Confused about interest rate rises

langold

Hi I have three yeArs left on my fixed rate 5.9% if rates go up in three years as it says on the news how much more will I have to pay ? Will I be able to get another deal . I worried about a huge raise in repayments thankyou

Thrugelmir

Who knows where rates may go in the future. The only certainty is that they won't remain at abnormally low level (for mortgages) indefinately. Often gets over looked that other forms of borrowing still remain extremely high relatively.

All one can do is plan for the future. If at at all possible overpay the mortgage and reduce the level of indebtedness. As the less owed the less impact any future increases will have. Even if the overpayment amounts seem small over time the benefit of the saving will compound.

Your current lender will offer you a product of some kind. By default you will fall onto the SVR as specified in your current product offer.

langold

I can't over pay

Yorkie1

One consolation is that 5.9% is higher than many rates at present, so you may find you're not on higher rates in 2 years' time.

langold

I'm really panicing about this

langold

I'm really worried about this

Yorkie1

Who are you with at the moment?

Amount of mortgage and value of property?

What is your credit like?

Employment situation?

What is the follow-on rate on your current product?

langold

Emotes good credit bank of Scotland I owe 57000 value 85-90

langold

Employed not emotes

Yorkie1

When you come to the end of your fix then you: go onto the SVR follow-on rate, go onto a new product with BoS, or go onto a new product with a new lender (a remortgage).

From their website, the BoS SVR appears to be 4.95% at the moment so will need to rise about 1% before you pay any more than your current amount.

Your loan is under 70% of the property value. This is quite good as lower LTV means lower rates. Current BoS rates for product transfers (i.e. staying with them) at that LTV are 4.19% on their website.

So even if rates have gone up in 2 years, which is quite likely, chances are that they won't have gone up hugely and that you won't be paying lots more.

Thrugelmir

What's changed since you first took out the mortgage?