Mortgage Rate Rises

[Hedge]

True but Smug McSmugerson, after posting how oh so clever he was, decided to then **** all over everyone that may be struggling with the sole reason that everyone that IS struggling is because they took out too much of a mortgage

Never mind that Divorce and Breakup Rates spiked during and after COVID.

Never mind the employment downturn that happened during and post COVID where people were laid off and have had to take lower paid jobs just to try and keep the roof over their families head.

Never mind that it wasn't just rate rises that have left people struggling but rampant inflation covering life's necessities (food, fuel and energy hit hardest) all at once.

No, no, its simply because they took out too big a mortgage.

Fair one I see your point. Banks were happily offering huge amounts to people which also didn't help things.

Some less empathetic types could read that post and still say well "yeah you took too big a mortgage because you should have considered risks of divorce and unemployment going in".

I certainly didn't think of worst case scenario but it's sound advice for anyone taking on a big debt.

 

[413x]

Imagine having the wisdom to take that 2031 deal

When I got my 1.93 deal the same deal was on for 10 years.
But I couldn't commit.

10 years is a long time on a joint mortgage. And the erc for the first 5 years was 5pc.

It was a really hard decision but I would make the same again. So much can happen. Relationship break down, difficulty porting etc etc.


If it was my mortgage alone, yeah if have taken the 10 years.


So we are in 1.93 until 2027 vs 1.93 to 2032

Edit. 1.93

 

[flea.rider]

When I got my 1.93 deal the same deal was on for 10 years.
But I couldn't commit.

10 years is a long time on a joint mortgage. And the erc for the first 5 years was 5pc.

It was a really hard decision but I would make the same again. So much can happen. Relationship break down, difficulty porting etc etc.


If it was my mortgage alone, yeah if have taken the 10 years.


So we are in 1.93 until 2027 vs 1.93 to 2032

Edit. 1.93

been together how long .. after 5-10 yrs the next 20 is easy .. just passed 32 yrs .. all's good .. bad **** only happens in the first 10

 

[413x]

been together how long .. after 5-10 yrs the next 20 is easy .. just passed 32 yrs .. all's good .. bad **** only happens in the first 10

7 years in.

This year is a big year.
One of my partners parents has a terminal illness, and I'm aware now she wants to move back home (only found out recently she isn't happy here). I know I can't move back home. I couldn't wait to leave.

So I'm not sure what 2023 holds for us. We are both unbound geographically by work due to full time WFH.

So right now, I'm glad we don't have the 10yr mortgage.

Never know what life is gonna throw at you

 

[uncle_rufus]

You can possibly port the mortgage and borrow the extra on a new rate.

I did see that but then when I started reading into it I'm sure I hit a clause that basically said it was only something you could realistically do if you weren't borrowing much more than you already were...

 

[flea.rider]

7 years in.

This year is a big year.
One of my partners parents has a terminal illness, and I'm aware now she wants to move back home (only found out recently she isn't happy here). I know I can't move back home. I couldn't wait to leave.

So I'm not sure what 2023 holds for us. We are both unbound geographically by work due to full time WFH.

So right now, I'm glad we don't have the 10yr mortgage.

Never know what life is gonna throw at you

wheres home ?

 

[kona786]

I did see that but then when I started reading into it I'm sure I hit a clause that basically said it was only something you could realistically do if you weren't borrowing much more than you already were...

Best you speak to your provider.

 

[uncle_rufus]

Best you speak to your provider.

Yeah, will do... was hoping to do a decision in principle just to get a feel for what we can afford but as ever it's a pain. Stupid that they need to know the sale price (of the house you've currently not sold )

 

[SaBBz]

We're on 1.09% for another 3.5 years. For once we lucked out.

Same here, with TSB. Will definitely be using savings accounts to pay off a chunk come renewal to try to keep the monthly payments similar to now.

 

[NotAGolf]

7 years in.

This year is a big year.
One of my partners parents has a terminal illness, and I'm aware now she wants to move back home (only found out recently she isn't happy here). I know I can't move back home. I couldn't wait to leave.

So I'm not sure what 2023 holds for us. We are both unbound geographically by work due to full time WFH.

So right now, I'm glad we don't have the 10yr mortgage.

Never know what life is gonna throw at you

Sorry to hear that. Hope things work out for you both.

I often relate to your posts as feel like we both have a similar "what if X goes wrong?" mindset, but I guess there's some things you just can't plan for

 

[413x]

Sorry to hear that. Hope things work out for you both.

I often relate to your posts as feel like we both have a similar "what if X goes wrong?" mindset, but I guess there's some things you just can't plan for

Yeah I'm very much a "what if" person. It's why I'm good at the job I do I guess. But it makes life chaotic.

Doesn't help the relationship hasn't been smooth sailing.

But yeah, I do not like being out of control. It's why I don't like drinking for example. So my mind plans for all eventualities. It also makes committing to a decision very very hard and I look indecisive.

 

[alexakasloth]

I'm on about 2% fixed until October. I can easily afford to pay a much higher percentage than todays rates. I had the sense to know that mortgage rates are unpredictable so I didn't borrow too much.

Anyone struggling at the moment borrowed far too much and didn't think it through.

2%!? Why are you on such a high rate, surely you would have had the forethought to fix when rates were lower. We're on 1.39% for the next four years.

/s

 

[unwashed potato!]

2%!? Why are you on such a high rate, surely you would have had the forethought to fix when rates were lower. We're on 1.39% for the next four years.

/s

My sibling got a mortage for 2 years when it was at the lowest. They got something like 2.3 percent. First time buyers and all that I guess

 

[Guest2]

I got a 25 year mortgage and back in 2018 started with a 5 year fixed with Halifax on 2.21% (£834/month)
I’ve been making monthly overpayments of £500 for coming up to 5 years.

My plan is to take out another 5 year fixed mortgage starting Jan 1st 2024 which will complete the repayments.
The rate is 4.04% with no product fee, £1843/month. Short term pain to be mortgage free by the time i’m 43.

 

[Guest2]

My sibling got a mortage for 2 years when it was at the lowest. They got something like 2.3 percent. First time buyers and all that I guess

Interest rates were lower a few years ago

 

[EvilRob]

I got a 25 year mortgage and back in 2018 started with a 5 year fixed with Halifax on 2.21% (£834/month)
I’ve been making monthly overpayments of £500 for coming up to 5 years.

My plan is to take out another 5 year fixed mortgage starting Jan 1st 2024 which will complete the repayments.
The rate is 4.04% with no product fee, £1843/month. Short term pain to be mortgage free by the time i’m 43.

How do you know what the rate is going to be in Jan 2024?

 

[unwashed potato!]

Interest rates were lower a few years ago

Yep

 

[Guest2]

How do you know what the rate is going to be in Jan 2024?

Based on current rates. Who knows what the rates will be in Jan.
Ill get the mortgage in principle in July so will be based on the July interest rates.

 

[jonneymendoza]

Interest rates were lower a few years ago

Woosh

 

[Freakbro]

March inflation figures released and it stays above 10% at 10.1% and core inflation hasn't moved at 6.2%

Interest rates won't be coming down any time soon.