Mortgage Rate Rises

[Haggisman]

Just had a letter through from Halifax about my fix ending on 1st December. Currently paying £350, going up to £515! that's almost a 50% increase!

Fortunately we've remortgaged to another lender already, but that's a frightening amount, especially considering we're only on a small mortgage - someone with a £200k mortgage would be looking at an extra £500/month!

 

[Zefan]

Just had a letter through from Halifax about my fix ending on 1st December. Currently paying £350, going up to £515! that's almost a 50% increase!

Fortunately we've remortgaged to another lender already, but that's a frightening amount, especially considering we're only on a small mortgage - someone with a £200k mortgage would be looking at an extra £500/month!

Is that price going from a fix to their SVR, or going to a fixed rate?

 

[Haggisman]

That's on their SVR at 6.29%, but even their cheapest fix (10 years) would be ~£490

Edit: actually, that's as a new customer, if I go through as an existing customer, then there's an extra option which is "much"* lower - 3 year fix at 4.77%, or £455/month, still 30% higher






* it's all relative, the others are all 5-6%

 

[Buffman]

That's on their SVR at 6.29%, but even their cheapest fix (10 years) would be ~£490

Edit: actually, that's as a new customer, if I go through as an existing customer, then there's an extra option which is "much"* lower - 3 year fix at 4.77%, or £455/month, still 30% higher






* it's all relative, the others are all 5-6%

At least its a lowish mortgage, mine would go from 1200 to £2000 a month at current rates.... (fortunately I'm locked in till 2026 but still!)

 

[Liquid_Entity]

If I don't exchange and complete by 2nd December then I will be paying £1215.65 when I was previously playing £832.45

 

[Hodders]

Our monthly payments have gone up by 600% (we're on a interest only tracker).

Massive increase. We've had to sell our repayment investments early to offset the main balance.

Thanks to Truss/Kwateng we had to this at a bad time just after the mini budget. The mortgage matures in 2 years and we just could not take the risk of the investments dropping below what we needed. Probably cost us about £30k.

If we'd known that the pair of them would have been out on their ears we'd have held on and been a lot better off.

 

[Chrisc]

Mine isnt Due until July, Im hoping the rates drop before then but highly unlikely.

Presumably, if we officially enter a recession will this force rates down again?

 

[Surveyor]

Our monthly payments have gone up by 600% (we're on a interest only tracker).

Base rate plus how much?

 

[dlockers]

I've just done the maths on my balance in 20 months time and my mortgage repayment will go up by a grand. Crikey.

 

[Felon]

Reading these posts is quite frightening, if I'm honest

 

[ci_newman]

I've just done the maths on my balance in 20 months time and my mortgage repayment will go up by a grand. Crikey.

I'm in the same boat. I am cramming as much into my overpayments as possible before my fixed ends

 

[dlockers]

I'm in the same boat. I am cramming as much into my overpayments as possible before my fixed ends

Quick maths show it only benefits "very old and distant future dLockers" and only makes a £20 difference in 2 years time

 

[Minstadave]

I'm in the same boat. I am cramming as much into my overpayments as possible before my fixed ends

Might be better to earn some interest on it and pay it off when your deal ends.

 

[ci_newman]

Might be better to earn some interest on it and pay it off when your deal ends.

Yes, thats what I'm actually doing to give myself some flexibility

 

[radderfire]

Presumably, if we officially enter a recession will this force rates down again?

Unlikely. Once they start going up, they keep going up, and the peak is a long way off. It is like a long business cycle where the private banking sector rinses all those with proper jobs for all they are worth. This cycle flips (on a long cycle) between constantly lowering and constantly raising. Rinse and repeat. Those with non-financial jobs just have to cough up.

 

[Haggisman]

Reading these posts is quite frightening, if I'm honest

Yup, we got our offer approved the week before the mini budget, so very lucky timing - still on a higher rate than the fix we came off, but significantly lower than it would be today.

A lot of people in for a lot of pain over the next 6-12 months :s

 

[Raymond Lin]

Yup, we got our offer approved the week before the mini budget, so very lucky timing - still on a higher rate than the fix we came off, but significantly lower than it would be today.

A lot of people in for a lot of pain over the next 6-12 months :s

2 weeks before Mini budget for me. Went from 2.08% fixed to 3.58% fixed...but the amount left is small compared to most, so only add £50 more a month.

 

[413x]

Unlikely. Once they start going up, they keep going up, and the peak is a long way off. It is like a long business cycle where the private banking sector rinses all those with proper jobs for all they are worth. This cycle flips (on a long cycle) between constantly lowering and constantly raising. Rinse and repeat. Those with non-financial jobs just have to cough up.

Think we are near/at the peak.

 

[neocon]

Interest rates won't go down until inflation goes down and for inflation to go down we need unemployment to go up, or so I heard.

 

[matt100]

Interest rates won't go down until inflation goes down and for inflation to go down we need unemployment to go up, or so I heard.

That's not how it works.

All that actually needs to happen for inflation to go down is.. nothing.

It's an annualising measure so every year you basically start again.

I think that's why it's being forecast that it'll drop like a stone over the next couple of years, the horse has bolted and the prices have shot up but as long as they don't do that AGAIN then inflation drops to basically nothing.