Mortgage Rate Rises

413x said:
I hope so too! Mines 900pcm at 1.93!
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Christ on a bike... I'm "only" £710 at 3.41% 2hic I fixed last August for 5 years.

Previously I was £585 @ 1.58% :(

I'm hoping that I can start overpaying it by the end of next year and, if rates go back down by 2027 renewal, I can overpay more by keeping existing payment the same (if that makes sense)
 
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jaybee said:
Anyone on a tracker mortgage these days? Seems to be all about the fixes.
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I'm on a tracker and am taking another 5yr tracker on remortgage. Fixes were looking bad when I chose and even worse now but if my mortgage was higher I'd have taken a 2yr fix and been better off.
The fees make a big difference for me, more so than a 1% rate rise.
 
unwashed potato! said:
What's the down sides of a tracker mortgage? At this point, it feels like we are going to be nearing peak interest rates and the only way is down. Can you decide to take on a regular mortgage at any point while you're on a tracker?
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Mine is a 5yr deal but has 0 overpayment penalty and 0 early repayment penalty so aside from the £30 exit fee I am basically free to change when I like
 
I've been on a variable since 2009 when my fixed ran out in the middle of the financial crisis, enjoyed many years of 1% or below interest rates but now risen to over 5% with a letter every month saying it's going up. Gone from about £280 a month to £430 over the space of a year. Thank god I've only got about 50 grand left on my mortgage and not 200k+ that some people have

My house is currently for sale as we just had a child and need somewhere bigger

Starting to get the feeling I couldn't have picked a worse time to start a family
 
Our remortgage figures came through with our fix ending.
It's about about 45% increase month on month if we stick with 28 years left on a 5 year fix.

I mean, clearly people are going to ask for higher pay rises (Which we're told are inflationary.....) to compensate.

We can clear out our existing credit and stop saving as much to pay off the extra cost. But hey ho.
 
Richie said:
Christ on a bike... I'm "only" £710 at 3.41% 2hic I fixed last August for 5 years.

Previously I was £585 @ 1.58% :(

I'm hoping that I can start overpaying it by the end of next year and, if rates go back down by 2027 renewal, I can overpay more by keeping existing payment the same (if that makes sense)
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Hence my anxiety when I was looking to remortgage!
At the time I was trying to work out if the erc was worth paying. Never did I think rates would moon like they have!

It will save 250pcm*60 months-1500 (erc fee)

So about 13.5k!
 
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I’ve got just over 2 years left on my 1.89% fix and still have £340K left to pay. To make matters worse, in 2-3 years time we’re looking to move further away from London to buy something much bigger ready for more kiddies, and will be looking to borrow quite a lot more.

Still, if the market goes the way I think it will over the next couple of years then who knows, we could do reasonably okay out of the timing in terms of needing to borrow less etc.
 
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Martini1991 said:
I mean, clearly people are going to ask for higher pay rises (Which we're told are inflationary.....) to compensate.
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And if they get them then inflation will keep on going up...

This is what they were talking about when they said that people might have to accept a bit of a drop in living standards. Its like a dog chasing its tail at the moment. This is part of the reason inflation isn't coming down quickly enough.
 
GordyR said:
I’ve got just over 2 years left on my 1.89% fix and still have £340K left to pay. To make matters worse, in 2-3 years time we’re looking to move further away from London to buy something much bigger ready for more kiddies, and will be looking to borrow quite a lot more.

Still, if the market goes the way I think it will over the next couple of years then who knows, we could do reasonably okay out of the timing.
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I imagine you will be fine. We have basically the same rate but ours ends in late December this year...

We are also looking to move into a larger, more expensive house in the near future but unless house prices crash or rates drop significantly we simply can't realistically afford it. I can't imagine many people will be able to afford expensive houses in the next few years unless they are on insane salaries. Me and my partner bring home a combined salary of ~£150k/year but the monthly cost of a £1m/house (i.e. a nice 4 bedroom house around here) is currently looking to be around £4.5k/month. We can't afford that after tax. Add into that the stamp duty of over £50k...

Can 100% see the government doing something monumentally stupid like another stamp duty holiday to prop up the market. People will either stay put or when their rates rise they will have to sell and take the huge hit.
 
£12,500 a month take home (£150k a year, after tax right?), surely with like £8k a month after £4500 monthly mortgage payment is enough to live on? Things like electric, water, child care, cars doesn’t go up (like an interest payment on a million quid house) because you moved house?

Or do you mean £150k before tax?
 
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GordyR said:
I’ve got just over 2 years left on my 1.89% fix and still have £340K left to pay. To make matters worse, in 2-3 years time we’re looking to move further away from London to buy something much bigger ready for more kiddies, and will be looking to borrow quite a lot more.

Still, if the market goes the way I think it will over the next couple of years then who knows, we could do reasonably okay out of the timing in terms of needing to borrow less etc.
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Similar here, £440k something like that at 2ish% until June '25.

No desperate need to move but we'd planned to go somewhere less central/bigger but the budget is dropping daily.

That's fine, I can sort of live with it as everything presumably drops together-ish bit it's a complication.

I welcome prices dropping but yeah, just complicates things a bit.
 
jaybee said:
Anyone on a tracker mortgage these days? Seems to be all about the fixes.
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I was umming and arring about this 2 months ago . People were like we peaked rates will be dropping go with a tracker

Because of the volatility of the situation globally at the moment, coming out of COVID, and the brexit issues re, ongoing Russia Ukraine conflict which this seems to be pretty much the cause of the issues. Until I get solid firm information that this is starting to de-escalate and peace talks etc, I can't see this happening soon.


That said searching for remortgages was extremely stressful for me at that point as i couldn't decide between a tracker or fixed and if it were 2,3 or 5 years.

In the end I went for a 5 year fix with some overpayment maybe in mind.

My first search with broker came up with 4.15 which I later switched to the same lender who dropped the rate to 3.95, then it went up to 4.30, then to 5.30 similar with other lenders

No one can say that "we have reached the peak" as you can't guess that, there have been lots of "this will be the last" moments, and as you know once they go up, they are slow in coming down .


I'm not happy about the 3.95% rate I have had to jump from 2.5% but I unfortunately didn't have access to a crystal ball on the future and brokers/mortgage advisers won't have a scooby either
 
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It's more to do with education but even then it's not black and white, professional working people would generally be viewed as middle class, teachers, doctors and the like. Even nurses can fall into this sort of group.
 
Jokester said:
It's more to do with education but even then it's not black and white, professional working people would generally be viewed as middle class, teachers, doctors and the like. Even nurses can fall into this sort of group.
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Very true. I come from a non working single parent Yorkshire 80s upbringing. The idea of someone calling me middle class despite bothering the top 1% and living in Surrey seems nuts.

Without judgement it seems if you're raised in it you think you're it, I still can't shake the feeling that it could all get taken away tomorrow with a bad decision/job loss etc.

Put it this way, when my folks pass I'll inherit (only child) less than I earn in an average year, I think that likely draws something of a line?
 
Jokester said:
It's more to do with education but even then it's not black and white, professional working people would generally be viewed as middle class, teachers, doctors and the like. Even nurses can fall into this sort of group.
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I've always consider this to be the case. Money can't buy class...so to speak. If you are a chav who won the lottery and let's pretend you don't spend it all on hookers and drugs in the next few years not having to work for the rest of your life, you are still a chav if you act like one.
 
neocon said:
What do you need to earn to be middle class these days? 200k?
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All my friends call me middle class because we own outright and have a rental we own outright too - yet I’m only earning barely more than minimum wage these days :o

It’s hard to pin down what it means, but the Fray Bentos I’m eating certainly means it ain’t me! :D
 
matt100 said:
Very true. I come from a non working single parent Yorkshire 80s upbringing. The idea of someone calling me middle class despite bothering the top 1% and living in Surrey seems nuts.

Without judgement it seems if you're raised in it you think you're it, I still can't shake the feeling that it could all get taken away tomorrow with a bad decision/job loss etc.

Put it this way, when my folks pass I'll inherit (only child) less than I earn in an average year, I think that likely draws something of a line?
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Yeah, my dad considers himself working class due to his upbrining, even though he was a chief engineer in the merchant navy. I see myself as being the classic sort of middle class due to my upbringing and being a degree qualified professional even though we both worked/work similar roles. I see him as middle class despite how he sees himself and despite my grandparents being fairly middle class in their own right (pharmacist and naval engineer). I think a lot of it stems from him growing up in a council house which is itself probably a reasonable take on it.
 
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