Interest rate rises: FTB panic or genuine concern

MaidMarianofNottingham

I did pay mortgage interest rate of something approaching 15% in the early 1980s. Nightmare scenario looking back but people just got through it and cut back their non essential spending such as holidays, new cars and the like. I lived alone and had no-one else to help me pay the mortgage and yes it was miserable. I worried a great deal about unexpected expenditure such as car repairs. I think FTB is worrying unnecessarily. She is in a good position to ride out any interest rate rises. Saving on a regular basis by direct debit each month is key and a good habit. With negative equity, the problem arises only arises if you need to sell because of a job move, for example. You can live through negative equity as long as you don't need to sell the property.