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

[Kalodi]

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.

Nah I just went into my Halifax mortgage account with the switching tool and best they have on there for us is 5.98% so mortgage payments will be at £1500 still.

Is it because we haven't much equity?

Lower than initial payments we had from broker but he has since found us approximately the same. Idk what I'm hoping for here 😅

You aren't listening to people at all. Read the advice you've been given if you want to save a lot of money. If you don't then use a broker!

Halifax offer rubbish rates for existing customers but I'm amazed that your broker can't beat that rate
How much is the mortgage for over how many years and what's the property value?
Will have a look for you if you provide this info

I wouldn’t bank on interest rates going down. Savers are now being offered fixed deals for 2 years plus at 5.5% which means banks do not foresee interest rates dropping.
You are either going to have to extend your mortgage term, pay interest only or look at maximizing your income. Maybe second jobs?
Are you living in an expensive area or have you gone for something that truth be told you can’t afford? I know that sounds harsh but it might be time to acknowledge the house is beyond your means and downsize if possible. This might save you from a lot of stress in the longterm.

I'd do io for 6 months, even up to your new baby getting nursery hours, then by then reassess

There are rates much lower than 6.8%! We’ve just got 5.27% for 5 years (15% deposit) with Halifax. Have a shop around.

@Kalodi took me 5 mins to look up rate on nationwide (5.09 fixed 10 yrs assuming house value of £350k) and moneysavingexpert (5.17% fixed 5 yrs yorkshire bldg society). You don't need a financial advisor. Remortgaging is very simple.

I think 4-5% is going to be new normal. So fixing for a long time might be best bet. I am hoping for 3-3.5% though😀

Yeah I've looked on various places and am following advice on here (we weren't overstretched when we bought this House but now are). What I am putting into these calculations aren't getting me same results are everyone else and I'm not willing to put any of my close details online regarding all our finances etc.

I am appreciating the help and have been looking into what people are saying.

I apologise for being slow, as previously said I am recovering from an op atm.

OP, I'm sorry you're having a hard time. I hope your pregnancy is easier from now. Could your DP take over some of this for you? Make some calls or do some research?

Halifax are doing much lower rates.

Why go with a broker?

I think the problem may be the OP either does not have much equity or has high outgoings so would be offered higher rate with any mortgage. Halifax are offering 5.15 at the moment but not sure how much equity is needed to get the deal.

And I think this is the thing too isn't it.... see on here one person saying Halifax are crap and another saying they're doing much lower rates.

Rates are also based on individual circumstances etc as well. Not the best rates will be available to all.

DH has taken over the search now, I just feel guilty for not getting it right first time so turned to here but will leave it to him now and come off here

Just apply with them and see what they say.

Go online it's easy to do.

@caringcarer we don't know OPs circumstances so best she shops around

Yes that's literally what I have been doing @spoonfuladay And that's why I said not all those best rates are available to all. We have practically no equity which doesn't help.

I recently fixed for 5 years which is due in march but have secured it not at 5.4%. We're currently on 4.6% so it doesn't feel like a massive jump but sometimes it's worth going directly to the source instead of a broker too x

Why was your initial rate so high?

Yes they will be.

Best rate I could get was with Halifax too Op :( so bad your mortgage broker let this happen! No advice but a hug

Halifax offer competitive rates for new customers but poor rates for existing customers doing a product switch, much like when you look for car insurance

OP, I’m not trying to kick you while you’re down, but looking at the Halifax rates it looks like you must need 90-95% mortgage, is that right? Even though you’ve been paying it off for at least 2 years, so your repayments should have paid off at least 5% of the loan itself plus you must have had at least 5% deposit initially.

Is that because you are remortgaging for a higher amount, or because the value of your house has gone down?

How close are you to 90%? Any savings? Can you beg or borrow from family, or can one of you get an evening job to get some extra cash together?

Do they?

It would seem so!

We have an offer for 5.27% fixed over 5 years (85% LTV), if we were remortgaging it looks like we’d only be offered 5.78%. Useful to know.