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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:
Original poster
coolpineapple1 · 23/04/2023 16:28

Thanks @SweetSakura I'm pretty good at budgeting. Have a spreadsheet and stick to it every month. Cut out luxuries last year really and desperately need new tyres on my car but just not been able to do it. So I'm not in debt but do live month to month

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Original poster
coolpineapple1 · 23/04/2023 16:29

Thanks @Yellowdays I'll take a look Smile

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Movinghouseatlast · 23/04/2023 16:31

I sympathise too. Mine has nearly doubled, my income has reduced as I have my own business in hospitality. It is shit.

Original poster
coolpineapple1 · 23/04/2023 16:33

@Movinghouseatlast it's so rubbish isn't it :-(

OP posts:
Namechange224422 · 23/04/2023 16:34

Staying put is probably your best option, and trying to find a way to make the payments. You might already have thought of these but some suggestions are:

Can you ask your boss for a pay increase? Explain why if you’re comfortable to do that. Or can you negotiate anything which will reduce cost like an extra day from home or flexible hours to reduce childcare etc?

Does your daughters dad pay maintenance? If so check whether you’re getting everything you’re entitled to - lots of people have had raises this year and if so maintenance should increase from now as it’s based on the previous year income.

Do you claim any benefits? If so check that you’re getting everything you’re entitled to. If not check the threshold for claiming.

Have you been through your bank and made sure that you’re not paying anything you don’t need, are you on the best deal for things?

Do you have a driveway or storage space which you could rent out?

Is there any training or development which you could do that would put you in a good position to move up at work? Could you have a look round for a new role?

Other people’s suggestions of trying to lengthen the term a little bit are also really sensible. You can always overpay later on once your daughter is older.

Good luck - I hope that you manage to find something that works. The cost of living crisis is so unfair for everyone!

Namechange224422 · 23/04/2023 16:36

Sorry - cross posted with your post about budgeting- I can see that you’re already on that.

Original poster
coolpineapple1 · 23/04/2023 16:38

Thank you @Namechange224422 for all the advice.
I had a pay rise last year but it's all frozen this year. I work from home permanently- lots of layers and heating never on lol!

Keep on top of my bank account and don't have a drive. Also CMS payments from Ex are very low due to his low income.

I'm not entitled to any benefits but will take a look at all your other suggestions - big thank you

OP posts:
Orangesandlemons77 · 23/04/2023 16:40

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.

Could he move back in?

Original poster
coolpineapple1 · 23/04/2023 16:41

@Orangesandlemons77 absolutely not, we'd kill each other lol!!

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Namechange224422 · 23/04/2023 16:41

It sounds like you are already really on it which in some ways probably makes this harder as you haven’t got much flex. Hope that you manage to sort something so that you can stay in the house. Good luck

Original poster
coolpineapple1 · 23/04/2023 16:42

@Namechange224422 thank you really appreciate it.

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moonspiral · 23/04/2023 16:42

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.

Ah I see, that's frustrating. Um.. I would keep doing what you're doing then downsize if you have to.

Original poster
coolpineapple1 · 23/04/2023 16:43

@moonspiral will do thank you. I think I'll buy a lottery ticket too!!

OP posts:
babynoname22 · 23/04/2023 16:43

Our fixed rate has just ended. We've now fixed again but with £250 increase. We can barely afford it at all.

moonspiral · 23/04/2023 16:44

babynoname22 · 23/04/2023 16:43

Our fixed rate has just ended. We've now fixed again but with £250 increase. We can barely afford it at all.

Yeah mines the same. No idea what we're going to do. I'm looking for new job.

Original poster
coolpineapple1 · 23/04/2023 16:45

It's so tough really feel for you both. Just no let up at the moment.

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CuriousGeorge80 · 23/04/2023 16:47

One possible option is to go to increase only with a right to overpay and then keep your payments the same as they are at the moment, which means you will be reducing the capital every month and only have to “catch up” a smaller amount in due course. Assuming you have over 10 years left on the term and get a mortgage with a 10% overpayment provision, this should be fine.

CuriousGeorge80 · 23/04/2023 16:48

*interest only

Original poster
coolpineapple1 · 23/04/2023 16:49

@CuriousGeorge80 thanks I'll look into that. I have about 26 years left on it sadly!

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tweener · 23/04/2023 16:55

coolpineapple1 · 23/04/2023 16:49

@CuriousGeorge80 thanks I'll look into that. I have about 26 years left on it sadly!

Why can't you increase to the maximum term then? I think it's 35 years. At least until you're in a better position or interest rates drop.

Original poster
coolpineapple1 · 23/04/2023 16:56

@tweener because of my age I can't get 35 years

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LittleBearPad · 23/04/2023 17:12

coolpineapple1 · 23/04/2023 16:56

@tweener because of my age I can't get 35 years

Banks are getting more flexible on post-pension age mortgages. It’s worth asking

caringcarer · 23/04/2023 17:45

OP make your application now so you get your offer at this rate. You can sit on it. An offer lasts for 6 months. You don't have to accept it before September if you can't find anything better by then. Try asking a mortgage broker to help you to look for a cheaper rate. They sometimes get better rates than individuals looking. Also if you took out 30 years 4 years ago, ask to go back to 30 years again to keep the monthly cost down. I'd only fix for 2 years as rate might come down a bit by then. Whatever you do don't do a variable because rates are still rising and with inflation at 10.1 percent likely to rise further to try to get inflation down.

Original poster
coolpineapple1 · 23/04/2023 17:46

Thanks @caringcarer that's super helpful advice.

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