Worried about mortgate interest rate increases

dmo84

Hi all, I'm fairly new to this so apologies.

First time buyer had AIP from a broker on virgin money, I had put offers in on house but lost out, little annoyed by the agent for not letting me know at a crucial moment . Nevertheless, I'm back on to searching now, but worried about mortgate interest rises that I have been hearing, how much of rise is this going to be ? Will it effect certain companies or widespread because of inflation .

Ie is it likely to hit the pocket say £20 or £140? Im still searching but not found anywhere else yet

z1a

Depends on whether your mortgage is £80k or £5m.

enthusiasticsaver

Most banks and building societies tend to follow suit but the general expectation is rates will steadily increase but unlikely to be any more than 0.25 or 0.5% at a time. Take a look at medium term fixed rates available.

How much this will affect you depends on size of mortgage.

bike_saving_expert

hey all rates to some extent are decided by movements by the bank of england base rate. if the bank of england raises interest rates too much they will bankrupt the government and bankrupt half the population who have taken large loans and consequently bring about a massive recession so i short its very unlikely rates will rise much remember in the no to distant past mortgage interest rates stood as high as 18% (credit card rates of interest) and remember if interest rates are that high incomes typically must raise a corresponding amount therefore you'll probably be richer.

z1a

bike_saving_expert wrote: »

hey all rates to some extent are decided by movements by the bank of england base rate. if the bank of england raises interest rates too much they will bankrupt the government and bankrupt half the population who have taken large loans and consequently bring about a massive recession so i short its very unlikely rates will rise much remember in the no to distant past mortgage interest rates stood as high as 18% (credit card rates of interest) and remember if interest rates are that high incomes typically must raise a corresponding amount therefore you'll probably be richer.

Dunno about "bike saving expert", but you're certainly a punctuation saving expert!

dmo84

Initial quote which the aip followed was for a

A 3 Year Fixed rate of 2.20%,

So a potential increase up to 2.45% or 2.7%

Potentially adding an extra £30 or £50 a month on

ACG

But in 3 years, there is a good possibility rates will be higher.
So it may be worth looking at fixing for a longer period - although that will depend on your circumstances.

ViolaLass

Buying a house that doesn't suit you will cost more.

amnblog

There are plenty of ways of finding your self with an extra £30 or £50 bill every month as a householder without mortgage rate rises.

As stated, if concerned, discuss five year fixed rates with your Broker.

enthusiasticsaver

It is always a balancing act deciding on how long a term to go for when taking out a mortgage. If your budget is tight and you intend staying in the property for a good few years it is best to fix for as long a term as possible.