Our mortgage, like so many others, is due for renewal in twelve months, and this additionally 0.25% rise will add to the surge in many monthly repayments.
Twelve months is a long time, so hopefully stuff settles, but I personally can't see interest rates dipping below 6% for the next few years.
Many know I’ve had massive mortgage issues in the past 12 months. I am selling a property and had issues selling it. Couldn’t get on a fixed rate as the penalties if I was selling would be astronomical so I had to sit on a variable.
My variable rate this month has gone to 8.74%. It was previously 1% just over 12 months ago. Basically the mortgage was 535 quid a month and on 1st sep it’s 1232 quid a month. Hopefully I exchange contracts on Friday and this disgusting ordeal is over.
You and others won’t be as bad as me as fixed rates are lower than the variable. However if your currently on a great rate from 2-3 years ago the jump when you switch really does hurt. I’ve gradually seen mine rise over the last 12 months every month.
Bit of background, I made a bad investment. I decided to move to Scotland but instead of buying I rented in Scotland and rented my property in Liverpool out. It wasn’t a business or anything, I just couldn’t get a property on the market in Scotland I wanted. So chose to rent and sell when the opportunity arose. However the rent I was getting on my property was nowhere near covering the mortgage payments. I refused to up the rent on the family who where living there as they had young kids and where saving to buy. However they moved out in may. In a nutshell am in a fair bit of debt. Thanks tories.
Start speaking to a mortgage advisor soon mate.
