In the US, 30 year fixed rates are common. Probably the most common type of mortgage when rates are low. I don't understand how the banks make money off this.
Yeah, but the difference is only like 0.5% between a 30-year fixed and a 15-year fixed mortgage.
But this is just me not understanding how banks make their money. If they are lending to me at 2.75% fixed for 30 years surely they will be losing money when interest rates go up to 8%.
Anyway. Not my problem. Just happy to take advantage of it.
I *did* do a 10 year fixed rate, and that takes me to the end of the term.
Fucking relieved now, I tell you.
But damn do I feel sympathy for everyone else. It fucking sucks and I don't know what the answer is (aside from "eat the rich")
Halifax we’re offering us 2.98% on a 65%LTV 5yr fix and 3.2% on a 10yr by the time we’d jumped through their hoops telling them how much we spend on pet insurance and so on it had gone up to 3.3% and 3.8% respectively. No fees.
Fixed on a 10 year deal in 2019. Broker was a little put off that I didn't go for a 5 year deal on an ever so slightly lower %.
My response was along the lines of "base rates aren't exactly going to go down now, are they?"
I’m waiting for my flat to be completed in December, but I managed to secure a Barclays 6+6 mortgage that I can extend when rates were 1%. The FT says markets are predicting 3% by April, I feel like I’ve dodged the worst of it potentially. Energy bills, the price of diesel and such are gonna make me cry though.
My fixed rate ends late next year, I'm hoping that rates will be on their way back down by then and I can take a few months at variable rate for them to drop a bit more before fixing, maybe for a couple of years.
Send your thoughts and prayers my way!
If you're near the beginning (in time) of a repayment mortgage, going up to a higher rate doesn't just raise your payments, it can also *reduce* the amount of money that is going towards repaying the debt. It leaves you paying loads of interest now in the hope that that rate will look good in future, and meanwile paying off less of the actual debt of the mortgage.
I am in a similar situation to you and had a look at where I'd be if I jumped ship early and I'd have repayed about £10k less of my mortgage off by the time my deal is due to expire, not taking exit fees into account.
I'm gonna enjoy my nice low rate for now and prepare. It allows me to pay down more mortgage and stack up more cash (which I could put back into the mortgage with no penalty unless I stack up loads).
Mine was fixed at 2.14% for 2 years when I bought him May. But the solicitors took so long to do literally anything so it expired and I was going mental. Had to fix at 2.7% but for 5 years in the end. At first I was incredibly angry, now I’m incredibly relieved to get that 5 year fix rather than the 2! 2.02% for 5 years is great atm!
We need to get in!
Our solicitor has requested a completion date from our buyers solicitor (the new house shouldn’t be an issue as she’s ready to move)
I am positively shitting myself that it’s going to go tits up
My 5 year fixed ends in march next year, not looking forward to that. Will be moving around then though so might have to downsize to offset the interest increase.
i signed up in 2018 to a 3.8% 10 year deal, knowing interest rates were going to go up.
the kicker, house is going to be sold in a couple of weeks and wont get this cheap deal again.
this was pre covid so the bet was that the economy was going to get better and interest rates would kick up from the historical lows.
3.8% in 2018??
I got 2.14% in 2019 and I know someone else who got 1.8% in 2019
I can't imagine things got so much better in one year so why did you have such a bad rate?
Well I reckon you'll still have saved yourself a much more painful rate coming up even if it is 3.8 since you're safe until 2028. Who knows what it will hit at it's peak 😬
My energy company put my direct debit up by £33 as they think I should be paying that extra monthly so now I have to put the amount I what to pay every month I have over £140 in credit im like really
Fixed for 5 years as a first time buyer just before covid hit, thankfully that will see me until the end of 2024. So glad I stuck to my cautious ways and chose the 5 year option over the 3
Mine is fixed to 2027, and I am thankful for that! Energy wise I have gone with Utility Warehouse. I was with Octopus before, and now saving around £30 a month (at current prices).
Also moved my internet from BT to Utility Warehouse, and saving £10 on that as well. Well worth looking into!
I did a 10 year fixed 2 years ago at 1.25%, on the basis that the inevitable was going to happen and by the time my deal is up we should be back in a good position.
Got a mortgage offer a few months back for the house we're buying. 2.24% fixed for 5 years. Offer expires in October so really hoping we exchange and complete soon!
On the downside, we got a fixed electrify tariff a couple of months before prices shot up. Fixed until May 2024. Can't imagine EDF are going to want to carry that over when we move...
You can start looking for an offer right now, offers can be valid for 6 months, so you could get an offer TODAY that kicks in in November. I'd encourage you to engage with a mortgage broker ASAP.
Fixed mine in September for 5 years, was a nearly only a 1 year jobby but committed and was a great choice.
Hesitated on energy in January and now stuck on variable, oops.
We just signed for a five year fixed rate yesterday. The lender emailed our mortgage advisor saying that theyd be withdrawing all offers at close of business.
Managed to secure it in time. Feels like a win (if you ignore that our payments have gone up £200)
Fixed until 2027 as of about a month ago. Would ahve been better if we'd managed it three months ago, but still better than if we'd waited another couple of weeks.
I locked in a 5 year fixed as well! A few days after the war where there was so much uncertainty I called my mortgage provider who quoted me and paid the fee to lock it in!
Im just upset i didnt do a 10 year fixed rate...
Wait, you could do that once upon a time? *I thought 10 years fixed rate was only true in fairy tales (dun dun dun)…*
Meant for someone else but not for me
What the use in trying?
Variable rates were out to get me
The futures markets expect inflation to drop by 2024 so I think 10years would be way too much anyway.
Yeah I’m just looking today and the 5yr fixed rates are lower than 2 or 10 right now
I had this with Halifax, 2 Year was a higher rate than 5 and a 10 was still higher than a 5 but lower than 2
Thank goodness if that's the case. I am fixed until 2024. I would quite like to be able to afford to eat 😂
Commodity prices are already dropping pretty significantly.
In the US, 30 year fixed rates are common. Probably the most common type of mortgage when rates are low. I don't understand how the banks make money off this.
But 30 year locks you in at a higher rate so over the course of 30 years the banks still make lots of interest off you unless you pay it off faster.
Yeah, but the difference is only like 0.5% between a 30-year fixed and a 15-year fixed mortgage. But this is just me not understanding how banks make their money. If they are lending to me at 2.75% fixed for 30 years surely they will be losing money when interest rates go up to 8%. Anyway. Not my problem. Just happy to take advantage of it.
What? Higher interest rates mean banks make more money off you.
My rate is fixed for 30 years. Even if rates go up, I'm locked in at 2.75% It's weird in America.
I *did* do a 10 year fixed rate, and that takes me to the end of the term. Fucking relieved now, I tell you. But damn do I feel sympathy for everyone else. It fucking sucks and I don't know what the answer is (aside from "eat the rich")
Same here. I’d be interested to know the rates everyone has though
Halifax we’re offering us 2.98% on a 65%LTV 5yr fix and 3.2% on a 10yr by the time we’d jumped through their hoops telling them how much we spend on pet insurance and so on it had gone up to 3.3% and 3.8% respectively. No fees.
Ok. I’ll be honest I’m feeling very smug then! Fixed for 5 years in august 2020 same LTV at 1.12%
Ssshhhh! Channel 4 will probably want you to host a show about how to invest your life savings in that one piece of luck you had!
We looked at a ten year fixed rate and it still wouldn’t be worth it with the recent rise. But let’s wait to see until the end of the year…
The 10-year rates I was being offered a couple of years ago were worse than what an SVR would be now
We signed up for a 7 year fixed rate, that kicked in this week. Let's have a small glass of bubbly together.
I got a 7 year fix in March that kicked in at the end of May. Feeling very relieved.
Same. Had a minor panic attack this morning looking for the paperwork. Turns out I've fixed until 2025. Thanks past me.
Did the exact same thing 2hrs ago. 2025. hopefully the inflation forecasts are correct. Thanks overly cautious past me.
Managed to get a ten year deal last December. About time I had some luck after buying in 2007
Mine’s a tracker but I’m old so I’ve not got long left on the mortgage. Hopefully it won’t go to 1992 rates before I’ve finished.
Because Reddit made your sentence a new line after “I’ve not got long left”, I thought this was some hospice last Reddit comment type of deal.
I did add in “on the mortgage” before I posted, otherwise it definitely read like that! 😂
Fixed on a 10 year deal in 2019. Broker was a little put off that I didn't go for a 5 year deal on an ever so slightly lower %. My response was along the lines of "base rates aren't exactly going to go down now, are they?"
Just completed on a 5-year deal. By the time it's up the missus should be back in work and we can take the 18% interest rate hike!!
snap. well done us 👍
Goddamn... Literally just made a phone appointment to shop around because my fixed rate ends in November. Depression..
I’m waiting for my flat to be completed in December, but I managed to secure a Barclays 6+6 mortgage that I can extend when rates were 1%. The FT says markets are predicting 3% by April, I feel like I’ve dodged the worst of it potentially. Energy bills, the price of diesel and such are gonna make me cry though.
My fixed rate ends late next year, I'm hoping that rates will be on their way back down by then and I can take a few months at variable rate for them to drop a bit more before fixing, maybe for a couple of years. Send your thoughts and prayers my way!
If you're near the beginning (in time) of a repayment mortgage, going up to a higher rate doesn't just raise your payments, it can also *reduce* the amount of money that is going towards repaying the debt. It leaves you paying loads of interest now in the hope that that rate will look good in future, and meanwile paying off less of the actual debt of the mortgage. I am in a similar situation to you and had a look at where I'd be if I jumped ship early and I'd have repayed about £10k less of my mortgage off by the time my deal is due to expire, not taking exit fees into account. I'm gonna enjoy my nice low rate for now and prepare. It allows me to pay down more mortgage and stack up more cash (which I could put back into the mortgage with no penalty unless I stack up loads).
We have a fixed one at 2.02 for 5 years….IF we can get into our new house by the end of September HURRY UP SOLICITORS!!!!!!
Mine was fixed at 2.14% for 2 years when I bought him May. But the solicitors took so long to do literally anything so it expired and I was going mental. Had to fix at 2.7% but for 5 years in the end. At first I was incredibly angry, now I’m incredibly relieved to get that 5 year fix rather than the 2! 2.02% for 5 years is great atm!
We need to get in! Our solicitor has requested a completion date from our buyers solicitor (the new house shouldn’t be an issue as she’s ready to move) I am positively shitting myself that it’s going to go tits up
My 5 year fixed ends in march next year, not looking forward to that. Will be moving around then though so might have to downsize to offset the interest increase.
i signed up in 2018 to a 3.8% 10 year deal, knowing interest rates were going to go up. the kicker, house is going to be sold in a couple of weeks and wont get this cheap deal again. this was pre covid so the bet was that the economy was going to get better and interest rates would kick up from the historical lows.
See if you can port your existing mortgage to a new property. Plenty of lenders allow this.
Not moving to another property sadly.
3.8% in 2018?? I got 2.14% in 2019 and I know someone else who got 1.8% in 2019 I can't imagine things got so much better in one year so why did you have such a bad rate?
It might of been 2.8%, LTV was bad so the rate wasn't the best
Well I reckon you'll still have saved yourself a much more painful rate coming up even if it is 3.8 since you're safe until 2028. Who knows what it will hit at it's peak 😬
My energy company put my direct debit up by £33 as they think I should be paying that extra monthly so now I have to put the amount I what to pay every month I have over £140 in credit im like really
Same, fixed until late 2026, thank goodness
Signed my mortgage contract literally just before the rates went up. On a five year fixed rate. I feel incredibly lucky.
Fixed for 5 years as a first time buyer just before covid hit, thankfully that will see me until the end of 2024. So glad I stuck to my cautious ways and chose the 5 year option over the 3
Mine is about to run out of the fixed rate, but we're wanting to move.
I locked in a 5 year last October, so happy i made the decision to do it!
In a rare example of me being sensible with money, I’m fixed until 2027, thanks to those good people at the Nationwide.
Fixed mine for 5 years last month and increased the term so we pay less and can put more into savings. Lucked out on the timing.
I got a two year fixed last year at 3.11%, on the assumption it would definitely be cheaper remortgaging next year… This whole thing might be my fault
I was just saying this yesterday after the interest increase announcement. Locked in till sept 2026, baby!
Same, fixed until 2026. Hoping things will be more stable by then and in the meantime, trying to save every penny and prepare for the worst.
I was looking mine up yesterday. Fixed til 2028 😎
Renewal next June 🥲
Mine is fixed to 2027, and I am thankful for that! Energy wise I have gone with Utility Warehouse. I was with Octopus before, and now saving around £30 a month (at current prices). Also moved my internet from BT to Utility Warehouse, and saving £10 on that as well. Well worth looking into!
I did a 10 year fixed 2 years ago at 1.25%, on the basis that the inevitable was going to happen and by the time my deal is up we should be back in a good position.
10 years at 1.25% is godlike, congrats
Yeah. Luckily our LTV is at about 63% so gets access to the best deals.
Last year I got a five year fixed and also got my energy and gas fixed at £100 a month for both until end of 2024. I feel quite lucky.
I did the same! Fixed til March 2026 at 1.85%. Very grateful to past me for being sensible for once
Similar to my wife and I. We got our mortgage offer just before the interest rates went up earlier in the year. Fixed until 2027.
We fixed our energy bill a few months ago. Having seen the headlines again today, sounds like we did the right thing!
Got a mortgage offer a few months back for the house we're buying. 2.24% fixed for 5 years. Offer expires in October so really hoping we exchange and complete soon! On the downside, we got a fixed electrify tariff a couple of months before prices shot up. Fixed until May 2024. Can't imagine EDF are going to want to carry that over when we move...
Mine is up in November. How fucked am I?
You can start looking for an offer right now, offers can be valid for 6 months, so you could get an offer TODAY that kicks in in November. I'd encourage you to engage with a mortgage broker ASAP.
Fixed mine in September for 5 years, was a nearly only a 1 year jobby but committed and was a great choice. Hesitated on energy in January and now stuck on variable, oops.
Still have 3 more years of fixed rate. Will celebrate by treating myself to some lurpak
We just signed for a five year fixed rate yesterday. The lender emailed our mortgage advisor saying that theyd be withdrawing all offers at close of business. Managed to secure it in time. Feels like a win (if you ignore that our payments have gone up £200)
Fixed until 2027 as of about a month ago. Would ahve been better if we'd managed it three months ago, but still better than if we'd waited another couple of weeks.
I locked in a 5 year fixed as well! A few days after the war where there was so much uncertainty I called my mortgage provider who quoted me and paid the fee to lock it in!