Mortgage Rate Rises

[jaybee]

The question form me would be, why would you call to ask that when you could have worked it out yourself?

1. It's hundreds of thousands of pounds. I'd kind of like a sanity check that my calcs are correct.
2. I've worked it out from my original spreadsheet and the balance now in Jan 2025, is a few hundred pounds different to what she said my current balance is and I'm not sure why yet.

 

[Hagar]

It's like she took the same accountancy classes as Rachel Reeves.

 

[b0rn2sk8]

1. It's hundreds of thousands of pounds. I'd kind of like a sanity check that my calcs are correct.
2. I've worked it out from my original spreadsheet and the balance now in Jan 2025, is a few hundred pounds different to what she said my current balance is and I'm not sure why yet.

Daily interest accrues on a mortgage so she probably has the balance to the current day, not monthly as may be recoded in your online account.

 

[Chris344]

Nobody knows. In the short term things are going higher. Could be totally different in 2 years time, and that means higher or lower than today's rates.

If you want certainty you have to fix for longer.

Thanks. I do appreciate that. It’s a tough call, sadly, living in the south means higher property prices and with a growing family we need more space. We were hoping rates in the coming years would drop.

 

[Chris344]

Then you get articles like this:

Interest rates could be 2.5% by late 2027, economist predicts: What would that mean for mortgages?

 

[EvilRob]

Thanks. I do appreciate that. It’s a tough call, sadly, living in the south means higher property prices and with a growing family we need more space. We were hoping rates in the coming years would drop.

I always go with "can I afford current rates? if so, lock in for 5 years". The downside of not being able to afford payments if rates rise a lot and potentially losing the house is a lot more significant than the upside of potentially saving some cash if rates drop.
I've spent a bit more than I needed to in early years due to this mentality, but now recouping that as currently on a 1.27% mortgage through July 2027.

 

[200sols]

Then you get articles like this:

Interest rates could be 2.5% by late 2027, economist predicts: What would that mean for mortgages?

Remember one thing. Nobody knows.

 

[Penfold101]

Bought first home in February 2023 with 36k Mortgage.
Planning to pay it off come this May-August (it's at 23k now)
Can't wait to be rid of it hate the concept of debt.

One bedroom apartment in downtown Baghdad?



Or is it a car?

 

[dlockers]

I always go with "can I afford current rates? if so, lock in for 5 years". The downside of not being able to afford payments if rates rise a lot and potentially losing the house is a lot more significant than the upside of potentially saving some cash if rates drop.
I've spent a bit more than I needed to in early years due to this mentality, but now recouping that as currently on a 1.27% mortgage through July 2027.

This is precisely how I locked in at 4.6%. The saving would be nice, but an increase would make me homeless.

 

[Hagar]

One bedroom apartment in downtown Baghdad?



Or is it a car?

Council house.
?

 

[MatsyLR]

One bedroom apartment in downtown Baghdad?



Or is it a car?

2 bed semi in northeast lol was 113k. Built in 2018.

 

[Penfold101]

Council house.
?

…in Baghdad.

 

[jaybee]

Daily interest accrues on a mortgage so she probably has the balance to the current day, not monthly as may be recoded in your online account.

Yeah I thought the same. I worked it out again using latest balance through till end of fixed period, vs my original spreadsheet and it's within 99.97% difference. So about £90 difference. Not sure exactly how it's drifted but whatever. When I apply then for the remortgage amount, do I have to make sure it definitely covers the outstanding balance, so go over by say £500 or do they take care of all that and just make it exactly the balance when they actually put it live?

 

[413x]

How far into the future we are talking? I'm above to fix for 2 years on a purchase.

Ha. Don't ask me.
2 years ago I'd have said "no way rates can be higher in 2025 than 2023".

And here we are.

Edit.
On flip side the economy could tank. Followed by inflation. And interest rates could dive.

Or Donald Trump could go to war with Europe over Greenland and none of it matters!

 

[Rotty]

I wouldn't hold your breath on rates dropping by much soon with the mess the government are making of the economy

 

[RobDogDog]

And suddenly our 3.79% rate for 5 years starting this month doesn't look so awful.

 

[BUDFORCE]

Swap rates are soaring apparently, we've just pulled a whole load of rates overnight, not to be replaced, at least for a little while.

 

[grudas]

great that I can start looking for deals in 2 months, perfect timing lol. Love it

 

[Chris344]

Ha. Don't ask me.
2 years ago I'd have said "no way rates can be higher in 2025 than 2023".

And here we are.

Edit.
On flip side the economy could tank. Followed by inflation. And interest rates could dive.

Or Donald Trump could go to war with Europe over Greenland and none of it matters!

This is it. I'm trying to figure whether we proceed with the house purchase or just stay where we are now. We secured a 2year fix @4.10%, with additional borrowing.

 

[Bald-Eagle22]

Swap rates are soaring apparently, we've just pulled a whole load of rates overnight, not to be replaced, at least for a little while.

Yep - can't see any rate cuts forthcoming on mass and if Rachel from accounts keeps this up I'm sure inflation will rise and you know what that means