Mortgage Rate Rises
- Thread starter glenimp617
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Soldato
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Might get close but I doubt it. Just like it never did with the Euro. Obviously some ripoff exchanges might give parity or less though. Last week was pretty bad all round, US markets were hammered, EU was hammered. The dollar did well on the strength of the Feds rise. They aren't afraid to go for larger hikes. BOE might well end up doing another hike sooner than usual though.
It's 1.05 this morning
news.sky.com
Doesn't this weakening cause more inflation?
Pound sank to record low against the dollar and UK economy predicted to flatline next year - as PM and chancellor defend mini-budget
Labour demands a "credible plan" as sterling's decline continues, fuelling fears the currency could plunge to parity with the US dollar.
Doesn't this weakening cause more inflation?
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Yeah it will cause more inflation, it takes a while to feed in though.It's 1.05 this morning
Pound sank to record low against the dollar and UK economy predicted to flatline next year - as PM and chancellor defend mini-budget
Labour demands a "credible plan" as sterling's decline continues, fuelling fears the currency could plunge to parity with the US dollar.
Doesn't this weakening cause more inflation?
Yeah pretty bad all round, but the pound and UK was hit far harder due to this stupid government. I wish people would stop saying it is just dollar strength tbh...
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Associate
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Im currently in a fixed deal that ends next September (last year of a 5 year fix). Early repayment charge is approx 3k and my current fixed rate is 1.84%, was trying to ride it out in the hope something stabalises next year but am getting more and more concerned with the speed of these increases. Factoring in paying an ERC, arrangment fee and a year of double the rate im currently on, just seems like a kick in the teeth. Cant make up my mind if it would it be worth jumping ship and locking in for another 5 year fixed on current rates to see me through the worst of it. Genuinely stuck!
Really hard decision.
Had same issue 6 months ago. But this one seems even harder. Especially with these clowns at the helm.
If you have a chunky mortgage it's not nice working out the costs etc
Associate
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Not the best place to be in but just my luck. Always fixed, payed over the odds times over the years for the insurance of knowing what my payments will be to be. Ultimately to end when the finally did go up (3 x 5 year fixed deals in a row later).
Haha sods law isn't it. I fixed mine for 5 years as I expected the world to end post Brexit and then recover. Annoyingly the world ending was a long drawn out.......almost precisely 5 year event..........snap.
Associate
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Deep Joy!
Kicking myself over my tracker rate at 1.5% more and more by the day. Particularly since the rate increase since will cost me more than any ERC charge would've been now and our emigration plans are looking a little more delayed so a 2yr fix would've been ideal 
Locked in at 1.93 until May 2032... Paid the ERC to do it earlier this year, interest rates were only going 1 way and I wanted to sort it. If I had waited for my fix to come to an end, it would have been coming to an end next month. 10 Year fixed now are about 3.8%, glad I fixed when I did. I feel bad for the people who will have their fixes come to an end in the next 18 months.
Depends on the size of your mortgage and the interest rates involved. Only you can really make the decision.
Soldato
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I did the same as you. A lot can change in 5 years, so hoping for the best. I will continue to overpay as much as possible- that looks better by the day.
It's just dumb luck on when your fix ends, but we will have done better than many.
Me too. Thought about it too. Only reason I didn't was 'it's too far in the future'
Will try to put any spare cash into paying down this mortgage rather than "investing" as all I've done since end of covid is lost money by "investing"
And this is why these interest rates will be crippling. A big chunk of 20-50 year olds with modest incomes and a mortgage will stop spending and just hunker down.
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Its going to be a chain reaction of awfulness.
Huge numbers of companies will go bust as a result, unemployment will shoot up, tax income will dive even more and the only people who will come out of this smiling will be those who are cash rich and can clean up in the chaos.
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I'll join that club!