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Original poster

Mortgage payment increase…

150 replies

HolyGuacamole28 · 31/01/2024 21:20

Our 2 year fixed mortgage rate runs out soon. I knew we’d have to pay more but it’s going up £800 to £2.5k!!! I’m really shocked and scared. We have two kids in nursery and life is not cheap and both me and DH work already work full time. Want to cry. Anyone else facing the same?

OP posts:
kdmott · 31/01/2024 21:21

That's a lot what was the rate change? Ours is going from 530>720 which is 1.5>3.9

Combusting · 31/01/2024 21:22

Can you clearly lay out the numbers for this dramatic turn?

I’m struggling to see how this came to be.

Exasperatednow · 31/01/2024 21:23

I'm really sorry you're going through this. Our mortgage has gone up (thanks govt) but our kids are older (although uni isnt cheap). We're stuck with our mortgage. Could you look to change? Try not to panic. There could be options.

TheOneWithUnagi · 31/01/2024 21:24

Do you have any option to extend out the term to reduce monthly payments now? Not ideal but given that you have a particular pinch point with nursery fees now it may be ok as a short term fix

DoodleMum12 · 31/01/2024 21:27

You need to tell us what kind of mortgage it is. Interest only or repayment? Term remaining and also rate you are on now and what you’ve been offered. Any option to move lender?

Original poster
HolyGuacamole28 · 31/01/2024 21:33

Thanks all. That’s repayment, I’m not keen to do interest only. That’s a 5.69% rate with Barclays, our current provider. How are people getting 3%? Where?

OP posts:
SnowsFalling · 31/01/2024 21:40

What LTV are you at?
Barclay's appear to have several sub 5% mortgages for a remortgage for 85%
I think you need a look around. You should find something under 5%, I'd have thought.

Slytherfish · 31/01/2024 21:40

HolyGuacamole28 · 31/01/2024 21:33

Thanks all. That’s repayment, I’m not keen to do interest only. That’s a 5.69% rate with Barclays, our current provider. How are people getting 3%? Where?

The best rates (3.8-3.9%) are the five year fixes with a <60% loan to value. How much is left on your mortgage and what’s your house worth?

FuckinghellthatsUnbelievable · 31/01/2024 21:48

I ended up extending the term of my mortgage so it went from 19 back to 25 years but I kept the same mortgage payment.

cardboardnumerator · 31/01/2024 21:52

Depending on your ages look to extend the term, you can always shorten it later on when you are not paying nursery fees. After paying our mortgage for 9 years we reset it back to 25 to move to our forever home. But age was on our side so we could do this.

Definitely worth looking into, have you looked at what mortgages are out there on a comparison site like London and Country for your loan to value? Do you know your current house value? Look on Rightmove for sold house prices in your area for comparisons.

Sanch1 · 31/01/2024 22:00

Ours has gone from £1800 to £2800, 1.9% to 5.88%, bloody depressing.

TheOneWithUnagi · 31/01/2024 22:06

Use a mortgage broker, they are usually free for you to use and as a bonus they do all the paperwork too. They will find you the best rate and can advise on extending term if that's what you want to do

MistyMountainTop · 31/01/2024 22:11

Have you been shown just the SVR? If you go to your mortgage online when you're logged into the Barclays website you should have a whole raft of different rates for different lengths of time available to you

Toooldtoworry · 31/01/2024 22:18

HolyGuacamole28 · 31/01/2024 21:33

Thanks all. That’s repayment, I’m not keen to do interest only. That’s a 5.69% rate with Barclays, our current provider. How are people getting 3%? Where?

Have you spoken with a broker? I've seen complaints somewhere about current customers being offered higher rates than new customers on money saving expert.

L&C are fee free and good if you have no quirky circumstances.

BlackBean2023 · 31/01/2024 22:20

Definitely speak to a broker. Ours went from £765 to £1000 (£140k mortgage, low LTV) but if we'd stayed with our previous provider it would have been £90 a month more. Over £2k on a 2 year fix.

IDontHateRainbows · 01/02/2024 06:41

FuckinghellthatsUnbelievable · 31/01/2024 21:48

I ended up extending the term of my mortgage so it went from 19 back to 25 years but I kept the same mortgage payment.

That must feel like you paid the last 6 years for absolutely nothing.

laclochette · 01/02/2024 07:00

Been through this process myself (last year) and know how terrifying it is 💐

There may be better options for you. There were for me.

  • Is this a fix offered by your new provider or their SVR? If the latter, then they should be able to offer you a better deal by moving you to a new fix.
  • Either way, you will almost certainly be able to get a better rate by remortgaging with a different provider. Don't just accept what your current lender offers you - see what a broker could find you elsewhere, then decide what to do. I switched to a different lender, and saved hundreds a month vs if I'd stayed with my then-lender. But you need to speak to a broker right away. I can PM you the details of my incredible broker if you don't already have one you've used and like. He doesn't charge a fee as he works on lenders' commissions.
  • You could extend the term, depending on your age
  • What is your loan to value ratio? A good broker will be more help here, once you provide all your info, but if you are a few thousand pounds away from moving into a different and better LTV bracket, and if you have any savings, it could be worth throwing them at your mortgage now to allow you to access better rates at better LTVs. Again, this is what I had to do - overpaying my mortgage by £3k meant I could access the better rates that saved me hundreds a month (I did the maths and it worked out that I would save £12000 on my mortgage across a 5 year fix, so I was still up £9k Vs not overpaying).
cardboardnumerator · 01/02/2024 07:08

@HolyGuacamole28 Good advice on here.

Free mortgage broker - London and Country. We have used them and they are still one of the recommended mortgage brokers on Money Saving Expert. Their advice will not cost you a penny, even if you take a mortgage through them, no payment due to them. They like all other mortgage brokers get their payment from the mortgage company but this does not sway them when recommending the best product for you. Independent mortgage brokers get that payment and charge for their service.

Scottishshortbread11877 · 01/02/2024 07:09

My rate went from 1.89% to 4.24%. Thankfully my remaining mortgage is small, 62k, but it still stung.

chocolatesaltyballs22 · 01/02/2024 07:10

You know you can look for another better fixed rate rather than moving into the higher rate with your current provider?

Original poster
HolyGuacamole28 · 01/02/2024 07:14

Thanks everyone. I have a few issues. My H is self employed and makes very little. We don’t want to be assessed again. We have 90% LTV on a large amount. Sucks. I do have a broker and will continue to look around. The rate change is so devastating but not many people seem affected (judging by the news)

OP posts:
fonfusedm · 01/02/2024 07:17

it sucks for people who recently moved or FTBs who have higher LTV.

dreamersdown · 01/02/2024 07:20

HolyGuacamole28 · 01/02/2024 07:14

Thanks everyone. I have a few issues. My H is self employed and makes very little. We don’t want to be assessed again. We have 90% LTV on a large amount. Sucks. I do have a broker and will continue to look around. The rate change is so devastating but not many people seem affected (judging by the news)

Huge, huge numbers are affected, it’s been one of the major news stories of the past year?

You can often move onto a better rate with your current lender without being reassessed.

berksandbeyond · 01/02/2024 07:23

Of course a lot of people are affected, they have been since this all started last year. 5.69% seems astronomical as a rate but if you only put 10% down then that might explain why it’s so high. Ours went from 1.89% to 4.28% so that was an increase of £1200 to £1600, with the same provider. We decided not to extend the term so we have 20 years left!

Mamofteenager · 01/02/2024 07:23

If you don't want to go through an affordability assessment you can do what's called a product transfer with your current provider as long as you are not borrowing more. This used to be more expensive but are now much more competitive. Martin Lewis did a show about it last week if you can download and watch