To not have many options re mortgage

[Aislingk]

I’m freaking out as our fixed term mortgage runs out in July 2027. DP said currently we’d be paying between 4-5k monthly and I’m so scared. Will things change by then and what options are there!? Never done this before!

It sounds ike you are haemorrhaging money and you have no idea what you spend on anything.

Sit down with DP and work out your joint income.
Work out your monthly outgoings - everything, bills,. shopping, DC costs.
Work out how much you need to put away each month to cover your travel/holidays

With £10-12 THOUSAND a month you need a better grip on your finances.

It sounds like neither of you have a clue.

I agree I mean it shows that making 200k a year means you don’t have to be smart

i might be wrong here but at 5% over 25 years it would be approx 3200.

current rates are about 4.5.

would have to go up to 10% to be 5k

There are online calcuators, would recommend finding a mortgage broker who can start looking for you in advance.

You need to adjust your attitude and lifestyle. This comment says a hell of a lot about your inability to budget and understand your own finances.

That's it.

Some people just can't be helped!

Your issue isn't sick leave!

Your issue is you have more income than intelligence!

There's a pot of money and it can't cover everything you want it life. You have to improve your money management and live within your means.

Might you be better suited to the house price crash forum? They’ve been doom mongering like this for decades 😆

No.

I suggest you actually read the newspapers and listen to Andy Burnham's comments today about the economy before trying to be smart.

There are too many factors going on for the BoE to not seriously consider interest rate rates because of the situation.

You won’t be paying that much

I think help might turn up from the government. At the moment the housing market isn't just slow it's static. Our house is on the market at lower than valuation and in the last 3 months our estate agent hadca handful of people look at any of their properties. Not just the 4 bed we have for sale but all of them .

Everything has gone up, food, bills etc. We also have 3dcs. We weren’t always on 200k joint either!

Agree with this. ‘DH said’ rings alarm bells. Both partners should be aware of the reality of their financial situation.

The end is nigh!

I'm going to start making a note of posters doing this and then will remind them.

I don't bullshit.

Please do, but I won’t hold my breath! On a serious note, there is help available for anxiety and sometimes it’s good to take a break from the news and social media. It can all seem like the world is ending sometimes.

Paying half your income on mortgage is fairly normal these days for a lot of people op

we pay 2k at the moment w month

it used to be more

get a mortgage broker and go from there .. how is guessing helping anyone - get real information before you start worrying

I would start overpaying this month whatever you can afford. It will reduce the capital amount and the increased payments will be less of a shock. I took 4 years off my initial term making regular overpayments if that money had been in my current account I would have wasted it every month

Wasn't trying to be rude by saying your advice would be better re overpayments- the principle isn't wrong, it's just wrong for this set of facts.

At the moment, the best rate is around 4.5%. Bank of England unlikely to put interest rates down in near future due to inflation.

But even if things improve a bit, I can’t see anyone getting a better rate than 4% next year. That’s best case and assuming banks will give you the best rate. This will depend on your LTV. You could be closer to 6%. What is your house value?

Are you able to make a huge overpayment to bring that large balance down? Or even overpay a lot every month now to bring it down?

House value is 900000

Is only having £5 or £6k a month left, after mortgage, really 'freaking out' territory op?

The biggest problem you have is lack of perspective - i'd work on that first.

Jesus op. Your joint salary is £200k!

Even with 4 kids and a mortgage of £2500 a month you could knock £100k off your mortgage in the next 12 months unless you've got top-tier private school fees to pay too.

You're in an exceptionally wealthy position compared to the majority of the UK population. You should pay for some advice because your DH has no idea about mortgages or how they work but even then nobody can accurately predict the future.

You earn £10K a month
Your currently mortgage is £2.5K a month

You are in a ridiculously lucky position and can afford an increase even if it means cutting short some of your many holidays. You also have 10 months to save money for a cushion and overpay.

It’s always £200K with these threads isn’t it? Nobody is ever trying to work out how to pay their mortgage on a combined income of £42K. Absolutely baffling the fact that all these high earners can’t do basic maths, basic budgeting or factcheck things for themselves. Yet obviously it’s not a stealth brag. It does explain why the country is up shit creek without a paddle though.

You might have 3 kids but you’d have already said if they all were in nursery. But let’s assume they are. I’ve assumed one is earning £80K and one is earning £120K so you’ve lost out with tax, tax free and funded childcare. I’ve also assumed you have a student loan and contributing 5% to both your pensions. The £80K salary is bringing in over £4K net and the £120k salary is bringing in almost £5.5K. So a total of £9.5K. Even if we look at £40K and £160K it’s an income of £9.1K per month.

Even if interest rates rise (and it would need to be over 7.5% for you to be repaying £4k per month), you’d still have £5K per month. Let’s assume £1K per child for childcare, that’s £3K. Commuting costs of £500 per month. You would still have £1.5K left for all other bills and extras. If childcare or commuting is more than that, you’ll have to do what everyone else does and cut back. You’ll have to shop at Aldi, maybe not go on holiday. Take up running and cancel the gym, cancel Netflix and buy from Vinted. Talking of interest only and extending the length of term rather than just learning how to budget.

As to your comment that you haven’t always earned this much. Do you think most households are above this threshold and you’re somehow behind the curve?

Current fixes are around 5% , my son has just locked a rate in 6 months ahead of his current fixed rate ending and rates have gone up since he did that.

You are looking at doubling your repayments if rates stay where they are at the moment, more if they go up, which is likely.

I don't think his calculations are correct either.