Anyone concerned by interest rates rising re mortgage?

[SirGalahad]

Anyone fretting about the likelihood of further interest rate rises on their mortgage?

 

[JonathanM]

Not personally, as we're lucky enough not to have one anymore.

It could be a disaster for lots of people, though. Especially younger people.

But what to do?

 

[JonathanM]

BoE interest rate has just gone up another 0.5%

Now at 5.00%

 

[SirGalahad]

BoE interest rate has just gone up another 0.5%

Now at 5.00%

From Star Trek

"I'm Givin' Her All She's Got, Captain!"​

 

[SirGalahad]

This last decade has been miserable for twenty somethings leaving University to start work with rising rents and ever more precarious work and then they had brexit foisted on them.

Rents going sky high with old timers pointing fingers at them for drinking lattes.

What a world we live in.

 

[albaPhenom]

My mortgage repayments went up by £300 last month.

I don't have a huge mortgage, some people are going to be royally screwed though... it's true that the burden of the inflation reduction pain is being shouldered disproportionately by a couple million young homeowners.

It just seems like a desperate attempt to bail the water from the boat from the Bank.

 

[jeds]

The fact is, we've all been living through a fifteen year bubble of low interest rates, and they've just gone back to normal.

 

[JonathanM]

The fact is, we've all been living through a fifteen year bubble of low interest rates, and they've just gone back to normal.

Definitely. It's just a matter of who's going to suffer. Some people have done amazingly well from the past fifteen years. It feels like the very rich have never had it so good.

 

[albaPhenom]

This last decade has been miserable for twenty somethings leaving University to start work with rising rents and ever more precarious work and then they had brexit foisted on them.

Rents going sky high with old timers pointing fingers at them for drinking lattes.

What a world we live in.

There's only so much people are willing to take, why should at least two generations now be completely screwed for the comfort of the Boomers who didn't have any of this to contend with, who benefitted from low house prices and a stable economy, who now sit in paid off houses and nice nest eggs, thumbing their nose at everyone else struggling to make ends meet. The very same people who overwhelmingly voted for Brexit, who still overwhelmingly vote for the Tories who act against their interests at every turn.

 

[thomp1983]

We're due to start looking for a new fixed rate in November, it's going to sting a bit inevitably.

I'm hoping as our ltv is going to drop from 95% to approx 60% due to the extension we built that this will offset a decent amount of the pain.

In reality were fortunate enough that unless it does an 80's style swing upto 15% we'll be able to afford it, it would just mean a marked change from 3 holidays a year, 4 cars on the drive and takeaway/going out several times a month.

I feel for those scraping by at the bottom who had to borrow everything they could just to get some sort of home or cling onto a rental, we started out the same but I've little sympathy for those who borrowed every penny so they could have a flash lifestyle without thinking about where they'd be if it went tits up, cheap borrowing was never going to exist forever.

Before we bought the house were in now in 2021 I had a massive argument with the wife as I refused to spend 400k plus on a fancy house and tie myself to a 2k a month mortgage, instead we bought this place and I've spent the last 2 years putting the extension on it, we'd be crippled with the rates now if we had done it her way, she seems to forget that when she's complaining about how bad it might look in November now.

 

[charliegolf]

The fact is, we've all been living through a fifteen year bubble of low interest rates, and they've just gone back to normal.

Yep. Difference now, compared to when we oldies 'endured' 13 and 15% rates for a while in the 80s, is that houses were 3x salary not 6 or more times salary. The, "Suck it up like we had to!", brigade don't get that.

 

[noseall]

Anyone fretting about the likelihood of further interest rate rises on their mortgage?

I paid off my mortgage when interest rates were at their lowest (doh!), but I'm happy now that I did.

 

[Doug99]

Who are the boomers of which you refer? Are they the ones who grew up without central heating, only B+W TV, who had to walk to school, who did not own a telephone and could only communicate with family by letter? Those who considered a local bus ride to a Butlins their annual treat? Those who worked long dirty hours before H&S to put food on the table?.......I could go on.........

 

[Mottie]

There's only so much people are willing to take, why should at least two generations now be completely screwed for the comfort of the Boomers who didn't have any of this to contend with

Apart from interest rates in or near to double digits which kept house prices down. When they started getting into fractions of one percent, what happened to house prices then?

It will prove to be a painful lesson to those that have maxed themselves out and paid more than they could when rates we’re ridiculously low.

Yep. Difference now, compared to when we oldies 'endured' 13 and 15% rates for a while in the 80s, is that houses were 3x salary not 6 or more times salary. The, "Suck it up like we had to!", brigade don't get that.

It's because of those stupidly low rates that house prices rise to 6 times salary.

 

[JonathanM]

I can see that, once they'd decided to save the financial system, they had to keep interest rates low. What I can't forgive, are the successive Tory schemes to juice the housing market, for political gain. For instance, George Osborne was quoted as saying that his measures would create a nice little house price boom before the 2015 election. He was evil IMO (not just about this).