How's everyone planning to handle the crazy mortgage rates?

[adviceseeker22]

One of my sub accounts expires in November and I'll have to pay £350 on top! If both subaccounts were to expire my mortgage would double ;(

I am working part time to full time from September will spend that extra paying off debt for when my fix rate runs out next year

I always think I do my finances a bit differently to others and have a rolling forecast of incoming/outgoings for the next 5 ish years so I can pop in changes to future bills and see what that does to to the average balance, rather than looking at it strictly month by month.

Anyway, I am fixed for two more years and then have inputted a rise equivalent to 7% at that point. It allows me to balance all my other bills, saving etc, so that the rise doesn't tip me into the red.

If it's more then 7% when I get there, I'll have to re assess and see if I will stomach the extra as part of a fresh fix, just revert to tracker or have to do something else, like lengthen the term or make harder cuts elsewhere etc.

We're buying a new house and have taken a 33 year mortgage term, the maximum we could get. Couldn't do it any other way.

By not buying a house yet. It’s crazy. We used to be able to afford the repayments but didn’t have the deposit, now we have the deposit but can no longer afford the repayments

Well, we could. But we also want to start a family soon and we’ll really feel the pain of £600/700 less a month over any future maternity leave (which is how much more expensive a mortgage would be than our current cheap rent).

Thought we’d have achieved it this year so feeling pretty down but honestly favour more savings & money in the bank than living hand to mouth each month. Is what it is. We will watch and wait

Cursing the fact we decided not to do a ten year fix! Due to remortgage start of next year and best rate available to us right now is nearly £900 more a month!

I think a lot of people are going to end up with lengthy terms, either by choosing them at the outset or extending the term to reduce the payments. It sucks, especially since people tend to buy their first home at a later age nowadays. Some people will still be paying a mortgage well into retirement.

Sheezh!!!!

It was inevitable rates would go up, so we got a fixed rate when they were a bit lower that should tide us over. This allowed us to reduce the term of the mortgage, so if rates are still high when this contract ends we can extend the length of the mortgage again.

We’re fixed until 2027 so not impacted for a while. We currently pay nursery fees so will have that money available by then, plus whatever pay rises we get between now and then. Hoping that will be enough.

We’ve got another 2 years, I’ve got some money in a s&s isa and if rates are still high I’ll either pay down some of the mortgage or set up an offset, if it’s 6-7% at that point we’ll still be worse off and have to cut back on holidays & take-aways etc. I’m working 3 days a week so could pick up more work as well. When we bought our house we were able to buy somewhere significantly less expensive than our top borrowing would allow, I saw my parents struggling so much with mortgage payments in the 90s, and that was interest only too, I never wanted to risk that kind of stress myself. I appreciate I’m pretty lucky to be able to make that decision though.

We are fixed until 2026, so hopefully won’t be too crazy by then, we have a small mortgage for our salaries though so we should be able to afford the rise although I obviously would prefer not to pay an extra £300+ a month. Our mortgage is (148k) and our combined salaries are 90k without overtime. I’m quite risk adverse and at the time of buying in 2019 was scared something like this would happen due to Brexit, people sneered at us a bit at the time and said we should max out our affordability and live in a nicer area, but I’m so glad we didn’t listen.

Our fix runs out in January and our mortgage (at current rate) would be £800 higher :(

So so gutted we didn't fix for longer !!!

I've literally changed jobs to keep ahead of it. I secured a 30% pay increase, and won't really see the benefit of it, we'll just be staying even. I'm not complaining, I'm bloody relieved, but it's still disappointing.

Ignoring it until 2027. We took a fixed 5 year at 2.64%

We refixed for five years six months ago. It's a manageable increase as I had recently been promoted and had a circa 40% pay rise. Would have been very very tight otherwise.

We have a bigger mortgage (£106k) which comes off of its fix in May 2025, and smaller mortgage (£42k) which came off of its fix in May of this year. It was on 1.75% amd is now at 7%!
I recently sold my investments and cleared £30k off of the smaller mortgage, so we're down to £12k which is £80 a month. We're going to clear the rest of that one down as fast as we can.
We're then hoping that rates start to come down (even just a bit) in advance of May 2025.

It’s the people who bought a starter property 2-5 years ago and are coming to the end of their fixed rates that I feel most sorry for, especially if those people have had children in the mean time and now have nursery fees or reduced working hours thrown into the mix

I'm saving in an account that has higher interest than I am paying on the mortgage until the mortgage runs out in about 20 moths. So im saving a bit less than the difference between my current fix and the new fix if it was taken out today but Im hoping it helps pay off a bit when we remortgage.

Im then hoping that my main job will give me a pay rise next year.

And that interest rates settle and dont keep rising.

So lots of hoping

Our mortgage is going to increase by £5k a month in November - it's going to be grim and really hope it doesn't last more than a few years.

We are coping by moving. Well we are hoping to if we can sell.
Mortgage had gone from £1,500 to £4,850.
Just can't do it long term without it really impacting on our standard of living.

I thought I had fixed the extra borrowing for longer, as the chunky one doesn't expire til 2025 (early). So I'm thinking out assumption was to fix it twice for two year terms or something similar.

I'm fortunate that I have an inheritance coming my way in the next 12 months. So we'll be in the clear, but if anything goes wrong we'll have to get second jobs

I have just secured an offer for Jan 24 and here are the steps I used to prepare. They may or may not work for you:
-Overpay by the amount I thought it would rise to in the year leading up (it rose more though)
-Get in touch with advisors well in advance of the 6 months before my fixed rate expires, and made appointments for them to call me the minute I had a nee offer from my current provider
-Use a price comparison website to find direct only deals
-Do the maths and work out if ERC/product fees/broker fees are worth it, they usually aren't
-Read the news and decide what fix you would ideally like
-I extended the term to keep the monthly payments lower, I aim to overpay over time to get it down again
-I have upped my hours at work and sought a promotion
-Act quickly.
Good luck.

5k a MONTH? What do you live in, Windsor Castle?

We fixed last year until 2027 at 2.39% to avoid being hit too badly. It’s a 2 bed and we were planning on upsizing next year (mortgage is portable) but I think we’ll just wait and see what happens instead.