At what point will intrest rates kill you
Discussion
Anyone worked out much of an interest rate they could absorb with concerns to their mortgage.
I'm around the 8% mark so if my mortgage was around 10% I would really struggle.
I could support myself slightly higher but I would need to seriously have to cut back on everything.
Those on a tracker rate if rates jumped up to 5% tomorrow how would you fair ?
Just curious.
I'm around the 8% mark so if my mortgage was around 10% I would really struggle.
I could support myself slightly higher but I would need to seriously have to cut back on everything.
Those on a tracker rate if rates jumped up to 5% tomorrow how would you fair ?
Just curious.
If all else remained equal I COULD sustain repayments at 15% but - as another has said "that would suck".
However, having said that I am looking to move soon so will be leveraging myself by another 80k - 100k so in that scenario? Well things will be tight long before then....
Not just in payments of course. If interest ramped up overnight house prices would plummet. Negative equity and bankruptcy would loom large and even if I could stick it out it would be pointless in all but the very very long term if ever.
However, having said that I am looking to move soon so will be leveraging myself by another 80k - 100k so in that scenario? Well things will be tight long before then....
Not just in payments of course. If interest ramped up overnight house prices would plummet. Negative equity and bankruptcy would loom large and even if I could stick it out it would be pointless in all but the very very long term if ever.
Mine went form £750 to £480 in the recession, I have one of the 1500 C&G mortgages that were on the news for being theoretically capable of ending up being paid for by the lender if interest rates went negative.
I carried on paying it at the original level & guess I've chopped £000's off it over the term. The deal has expired & it sits on SVR. I suppose I should look at getting it shifted now but I don't believe rates will move much for a couple of years yet.
Keeping a close eye on it though. I remember the early nineties & 15% rates.
I carried on paying it at the original level & guess I've chopped £000's off it over the term. The deal has expired & it sits on SVR. I suppose I should look at getting it shifted now but I don't believe rates will move much for a couple of years yet.
Keeping a close eye on it though. I remember the early nineties & 15% rates.
john2443 said:
Ha, 8%, 10%..... when rates hit 15% was when it really hurt!
1989 ------- Pay was £685 take home a month. Future wife take home £560.Mortgage taken out at 8.5%, with a 1% reduction from 9.5% for first year.
First Payment was £295,
within 18 months we were paying at 15.5% and £550 a month.
What is killing me today is the savings rates.
If someone were to compare the average loan vale with average property value across the UK it would be relatively simple to extrapolate the consequences of a a rise of 2, 3 and 4 percentiles.
I also suspect someone already has. I wonder why it is not generally available, I suspect the politicians would rather not go there. Ditto the banks. I suspect many houses would be uneconomic to own at their mortgaged value.
Then what?
I also suspect someone already has. I wonder why it is not generally available, I suspect the politicians would rather not go there. Ditto the banks. I suspect many houses would be uneconomic to own at their mortgaged value.
Then what?
tom2019 said:
Jasandjules said:
Fixed. I usually do run fixed rates as prefer to know prices.
Yes but if rates rise - when you're fixed term comes to an end you're going to have to switch to a higher rate...Gassing Station | Finance | Top of Page | What's New | My Stuff