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  1. #1

    A bit worried about rate rises.

    Everyone expects another 0.25% rise soon because of the inflation and rise of 1-2% by 2022.
    I am starting to worry. I know we can afford the mortgage even if the rate rase but what if rases more than predicted?
    Am I the only one who feels unsafe.
    Btw we are waiting to exchange contract for our first property. A house with small annex we can rent in case something goes bad.

  2. #2
    You do realise that if the monthly mortgage payments increase because of the higher base rate, the landlords will pass the increase to the tenants, so tenants will be affected teh same way as home owners.
    You either take a risk or live for free with your parents if you have such option.

  3. #3
    If rate rises worry you, you can get a fixed-rate mortgage for 5 years, 10 years or possibly even longer. You'll pay a premium to fix for longer but it would give you peace of mind.

  4. #4
    Rates have never been so low. They are this low for the first time ever/since the 1600s.

    Historically mortgage rates have been closer to 5-8%. When I bought my house in 2000 the figure bandied about for "can you afford this" was to check how much it'd cost you at 8-12% interest rates.

    I'd suggest that if you can afford, as your first property, something that has an annexe on it that you're not short of a bob or two and squeaking at the sides for pennies ....and that your fears are unfounded.

    Just buy the house you've chosen. You have to live somewhere. Rates WILL rise, because that's how the world works - but, as an owner occupier, you are in control of where you live just by paying the mortgage each month ... which, in 10 years' time, will look laughably tiny.

    Don't worry what will happen in the future. You've chosen a sensible house with wriggle-room. Just do it and get on with living life in the house you chose, that nobody can turf you out of on a whim ....


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