Mortgage rate rise - what a nightmare

[sallynew]

hi.

I am fuming. Our fixed term is about to end and the best we can get is a deal that will add £450 onto our current payment of £1100. Not quite sure how we are going to do this.

At the moment after mortgage, bill, food and fuel we are left with about £1600. This will now be £1150. It just feels so very unfair

Why “unfair”? Genuine question.

I know this won’t help but everyone has got used to really low interest rates. I remember when I bought a house 16 years ago 5% was low.
There is talk interest rates may drop later this year, so maybe get a deal that you are tied into and swap.
It doesn’t help with now but possibly will help later.

I do sympathise, but perhaps reconsider putting 'not sure how we will do this' and your disposable income of £1,150 per month next to each other next time.

No it's not unfair.

What does tracker look like for your figures? Then if (IF) Interest rates go down you can fix then?

What's the % your getting quoted on now?

5% is a normal interest rate

Also shop for offers with broker. Extending maturity, overpaying are some options to help to reduce the monthly payment

It’s been artificially low for so long. We bought our first house in 2005, with a mortgage rate of 4.99%. We moved 8 years later to a house worth twice as much but because interest rates had fallen so low, our mortgage payments remained the same as on the first mortgage. The correction has been a long time coming, but you must have known this was always a possibility. That’s why you never borrow up to whatever a lender will lend you.

It sounds as though you’ll have plenty to service your rise, so you will be fine in this instance.

You are fuming?!? That's quite a strange choice of word. Did you not know that your mortgage deal was ending or that interest rates have been rising for the last year or so?

Love to know how much that house was / costs now.

What does reverting to the SVR do and have you discussed it with a broker?

It might be better moving to the SVR short term to see if it drops (it is predicted to but unknown) or going onto a tracker.

Your disposable income left for the month is very high though so you will be fine.

You still have £1k+ left over after bills. That's more than a decent amount.

how on earth can you say this without knowing outgoings and responsibilities?

sure as heck wouldn’t be “decent amount” for me

Because of how the rise in mortgage's happened...

I completely agree OP, we are in the same position.
For those saying that interest rates used to be high, the cost of everything else was not as high. Everything has increased in price but wages do not reflect that.
Also, for those saying over £1000 is enough to live on, it is impossible to say without knowing more detail about the OPs outgoings.

Speak to Liz Truss

"If you can't say anything kind say nuffin at all..."

Worldwide inflation?

Er, OP says that's what she has left over after all bills including food and fuel. £1k+ for disposable income is a very decent amount to most people!

Hmmmm.

First post?

You'll get no sympathy on here. The universal credit cap outside of london is £1800 a month. There are a huge number of people in the UK that only bring in approximately what you have 'left' each month. And out of that they have to pay for everything you've already paid. You're in a very good financial position to most.

Genuinely? UK mortgage market contracts for fifth month after Liz Truss mini-budget | Mortgage lending figures | The Guardian

Now look at… the US

No answer but solidarity OP. Our mortgage went up hugely when we remortgaged recently and I’m fairly sure when we come to remortgage in 3.5 years we won’t be able to afford the repayments. Life’s tough at the moment.

Any way you can slap more down or extend the term?