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Original poster

Fixed rate mortgage ending

62 replies

coolpineapple1 · 23/04/2023 16:01

Not sure if this is the best place to post but all advice would be very gratefully received. My fixed rate is ending in September and the best offer I can find is 4.47%. Which increases my payments by over £250 a month.

Really don't know what to do as I can't afford this, just me and my young daughter so only my income.

Do people think they likely to come down before September if I hang on? Other option is to sell and buy a cheaper property to decrease my mortgage.

Feeling a bit stressed about it all.
Thank you in advance.

OP posts:
mariabs · 23/04/2023 16:03

The rate is more likely to increase before September😖

euff · 23/04/2023 16:04

I know it's not desirable but are you able to increase the term to keep the payments down? There would be significant costs anyway in moving.

Original poster
coolpineapple1 · 23/04/2023 16:06

Thank you for your responses.

I've already got it over the longest term possible. Thanks to my divorce 4 years ago I basically started again.

OP posts:
MumApril1990 · 23/04/2023 16:06

Can you increase the term? My Nans mortgage has gone from £400 to £900 so could be worse I’m afraid.

dreamersdown · 23/04/2023 16:06

It would be better to try and extend the length of the mortgage than to sell - selling you’re going to have to pay stamp duty, selling and moving costs and probably wipe out any savings you’d make.

MumApril1990 · 23/04/2023 16:06

Sorry just missed your message. Can you increase your income?

Original poster
coolpineapple1 · 23/04/2023 16:07

@MumApril1990 oh no that's awful!! Your poor Nan :-(

OP posts:
MumApril1990 · 23/04/2023 16:08

@coolpineapple1 I know, my Grandad died last year and he never would have expected her to be struggling like this now.

Original poster
coolpineapple1 · 23/04/2023 16:09

@MumApril1990 I work full time around 45 hours a week. But I could try to get something on the side, good idea.

If I sold I'd buy under the stamp duty charge but I know how much solicitors and estate agents charge and I don't have any savings unfortunately, so would need to borrow to pay these.

OP posts:
MumApril1990 · 23/04/2023 16:13

Estate agent fees could be about 1.5k, solicitors fees 2k. Then the same mortgage rates will apply to any other house or you will be paying high rent. I really think you’re better to stay put if you can.

Have you had a pay rise and if not are your industry striking?

BananaPie · 23/04/2023 16:14

Talk to your current mortgage provider and explain the situation. They may be willing to extend the term further.

Are you on interest only or repayment? Moving to interest only would also be cheaper.

Orangesandlemons77 · 23/04/2023 16:14

Could you downsize or take a lodger?

MumApril1990 · 23/04/2023 16:14

You wouldn’t have to borrow the fees if you will have money left from the sale, they can take it out after the sale

moonspiral · 23/04/2023 16:15

coolpineapple1 · 23/04/2023 16:06

Thank you for your responses.

I've already got it over the longest term possible. Thanks to my divorce 4 years ago I basically started again.

Are you 100% sure you can't afford it? The mortgage lender should have stress tested the product

Original poster
coolpineapple1 · 23/04/2023 16:16

@MumApril1990 haven't had a pay rise I work in the charity sector.
If I moved then I'd buy the cheapest house I could in the area still near my daughters school so would halve my mortgage with the equity I have in the house. So repayments would go down but again rye cost of moving is so high and I'd need to borrow so staying put is the preferred option.

OP posts:
Original poster
coolpineapple1 · 23/04/2023 16:18

@BananaPie I'm on repayment, I've always been nervous of interest only as have no way of paying off a chunk at the end. But could be a short term solution thank you

OP posts:
Original poster
coolpineapple1 · 23/04/2023 16:19

@moonspiral yes I've cut back as much as I can already. When I took out the fixed rate 5 years ago the interest rate was low and I passed the stress test no probs. But everything has gone up in price and wages haven't.

OP posts:
euff · 23/04/2023 16:20

I don't know if this would make enough of a difference but can the years you had since remortgaging after divorce be added back on? Are you using a broker? There are some rates just under 4 which again may not make enough of a difference, is it your ltv blocking those from you?

Is your ex your DD's dad? Is he amicable and good with CM and if so would he be in a position to provide even a little extra to keep his DD in her home?

Original poster
coolpineapple1 · 23/04/2023 16:20

Just wanted to say thanks all for all your comments and advice. It's making me feel calmerSmile

OP posts:
LittleRedYoshi · 23/04/2023 16:20

Speak to a free mortgage broker like L&C (I've used them before, so recommending from experience). They make their money through commission, so won't cost you anything, and may be able to find you a better rate and give advice in general.

If your new rate won't be starting until September, you should be able to lock in a rate today and keep that if they go up between now and then, or ditch it in favor of a lower one if they go down.

Downsizing could actually make your monthly payments a whole lot more in the short term, i.e. if you're not moved before September and have to go onto the variable rate because you're waiting for your new product to start - there are Mumsnetters in this situation.

Original poster
coolpineapple1 · 23/04/2023 16:22

@euff yes using a broker but also done as much research myself online for a good rate. I'm not sure I will check.

Yes get on great with DD's dad but he earns a lot less than me and is renting and just had a rent increase so is struggling tbh.

OP posts:
Original poster
coolpineapple1 · 23/04/2023 16:23

@LittleRedYoshi thank you that is super helpful advice. I will get in touch with them.

OP posts:
LittleBearPad · 23/04/2023 16:23

If you’ve only been looking yourself speak to London & Country or another broker as they can see options that might not be visible to you.

I sympathise - ours is going up £750.

Interest only or extending the term are good options, at least for now.

Original poster
coolpineapple1 · 23/04/2023 16:24

@LittleBearPad I've used a broker, but will shop around also. Thank you that's really helpful

OP posts:
SweetSakura · 23/04/2023 16:27

What's the rest of your budget like? Maybe there's something else you can cut down? Sorry, I know it's rubbish. But hopefully there's a way.