How can people afford to remortgage

[Tead]

I have a £200k mortgage. When aI remortgage I will end up paying around £500 a month more. I can just about manage I think although there will be nothing left at the end of the month and we might need to go into our savings.
how would people who are just about coping deal with an increase in monthly payments

@alwaysmovingforwards just posted a very similar comment to you! Agree with everything you have said

'Choice' is an interesting word. When you say that - what is their aim then? Do you think it is personal pleasure at watching people struggle or do you think they are working for a foreign government or what? Because you sound a little bit conspiratorial!

It's fairly standard terminology. Trackers are a form of variable rate, as are SVR and discount mortgages, where a lender gives you SVR minus x% for a fixed period.

If people like the type of economics Truss was peddling, the independence of the BoE was a big barrier. For the rest of us, thank FUCK Truss wasn't in charge of that too.

Some people on this thread at people seem to be revelling in people being brought back down to where they ‘belong’ financially.

Im of the age that most of my friends (and I) have bought our first houses in the past decade. None of us have been ‘cock a hoop’, we’ve all rented small, generally not very pleasant houses with no real security for ridiculously large amounts of money while desperately trying to save a deposit, then have had to over stretch ourselves to buy our first houses as property is so bloody expensive.

It’s a general theme of the site, people hate to see others having things that others think they don’t ‘deserve’.

Maybe you're referring to my post a few down, no, not revelling.

Just stating facts for all of us in the U.K.

Including me.

If you take that personally or choose to put an angle on it, that's your call.
But how you feel about the situation or how you choose to interpret the commentary, doesn't change reality or what's coming down the road unfortunately.
Either eyes open, head in the sand or shoot the messenger, everyone can choose their response.

Yep. These threads always attract the type that would have been knitting by the guillotine. Economically naive and accepting too.

We got a five year fix over the summer, so are ok for now. I’ve started making some more overpayments to help when the fix is over but I’m hoping that, by then, we’ll be earning more and not paying childcare so will be able to afford higher repayments anyway. Of course, it means we’ll still be living a very frugal life with no holidays, nights out or much disposal income in general.

Amongst brokers perhaps.

But not amongst most borrowers. Hence the pp understandably misunderstanding you

Invariably they themselves are low income and very resentful of anyone on a high income, and constantly spout on about “hard work” and “ordinary decent hard working folk”. They keep the DM and express in business

Some people on this thread at people seem to be revelling in people being brought back down to where they ‘belong’ financially.

Completely noticed that!

@daisychain01 , so you think all the care workers, nurses and teachers who are struggling should just get a better paid job?
Those balancing caring responsibilities with working, should just work more hours? You think people chose jobs because it’s meeting their potential? What does potential even mean, and do those with the most do the highest paying jobs?

@daisychain01

odd that you are very much focused on workplace e bullying on your other threads, but then have such a daft black and white view on this thread

I was just thinking that. How dare we lower paid people ( who have worked just as hard day to day as the high earners btw) aspire for a holiday or a nice house, life experiences and so on.
Get back down to poverty where we belong minions! Work to survive that’s all you should do.

The PP’s point was that it often isn’t quite as simple as “just get a better job” if you have potential.

when you posted I mean it has really been making me feel shitty, self esteem through the floor, waaay more than if a colleague doesn't like me. Every previous manager, apart from one, years ago, I've got on with just fine. This one will do anything to make me feel small, useless and incompetent. I got a promotion with this role, but I'm beginning to wish I hadn't bothered. Is it worth the unhappiness? would YOU have been in the correct frame of mind to “get a better job”? Or did you feel low and lacking in confidence despite your potential.

for example

This is exactly what the bank stress tests were for when the mortgage was taken out. Yes it is horrible but there is no guarantee that mortgage rates would stay low and we all should prioritise saving. Looking historically this has always gone in cycles, rates are not fixed.

But @Rafferty10 , lots of people , including us had no problem with the bank stress test, still could comfortably afford our mortgage.

And as has been explained multiple times already, we had no issues with the bank stress test at the time. However the stress test didn’t take into account gas/electricity bills more than doubling, food costs going through the roof etc.

Italiandreams
It is a very, very hard time for people, but after the Pandemic and all the billions put into paying peoples wages, it was inevitable there would be a recession and inflation and therefore higher interest rates. All that debt incrued has to be paid for now. Did people really not see this coming?
Add in the war in Ukraine pushing up gas and electric and food prices and it is extremely difficult.
I am quite old and remember my parents being force to sell our beloved farm in the Thatcher years when interest rates hit 16%, we moved to a tiny cottage under immense stress.
I also remember a friends flat in south London being repossessed during the 90s spike in interest rates, he was a trainee banker too so well paid....
Over the decades l have, (and my cohort) have had to work 2 jobs, work 7 days a week/ take lodgers/ sell and downsize/ sell and rent, at different times in our lives.

My point is younger people have only known rock bottom rates and not really taken on the seriousness of planning ahead for the inevitable rises.

Sunak stoked the housing boom during covid too.

He did indeed. Unforgivably idiotic, that.

@Rafferty10 , do you not think that people ( many of whom worked tirelessly throughout the pandemic) deserve to be angry about it. And no I don’t think anyone should plan in over £1000 in a buffer each month, we will have to pay out £1,300 more in May than when we got our mortgage/ did stress test etc when you could rising costs if everything. No one plans for that kind of rise.

We have been home owners for 14 years , so not that new, have paid higher rates etc but it’s not just the rise in interest that is the issue.

“Now it’s your turn to suffer”…