Banks urged to warn mortgage borrowers to look at how higher interest rates will affe

[Legal Beagles]

Millions of mortgage borrowers are at risk of financial hardship when the Bank of England begins to raise interest rates, a major study of household debt will report this week. According to the study by the Resolution Foundation, around 2 million UK borrowers who took out risky loans in the years before the financial crash, […]

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[Amethyst]

Re: Banks urged to warn mortgage borrowers to look at how higher interest rates will

Have to say I have always calculated affordability based on 7.5% ... sounds a bit random now but when I got my first mortgage the rate was about that and I'm pretty sure we were told to check we'd be able to manage if the rate went up 3% points

As it happened we sold up and rented not long after the rates went down to current levels but that wasn't due to affordability, just divorce lol, and we'd kept payments at the original rate as rates fell as we had a repayment mortgage so had a bigger chunk out at the end, and if we'd kept it we'd have got it paid off a lot earlier than originally planned.

[MIKE770]

Re: Banks urged to warn mortgage borrowers to look at how higher interest rates will

My 1st Mortgage was set @ 9.5% fixed for period of the loan, so paid heavy, but when rates albeit very short time went to 15% I was o.k. but overall paid more as you did in those days, but like Ame sold up due to divorce.