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Original poster

Mortgage repayments are terrifying

167 replies

LemonAda376 · 08/09/2023 17:59

My mortgage is up for renewal and I've had some quotes from my mortgage advisor.

My payments are going up by £400 per month.

I work part time and my husband works full time. We are barely scraping by just now and are in some debt as it is.

We can increase our term which will lower it but we will still be paying £200 more per month and adding a other 8 years onto our mortgage.

Any advice :( is this just the ways things are going just now?

OP posts:
Sundaefraise · 08/09/2023 19:12

LemonAda376 · 08/09/2023 18:26

@boboshmobo when we had the house we had a decent buffer and I was full torn but circumstances and various things that's have gone wrong meant our buffer is completely gone.

We used to be quite comfortable and have disposable income but unfortunately everything has gone up.

I think this is the problem isn’t it? It’s not just mortgages that have gone up, it’s absolutely everything.

Babyroobs · 08/09/2023 19:14

LemonAda376 · 08/09/2023 18:07

Yeah we have a toddler so I dropped my hours to do childcare.

He is starting nursery but still wouldn't allow me to go back full time.

It's heartbreaking

Do the nursery not cover full time hours or could he go to a different nursery that does ? You may be able to claim help with childcare or the 30 hours depending on his age?

Shinyandnew1 · 08/09/2023 19:24

our child will get the free hours for nursery so we will have a lot more spare cash each month

Do bear in mind that they aren’t ‘free’ hours, they are ‘partially funded’ hours and may not save you as much as you imagine.

doitwithlove · 08/09/2023 20:14

Dependant on where you live weekend reception work is being advertised local to me at £11 - £12 ph. Over a 7 hr shift Sat & Sun that could give you £700 plus per month

Hungrycaterpillarsmummy · 08/09/2023 20:42

Shinyandnew1 · 08/09/2023 19:24

our child will get the free hours for nursery so we will have a lot more spare cash each month

Do bear in mind that they aren’t ‘free’ hours, they are ‘partially funded’ hours and may not save you as much as you imagine.

Yes we know. Our first child cost around £1k a month and he's now £250 ish a month.

jkkdiehab · 08/09/2023 22:11

I'd extend. You're in the most expensive years of your life right now. I'm not sure how old you are, but you can overpay when the kids are older (or grown) and get the term down again. For me, having a comfortable family life trumps being mortgage free sooner, I'm willing to pay more interest over time for that. (I appreciate extending doesnt match what you pay now, but will hopefully help nonetheless).

UsingChangeofName · 08/09/2023 22:30

Purplerain0505 · 08/09/2023 18:34

Can you earn an extra £200 per month doing a second job? If you’re part time because of childcare maybe you can work a few evenings or a day on the weekend. I know a few people who do this to juggle the childcare better when their kids are young.

This.

This is what we did when our dc were small.

Obviously I don't know what your skillset is - you might have the skills to do tutoring, or referring football games, or teaching swimming or lifeguarding, or book keeping, but there is Care work, bar work, retail, hospitality work which most people can do. Or maybe dog walking ?

Southeastdweller · 08/09/2023 22:47

Doing support work for vulnerable people as a bank worker is another option for a second job and as long as you’d pass the DBS check, you could walk into a job in this industry.

Supermarkets will be looking for Christmas temps.

PureAmazonian · 09/09/2023 07:38

LemonAda376 · 08/09/2023 18:46

@Purplerain0505 would absolutely do this if I could think of something I could do evenings or weekends that would give me some extra cash.

My job is quite demanding as it is so when I get home I absolutely crash out but I'd be willing to do something that isn't too taxing!

Any ideas?

Plenty of care jobs (night shifts)
Plenty of restaurant jobs (evening shifts)

Rayna37 · 09/09/2023 07:48

If you have a reasonably well paid job does full time nursery honestly cost more than full time work? Would you have more money on balance if you did this, or not? I only ask because it sounds like your decision to work part time is based on the (understandable) basis of wanting more time with your DC and less time at the demanding job you don't like, rather than a purely financial decision.

catsliketowearsocks · 09/09/2023 07:58

My mortgage is going up £300. The new rate kicks in from March 2024, but if it goes down before then I can cancel the rate I've locked in. I've gone for 2 year fix as I don't want to lock in for longer than that right now.

Wellhellother · 09/09/2023 08:01

Unfortunately it sounds like you can't afford the luxury of working part time and should look to up your hours to full time - put the toddler in nursery full time

PinkRoses1245 · 09/09/2023 08:02

I’d be getting a second opinion on mortgages available, L&C are good. Otherwise extend for as long as you can. It is rubbish but I think these interest rates are here to stay.

Oakbeam · 09/09/2023 08:03

In your situation I would increase the term. It doesn’t have to be forever. You can reduce it again when your circumstances improve or rates go back down.

Milkkbottles · 09/09/2023 08:05

This reply has been withdrawn

This has been withdrawn by MNHQ at the OP's request.

Paul2023 · 09/09/2023 08:09

Interest rates went up so much in such a short space of time. From like 0.5 % to 5.5% or whatever it is now.
People were struggling before let alone now.

Surely it’s better to have higher inflation than massive mortgage and rent payments?

NeedTheSeaside · 09/09/2023 08:26

I do think you need to see how much you'd gain by working full time, paying nursery fees and claiming whatever help you can.

it's nicer to be looking after your toddler than doing a job you hate.

but affording to pay your mortgage & bills is critical to remain in your home.

i also suspect there are things you could cut back/out, but you feel you shouldn't have to/don't want to. Have a look at any subscriptions/memberships etc & other places to cut your spending.

it's tough, but only you can make it work.

Oakbeam · 09/09/2023 08:29

Surely it’s better to have higher inflation than massive mortgage and rent payments

Long term, the economy of the whole country suffers and there is less money to spend, everywhere. Sustained high inflation hits those with low incomes the hardest.

It’s a viscous circle. Higher mortgages and rent mean people spend less overall, and that should bring down inflation.

The problem is that a lot of people are still on fixed low rate mortgages so the brunt of the anti inflation pain is currently being met by the minority on the new rates.

Also, pay rises nullify the anti inflation measures and reduce the speed at which inflation decreases. Further increasing the misery of people who can’t get a pay rise and have high mortgage rates or rent.

You can’t win.

NeedTheSeaside · 09/09/2023 08:30

Could you downsize?

id extend the mortgage as far as you can, not ideal long term, but you can overpay/reduce the years later on when you're no longer paying childcare.

you have a lot more options than most.

definitely look into sorting your mortgage yourself, your relative might be making assumptions/ or trying not to extend your mortgage too much - meaning well, but actually helping right now.

wonderingwall · 09/09/2023 08:31

Ours has gone up by £1.3k a month 😭 standard 3 bed outside of London

SilverGlitterBaubles · 09/09/2023 08:39

Increase the term and review this again when you are through the nursery fee years and perhaps your job situation is different. The way things are going we are all going to be working forever anyway so mortgage terms are generally getting longer. No one knows what the future will bring you just need to get through this difficult time.

SilverGlitterBaubles · 09/09/2023 08:42

Also lots of retailers and supermarkets are advertising for temporary workers especially in the run up to Christmas. They pay pretty well so a few hours at the weekend or one day could help with the shortfall to tide you over, plus staff discounts Wink

Tiredalwaystired · 09/09/2023 09:04

Not read the whole thread.

I think you are right to increase the term for now to take the immediate pressure off. Then look again in a couple of years when hopefully you will have a combination of wage increases, a lower interest rate and less financial pressure from nursery. You can then either take out your next mortgage for the extended term and overpay a bit to help you further down the line again, or reduce the term again.

We were VERY lucky and fixed for five years in mid 2022 so we’ve got a few years to plan our next move but I can see it coming…

Jackydaytona · 09/09/2023 09:11

wonderingwall · 09/09/2023 08:31

Ours has gone up by £1.3k a month 😭 standard 3 bed outside of London

Surely you mean up to £1.3k?

Oakbeam · 09/09/2023 09:12

It’s a viscous circle

Vicious!

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