How is everyone's situation regarding interest rates?

tony3619

Hello, 

Just curious how people are finding the current situation and the potential Interest rate rises? Have most of you planned for these types of hiked by saving/getting better paid jobs etc? 

My situation is im currently on 1.69% fixed until May next year. I'm probably looking at 5-7% rates by the time I get there. Luckily my LTV is the lowest bracket and the loan value is only about 70 grand. It is shared ownership though so I'm expecting a big rent increase as it's tied to RPI which could be like 15% by that time. It's worrying times but I have savings that will prop up my wage in the short term for a number of years. 

I just don't see how this is sustainable in the longer term for most people. It's gonna get really bad out there...

caprikid1

coming out of my 5 year fixed going to cost me c £500 a month more..

fleetingmind

My 5 year fixed expires September 2023 and I'm  very anxious about how high the rates will be then. Not sure if it's worth paying the ERC and remortgaging. 
They're saying the interest rate may rise .5% tmrw. 

tony3619

fleetingmind said:

My 5 year fixed expires September 2023 and I'm  very anxious about how high the rates will be then. Not sure if it's worth paying the ERC and remortgaging. 
They're saying the interest rate may rise .5% tmrw. 

Yea .5% tomorrow looks likely. The days of low interest rates are over for now. 

Are there any predictions of how high rates could go? I hear 7% going around in the press.. my limit is 5-6% before it becomes uncomfortable. 7-8 % is severely dipping into savings each month and hoping they drop in a couple of years. 

fleetingmind

tony3619 said:

fleetingmind said:

My 5 year fixed expires September 2023 and I'm  very anxious about how high the rates will be then. Not sure if it's worth paying the ERC and remortgaging. 
They're saying the interest rate may rise .5% tmrw. 

Yea .5% tomorrow looks likely. The days of low interest rates are over for now. 

Are there any predictions of how high rates could go? I hear 7% going around in the press.. my limit is 5-6% before it becomes uncomfortable. 7-8 % is severely dipping into savings each month and hoping they drop in a couple of years. 

Exactly. I'm currently on 2.09% with HSBC and really  tempted to remortgage a year early and pay the £1200 ERC. 

propertyhunter

We've just started a 1.44% 5-year fixed mortgage with a large debt despite 40% LTV. We've planned for an increase in interest rates by 2027 to 8%, and will start putting away money to pay off circa 20% of the outstanding balance in 5 years to lessen that hit, and also extend our mortgage term out for longer (17 years back to 23 years). Hopefully we're just being overly cautious, but it's better to plan for the worst and hope for the best. 

strawb_shortcake

We will be going from 1.79% to not sure what when I secure a new deal next month.
Quick Google search is indicating rates of around 3.6% we are at an LTV of 20%.

We'll either absorb increases of around £50pm or pay £5-10k off the balance to keep the payments neutrel to now.

london21

The recent  rate increases has come as a shock to many. 

The ERC can be a lot but all depends on the savings. 

Rates from the banks already 3%+ with tomorrow's increase will soon be 4-5%.

Difficult to cut costs with the increase in cost of everything from energy, food, petrol, mortgage etc. 

Increase pay will likely have to be the option for a lot of people and reliance on savings. 

fleetingmind

london21 said:

The recent  rate increases has come as a shock to many. 

The ERC can be a lot but all depends on the savings. 

Rates from the banks already 3%+ with tomorrow's increase will soon be 4-5%.

Difficult to cut costs with the increase in cost of everything from energy, food, petrol, mortgage etc. 

Increase pay will likely have to be the option for a lot of people and reliance on savings. 

Depending on how high people think the rate wil go in the next few years wil make remortgaging early a must. Shame I'm rubbish at the calculations if it is worth it or not. 

Dandytf

239.50 ERPC to Exit 1.74% 2 yr fix early.
Preparing for rate rises switched to 3.4% 5 yr fix. 

london21

fleetingmind said:

london21 said:

The recent  rate increases has come as a shock to many. 

The ERC can be a lot but all depends on the savings. 

Rates from the banks already 3%+ with tomorrow's increase will soon be 4-5%.

Difficult to cut costs with the increase in cost of everything from energy, food, petrol, mortgage etc. 

Increase pay will likely have to be the option for a lot of people and reliance on savings. 

Depending on how high people think the rate wil go in the next few years wil make remortgaging early a must. Shame I'm rubbish at the calculations if it is worth it or not. 

True, what makes it difficult is the fact that no one knows how high it will go for certain.

Also if less than a year the ERC is like 1% but if more than a year and large loan amount, it increases.