Worried about higher interest rates?

mayonnaise

shortchanged wrote: »

Hey Mayo, one for you and the gang on ITV in a couple of minutes at 19.30.

Tonight programme about interest rates.

I'll have a look

wotsthat

wotsthat wrote: »

Hasn't anyone heard of fixed rate mortgages?

Oh yes apparently they do exist but professional advice is needed from an expert to make sure it's right for individual circumstances.

mayonnaise

Ok, I've seen enough.
Stephen Rae, teacher, and his wife who works in the public sector spend 40% on their mortgage and 40% on utilities. The rest goes on food and stuff so they will face immense hardship if and when interest rates rise.

40% on utilities.

I'm zapping back to Celebrity Antiques Road Trip.

wotsthat

Don't tell Graham but there's a boomer with a mobile home!

shortchanged_2

Apparently there was a large number of people who were already stretched when they took a mortgage out. No wonder they are bricking it about an interest rate rise.

ukcarper

Trouble is that if you ask people if they ar financially stretch a lot will say they are but when the crunch comes they will find the money. Back in the 80s my mortgage increased to over 50% of my salary if you had asked me before it increased could I afford it I would have said no but I managed to pay.

bigheadxx

If interest rates rise from 0.5 % to 1%, you payments will double? No they won't! Unless you are on an interest only mortgage.

officeuk

There are always people who will try and spin this or say that its nonsense!

daveyjp

bigheadxx wrote: »

If interest rates rise from 0.5 % to 1%, you payments will double? No they won't! Unless you are on an interest only mortgage.

I heard that too and thought what a load of codswallop. For a start who is on true base rate, interest only tracker mortagage?

wotsthat

shortchanged wrote: »

Apparently there was a large number of people who were already stretched when they took a mortgage out. No wonder they are bricking it about an interest rate rise.

Yes there's such a large number of people in this situation Reuters need to trawl password protected forums to find them.

The people on the TV show weren't typical - they were outliers.

Let's get the 6th birthday party of the 0.5% BoE rate out of the way in March and see what happens when rates rise. As you'll find - what people say will happen is usually different to what actually happens. Surprised you still haven't worked this out.