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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:
daffodilandtulip · 09/09/2023 21:28

I don't know if this is standard procedure but in my mortgage there is a section saying "if interests rates increases to 6% your payment would be..."

I think that's helpful for people to consider.

Milkkbottles · 09/09/2023 21:32

This reply has been withdrawn

This has been withdrawn by MNHQ at the OP's request.

Paul2023 · 09/09/2023 21:33

Does anyone think interest rates will actually fall though? Or will they plateau?

Are they likely to go to 2 or 3 % ?

Figgygal · 09/09/2023 21:35

Also gone up £400 a month
If it was going up now it'd have gone up £650/700
Absorbed it with payrises from new jobs but it's rough!!

Milkkbottles · 09/09/2023 21:35

This reply has been withdrawn

This has been withdrawn by MNHQ at the OP's request.

Hollyhead · 09/09/2023 21:35

@daffodilandtulip it’s interesting isn’t it, I think in hindsight the paperwork should have said ‘when rates return to 6% as per historical norms’ rather than if. All the cheap rates have done really is cause house price inflation, we’re all worse off for them!

RagzRebooted · 09/09/2023 21:41

This reply has been deleted

This has been withdrawn by MNHQ at the OP's request.

They probably aren't allowed to tell you as it would be guessing, but if a 5 year fix is more expensive than a 2 year fix, chances are the market thinks rates will rise.
If you want to get really into it, look at swap rates and things.
However, no one could have predicted the shit show of the last year or two, to be fair.

Our rent has gone up from £800 to £1000 in the last year. We're looking to buy next year and our budget has dropped from £300k to £220-(maybe)250. Our income multiple is still fine, but the monthly payments on the new interest rates would be too high. Hopefully will have dropped a little by the time we buy, but I can't see going below 5% (which is long term average).

Oakbeam · 09/09/2023 21:41

They don't highlight it though do they? No lenders said, it's going to go up to 5% in the space of a few months

How could they know? They have highlighted (to me) the historical average. Which is higher than 5%.

memote · 09/09/2023 21:41

Does anyone think interest rates will actually fall though? Or will they plateau?

Are they likely to go to 2 or 3 % ?

I reckon 4/5% will be the norm for some time.

Milkkbottles · 09/09/2023 21:42

This reply has been withdrawn

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

Gettingbysomehow · 09/09/2023 21:43

I did a 10 year fixed rate at 0.5%. Everyone said don't do it, you will regret it etc etc. But I knew no interest rate would ever be as low as that again.
Once the time is up I'll have paid it off.

Fleur02 · 09/09/2023 21:43

Rates have probably peaked now, so will hopefully drop over the next year.

Extending the mortgage could help for a while, but we’re likely to see rates stay at this level for a while.

memote · 09/09/2023 21:46

Everyone with any knowledge of mortgages could predict that the mortgage rate was always going to return to more of a normal %.

It's not the norm to have average interest rates, wages that have seen little growth & very high prices vs those wages though is it?

lauraisa · 09/09/2023 21:48

Time to go back to full time hours or get a second job. You got this!!

Floribundaflummery · 09/09/2023 21:52

Could you also look after another child for payment when you take care of your own?

Calmdown14 · 09/09/2023 21:53

What is your debt? Is this at a high interest rate or zero credit card?

The only real option for the mortgage is to extend and try and overpay later.

But maybe you could find a way to restructure some of the debt or work at paying part of it off through a temporary Christmas job or the other suggestions to free up space in the rest of the budget.

Milkkbottles · 09/09/2023 21:53

This reply has been withdrawn

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

Oakbeam · 09/09/2023 21:54

It's not the norm to have average interest rates, wages that have seen little growth & very high prices vs those wages though is it

If prices are increasing faster than wages, it is the norm to have high interest rates. In 1974 inflation was over 20% and interest rates were over 9%.

memote · 09/09/2023 22:01

@Oakbeam and the salaries vs house prices was similar then?

Oakbeam · 09/09/2023 22:08

@memote Totally irrelevant to the point I was making.

High inflation often/normally goes hand in hand with high interest rates.

Regardless of salaries vs house prices.

memote · 09/09/2023 22:09

But you were the one who replied to my post 🤷🏻‍♀️

Paul2023 · 09/09/2023 22:10

I’m starting to think that the Bank of England are trying to lower or stop house prices rising so have put up interest rates.

Having very low interest rates has caused house prices to rise. Over inflated house prices doesn’t really help anyone , it just means we pay back so much more over the course of our working lives.

memote · 09/09/2023 22:11

which was about historic interest rates.

I'm pretty sure most people are aware that inflation and interest rates are linked...

Oakbeam · 09/09/2023 22:13

But you were the one who replied to my post 🤷🏻‍♀️

At first you had me lost there. The post I responded to didn’t specify house prices.

Oakbeam · 09/09/2023 22:15

which was about historic interest rates.

I'm pretty sure most people are aware that inflation and interest rates are linked

OK Now you do have me lost. I’ll shut up now.