Bank of England hikes interest rates to 5%, stoking fears of a 'mortgage bomb'

[marban]

https://www.cnn.com/2023/06/22/economy/uk-interest-rates-mortgages-inflation/index.html

[nullindividual]

With two and five year mortgages apparently being the standard in the UK according to that article, is homeownership practical in the UK?

Translating that into some of the more expensive areas of the US, that payment would be extreme requiring two low 6-figure earners.

[dave4420 → nullindividual]

No, the rate on your mortgage is fixed for two or five years — after that, you’ll go onto a floating rate. At which point you should remortgage into another fixed rate, but enough people suffer from inertia that they don’t.

I hear people getting on the housing ladder today are generally getting 30 year mortgages.

[JimtheCoder → nullindividual]

Is it a five year mortgage, or five year terms and then a renewal for another five years...?