Mortgage Increases

PR3BFC

PR3BFC

Well-known member
Anyone else in a similar boat where your mortgage is due soon and your looking at horrific increases?

Our two year deal is up a small part next month and the big chunk in 3 months and it’s looking like we are going from £726 a month to just over £1300 a month to a fixed rate of 6.3%.

The tracker rate the other day we were offered was 5.7% but don’t like the thought of it going up past the 6.3% but I believe after 3 months of tracker you can switch to fixed so may be worth the gamble if the rate is much better before our deal is up.

Can anyone else make me feel better that they’ve had similar or know of someone in the same position. We obviously expected it to be grim but just under £600 increase is a tough one to take.
 
I think we're about at the peak ish, so I personally wouldn't commit to any long term high rate deal. If you can weather the tracker and see what happens, that's what I'd do.
 
The fixed and tracker rates went down for the first time in months yesterday because of lower than expected inflation in June, so if you didn’t check them out as recent as yesterday maybe wise to.

I’ve not fixed mine at all yet and am sticking with it in the hope that they slowly continue to come down now and I don't want to fix above what they might be soon. Remember the admin fee too, it’s a grand cost to fix with my provider. I get that those with a bigger mortgage can’t afford to ride out the increases like I have but it’s been ok for me so far.

Anyway, whatever you choose good luck with it and hope it works out for you.
 
Was kind of lucky and accepted a 3 year fixed term although my payments have gone up £200 it could have been far far worse. I feel the OP's pain.
 
PR3BFC said:
Anyone else in a similar boat where your mortgage is due soon and your looking at horrific increases?

Our two year deal is up a small part next month and the big chunk in 3 months and it’s looking like we are going from £726 a month to just over £1300 a month to a fixed rate of 6.3%.

The tracker rate the other day we were offered was 5.7% but don’t like the thought of it going up past the 6.3% but I believe after 3 months of tracker you can switch to fixed so may be worth the gamble if the rate is much better before our deal is up.

Can anyone else make me feel better that they’ve had similar or know of someone in the same position. We obviously expected it to be grim but just under £600 increase is a tough one to take.
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I think there will be a lot in a similar position to be honest. The only consolation is that the rates could well start coming down and the hit may only be this bad for 2 years. But I know that’s not good.
Could you opt for repayment only for a fixed 2 years ? I know most of us wouldn’t want the repayment only option but if it gets you through a tough period you can maybe overpay in the future when the rates are lower again and keep your mortgage to the same term over time.
 
We’ve agreed a two year fixed deal at 6.3%, however our mortgage is in two parts with the larger chunk being due end of November, the small part is next month which is going up £100ish then the huge increase with the second part.

Hopefully rates drop by then and we can cancel the second part agreement and move it to a lower rate but I suppose least we have a few months to prepare for the full increase worse case if rates don’t drop.
 
PR3BFC said:
Anyone else in a similar boat where your mortgage is due soon and your looking at horrific increases?

Our two year deal is up a small part next month and the big chunk in 3 months and it’s looking like we are going from £726 a month to just over £1300 a month to a fixed rate of 6.3%.

The tracker rate the other day we were offered was 5.7% but don’t like the thought of it going up past the 6.3% but I believe after 3 months of tracker you can switch to fixed so may be worth the gamble if the rate is much better before our deal is up.

Can anyone else make me feel better that they’ve had similar or know of someone in the same position. We obviously expected it to be grim but just under £600 increase is a tough one to take.
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I’ve been doing mortgages for 19 years and right now it’s the toughest for a long time reasons are several.
A, People have been used to low low rates for many years. ( if memory is correct I was offering 1:09% fixed for 10 years in 2020 if only now)
B, Pandemic/ economic climate.
C. People have borrowed more due to house prices going up considerably.
If people can weather the storm I suggest the rates will come down, when 1 or 2 years .
If you are struggling to make the payments speak to your lender or your mortgage advisor to see if any options available to you .
DO NOT JUST MISS PAYMENTS
Good luck all.
 
I was trying to re mortgage a leasehold property last year. I gave up. NEVER go for leasehold.always freehold! I own it outright. Granted I only tried 1 or 2 online brokers but being leasehold caused a few complications.I am short of cash and being in my seventies I want to re invest my hard earned using the George Best economic template. Will try again soon.
 
PR3BFC said:
Anyone else in a similar boat where your mortgage is due soon and your looking at horrific increases?

Our two year deal is up a small part next month and the big chunk in 3 months and it’s looking like we are going from £726 a month to just over £1300 a month to a fixed rate of 6.3%.

The tracker rate the other day we were offered was 5.7% but don’t like the thought of it going up past the 6.3% but I believe after 3 months of tracker you can switch to fixed so may be worth the gamble if the rate is much better before our deal is up.

Can anyone else make me feel better that they’ve had similar or know of someone in the same position. We obviously expected it to be grim but just under £600 increase is a tough one to take.
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That’s harsh, so the banks want people to stop spending on goods and services but don’t mind you spending your money on interest rates. Gangsters.
 
BFC87 said:
I was trying to re mortgage a leasehold property last year. I gave up. NEVER go for leasehold.always freehold! I own it outright. Granted I only tried 1 or 2 online brokers but being leasehold caused a few complications.I am short of cash and being in my seventies I want to re invest my hard earned using the George Best economic template. Will try again soon.
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Good luck with that if you live in Lytham St Annes . Nearly every property is leasehold .
 
stevederby said:
I’ve been doing mortgages for 19 years and right now it’s the toughest for a long time reasons are several.
A, People have been used to low low rates for many years. ( if memory is correct I was offering 1:09% fixed for 10 years in 2020 if only now)
B, Pandemic/ economic climate.
C. People have borrowed more due to house prices going up considerably.
If people can weather the storm I suggest the rates will come down, when 1 or 2 years .
If you are struggling to make the payments speak to your lender or your mortgage advisor to see if any options available to you .
DO NOT JUST MISS PAYMENTS
Good luck all.
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Will they come down though? If we take a 5 year deal it’ll be about £500 increase instead of £600.

What’s to say they won’t go up more & more and in two years be even worse.

Sorry to be gloomy but trying to be realistic and not live on hope for a couple of years.
 
PR3BFC said:
Anyone else in a similar boat where your mortgage is due soon and your looking at horrific increases?

Our two year deal is up a small part next month and the big chunk in 3 months and it’s looking like we are going from £726 a month to just over £1300 a month to a fixed rate of 6.3%.

The tracker rate the other day we were offered was 5.7% but don’t like the thought of it going up past the 6.3% but I believe after 3 months of tracker you can switch to fixed so may be worth the gamble if the rate is much better before our deal is up.

Can anyone else make me feel better that they’ve had similar or know of someone in the same position. We obviously expected it to be grim but just under £600 increase is a tough one to take.
Click to expand...
Interest rates will be falling soon as this Government can't go into an election with them at this level. On that basis, I wouldn't take a fixed rate at present.

And regardless of whether we can afford it or not, I bet there are tax cuts in the next budget.

Funny how when tough decisions are to be made its those who can least afford it carry the brunt rather than the millionaires ' as they'll leave the country'.
 
Wizaard said:
Interest rates will be falling soon as this Government can't go into an election with them at this level. On that basis, I wouldn't take a fixed rate at present.

And regardless of whether we can afford it or not, I bet there are tax cuts in the next budget.

Funny how when tough decisions are to be made its those who can least afford it carry the brunt rather than the millionaires ' as they'll leave the country'.
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If someone doesn’t live in a country, why should they pay for that country??

Surely they should pay towards the country they live in.

Many people living as ex pats are not well off.
 
seasideone said:
If someone doesn’t live in a country, why should they pay for that country??

Surely they should pay towards the country they live in.

Many people living as ex pats are not well off.
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What I'm saying is that we should call their bluff and take the burden off millions.

I never said they should be taxed abroad (although Americans are).
 
Wizaard said:
What I'm saying is that we should call their bluff and take the burden off millions.

I never said they should be taxed abroad (although Americans are).
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A few other countries tax abroad (I can’t remember who) and if you are a US citizen there are very legal ways around it.

They effectively called my bluff and I did one - and then I created hundreds of jobs in other countries instead of the UK.

You have to reward the entrepreneurs (the job and economic growth creators) or many move and do it elsewhere in favourable tax places.

What people do not realise is the sacrifices many people make to build a business.

…in the UK success is generally seen as a bad thing and you must be acting illegally.

Of course those people exist, but the vast majority of people I met and know who run and own business care deeply for the people who work for them and are completely honest.
 
PR3BFC said:
Will they come down though? If we take a 5 year deal it’ll be about £500 increase instead of £600.

What’s to say they won’t go up more & more and in two years be even worse.

Sorry to be gloomy but trying to be realistic and not live on hope for a couple of years.
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They are expecting them to level off and then start to come down I think, but obviously nothing is a certainty and the timescales are all unknowns.
As the fixed and tracker rates went down slightly last week I would probably see that as a good sign.
I don’t think anyone can tell you what to do though without some kind of health warning.
I think there is a realistic limit to how high they can go because it won’t belong before people will be pushed into repossession territory because of the amounts they have been borrowing recently. I can’t imagine large scale repossession orders would be a help to the economy.
Anyway, hope the mortgage man gets back to you on here 👍
 
seasideone said:
A few other countries tax abroad (I can’t remember who) and if you are a US citizen there are very legal ways around it.

They effectively called my bluff and I did one - and then I created hundreds of jobs in other countries instead of the UK.

You have to reward the entrepreneurs (the job and economic growth creators) or many move and do it elsewhere in favourable tax places.

What people do not realise is the sacrifices many people make to build a business.

…in the UK success is generally seen as a bad thing and you must be acting illegally.

Of course those people exist, but the vast majority of people I met and know who run and own business care deeply for the people who work for them and are completely honest.
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Why is it I pay 45% tax ( including NI) and Rishi's wife pays around 20% as a favour to us all?

Meanwhile they bleat about tough times. The richest don't ever suffer like millions of people who are working, never mind those on disability benefits.

If people want to go abroad, then do so. Apparently we're overcrowded anyway.
 
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