Thread: Serving? Got a Mortgage? Interest Rates due to Rise to 5%

I was unable to post a link, but the Daily Mail have printed a story today which hints at mortgage rate rises in the very near future. So, I thought, we have had lots of threads on RP for those who live in MQ, but some of us live in our own homes with mortgages.

Our income has already gone down by over two grand when allowances were cut, so this is going to be nearly impossible for us to cope with, anyone else in the same boat?

me
x

Sorry about that, Toots. I'm too poor to afford my own home, but you have my sympathies. Buck up, it'll get better.

Our house is going on the market in the new year. The rent doesn't cover the mortgage, we aren't ever going to live there again and because the ******* army have ****** up Mr K's posting we'll be living in expensive rented places for the time being. It's not the end of the world as we have a plan in place to get our own house again once he's out but it's still incredibly frustrating as we'll be saying goodbye to the fairly hefty deposit we paid on the place.

Still, if we walk away from the worst recession in however many years with both of us still in work and the deposit being the only thing we've lost I'll be fairly happy.

What are you going to do Toots?

I feel for you Toots. However chick it hasn't happened yet. Now I'm not one for burying my head in the sand but this is one report in one paper. Don't let it spoil your Crimbo. If they start to rise next year then we'll put our RP heads together and sort out solutions xxx

A commune perhaps!? We could have chickens and cows and be self sufficient. It would reduce child care costs!!!

My mortgage has been fixed at 5.39 for the last 5 years and is due to be renegotiated next year. Personally I don't think that they will want to increase the rate by that much because of peoples affordability. Trust me repossessing a home is the LAST thing that a mortgage company will want to do in this economic climate because they will lose money hand over fist.

I like the commune Idea!! The boy and I are thinking of buying next year and I definatly want a lodger or several!!! Too lonely whilst he is off doing whatever it is he does that keeps me in baking tins all year round

Forgot to say before, depending on what type of mortgage deal you're on it might be worth speaking to your lender. We're on the standard rate (which is actually £100 less than what we were paying) but I spoke to the bank and they offered us a really good fixed rate deal.

I saw that story too and it's just speculation.

I had a financial review earlier in Autumn and it was generally recognised that the Bank of England rate was going to rise in the next couple of years - simply because it's never been so low as it has been over the past 6 months or so. But exactly how much it will rise, no one knows.

Hence we switched our mortgage to a fixed rate to ride it out for a couple of years. We got an extremely good deal - we saved so much per month that we are overpaying whilst we can afford to and still saving what we used to pay - so it's well worth having a chat with your lender.

I'm already paying 5.89% for the next 4 and a bit years but thats due to having a 90% mortgage, don't envy anyone affected by this sort of stuff.

Completely off topic but helloooooo TL! How the devil are you?