Am I missing something?

Sare

Hi

Ive read this morning the interest rate may quadruple in the next year. ON MY 180K mortgage at 4.25 variable that means for every quarter it goes up 70.00 PM obviously 4 x this is 280.00 PM. Currently I pay 645 PM.

Ive spoken to santander and they have said they can't do anything for me as my house is not 80% loan to value now!!!

In addition I split with my partner who joint owns the house (and is out of work) in 2009 and I have been paying the mortgage since. So remortgage is not really an option I earn 45k.

Am I missing the point? The mortgage company wont help me secure my payments I probably I assume wont be able to get a deal on my own and am facing a 2% increase...

Anyone got any ideas?

Thanks in advance.

Sare

hcb42

are you interest only? Do yuo have a repayment vehicle?

not sure what you are asking TBH

ViolaLass

Sare wrote: »

Hi

Ive read this morning the interest rate may quadruple in the next year. ON MY 180K mortgage at 4.25 variable that means for every quarter it goes up 70.00 PM obviously 4 x this is 280.00 PM. Currently I pay 645 PM.

Do you realise that the article will have been talking about the Bank of England interest rate (currently 0.5%) and not your mortgage interest rate?

I don't understand where your figures of £70 and £280 come from.

roonaldo

Who said rates will quadruple? who said your future rate will be 2% higher? can they predict saturday's lottery numbers too?!

Its all speculation.

I work out that you are on a interest only mortgage, if your rate goes up 2% then it will be around £949 a month. I'm not sure what you want to know as you havent asked anything, but I dont understand why someone on a £45k wage cant afford that.

If you cant afford the house on your own sell up and get something smaller. Or get a lodger. Or get your ex partner to help out as he/she is jointly responsible for the mortgage and the property.

noodle

The BoE rate (*almost* certainly) has to rise at some point. One would assume that you took a variable rate mortgage knowing that this was the case. If a 1.5% rise from record low rates is beyond you then, well, you're overstretched and should genuinely consider whether your property is affordable over the medium-long term.

What we don't know, of course, is how lenders will respond to the base rate rising (if, indeed, it does). Whilst the base rate is a record low, mortgage rates - except for those on 'pre-crunch' tracker deals -aren't quite so amazing. Lenders have padded up their margins a little since 2008. That may reverse itself a little as the base rate increases - with banks not passing the full effect on. The market will dictate that.