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Million Dollar question


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What your best bet on what the mortgage rates will be doing in 2/5 years.

Unfortunately I have a BTL mortgage that needs renewing and 9/12 months ago I could have saved £80/100 pcm with the better 5 yr fixed rates available then but I  was still in a fixed term. Now it looks like  an extra 1% on top of what I'm paying now. 

In hindsight I should have looked into the penalty to surrender 12 months early and renew then. Doh. 

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I didn't realise I would be penalised on remortgage in 2008. It was heavy, and if I bad waited e few months would have passed it. Super doh.

My guess is that in 3 years we will be at approx 4 - 4.5% base. Beyond is too much for my crystal ball, and in truth I feel a new world order may be looming. But I am a witch / landlord so feel free to come to my hanging.


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I'm no expert but I would say CoR is about right.

Look at all the bad news at the moment......Ukraine, cost of living, energy bills, inflation, strikes/wage claims etc. There is a GE in 2 years......whoever wins the leadership contest ain't gonna get all that fixed by then. Some of those issues are linked & they are still going to be with us in 5+ years.

I think interest rates are on a slow steady upward spiral. Great news if you have savings, not so great if you have loans to pay......so ......

1. I wouldn't be looking to put money into any fixed interest savings account.

2. If I was taking out a loan/ remortgage and could get a good fixed rate, I'd choose that over a variable.

Note of caution......the Bank of England meet every month to decide on interest rates....next meeting is on August 5th.  With inflation currently at 9% and rising and the Gov' determined to get inflation under control, word on the street is that base rates could rise by 0.5% or more. If I were looking to remortgage I might be inclined to do it NOW rather than delay.

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It was the Mansion House dinner last night and Andrew Bailey Governor of the Bank of England made a very big hint that IR will raise by 0.5% on August 5th.  Inflation rates is out today 20/7 and it has to be over 10% doesn't it? and in reality a lot more I would say.

I'm a saver so any increases would be welcomed by me after 14 years of virtually no interest on my savings. Anyone who failed to lock in when they had the opportunity is going to pay a big penalty for not doing so.  My Daughter locked in about 3 years ago into a 10 year fixed rate at some very low rate so that makes her a winner.

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Come next October when the increases in energy costs kick in with another rise of 65% to £3240pa for an average user.........that's when we'll see inflation in excess of 10%.

That together with large rises in food & mortgage payments might mean serious civil unrest.

How many landlords are likely to find their rent payments will suddenly stop. 

I think it's time to take action , batten down the hatches, prepare for the worst, it's going to be a very rough ride.....more so for landlords.

Worrying to much about remortgaging at the moment seems a bit like reorganizing the deckchairs on the Titanic.

Edit.......and after this lot has happened we get a GE and a Labour Gov'. Oh dear!!!!!!


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All hatches battened down here. 😀  I have at least two rent reviews coming up in August and I am of a mind not to increase rents on my current tenants. I will set up a meeting though and talk it through with them. It's no good putting decent  honest hard working people under unnecessary financial strain.  😇    We will see how that pans out over the next few months.

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