Fixed rate mortgage ending

[coolpineapple1]

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.

I wish I could wave a wand and stop BoE raising rates. I'm so lucky as I have almost paid mine off now and I had years of low rates. It's very hard for younger people, ATM. They don't get a very good deal.

Some great advice here already.

I don't think interest rates will go down anytime soon. Inflation hasn't dropped as much as the government wanted and the economy is ticking over and not as bad as predicted.

I wish you and everyone struggling the best.

Thanks @Hettar and thank you everyone for all your help and advice xx

This is really good advice. Interest only isn’t ideal but this is a halfway house which will let you stay where you are whilst still paying off some of the capital. It’ll work particularly well if in a few years you’re likely to be better off (eg when you no longer need childcare or when dd moves out). You could also save alongside to have a lump sum to pay off next time you remortgage

Sorry you're in this situation. Have a chat with your provider in case they can help. They may let you take a contributions holiday. Also a broker may find one that always you to extend your term some limit at different ages.

Agree that the interest only route as a stop gap might be helpful, but you will need to try and save alongside it, even if it's just £50-100 per month to keep chipping away at the overall loan. If things never pick up for you then, at some point you could sell and downsize in a planned way, but this could then be held off until your DD is older.

I have an interest only mortgage and pay capital when I can so still paying it off , ,you could also ask for.part interest/ part capital which would reduce your payments

If you’ve borrowed less than 60% of value then HSBC’s 5 year fixed rates might be worth exploring

I think it’s disgraceful that your
employers haven’t given you any moat rose when inflation is at 15% or something. They’ve basically given you a 15% pay cut? I really think you should raise it and explain you might be losing your house because of it.

My pay rise was only 5% and they expected me to be grateful

PAY RISE

Are these any use?

Whats the best rate your current lender offers? Is it the cheapest? Some lenders if you stick with them let you apply with current rate but if rates go down before the new term you can cancel and reapply at the lower rate.