Help! Is there anything I can do about my mortgage?

[Rainbow28x]

Long story short, we moved into our first home and did a two year fix which ended the beginning of the year. At the time we couldn't renew as I wasn't working, due to maternity leave ending and me being pregnant with my second (so I chose to leave work instead of going back as I couldn't afford childcare either)

With the cost of living increasing, our mortgage is an extra £350 a month that it was at the beginning of the year. My second baby is a few months old and because we were struggling for money I took the maternity allowance as soon as I was entitled. This is ending in January and my partners wage won't cover just the bills anymore and I just don't know what to do! Is there anything I can do about my mortgage or are we truly stuck until interest rates start decreasing again?

Many thanks x

You should contact your mortgage company to discuss options. They might be able to switch you to interest only for example.

Is your financial situation due to change? As in, will you eventually be in the position to pay the mortgage?

I'm just worried if I tell them I'm currently not working they will say because our circumstances have changed, that they deem us too much of a risk and not help us anyway!

It'll only be temporary as next year my eldest will be able to get free childcare hours so hopefully then I can work out being able to get a part time job etc

Can you look at getting an evening/weekend job so that you can work around your partner's hours?

Have you tried putting in a claim for UC or running your numbers through a calculator ? It’s just because the numbers you’re suggesting are indicative of lower income(s) and you might be entitled to some help.

My partner works long hours doing 5 nights a week and doing overtime trying to get us some extra money, but he's so exhausted when he gets home I'm struggling to work out when would be best to try and get a job at the moment.
He also works weekends. I might look around and see if I can find anything with some hours in the mornings or early evenings if possible!

@Hooverphobe I believe we will be entitled to some UC once my maternity allowance ends in January! I'm not really sure how it all works, but any little amount will make a big difference so I'll definitely apply next month and hopefully it'll be enough until I can find out what to do about finding a job 🤞🏼

Have a look online about your mortgage company if you don't want to contact them directly immediately and see what you can find - I'd probably look at "mortgage holidays" and go from there.

What will happen with your youngest when the eldest is eligible for free hours?

You may be able to do a product transfer with your current lender without having to go through all the affordability checks.

Are You now on the Standard Variable Rate (assume so if your fixed ended)? We managed to do a ‘product transfer’ onto a tracker mortgage as our fixed ended but we’re currently selling so needed no repayment fees. It’s still tied to interest rates but at a lower rate (by about 2%) than the SVR. Was so easy, just an online form and no questions about income. Maybe worth looking at your banks website see if they have this option. Otherwise, you could remortgage onto a longer term to bring monthly payments down.

Interest rates won't come down, 3% is low. Plan your future around that.

You won't need to prove affordability if you are staying with the same mortgage provider! Give them a call and see what they offer.. provided you're keeping the term and amount the same!

@Merrow Thank you, I'll have a look! My mum doesn't live too far and she'd be more than happy to look after the youngest while I worked. I just didn't want to throw both at her to begin with until they are both a bit older, as my toddler can be non stop around there and my mum's a bit of a worrier at times 😂

Who are you with? I was with Nationwide and just picked my next fix without requalifying? Don't know if they still do that?

Yes on the standard variable rate now which all together is now 6.5%. I thought we'd have to go through affordability checks to change anything.

We did look at fixing again at the beginning of the year which was cheaper than we were paying and it was all online, but you had to tick a box saying your circumstances hadn't changed and I didn't want to lie. Maybe I'll have a look again and see if there are any other options in the t&cs etc.

I'll also look into a product transfer, thank you all!

I mean this kindly, and appreciate it's too late to change it now, but when you bought a house and then within 2-3 had 2 babies what planning had you done for the eventuality that interest rates would go up?
I mean no offence but it's been obvious for the last 2-3 years that interest rates were going to go up, they were never going to stay so low forever. Could you not have waited a bit longer between babies, or waited another year or 2 before starting your family in the first place, to get more financially secure, save for the tricky 2-3 years between maternity leave ending and 3 year free childcare hours kicking in?

It certainly sounds like you need to accept you cannot afford to be a SAHM, your first child must nearly be qualifying for subsidised hours and with the tax free childcare scheme etc, and maybe your mum helping out, you should be able to get a job and earn extra money. Yes you will lose a big chunk of it to childcare but if you aren't managing to make ends meet if you even clear £200-300 a month after childcare it might be the difference.

@KweenieBeanz No offence taken, I completely agree with you. I found out I was pregnant first time after agreeing to the mortgage deal etc, it wasn't planned as we wanted to wait until more settled, but were happy nevertheless. Then we had the conversation about having the second close together (2 years between them) and being a sahm until they both went to school/reached the free childcare hours. I just didn't want to go back to work then take more time off, I wanted to get it all out of the way in one chunk so that when I returned to work I could stay working and have a steady income. I knew we'd just get by and struggle for a few years which I was happy to accept (as in no luxuries for us so any spare money was for our children) but I completely hold my hands up that I didn't really think about the fixed rate on our mortgage. We should have taken out a 5 year mortgage if we actually thought about it properly. I knew rates would increase, but I just didn't realise it would get this bad. I guess I was just in the magical moment of being a mum and wanting my little one to have a sibling as an only child was quite lonely for me!
I can't complain too much as there are people far worse off than us and in worse situations. Many thanks for all of the advice, I will look into finding childcare/work somehow. 😊

Could you look for wfh admin type work you can fit around the kids, 10 hours a week at minimum wage will contribute towards the mortgage without childcare costs. I did the books for a property manage firm then sold Avon when mine were small, both paid peanuts but that £300 a month we needed

You really should have got proper advice at the time and done a product transfer, that’s what everyone does even if their circumstances have changed. You’ve spent a lot of money entirely unnecessarily.
Get an IFA to advise you and get on a better rate.

Talk to your mortgage provider. They really don't want to evict you so will work with you on this.

What us your current mortgage term? Could it be extended?

I would:

1. Speak to a mortgage broker. Look at all your options (increasing term, swapping providers), but in all likelihood they will likely say stay who you are with and fix on best deal you can.
2. Get a job. If you can't afford childcare then you and your partner need to sit down and work out how you can both work (so working round each others hours. You might not see each other much but needs much).
3. Check if you are entitled to any assistance with childcare,

Separate yours and your partners households, with you remaining in the house and your partner renting a room elsewhere, if he is willing. You can still be a couple - who do not live together. Financial hardship is a valid reason for not continuing to live together, and you will both be in a more advantageous position if he continues to pay the mortgage. You will be entitled to the full range of UC and other benefits to support you and your children until you return to work.

There is nothing illegal or against benefit rules in following this course of action, provided you genuinely maintain two separate households.

Once your financial circumstances improve and you return to work, you can reassess.

Have you checked the entitledto website? It will give you an idea of any benefits and childcare help you can claim. You can try it two ways - one with you working / paying childcare and one without. Then you can see whether you will be better off getting a job and paying childcare.

Think you need to get a job OP. Really is the only way to get more money without relying on basic benefits and working your partner in to the ground

Worse advice ever