Average 2 year fix now 5-6%

Bored

I have a tracker mortgage currently (base rate + 1.14% until December 2024). I don't feel too bad about not fixing last year as I wanted flexibility to sell or overpay and I didn't have a crystal ball. I've looked up how much my payment would be based on various predicted base rates and I can afford it up to around 15% so I'm not too worried. I'm just going to overpay as much as I can in the meantime.

simon_or

Average two year fix over 6% now, as per Moneyfacts comparison website. This was last the case in November 2008.

Average 5yr fix 5.97%.

https://news.sky.com/story/uk-economy-latest-news-average-two-year-fix-mortgage-rate-approaches-6-repossessions-probably-unavoidable-12615118

AliceBanned

My fixed rate of 3.09% ends at the start of March 2023 so I've been trying to lock in a fix now at the advice of a broker. I prefer a fix so there are no nasty surprises, but I'm being offered 5.89% by the current lender. this may be because I have unsecured debt, which I would have to add to the mortgage according to the broker. I'm clearing the debt now, it's £14000 and I have enough disposable income to pay it off in 1.5 years. Natwest offering 'market leading' 5.85% according to my broker. both no fees. 

I'm tempted to wait until nearer the time of the fix running out..but it's scarey as I owe £180k and live alone. I have even thought of taking money from my pension pot as I am 55. I think these fixed rates are to capture people who are panicking..quite rightly panicking in my case!

Aberdeenangarse

simon_or said:

Average two year fix over 6% now, as per Moneyfacts comparison website. This was last the case in November 2008.

Average 5yr fix 5.97%.

https://news.sky.com/story/uk-economy-latest-news-average-two-year-fix-mortgage-rate-approaches-6-repossessions-probably-unavoidable-12615118

Yes

https://www.telegraph.co.uk/personal-banking/mortgages/mortgages-now-expensive-2008/

goodwithsaving

I've just looked and I fixed in March at 0.99% for 5 years (kicking myself for not doing 10 years at 1.8%). If I remortgaged today with the same figures, same lender, same 50% LTV....it would be £600 more. And I'm single so the only one to foot the monthly bills. 
It's alarming to say the least. 

AliceBanned

goodwithsaving said:

I've just looked and I fixed in March at 0.99% for 5 years (kicking myself for not doing 10 years at 1.8%). If I remortgaged today with the same figures, same lender, same 50% LTV....it would be £600 more. And I'm single so the only one to foot the monthly bills. 
It's alarming to say the least. 

I'm in tears looking at rental properties in a cheaper area (for a year). I've been in tears about work a lot -separate thread on this but I think the combination of everything is too much. I've spoken to counsellors and getting help but still not coping. I've got to make a decision and it feels like selling up and renting a studio flat for while would take some pressure off, then buy again when prices have reduced as I think they are bound to - maybe only a bit but they won't go up for sure.It's scarey times.

TheAble

AliceBanned said:

goodwithsaving said:

I've just looked and I fixed in March at 0.99% for 5 years (kicking myself for not doing 10 years at 1.8%). If I remortgaged today with the same figures, same lender, same 50% LTV....it would be £600 more. And I'm single so the only one to foot the monthly bills. 
It's alarming to say the least. 

I'm in tears looking at rental properties in a cheaper area (for a year). I've been in tears about work a lot -separate thread on this but I think the combination of everything is too much. I've spoken to counsellors and getting help but still not coping. I've got to make a decision and it feels like selling up and renting a studio flat for while would take some pressure off, then buy again when prices have reduced as I think they are bound to - maybe only a bit but they won't go up for sure.It's scarey times.

A lot of fees involved in that little lot though, plus the fact that you'd presumably need to apply for a mortgage again. I suppose you have to weigh up the pros and cons.

AliceBanned

TheAble said:

AliceBanned said:

goodwithsaving said:

I've just looked and I fixed in March at 0.99% for 5 years (kicking myself for not doing 10 years at 1.8%). If I remortgaged today with the same figures, same lender, same 50% LTV....it would be £600 more. And I'm single so the only one to foot the monthly bills. 
It's alarming to say the least. 

I'm in tears looking at rental properties in a cheaper area (for a year). I've been in tears about work a lot -separate thread on this but I think the combination of everything is too much. I've spoken to counsellors and getting help but still not coping. I've got to make a decision and it feels like selling up and renting a studio flat for while would take some pressure off, then buy again when prices have reduced as I think they are bound to - maybe only a bit but they won't go up for sure.It's scarey times.

A lot of fees involved in that little lot though, plus the fact that you'd presumably need to apply for a mortgage again. I suppose you have to weigh up the pros and cons.

I think it could be too much upheaval considering I'm not feeling great. Looking at the NI changes and tax reduction plus pay rise soon I may only be in real terms £150pm worse off so maybe I'm overreacting a bit. I wanted to move next year anyway so that is what is difficult. I could still do so and port the mortgage according to the broker, but it makes me feel tied if I fix again now. I actually wanted to get a lodger but the place isn't ideal whereas a slightly bigger two bed flat would make that more feasible, ie with an ensuite and just bigger rooms. Now this has thrown those plans as I'm scared of my borrowing with LTV at 72%, if prices are going to fall which they may. It's depressing in general knowing how tough it's going to be for a lot of people too. 

AliceBanned

Sorry yes it's true factoring in the fees is important, thanks The Able. Removals, storage, conveyancing, estate agents.Then again when I buy, with stamp duty though  that has reduced. It makes more sense to stay put and put up with a few things and cope, I'm just thinking I want to run away instead of working out ways to improve my mental state.

simon_or

Average 5 year fix now at 6.19%, the highest since November 2009 according to Moneyfacts. Average 2 yr fix at 6.31%.

https://www.bloomberg.com/news/articles/2022-10-10/uk-mortgage-rates-rise-again-as-kwarteng-bids-to-regain-tory-trust?srnd=premium-uk

5yr SONIA swap rates also rising and now firmly above 5%.