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 ;(

We bought in 2022, 2 year fix, stretched ourselves financially to buy our dream home. Planned for 4% rates. Did NOT plan for this.

Since the we've had a kid, due to start nursery at the exact time we need to remortgage. I'm on maternity leave right now. Our term is already 35 years. We are royally, royally screwed.

Probably going to sell up, and rejoin the market in a few years.

We managed to fix at 3.95% in May for five years. Very thankful now despite it being £300 more than we had been paying each month. Planning to spend the next five years overpaying as much as possible to buffer whatever the situation is then. I hate being at the mercy of interest rates so it’s spurred me on to stay in our fine but not dream house and pay it off as early as we can. Only £220k to go!

I feel for you. People in your situation are the worst off in this massive mortgage crisis. Will you rent until then? So sorry you’re in this position

That’s awful for you. Easy for me to say I know but if at all possible I would make selling up the absolute last resort as this will pass eventually, nursery fees are relatively brief if you stick with one for now, and the costs of buying and selling are insane. Can you work opposite shifts to cut childcare costs? Not ideal for family life but could be a desperate measure? Or rent out a room? Again not ideal but if you can find someone you vaguely know or who comes recommended, even Monday to Friday if you live in a commuter city?

But what about people who bought mid 90s with higher rates than now who then would have continued to have to pay 8% for the rest of their mortgage when the base rate plummeted in 2008? Lifetime fixes only seem a good idea when the rates are going up, not such a good idea when they are going down. As a country we tend to favour shorter fixes which allow flexibility. You could have fixed for 10 years at a lower rate than 2.9% less than a year ago but you chose not to, why was that?

Or rent the house out and move into a cheaper rental? If it’s your dream house it may have good rental value and would at least keep you on the ladder and it’s there for you in a couple of years when nursery fees subside.

It's shit. Our mortgage was £465 a month, now it's £1,200. We are on interest only already. And although we have plenty of equity we can't sell because the market is shit. We will be fine if it goes up to £2k a month and could probably just about manage £3k but any more than that and we;re screwed.

We're fixed at 1.69% until January 2025, so crossing our fingers. We'll absorb any increase by reducing discretionary spending. DH is also looking at selling the flat he bought before we met, which would pay off the mortgage on our house.

We fixed at 4% when they started to climb and am glad we did. That should see us to the endvof our mortgage. DD and her partner bought their first home 2 years ago,a new build. God knows what they will do as rates rocket.

We also have the threat of increases in council tax,along with higher tax rates here in Scotland.

You'll find me selling pics of my feet on Only Fans.

They were talking about this in Radio 4 and apparently most banks will let you lock in a rate even if your mortgage isn't due to come to the end of the fix for another six months. I'm lucky that mine came up in March so fixed for five years at 4.47, but I was paying 1.79% before so it hurts!

Ploughing all excess money into savings now until our fixed mortgage expires in 2027, and then...?? I'm not sure! Use the savings to overpay a bit to reduce the monthly repayments.

We have remortgaged for the end of the year and will be paying an extra £700 a month. We can just about afford it, but it will mean much less disposable income that would usually go on meals out, holidays etc. and we will have to cut back.

We lost out doing 5 yr fix in 2007, big time!

Mortgage is now same as X1 our joint salary & we overpay. Next due to be looked at in 2025 and hoping things have settled by then or the mortgage increase will arrive just as DS1 goes to university 🤦‍♀️

😂 😂

@JaninaDuszejko rates never stay down for ever so yes they would have lost out but so have the current first time buyers. We took a 5 year fix in 2021 so have 3.5yrs to decide what to do if we stay in this country. We didn't take a 10 year fix as for us moving abroad has always been on the cards.

And there is Plan B!

£1.4m mortgage going from 1% to 5.5%

Frustrating to be doing longer hours with more responsibility with nothing to show for it, but grateful that we can do it.

This is exactly how we feel. Me and DH didn’t have much at all when we first met, and have worked hard to secure promotions and career moves over the last couple of years.

Next year we won’t be much better off than we were a couple of years ago, when our household income was much less than it is now. We feel both fortunate and shafted in equal measure.

WTF! 🫣

How on earth?

We are coping by moving. Well we are hoping to if we can sell.
Mortgage had gone from £1,500 to £4,850.

On how much lending? That makes no sense.

I'll pay off the outstanding balance if rates get over 7%. I've had my tracker for 15 years, so it was higher when I first took it out in 2009 than it is now, and in between it's mostly been a lot lower. It's still a shock that my payments have gone from £1000 to £1500 already.

I just keep reminding myself that I've had several mortgages in the past with a rate over 5% and when I took out my first mortgage I was told to think if I could afford it at 12% in case rates went up! So the current rates are not unprecedented, even for someone in their 40s.

We fixed for 5 years on one mortgage at the back end of last year for 2.7% and our tiny little addition mortgage we fixed for 10 years on 4% we could easily pay more on the little one but in total our monthly repayments went up by £120 so I know where I stand for next 5 years on my big mortgage at least and hopefully by late 2027 2023 things will be more stable but I would still (hope for?) expect 5/6% but we will have paid off more capital by then so hopefully will break even... maybe I live in cloud cuccoo land 😅

That should say 2008, not 2009.

We have just had to remortgage, and are now paying an extra £232 per month, which isn't too bad (I've seen people having to pay a lot more) this month will be tight, but it's also my last nursery payment in August as DD starts school in September, and I won't be paying approx £500 in nursery fees.