Being advised to accept a high 6.4% @2yrs over 5.8% @5yrs #HELP

[soworriedaboutthis]

@alabasterjar !thanks - I went for the 5 year fixed.

 

[jamieslilwifeypoo]

@soworriedaboutthis Consider a 3 year deal as a happy medium? No one knows what’s going to happen, anyone saying otherwise js lying.

I was a mortgage advisor for years, feel free to ask me anything and I’ll respond with my opinion which isn’t advice

I think the BoE and government have dramatically underestimated the impact of these increases, hammering these increases month after month is unprecedented and only in the next year or so will we see people come off rates of 2% and onto rates of 6%plus, which will push a lot of people into selling their homes. If not it will certain restrict disposable income into a recession. Personally I think I’m 2/3 years the rates will drop back down, not as low as they were but maybe 2/3%.

But it’s all a guessing game, if we knew we would be millionaires.

 

[soworriedaboutthis]

@jamieslilwifeypoo !thanks - Just replying to the comments, I went for the 5 year fixed. I agree it's all up in the air and everyone is so indifferent on how the next few years play out. There are a lot of issues with the world right now and I genuinely believe it's a lot bigger than rate increases and inflation, there are just numerous crises in multiple areas of our economy, not to rant but capitalism just clearly doesn't work. It's pretty clear when necessities or what should be necessities are out of reach for many people or a struggle - housing, utilities and food. I hope you're right and they drop, I'll just have to wait 5 years to benefit haha

 

[johnachillies]

@soworriedaboutthis Just on one point, how “unsustainable these rates are” doesn’t enter into it. The point of the BoE monetary policy is to control inflation, and the means of doing that is causing pain for borrowers unfortunately. Rates were unsustainable in the 1990s and the main effect was we just watched record levels of repossession throughout that period while the situation resolved.

 

[jesus2]

@soworriedaboutthis The broker gets paid a fee each time you remortgage.

They have a vested interest. Do not listen to what they say. Work it out yourself.