Mortgage rates! Crystal ball anyone?

[Floridatilly]

For the past few years the mortgage rates have been brilliant! When we first got a mortgage they were sky high.
So mortgage repayments are very low at the moment. Will this last? Does anyone have any clue if the interest rates are likely to stay low for the next 5 years?

[wanye]

Originally Posted by Floridatilly

For the past few years the mortgage rates have been brilliant! When we first got a mortgage they were sky high.
So mortgage repayments are very low at the moment. Will this last? Does anyone have any clue if the interest rates are likely to stay low for the next 5 years?

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i locked in our mortgage for 7 years at 1.75% this time last year. with all the brexit uncertainty i thought it best... and at that rate, it wasnt likely to go down any further (at least not by much)

im just happy i know it isnt going to be changing anytime soon

who knows whats going to happen in 5 years time, i didnt want to risk it, so if you can get a similarly-good deal on yours, lock it in for as long as you can!

[keith1973]

Originally Posted by wanye

i locked in our mortgage for 7 years at 1.75% this time last year. with all the brexit uncertainty i thought it best... and at that rate, it wasnt likely to go down any further (at least not by much)

im just happy i know it isnt going to be changing anytime soon

who knows whats going to happen in 5 years time, i didnt want to risk it, so if you can get a similarly-good deal on yours, lock it in for as long as you can!

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You did well with that rate I go 2% over 10 years with TSB. My penny’s worth is I can’t seen interest rates getting lower I’d say now is a good time to get a long term fixed rate I know what I’m paying until my house is paid for.

[GoldenAvalanche]

Well there's only one direction they can go in, but it seems unlikely they will get much higher any time soon. I am hopeful that when I come to remortgage in 5 years rates won't be too bad, I assume they'll be higher than now but I'm hoping not horrendously high. I've only ever had a mortgage since rates have been low, many of us have, so it's hard to imagine how some people will cope when they start increasing as it isn't 'normal' for them to be this low and a small increase can make such a big difference. I'd love to fix for 10 years next time if it's feasible, I hate the uncertainty of it all.

[Floridatilly]

Its actually for a friend who is looking to buy her first home. Currently she can afford this particular house she has fell in love with but if the interest rates increase by a significant amount then she will really struggle.
Basically the mortgage on the house would be just doable at the present time and that is the maximum she can pay.
She is so excited and I certainly don’t want to burst her bubble. But then again I have always been over cautious with money, some would say tight 🙈.

[toots82]

That's a tricky one. We are moving in a couple of weeks and part of the mortgage paperwork gave us an illustrated cost of our monthly payments if the rate was to rise. I cant remember exactly how much by but maybe if she saw something like that it would make her think? We've fixed for 5 years at 2% but could comfortably pay if it rose. I understand you not wanting to burst her bubble but equally its something I'd hate to be worrying about

[Floridatilly]

Originally Posted by toots82

That's a tricky one. We are moving in a couple of weeks and part of the mortgage paperwork gave us an illustrated cost of our monthly payments if the rate was to rise. I cant remember exactly how much by but maybe if she saw something like that it would make her think? We've fixed for 5 years at 2% but could comfortably pay if it rose. I understand you not wanting to burst her bubble but equally its something I'd hate to be worrying about

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This is her only stumbling block. At todays rate and its fixed for 2 years. If it goes up after that she could possibly be struggling to pay for it. Obviously council tax, household bills go up anyway so with those and the mortgage it could be too much.
The house was over her initial budget but its her dream home. Difficult one really.

[megaflyer]

Originally Posted by Floridatilly

This is her only stumbling block. At todays rate and its fixed for 2 years. If it goes up after that she could possibly be struggling to pay for it. Obviously council tax, household bills go up anyway so with those and the mortgage it could be too much.
The house was over her initial budget but its her dream home. Difficult one really.

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It’s a difficult one. Rates could go down but if she is on the line of just being able to afford it now she realistically has to factor in council tax, income tax and N I rises which are sure to come in in the next year or so to cover for Covid funding - that may may prices in shops have to rise too as retailers need to increase their profit margin. So interest rates may stay low but every day expenses and available income is sure to drop (IMHO)

[toots82]

Originally Posted by Floridatilly

This is her only stumbling block. At todays rate and its fixed for 2 years. If it goes up after that she could possibly be struggling to pay for it. Obviously council tax, household bills go up anyway so with those and the mortgage it could be too much.
The house was over her initial budget but its her dream home. Difficult one really.

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It really is. Especially as they are so low just now. The perfect home could fast become a nightmare though if it causes her money worries down the line. Maybe if she goes for a mortgage, theyll pick it up in affordability?

[duncanb]

With BOE likely to introduce negative interest rates shortly, I'm going to say money for next 2 yrs will never be so cheap.
Long term always a total guess as to many variables who a year ago would have forecast negative interest rate when inflation creeping up and interest rates forecast to rise.
Standard variable can be had for 2.1 at present if shop around so mo tie ins.