At what point does interest rates make you mortgage unaffordible

eatmyfish

And what would you do to resolve the situation?

wisbech_lad

Well, there are a number of things: In the order I would try

- Earn more money
- Spend less money
- Lengthen mortgage period
- Switch to interest only
- Move to cheaper place

Gillybean

Not sure how much the rates would have to rise, but we could accomodate our repayments going up by about £500 per month before we'd struggle. Reason being we have a BTL which we pay the mortgage on and bank the rent, so we'd just have to let the rent pay the mortgage and use our money to pay just the one mortgage

Possible tactics to remedy would be me going back to work (currently SAHM) or sell our BTL. Or use savings to pay a chunk off the mortgage to bring repayments down.

lynzpower

havent you asked this question before? in one of your many other guises?

eatmyfish

lynzpower wrote: »

havent you asked this question before? in one of your many other guises?

If you are going to make allegations of this nature you should have the decency to post some supporting evidence...

reformedEffortMaker_2

i would probably managed another £150 max, and so if rates became unmanagable I would cut back on everything bar the very very bare essentials-so no landline, no internet (no more MSE.com :eek: ). Buy economy line EVERYTHING in the supermarkets. would also seriously brown nose with my boss for more overtime

[Deleted User]

After my fixed period my expected overpayments, and given my likely wage increases and my other sources of income, any thing about 20% apr would be horrendous. Prob with a weekend job i could afford an extra few percents.

I have been a first time buyer last year but am a cautious person

MarkyMarkD

wisbech_lad correctly summarises the options, but there's another one - sell up completely and rent a property.

I know that doesn't work in some parts of the country where it's cheaper to buy than to rent, but it does work in other places quite successfully.

Melissa177

I think I'd get a bit uncomfortable around the 10% mark.

That said, I fixed for five years when interest rates were still only 5%.

"Eatmyfish" does seem to bear an uncanny resemblance to previous trolls on this board, I must say..

steb4life

Melissa177 wrote: »

I think I'd get a bit uncomfortable around the 10% mark.

That said, I fixed for five years when interest rates were still only 5%.

"Eatmyfish" does seem to bear an uncanny resemblance to previous trolls on this board, I must say..

It's all about how much beer I can afford to go without I suppose. Went for a flexi and have suffered three rises in 8months. Rates seem set to rise I fear... Not good. We are doing it to ourselves with the current property prices. If they don't stabilise soon we're all in for a world of hurt and I like beer!!!:beer:

amcluesent

>Eatmyfish" does seem to bear an uncanny resemblance to previous trolls<

Just goto your "User CP" and add poster to your Ignore List. Easy!