British pound hits record low against the dollar
So the bigger news here imo is what&#x27;s happening in the bond market. It&#x27;s now expected that the BoE will increase rates above 6% by the middle of next year.<p>Most people in the UK are on fixed rate mortgages, most of which are 2-3 year fixes. Those who brought a home during the pandemic or fixed at a low rate typically fixed at around 1-2%. I personally fixed for 2 years at a rate of 1.7% just over a year a go when I moved house. Next year I&#x27;m likely going to need to fix at 7%. This will take my monthly payments from around £1300 to around £2600. I budgeted very conservatively when taking out my mortgage (at least I thought I did) stress testing my current finances to a rate of 5% - which was actually above my lenders standard variable rate at the time. Obviously with energy bills and the cost of living crisis my previous assumptions were already wonky, but rates going up this fast was something I would have never of predicted. I believe this is actually the fastest rise in rates ever. I don&#x27;t have time to save to pay down my mortgage loan so I guess now I&#x27;m screwed lol.<p>I&#x27;m reading online that I was stupid for buying a house in a bubble and that rates need to go up and house prices need to fall. I do understand this is my fault, but it sucks because I&#x27;ve also let my family down big time by deciding to buy a house. I&#x27;m not sure of the exact numbers, but I believe around 500,000 people are in a similar position to me.