mortgage hike

[terryorgange]

Hi,
After seeing a few similar posts on here I thought I would share our mortgage hike experience.
Next month our new rate kicks in and this means that we have to find an additional £601 per month. We knew that this was going to happen and we have looked around to find the best rate. Our new payment will be £1750 per month give or take a quid.
We do have options - we could sell up and downsize however we haven't got loads of space now so this isn't really an option. We could also extend the term however we were quite late getting on the ladder so we aren't keen on this - we'll be ready for the grave by the time it's paid off.
We are just going to have to get on with it, but it's really soul destroying to have such a chunk of our disposable income disappear. With the new mortgage payment we will have £800 per month left over after bills, essential spending and food. This £800 will have to cover everything else such as savings, holidays, days out, Christmas etc. so it won't go that far in reality
I am aware that we are one of many many couples facing this however this is so annoying

You'll have £800 left after the increase & all bills

I think you have a lot to be grateful for🙄

Yes but we also have 3 kids and all of the usual life stuff - car repairs, broken appliances, holidays etc

Even so, £800 left after bills and expenses is a lot of disposable income.

Many others have to manage kids & all the usual life stuff on far less

I know that, however I was posting about my situation. I am not unaware of my good fortune but I also don't buy into this 'race to the bottom' mentality

It’s not a race to the bottom despite the usual mnet responses.

It is tough OP, working hard to have little spare cash.

That sounds very hard. Out of interest, what was your rate and what percentage have you switched to please?

Extend the term.
Why not?
You can review again in five or ten years and reduce the term then.
If you need spare cash now it does not mean you cannot amend later maybe when dc leave home you can downsize then

We have 5 children aged between 3 and 18, I'm very well aware of what things cost but family meals out and cinema strips are luxuries not necessities. It's not about a race to the bottom (yawn, MNetters fav term) it's about being realistic. It's crass moaning about only having £800 left.

I wasn't necessarily moaning about having £800, it's more a case of feeling fed up that we will have £600 less. It's a perfectly valid view and I make no apologies for feeling disappointed that a huge chunk of our money will be effectively swallowed up by the increased rate. I am also aware of how lucky I am and I do count my blessings.

It’s pretty rubbish having to give up half your disposable income, mostly because of the actions of the tories. 800 is not much to live on if you want to save

I don’t think £800 is much either when you have 3 kids. Sure you won’t starve but I don’t think it’s unreasonable to be disappointed that you will probably struggle to afford holidays, days out etc if you still want to save. OP is entitled to her feelings

Interest rates look to drop a little over the next year. Have you fixed already?

Ours is going to double as we really ought to get rid of help to buy so I'm trying to be disciplined. How long is your term? I'm of the view I need money now we have a family to raise, and we thankfully had our kids young, so think it's right to prioritise these family years, we will have time to overpay on the years or worse case we can downsize.

*in the later years I think I was trying to say!