Fixed rate mortgages below 2% axed from the market as interest rates continue to rise

Former_MSE_Sophie

Homeowners and first-time buyers can no longer get a fixed rate mortgage below 2%. Fixed rates have increased rapidly since the start of the year and are expected to continue to rise. 

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Fixed rate mortgages below 2% axed from the market as interest rates continue to rise

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theartfullodger

In November 1979 under Thatcher's government BoE base rate hit 17%.

I had a for then large mortgage. Was "lucky" as building society only demanded 15%...

Good luck you young folk...Could get much worse

Jaybee_16

theartfullodger said:

In November 1979 under Thatcher's government BoE base rate hit 17%.

I had a for then large mortgage. Was "lucky" as building society only demanded 15%...

Good luck you young folk...Could get much worse

Maybe companies were more lenient back in the day. When my mortgage became unaffordable the Woolwich allowed the term to extend, so my 25 year mortgage became 40+ years. When the interest rate reduced the term came back to before.

Thrugelmir

Jaybee_16 said:

theartfullodger said:

In November 1979 under Thatcher's government BoE base rate hit 17%.

I had a for then large mortgage. Was "lucky" as building society only demanded 15%...

Good luck you young folk...Could get much worse

Maybe companies were more lenient back in the day. When my mortgage became unaffordable the Woolwich allowed the term to extend, so my 25 year mortgage became 40+ years. When the interest rate reduced the term came back to before.

Mortgage terms for many people are already extended well beyond 25 years. 

owenjt

Think the headline is misleading. Something being 'axed' suggests it's been taken away unexpectedly and won't return, but this has been coming for a while.

AFF8879

I’m currently fixed until late 2026, guess we all now need to overpay as much as possible until our fixes end! As it seems rates are only headed in one direction.

Richiem1987

AFF8879 said:

I’m currently fixed until late 2026, guess we all now need to overpay as much as possible until our fixes end! As it seems rates are only headed in one direction.

Is the correct course of action. 

Thrugelmir

owenjt said:

Think the headline is misleading. Something being 'axed' suggests it's been taken away unexpectedly and won't return, but this has been coming for a while.

Withdrawn isn't half as emotive. 

youth_leader

I'm sorry my daughter has just missed the boat, she and her boyfriend have been saving really hard for two years.  

nicknameless

Richiem1987 said:

AFF8879 said:

I’m currently fixed until late 2026, guess we all now need to overpay as much as possible until our fixes end! As it seems rates are only headed in one direction.

Is the correct course of action. 

Err no - not for most.  Overpay low interest debt which is inflating away?  Not on your nelly.

Thrugelmir

nicknameless said:

Richiem1987 said:

AFF8879 said:

I’m currently fixed until late 2026, guess we all now need to overpay as much as possible until our fixes end! As it seems rates are only headed in one direction.

Is the correct course of action. 

Err no - not for most.  Overpay low interest debt which is inflating away?  Not on your nelly.

Low interest debt for how long?  Perhaps global markets will tank. Then a double whammy. Leveraging has always been a double edged sword. Magnifies both gains and losses.