How is everyone's situation regarding interest rates?

Bluebell1000

Our fixed rate at 1.7%ish ends in December. We are very close to being able to pay off the full balance, so decided to take out a 0% credit card. We're putting all our spending onto that and will hopefully be able to repay the mortgage in full, so we avoid the higher rates. 

boxer234

I’ve just bought and fixed for 5 years.  My mortgage is £280 less than what the rent would have been.  I was going to save a bit and do up the place but I am worried about the financial forecast and have decided to save every penny and watch what happens.  

I’m hoping in 5 years things would have settled or we will be living in a Mad Max dystopian future and it won’t matter. 

ACG

boxer234 said:

I’m hoping in 5 years things would have settled or we will be living in a Mad Max dystopian future and it won’t matter. 

Either/or is ok with you then? haha

fewcloudy

tony3619 said:

Hello, 

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...

I know it's all crystal-ball stuff, but I do not think rates will be 5-7% in May next year.  But not a bad idea to expect the worst I guess, as you will be prepared if it happens, and be pleasantly surprised if it doesn't.

boxer234

ACG said:

boxer234 said:

I’m hoping in 5 years things would have settled or we will be living in a Mad Max dystopian future and it won’t matter. 

Either/or is ok with you then? haha

At this point I just have to accept it   

Clownfish68

I’m fortunate that I’ve got savings which were always geared to pay a large chunk of the mortgage off. Better invested but I hate the mortgage and the pressure it places on me. However, before the situation with inflation even started to escalate I took a new job with significantly less salary. Hopefully will be back on even keel within 3 years but that’s the leap of faith I had to take particularly as I worked for a National housebuilder and once recession takes hold I’d rather be earning less but in relatively secure job than no job at all. 

In terms of mortgage rates I’m hoping they don’t breach 5% but it’s getting close already. My fixed term is up in July 2024.  I’d still be comfortable at 6.5% as it roughly works out the same monthly as what I’m currently paying. I did look into new mortgage but due to change of income/ERC the sums worked out pretty similiar. 

Yeah 

Personally I think the base rate will drop but 50/50 on it really due to recession and cost of living squeezing peoples abilities to spend regardless. However with inflation so high and the lack of control BOE really have on external forces remains to be seen

BaileysMam

We are just taking out a new 5 year fix at 3.76% 90% LTV. Not a particularly competitive rate but we could only borrow with certain lenders due to my being on a fixed contract.
I am expecting to need to use our savings to pay for our cost of living for at least a few years.
Thankfully husband and I are both in v secure jobs with guarantee of increasing salary in future.
Still, it’s going to be a bumpy ride!

nyermen

fleetingmind said:

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. 

I'm on the same rate, though i've 2 years left.  £1200 for you, i guess that means a lot more for me .
My OP is 246k

Griffin78

I started a 10 year fix at 2.4% just under 4 years ago so happy to be secure for 6 years. I was looking at a potential upward property move in the next 3-4 years but that seems a stretch now as I would be doubling my current mortgage balance.
Current LTV is approx 30%

[Deleted User]

5 year fix until August 25 at 1.46% 
5 year BTL fix 1.8% until March 25
Only thing is if I should cash in on the BTL property now and could be mortgage free.