How interest rate hike will affect mortgages

Interest rates are going up again - to 4.5% - the highest level they have been for 15 years.

The Bank of England today said it was more optimistic about economic growth - it now believes there will be no recession this year.

But it also thinks inflation is going to stay higher for longer.

Rising rates mean that over a million people are about to see their mortgage payments shoot up as their fixed rate deals end this year.

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[amandahunter]

Becky is highlighting a group of people who often really struggle, but are always overlooked - people of all ages who live alone. With only one income there is no scope for sharing the costs, no chance of splitting the option of taking on extra work or a small business to increase income etc., and real worry if you become ill and can't work or lose your job. Yet, the government doesn't consider assisting single income households.

[davewright]

Interest rates should never have got so low
Everyone's paying for The obsession of keeping the housing bubble going and money printing.

[brucey]

How can anyone handle a doubling of their mortgage payments? That's just sickening.

[KeithRingo]

Im sorry did that say her mortgage went from 700 to 1300?!?!?!

[ATHLDN]

The Tories never take responsibility for the increase in inflation but want to take credit for halving it...which is an 'if'. They could have imposed a windfall tax on energy companies and be stricter on supermarkets on profiteering.

[abdelbensi]

years of easy money. I wonder why house prices have been so high. I think its silly that we got hooked on easy money and now we are taking the punch bowl away.

[ebfqjmv]

You don't / you can't own something until you've fully paid for it!

[markmueller]

Mortgage interest rates aren't high. In 2008 we had a banking crisis which lead to the near zero levels that have been around since. Before the 2008 crash in 2005-2007 they were between 4.5 & 5.0% which is pretty much where they are now. So whilst I can sympathize with the situation that some people might find themselves in, since 2008 they have been drastically, artificially low which these very same people benefited from. When I took out my mortgage in the late 1980s the rates were around 15% but I don't remember thinking that it was high. No it was just what it was. Too many people are bleeting about rates going up and not bothering to remember why they were so artificially low in the first place. As I always say, people tend to rewind to a convenient point in history for their argument rather than the correct point. When I worked in financial services in the early 90s, we would always base mortgage interest rates as naturally fluctuating between 4% & 8% with the higher and lower levels effective being times of boom & bust. So at the current rates, how can it be seen as anything other than normal market fluctuations after a major shift since 2008?

[KeithRingo]

Zero sympathy if you voted for brexit. No other EU country has this. If you comment on this and say they do, back it up with an article link or youre talking baloney.

[baggyobeast]

How long till the crash? I'm saying 1 June 2023

[anz_]

Tragic. This government makes me sick.

[bbqenthusiastsargentina]

Biggest conman, I trust my weed dealer more😂😂😂😂😂

[KeithRingo]

Onlyfans or bust becky. That or send your son chimney sweeping. Thats the goverments attitude, expect you to sort it out yourself while they insulate the wealthiest. They dont care how you make ends meet.

[AgentGreyFox]

Thank the Torys. A key part of the UK recovering slower is Brexit, but this is overlooked and underreported

[searchingfortruth]

Its not brexit, it’s not Ukraine and it’s not poor folks asking for a pay rise.

It’s the 400 billion printed in the U.K., and trillions around the world during covid that are the predominant factor driving inflation.

Funny old thing, this article doesn’t mention this at all.

Ordinary citizens are paying for money printing and governments are blaming their own people.

[Han-esqu]

Brexit caused the Pound devaluation hence the massive 20% food inflation ( actually 50%), UK has the worst inflation in the Western world, caused by its own people.

[cobbler]

I remember the governor saying inflation was a blip and he was looking through it. I have never known the BoE forecasts be right. What about the imminent property crash ? Can he see it yet ?

[paulgibbons]

This is the effects of money printing. NOT Brexit.
None of this had to happen. It is choice made in Westminster.

[qinshi]

Why dont British people signed a fixed mortgage for 25y?
Most people in Belgium, did choose for a fixed mortgage for 25y. For like 1%.
Even now, when mortgage is now 4, 5%. Those people will still pay 1% mortgage for the next 25y.
With a indexation that follows inflation rates on wages in Belgium (unique to Belgium), Belgians have had a 10% payraise across all sectors.

Even when you signed for a variable interest rate, theirs is a limit by law. It can only be double the interest rate if what you signed.

[therange]

God, doubled. Thats awful! People use credit cards too much. Many people owe thousands before food, energy and home costs are included.