They won’t be offering any new fixed rate agreements.
It sounds like the UK is similar to Canada, where you don’t lock in a rate for the duration of the mortgage, rather you “renew” it in 5 year intervals. So, with some exceptions, people who lock in their rates do so for 5 years at a time, and renew at the prevailing interest rate.
The Bank of England will no longer let them lock in their renewals, and will throw them to the wolves with sharply rising variable rates. Statistically, this means that every year for the next 5 years, 20% of mortgage holders will be exposed.
I fixed for 5 years and that was 3 years ago so I still have 2 years left but going to get rid of mine next year as I'd rather have a more affordable place and no mortgage that live centrally as I do at the moment and have debt
They canceled all fixed rates?
They won’t be offering any new fixed rate agreements.
It sounds like the UK is similar to Canada, where you don’t lock in a rate for the duration of the mortgage, rather you “renew” it in 5 year intervals. So, with some exceptions, people who lock in their rates do so for 5 years at a time, and renew at the prevailing interest rate.
The Bank of England will no longer let them lock in their renewals, and will throw them to the wolves with sharply rising variable rates. Statistically, this means that every year for the next 5 years, 20% of mortgage holders will be exposed.
Expect a lot of people to lose their homes.
That's terrible,I'm glad I have a low fixed rate,from my credit union.
Out of curiosity, are you in the US? How long did they let you lock it in for?
Yes I locked in for 15 years. 15 and 30 are normal here.
I fixed for 5 years and that was 3 years ago so I still have 2 years left but going to get rid of mine next year as I'd rather have a more affordable place and no mortgage that live centrally as I do at the moment and have debt
Sell before the crash,if you can.
I’d put it on the market right now while people are still buying. There won’t be many people interested once rates hit 10 or 20%.
https://twitter.com/JamesMelville/status/1574447524378804224
Quite a lot, apparently they are 'redoing' them...