Terrified I’m going to lose my house

[Hangrysaurus]

ever since this shit show of a mini budget and the economy and mortgages spiralling into chaos, im so so worried about losing my home.

2 kids in childcare to work, will be switching providers to save but dh and I take home about 93k before tax and about 65 after (thanks student loan)

mortgage is due next late December. We have help to buy too, which comes to the end of the 5 year interest free end of next Dec too. We looked at switching when lloyds had their 3.7% rate but with the 4.5k erc it was an extra £700 per month, close to 1500, aka totally unaffordable, even the broker wasn’t sure it was a good bet.

if we pay off the htb (we have about 40k in savings for this) and depending on house value htb is about 75k, if we did this we’d need to add 30k to mortgage or borrow it from parents (although that’s the cash draw down from a pension that the government have also fucked). Then we’d have a 60% ltv provided the house price doesn’t tank too much as we lose our equity.

when we did our mortgage they stress tested to 4.5% as that was the highest rates mortgages had been in the previous 10 years. We were very comfortable in terms of affordability and we’ve done all the right things in terms of future proofing, aside from having kids. It shouldn’t be this way.

i know the banks last resort is to take the house but honestly I’m spiralling. We both recently got new jobs, a combined about 15k a year increase but it ‘only’ amounts to be 400 after tax. Will it all be ok?

(if this comes across as insensitive im really sorry don’t mean it to be)

I’m not

I barely have 70p left over each month let alone £700. You’ll be fine.

“health insurance (family history of pretty nasty stuff) £200 for basic cover, can’t strip back anymore, protection about £220”

well that’s over 400 on luxuries - if your house really were at risk you would be shelling out for either.

This. Another ridiculous thread by a tone deaf OP.

@Reallyreallyborednow I'm not saying you're wrong, OP isn't struggling at all, and will probably be fine albeit with a much reduced budget and cutting out those extra things you've mentioned. But this is more about the fear of ending up in a situation where you are struggling, I think.

Yes and?

What do you think families with much lower incomes do??!

You are in the top 5% of household incomes I believe.

You buy dark clothing and get on with it, or you cut something. I mean having both amazon and Netflix?

You have already said your DH does top up shops all the time.

That 100% means you aren't meal planning and going to the shops with a list. You can't be.

There is LOADS you can cut. Or be more economical with.

You need a reality check not a bigger pay cheque.

You are only going to add fuel to the fire of other posters if you fail to work out what someone on an income half of yours would do if they had a kid with similar needs.

However it might be useful for people to show some actual kindness

why? About what? How rich does someone have to be before writing a post like this here gets called out for the tone deaf insensitive rambling it is? They aren’t losing their house, not even close. It’s a rich person bemoaning having to maybe cut down on luxuries like health insurance in a country with free healthcare. It’s insanely insensitive. It’s also not accurate, they’re not at all going to lose this house, there’s plenty of money.

It's not unkind to point out how utterly ridiculous the OP is being and how it's a world away from what other people spend their money on.

Its clear the OP isn't managing the family's money well and doesn't understand what falls under luxury and essential.

This matters.

You don't help the OP by sugar coating it and saying 'oh yes I sympathise it must sooo hard for you' when it's quite clear it's not and the OP us being wasteful and not planning well.

Being honest and blunt about it seems to be the only thing the op is likely to respond to given all the excuses and justifying how money is spend.

OP needs to wake up and look at the world around her.

You've written here you've used your cost of living payment. Then said you don't get one.. which is it?

Not sure how you weren't expecting to get your arse handed to you honestly , OP.

@drpet49 I know! Between this and the bloody goady estate agent this morning I'm losing the will with it today

Wow this is so rude and unnecessary. Also what's so wrong with having health and income insurance frankly it's the responsible thing to do and something most home owners would have (I do agree that the amount of insurance being paid and the kids being insured is a complete waste of money though)

She also doesnt pay very little for her house she pays a lot, the fact that she would pay more if she rented is completely irrelevant. You literally seem mad that someone is financially responsible?

We earn the same as this couple and dont have kids and definitely dont consider ourselves wealthy, we are just two hard working professionals who are comfortable- neither of us born wealthy or given any money by family, earned it ourselves. I agree that the OP is being a bit ridiculous thinking she might lose her home and does need a reality check but most of what you've written just comes across as jealous or spiteful

£700 a month left over ???

For gods sake, I know people, lots of people, who have barely pennies left every month.

You are extremely fortunate and privileged and need to calm the fuck down. Go volunteer at a food bank until next December and maybe see how lucky you really are.

Yes you do come across badly,

Sheesh.

We have similar income to you and our mortgage is £1600 a month. We also have childcare to pay so I don’t quite understand your figures as we still save paying a £1600 mortgage. Maybe it’s time to review your expenditure and see what you can cut back on, but £1500 mortgage on that salary should be affordable.

Sorry, talking like you know me, it’s not the government one, my work gave everyone one as proportionate to your salary

my savings (that 40k is all mine; ie from my income and my inheritance) will be used for the htb and I’ve saved that for nearly 20 years.

Why are you paying that?

Have you got that ring fenced?

you seem to pay proportionally quite a bit more than your DH.

re health and income insurance - people in this country tend to be delusional about the support you get if something goes wrong.

you can only hope they turn out to be waste

i was on £120k st one point and then became very unwell and couldn’t work. I had Income protection insurance through work and eventually got a payout. I have for the main part maintained my lifestyle

i am horrified to think what would otherwise have happened

I’m from Australia which has a solid (not perfect) health care and welfare system. Income protection insurance is very common as is private health insurance. Neither of which are exorbitantly expensive

income protection insurance is only a luxury if it is a choice between that and food or heating in my opinion…

I don’t mind the pile on, it’s actually helpful you know, actually before the thread I was in that anxious spiral that you genuinely can’t see the wood from the trees and all you feel is doom. I actually needed that head wobble.

what the thread has helped me see is why IM feeling squeezed when I’m at my OD each month based on current earnings, so expenses going up is terrifying because I don’t have anymore but that’s because DH does. You’d all scoff at the fact I used to work in FA but it genuinely hadn’t dawned on me until you guys wrote it out in black and white. Daft i know.

Oh and your husband is being awful and absolutely taking advantage of you

youre married - all your income and asseTs are shared - but somehow he’s not worried like you are…although he’s happy to share your inheritance it seems

Wow this is so rude and unnecessary. Also what's so wrong with having health and income insurance frankly it's the responsible thing to do and something most home owners would have

really? Most home owners have private healthcare? Not critical illness insurance, private healthcare. The NHS isn’t great but it means private healthcare isn’t essential.

get rid of that £220, cut out the kids life/critical illness insurance, and that’s nearly £500 freed up.

o/p isn’t deciding between food and heat, she’s deciding between a nice private hospital room and slumming it with the rest of us.

she can’t say she’s anywhere near “losing her home” while she’s paying so much out on luxuries.

It's easy to panic when you're just looking at your own bank account and thinking you must both be in the same position. He needs to start contributing to the kids clothes etc.

Yeah, the husband issue is separate. You need to address it if you pay more than he is.

“Also what's so wrong with having health and income insurance“

nothing, unless you’re going around whining about not having enough money - expecting sympathy from people, the overwhelming majority of whom manage on far far less.

It is common for women not to realise they are being taken advantage of financially by their husbands. But you really are. What you should be aiming for is that you both have the same amount of money to spend on clothes, hobbies and nice extras.

Are you really posting this? You are almost on 100k a year. Learn to budget!

We have significantly less (but are still pretty 'well off' compared to so many) and our mortgage has gone up to £1500pcm and I have cut my cloth accordingly.

What an insensitive post. 😕