war continues or ends soon. I am sure there are much better informed people on here than me.

@topcat2026😂😂 and whose going to pay your UC bill when everyone is unemployed and bankrupt! 😭😭😭 I prescribe a two week ban of reading the Daily Mail!

How do you think they paid the benefit bills, and gave working people free money, during Covid?

@KeepPumpingshock horror, people kept working!!!!! And people didn’t lose their homes!!!! Money kept coming in to the treasury! 🙄

They printed it.

These sound like slightly older rates, I think they will be revised up before you close the deal. I would expect to see mortgage rates at 7 or 8, possibly 9%.

You're right. I should just lock in and hope for the best!

Nooooooo 😭😭😭

I’d expect to see pigs flying 🙄

Stop trying to panic people, it’s unseemly.

@KeepPumpingbut they didn’t keep printing it! Though, do you know what. Your advice is so sound, I’m going to sell all my assets quit my job and let the state look after me and my children! Also going to recommend this to all my friends and family! Why fucking bother!!

@FlyMeToTheSpoon You could get a variable tracker mortgage.

And of course you'll only know in 5 years time which was the best option! The rates aren't so hugely different - I think you can only decide which you think you'd regret most - shorter fix if rates going went up, or longer fix if rates went down.

As a PP said, over time you'll pay less and more, and it'll all even out over time to some degree. As long as you are happy with the house, you've wiggle room in your budget and you've not stretched yourself too far, in the grand scheme of things you'll not go far wrong whatever you choose.

You're right, it doesnt make a huge difference in the long term. Sometimes you're up, and sometimes you're down!

I like the house, and I hate surprises, so I think fixing for 5 years will be the best bet for me.

My 5yr deal has just run out. It was 1.2%.
Just fixed another 5yr deal at 4.08% two weeks ago. Already can no longer get that rate now.
I'm overpaying whatever I can.

Anyone that had previously listened to my comments on here, would have got a 5 year fix sub 4%.

The elephant in the room is that the UK goes bust if we go to 7%+. That’s what the mortgage affordability stress tests up to.

Also the fact that the government is at 100% debt to GDP, means they go the way of Greece back in 2015 and will need bailouts by the IMF just like it did in the 70’s because they won’t be able to borrow and default at those rates.

We can hit 7% on mortgages in a heartbeat in this environment, people should have been overpaying their mortgage debt for the last few years if they are smart though, it was obvious the rates cat was out of the bag some time ago.

A better move would have been a 10 year fix if available.

https://www.reuters.com/business/finance/iran-war-disrupting-uk-mortgage-market-levels-not-seen-since-pandemic-2026-03-24/