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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:
Mumof3girlsandaboy · 01/02/2024 12:27

These mortgages figures are really depressing! We just fixed another 5years with NatWest and our monthly payment has increased by £230 more so from £870 to £1,100 a month which is not too bad compared to others.

milveycrohn · 01/02/2024 12:38

Last year my DS1 mortgage went up by 700 per month.
DS2 went up by 1k per month.
DS1 currently trying to sort out an extension, etc.
As people's fix rate ends, this is what is happening.

laclochette · 01/02/2024 12:44

@BloodyAdultDC I tend to agree.

OP, your husband seems more keen to hold onto his pride than to support his family. A £2500 mortgage if you were both bringing home decent and stable salaries would not be nearly as bad. Plus you could remortgage with a new lender, using his income as part of affordability calculations. His pride is costing you both a LOT of money. What an expensive ego he has!

(I say this as someone in a spookily similar situation, where I am the breadwinner with a partner who has a precarious freelance job, so we can only borrow against my earnings. And, if we had a child it would make much more sense for my partner to become full time dad, but he wouldn't consider it. That's a whole other story...but I'm only saying this to say that I am speaking from a similar position in terms of relationship dynamics, not from some sort of smug position where I have it all sorted.)

A job is first and foremost an economic endeavour, not a personal fulfilment mission, unless you're so wealthy you don't need the money. Maybe as this new reality bites, he will change his tune - you may not need to push him on it, the circumstances will do that job for you...

snowlaser · 01/02/2024 12:49

HolyGuacamole28 · 01/02/2024 07:29

I read somewhere that a third of the population rent, a third own their house outright (that seemed high to me) and a third have a mortgage but of those, not many have very high mortgages or long left on the term. It’s FTB who are fucked.

If you're surprised by 1/3 of people owning their home outright remember that almost everyone over 60 will own their own home outright if they have one.

Once you factor that in to the mix it makes more sense.

HolyGuacamole28 · 01/02/2024 12:50

Yeah it’s definitely a shit situation. He’s a proud man and it’s his life’s work. Thanks for all the good advice (along with the usual horrid MN comments :-)) we live in the south on the coast and it’s an expensive place to be. Our house isn’t even special or huge. We’ve just been hit by bad luck and timings.

OP posts:
Cornflakelover · 01/02/2024 12:57

My son is buying and his original rate was 4.9 and he got down to 4.2 with Halifax
he has got a big deposit so I’m not sure if that made a difference

RockahulaRocks · 01/02/2024 13:02

Our cheap rate runs out in October and will go up by £600 a month (£2,100 > £2,700) based on Barclays latest 2 year rate. On the other hand, our £1,800 nursery fees finish in August as DD is off to school this year so we’ll still be better off, just not quite as much as I’d hoped. Fingers crossed BoE might start reducing rates before we get to October and the mortgage rate will start to chip down by the time we get there but am not counting on it

winewinewine23 · 01/02/2024 13:04

@HolyGuacamole28 it's crap and as people's fixed rates come to an end we see this more and more, it just takes time to work through the system.

As a thought, would it be worth speaking to a broker (I've used L & C and would recommend) just to see what might be out there (without making an application). You could maybe use this information to help your DH to understand what his pride and self employment is costing in real financial terms. Just an idea.

It sounds like you're caught between a rock and a hard place. Hope you manage to get sorted without selling a kidney.

BloodyAdultDC · 01/02/2024 14:12

HolyGuacamole28 · 01/02/2024 12:50

Yeah it’s definitely a shit situation. He’s a proud man and it’s his life’s work. Thanks for all the good advice (along with the usual horrid MN comments :-)) we live in the south on the coast and it’s an expensive place to be. Our house isn’t even special or huge. We’ve just been hit by bad luck and timings.

It's not bad luck, or timings. Nothing has changed for you other than the interest rate has gone up, which should be expected during the lifetime of any mortgage, especially when the starting rate was so spectacularly low.

What you DO have is a really big jump in your household expenses and a dp whose pride is too delicate to even consider the possibility of actually supporting his family

You need a brutal conversation about budget, income and the stark reality of having to downsize to accommodate his hobby job.

BodyKeepingScore · 01/02/2024 14:18

HolyGuacamole28 · 01/02/2024 07:29

I read somewhere that a third of the population rent, a third own their house outright (that seemed high to me) and a third have a mortgage but of those, not many have very high mortgages or long left on the term. It’s FTB who are fucked.

I'd query the validity of those figures. It's certainly not only FTB who are affected.

HolyGuacamole28 · 01/02/2024 14:19

BloodyAdultDC · 01/02/2024 14:12

It's not bad luck, or timings. Nothing has changed for you other than the interest rate has gone up, which should be expected during the lifetime of any mortgage, especially when the starting rate was so spectacularly low.

What you DO have is a really big jump in your household expenses and a dp whose pride is too delicate to even consider the possibility of actually supporting his family

You need a brutal conversation about budget, income and the stark reality of having to downsize to accommodate his hobby job.

To be fair, no one expected the rates to increase as much as they have. I don’t have an issue paying more but I do object to £800pm as it’s massive jump and difference to make up. The timings are due to when the fixed rate ended. The DP situation won’t change anytime soon and I can’t work any more hours (full time city job)

OP posts:
Freakinfraser · 01/02/2024 14:26

HolyGuacamole28 · 01/02/2024 07:29

I read somewhere that a third of the population rent, a third own their house outright (that seemed high to me) and a third have a mortgage but of those, not many have very high mortgages or long left on the term. It’s FTB who are fucked.

That doesn’t pass the sniff test at all

seems the key issue here is your husbands earnings have declined, and you don’t want them to know this, so want to just continue under the radar and pay whatever,

personally I don’t think this is sensible. Your husbands refusal to get gainful employment to pay his share and his refusal to care for his own kid if he can’t, is a signficant problem. I don’t see that as a decent man at all, a decent man doesn’t burden his wife.

Freakinfraser · 01/02/2024 14:27

HolyGuacamole28 · 01/02/2024 12:50

Yeah it’s definitely a shit situation. He’s a proud man and it’s his life’s work. Thanks for all the good advice (along with the usual horrid MN comments :-)) we live in the south on the coast and it’s an expensive place to be. Our house isn’t even special or huge. We’ve just been hit by bad luck and timings.

Bad luck and timings? That indicates a total lack of responsibility for the situation, your husband definitely could make life easier. He is choosing to do what suits him.

HolyGuacamole28 · 01/02/2024 14:35

Ok - I’m starting to feel personally attacked. I didn’t start this thread to pile hate onto my husband. Nor to fuel a debate from those suffering price rises versus those who are fine re mortgages and blame those less fortunate for being stupid.

OP posts:
Butterdishy · 01/02/2024 14:38

Ours is also about to jump about £700, it's not going to be fun. But I don't understand why you have prepared for this, it's not like these rates have come over night.
I'm also not sure why you're getting such rates, ours is going to 5.83, but that's because of our circumstances (not directly related to finance). We could get 4.86% otherwise. You've also got a massive mortgage, you can downsize or move to a cheaper area or extend your term. Defeatism is pointless.

Cakeandcardio · 01/02/2024 14:43

Check out Santander.

Unwisebutnotillegal · 01/02/2024 15:32

Cakeandcardio · 01/02/2024 14:43

Check out Santander.

Why Santander are the only banks who have put their rates up after Christmas. The bastards.

kdmott · 01/02/2024 15:33

Santander put them down after Christmas?

Toooldtoworry · 01/02/2024 16:08

To be honest you need to speak to a whole of market broker to run affordability with all lenders (of which there are over 150) so you have the correct picture. They would then whittle it down to who would lend to you based on your individual circumstances but the reality is if your husband was earning more or employed I suspect your options may be greater than just doing a product transfer with your current lender.

shreknjumps · 01/02/2024 16:36

"To be fair, no one expected the rates to increase as much as they have."

2 years ago when you fixed in? I think it was pretty much on the cards!

"Nor to fuel a debate from those suffering price rises versus those who are fine re mortgages and blame those less fortunate for being stupid."

You pitted the rest of us vs FTB as if they're the only ones affected. It was only going to go one way after you started an "us and them" argument.

As for your husband, the fact is, he's got a responsibility to step up to his financial commitments. Sticking with a failing "business" because it's his pride and joy is foolish at best and neglectful of his family at worst.

laclochette · 01/02/2024 16:57

I think the OP is right to say that FTB are worst affected by rate rises, because they have the lowest loan to value ratios and therefore can't access the best (of a bad bunch) rates. That doesn't mean everyone isn't affected, and it isn't a competition. But on a pure data basis, anyone who bought recently and therefore still owes a lot will be hit hardest by rate rises.

It's also not fair to attack anyone for not knowing that rates were going to shoot up so dramatically. Nobody knew the disastrous Truss government was going to cause a crisis the way they did. I remember when rates started to rise and then that nightmare happened and I'm very clued up on that sort of thing - and it was a shock. I literally stepped out a meeting and called my broker to put an emergency action plan in place. I was fortunate that I remortgaged in May 2023, so with a 6-month valid offer, I was JUST able to secure a new deal before it went totally tits up. If I had had another year on my fix, that wouldn't have been possible; there would have been nothing I could do (unless I took on a hefty early exit fee) - that is absolutely due to timing, not lack of foresight or anything else.

Taking on a big mortgage is always a strain, yes, but the crappy thing is that if OP was renting, she'd be paying much more than £2500 a month, I'm sure, so the choice is between two crappy options - and at least she made the choice that has got her on the housing ladder.

So, all in all, I don't understand the lack of sympathy for all those factors, many beyond her control, or for her choices, which were between a bad and a worse option.

What I do understand is the sense of anger among other posters towards her husband, who seems unwilling to pull his weight and contribute to the family finances. However, that is a struggle that the OP has to handle and a burden she is carrying, so not sure being harsh towards here will help there either.

HolyGuacamole28 · 01/02/2024 17:10

laclochette · 01/02/2024 16:57

I think the OP is right to say that FTB are worst affected by rate rises, because they have the lowest loan to value ratios and therefore can't access the best (of a bad bunch) rates. That doesn't mean everyone isn't affected, and it isn't a competition. But on a pure data basis, anyone who bought recently and therefore still owes a lot will be hit hardest by rate rises.

It's also not fair to attack anyone for not knowing that rates were going to shoot up so dramatically. Nobody knew the disastrous Truss government was going to cause a crisis the way they did. I remember when rates started to rise and then that nightmare happened and I'm very clued up on that sort of thing - and it was a shock. I literally stepped out a meeting and called my broker to put an emergency action plan in place. I was fortunate that I remortgaged in May 2023, so with a 6-month valid offer, I was JUST able to secure a new deal before it went totally tits up. If I had had another year on my fix, that wouldn't have been possible; there would have been nothing I could do (unless I took on a hefty early exit fee) - that is absolutely due to timing, not lack of foresight or anything else.

Taking on a big mortgage is always a strain, yes, but the crappy thing is that if OP was renting, she'd be paying much more than £2500 a month, I'm sure, so the choice is between two crappy options - and at least she made the choice that has got her on the housing ladder.

So, all in all, I don't understand the lack of sympathy for all those factors, many beyond her control, or for her choices, which were between a bad and a worse option.

What I do understand is the sense of anger among other posters towards her husband, who seems unwilling to pull his weight and contribute to the family finances. However, that is a struggle that the OP has to handle and a burden she is carrying, so not sure being harsh towards here will help there either.

Edited

This made my day. Thank you.

OP posts:
justdontknowwhat2doo · 01/02/2024 18:36

As aside, I got a much better deal MUCH better when I used an independent mortgage broker than when I asked London&Country to re-mortgage for me, so not sure why there is so much love for them on this thread?

My broker just took a commission from the mortgage company (Natwest in my case) so it didn't cost me anything upfront either.

Toooldtoworry · 01/02/2024 19:17

justdontknowwhat2doo · 01/02/2024 18:36

As aside, I got a much better deal MUCH better when I used an independent mortgage broker than when I asked London&Country to re-mortgage for me, so not sure why there is so much love for them on this thread?

My broker just took a commission from the mortgage company (Natwest in my case) so it didn't cost me anything upfront either.

They do have their place for 'vanilla' cases but anything remotely quirky and they won't touch it.

TheHateIsNotGood · 02/02/2024 17:19

I do sympathise OP and with your self-employed DH, my business has taken a massive downturn since covid too, and long-term self-employed people aren't top of any potential employer's list and depending on other things such as age (in my case) it's a double-whammy. Hopefully, his industry trend will upturn.

Meanwhile, the mortgage. The huge rises in monthly payments are due to the greater interest paid on the debt, even noticeable on my small mortgage. If I was younger than 61 I'd lengthen my repayment term on a 3-5 year fix, same lender if poss on a no fee deal.