Mortgage Rate Rises

glenimp617 · 8 Jul 2022 at 11:01

of course they have

I always seem to be a year behind the crazy cheap deals. Mines up this time next year. If it was this year I could have locked in a few months ago at around 2% but heaven knows what the rates will be like in another 12 months.

Santander are closing in on 4%

anyone else needing to renew at a higher rate?

Zefan · 8 Jul 2022 at 11:03

TheOracle said:
of course they have

I always seem to be a year behind the crazy cheap deals. Mines up this time next year. If it was this year I could have locked in a few months ago at around 2% but heaven knows what the rates will be like in another 12 months.

Santander are closing in on 4%

anyone else needing to renew at a higher rate?

I will be next year I believe, wasn't possible to change it when we moved recently as we were porting it. The other half of the mortgage is a fix up until 2027 which is nice, very glad I went for the 5 instead of 2 year fix at next to no additional cost per month.

Maccy · 8 Jul 2022 at 11:08

Next year, not looking forward to it.

Conscript · 8 Jul 2022 at 11:11

We've just re-mortgaged at 2.29% and this time locked it for 5 years, so hopefully we have avoided the worst of the rises, for now.
EDIT: should add, actual completion is end of August, but we initiated the remortgage in May as rates were on the rise.

kai · 8 Jul 2022 at 11:14

Secured a 2 year fixed in January with Santander - 1.09% phew!

MikeTheNative · 8 Jul 2022 at 11:20

Our mortgage rate is 1.5% we knew when taking the offer it's very unlikely to be that low when the term ended.

413x · 8 Jul 2022 at 11:24

Mine was due for renewal march 2023.
Did some maths.

Decided to pay 2k ERC to get Out early.

Absolutely the correct decision

krooton · 8 Jul 2022 at 11:25

Yikes, currently on a fix of 1.28% until May 2023, if I wanted to re-fix now for 5 years, it would be at 3.5%

Scam · 8 Jul 2022 at 11:40

Blimey Charlie do I feel lucky we fixed for 5 years last year on our first place. 1.24% for 5 years, phew! I think once we've finished our renovations it'll be a case of paying as much as possible before we have to remortgage.

EDIT: Just did some maths. Shouldn't have :eek:

Even if we overpay £400/month now as an easy example.. If we were fixing again in 4 years at say 3.5% we'd still be paying more every month then. Eek. (And as mentioned, it'll be more than 3.5% for sure)

Hades · 8 Jul 2022 at 11:43

Yep, just about to come off my fixed rate deal and need to fix again next month.

dowie · 8 Jul 2022 at 11:45

I'm on a lifetime tracker so meh... I didn't really see the point of a 2 year or 3 year fix, the rates weren't too different anyway and you then have the extra faff of getting a new mortgage every 2 or 3 years + paying a fee etc..

The silly thing was when trying to get the mortgage in the first place you have to spend ages answering questions from an "advisor" where they ask stuff about your feelings on certainty over what you need to pay etc.. then advise you on the types of mortgage to get etc.. I already knew what type of mortgage I wanted, I just wanted a quote and for them to check I was eligible/approved for it.

If I'd gone with a fixed rate then I'd have had to renew a bunch of times and it would all be moot anyway as when rates start to go up you're out of the deal anyway and I'm not sure the tracker deals that were available are still available now.

200sols · 8 Jul 2022 at 11:45

krooton said:
Yikes, currently on a fix of 1.28% until May 2023, if I wanted to re-fix now for 5 years, it would be at 3.5%

And chances are it will be pushing 5% when you try and fix next year.

glenimp617 · 8 Jul 2022 at 11:46

200sols said:
And chances are it will be pushing 5% when you try and fix next year.

Guaranteed

Semple · 8 Jul 2022 at 11:47

We're about halfway through our 5 year fix. We got a FTB rate of just over 2%, in 2 years we should be under the 60% LTV but the amount paying back appears to be a little more than we currently pay back now if we secured a rate today.

I can't see interest rates going up much more than they are now otherwise they're going to have a lot of people who won't be able to afford the new rate once their fixed term ends.

rhobbyh · 8 Jul 2022 at 11:55

Semple said:
We're about halfway through our 5 year fix. We got a FTB rate of just over 2%, in 2 years we should be under the 60% LTV but the amount paying back appears to be a little more than we currently pay back now if we secured a rate today.

I can't see interest rates going up much more than they are now otherwise they're going to have a lot of people who won't be able to afford the new rate once their fixed term ends.

minimum 3% by the end of 2023

200sols · 8 Jul 2022 at 11:58

Semple said:
We're about halfway through our 5 year fix. We got a FTB rate of just over 2%, in 2 years we should be under the 60% LTV but the amount paying back appears to be a little more than we currently pay back now if we secured a rate today.

I can't see interest rates going up much more than they are now otherwise they're going to have a lot of people who won't be able to afford the new rate once their fixed term ends.

Base rate will be at least double by year end.

tlrBeta · 8 Jul 2022 at 11:59

1.59% for me until December 2025.

After that who knows.

fez · 8 Jul 2022 at 12:01

Its OK though because all our wages and interest on bank balances will be shooting up too right. Right?

danlightbulb · 8 Jul 2022 at 12:02

Semple said:
can't see interest rates going up much more than they are now otherwise they're going to have a lot of people who won't be able to afford the new rate once their fixed term ends

BoE are about to screw over millions and will say their hands are tied.

glenimp617 · 8 Jul 2022 at 12:03

Well house prices are still rising, a sellers market with houses flying off the shelves, rates are rising, wages aren't

Where's the money coming from :confused: