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Original poster

Lost our 4.4% rate ... mortgage going up £1k

113 replies

Kalodi · 12/09/2023 19:33

I thought we were being so sensible, I secured a 4.4% rate 8 months with Natwest via a mortgage advisor but somehow we have lost it. Just got off the phone to them and sat here in tears. I don't understand.

We will need to go onto a new product at 6.8% rate.... which means £1780 a month. We currently only pay £795pcm. DH only takes home £1600 a month

Mortgage advisor said it might be best to phone Halifax and ask to go interest only for 6 months. And hope interest payments come down in 6 months time and/or sell our home in the meantime.

Sat here in tears because I'm 20 weeks pregnant and thought we would afford another baby, we had carefully planned by securing it early and now this baby won't even have a home.

Doesn't help that work today said no planned promotions will now be happening this year and instead we are facing some redundancies.

OP posts:
Privatelyliving · 12/09/2023 20:11

So this was for a house move? I'd take it as an omen and stay where you are for now. Either house prices or rates will come down. They'll have to, otherwise all buyers will be in your position.

ChatBFP · 12/09/2023 20:12

I imagine it is because you can't hold a rate for longer than 6 months without paying a fee? But they should have explained and let you pay to secure it a couple of months ago.

That's really shit, sorry OP

Original poster
Kalodi · 12/09/2023 20:13

Feel like a mug not securing a fixed rate for longer but followed our mortgage advisors advice at the time !

I okay so I've calmed down and I think my options are;

A) Manage this increase come October and hope that by time this baby needs to go nursery we have somehow sorted our finances out to manage the £350 shortfall we are now facing compared to what we thought we would be on

B) Take a IO on current mortgage and reassess in 6 months time - this could be selling or fixing up a different deal

OP posts:
AlexaCanYouHearMe · 12/09/2023 20:13

How have you 'somehow lost your fixed rate?' You only took the deal on 8 months ago yeah?

Aren't most fixed rates 3 to 5 years?

Anyway, I am really sorry Flowers What a massive increase!

Baffled1989 · 12/09/2023 20:13

You cannot secure a new deal with more than 6 months on your current, I don’t know why your advisor told you otherwise!

dramallamadingdongdo · 12/09/2023 20:14

What deposit do you have if you are borrowing £280k

ChatBFP · 12/09/2023 20:15

By the way, we have just gone for a tracker with HSBC for 0.14 above base. Our deal runs out in December. Our assumption is that rates will be stable and not increasing by then, but we have no break fee and can always switch out of a variable rate and fix if we get a good deal or rates keep climbing. Just one of those things - we planned to fix last autumn and pay a break fee as rates were climbing, but then Liz truss's budget made the rates jump a lot quicker than we had anticipated.

Certainlyreally · 12/09/2023 20:16

We are borrowing £280k which gets us a very modest 3 bed (although 3rd room is a box) 1960s house, that needs badly renovating, about an hour away from where our family is located (can't move any closer to them as then it gets far too pricey).

thats not so much really when you look at some house prices! Its not like you are being extravegant is what I mean - you're NOT overstretching for millions, its so annoying

(edit as missed out the NOT)

ChatBFP · 12/09/2023 20:17

(Our 0.14 above base is therefore 5.39% currently)

Heatherbell1978 · 12/09/2023 20:18

You can't fix in a new rate more than 6 months ahead of your existing mortgage ending. If you had a deal fixed then you should have signed an Offer Letter with NatWest clearly laying out the terms of the deal. I secured a 4% rate in May for deal coming to an end soon and the Offer Letter clearly says I have to draw down the mortgage by a certain date. So if you hadn't signed an Offer Letter then the deal never existed I'm afraid.

ChatBFP · 12/09/2023 20:18

It looks as if you'll get subsidised nursery for this baby from 9 months, OP, if that helps?

Original poster
Kalodi · 12/09/2023 20:18

It's like you're talking a different language if i am honest @ChatBFP Which is why I always use a financial advisor. I know my weak points... clearly so do they!

I feel like I've been so bloody stupid in this. Thought I was being sensible jumping on it early.

OP posts:
Original poster
Kalodi · 12/09/2023 20:19

Not enough unfortunately as our local nurseries only use it as a top up and so the 15 hours only actually ends up equating to half a day free a week @ChatBFP (Although definitely better than nothing!)

OP posts:
MadinMarch · 12/09/2023 20:54

I'd approach some other mortgage brokers and see if they can get a better deal. A broker that is truly independent and can search the whole market for best offers.

I've remortgaged lots of times in the past as I always stay on a fixed rate BTL mortgages but the principle is the same). The best deals aren't usually with the headline name big banks, although sometimes it's been with them but under another name.

Feel for you though, and hope you manage to work something out.
I wouldn't sell your existing house if I were in your shoes, if you can possibly avoid it.

Sugargliderwombat · 12/09/2023 20:56

I got the best deal direct with a bank! Everyone always says to use brokers but my broker couldn't beat the deal I found with ybs, have a look at other banks OP. Or look at going direct !

Sugargliderwombat · 12/09/2023 20:57

Forgot to add, the deals I found with YBS weren't actually available to brokers, it wasn't that he couldn't find it I was just better off NOT going with one.

Lewiscapaldiscat · 12/09/2023 21:08

We went direct and got a deal that isn’t available to mortgage brokers.
my SIL is a broker and gave me incorrect advice! So don’t blame yourself!

We could only lock in 6 months in advance and had to pay the product fee. Some let you put it on the mortgage - some don’t.

take a mortgage holiday is an option - it does increase the monthly’s a small amount but might let you save enough to manage the huge extra.

interest only, extend the term, check out the deals.

Lewiscapaldiscat · 12/09/2023 21:08

Also it is a terrible situation- sorry for your stress

Mulhollandmagoo · 12/09/2023 21:20

If I were in your position right now, I would go IO for maybe 1-2 years? This will give you some breathing room whilst on maternity leave, and will give the market some time to settle out. Whilst on IO though, I would take advantage of the lower payments and be stashing as much money away as possible, then when you come to renew your rate next time, you could have a lump sum to pay off your house and hopefully the interest rates will be lower 🤞

It's so shit OP, my heart breaks for people who are being stung by these rates. Please try not an get yourself too worked up, as that's not good for anyone, especially not a pregnant woman 💐 once the initial shock calms down and you can think clearly, go through all of your options and work out the best one.

Pumpkindoodles · 12/09/2023 21:28

I’m also 30, also with Halifax. Was also paying £800 a month, was also on 1.6% rate
and now I’m going to be paying 1200.
it’s a big jump but it’s not one that’s gonna force us to sell the house.
There were cheaper options too.

I’m confused as to why 6.8% is the best you can get. I know this is stressful but I genuinely think this is a worst case scenario and you can find a better deal.
go back to your broker, look online yourself, and consider switching to a different lender if you need to. Good luck!

MammaTo · 12/09/2023 21:28

Could you raise a complaint and have it looked into why the rate isn’t available? I’d push and push for an answer.

Jmaho · 12/09/2023 21:33

Who is the 6.8% rate with is it your current lender?
You can absolutely get a lower rate than this
How much do you owe on the mortgage and what's the current value?

Querypost · 12/09/2023 21:42

Kalodi · 12/09/2023 20:18

It's like you're talking a different language if i am honest @ChatBFP Which is why I always use a financial advisor. I know my weak points... clearly so do they!

I feel like I've been so bloody stupid in this. Thought I was being sensible jumping on it early.

They were saying their variable rate is what we the bank of England interest rate is plus 0.14%. So whenever the base rate moves, they pay 0.14% more than whatever it is at the time. I'm not sure how often variable rate mortgages get adjusted. They are also saying that currently the bank of England base rate plus the 0.14%, gives them their current rate of 5.39% (as interest rates will hopefully now stabilise and start to decrease back to c. 3%, it may be better to go on a variable rate that tracks the bank of England rate, rather than signing up to a near 7% fixed rate).

Morechocmorechoc · 12/09/2023 22:00

OK, so you need to start stepping up. Forget the financial advisor. You pay for that. You dont need that.

Use a comparison website. Put details In. Save quote. Call cheapest one. A 10 second google says coop offering 5.84 fix.

It's not complicated at all. The financial advisor will make it seem that way as he wants your money. Clearly you have none spare to give, so don't

UndercoverCop · 12/09/2023 22:22

We've just secured a tracker for a similar amount 5.4% it might go up a little bit then it will come back down, it's not going to go up to what you're being offered on a fixed. Call London and country first thing

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