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

Have you thought about downsizing, if you don't feel you can live on what you're left with?

The rate didn’t trickle up, it jumped up. £400 is a big whack- and tbh I’d rather pay high interest and have the house prices of 16 years ago!

Why fix? Go with a tracker mortgage until rates fall and fix then.

But 5% is really not a high rate.

I agree we're all in a pretty awful storm. If you can't afford your mortgage in the US you just hand it back (the keys).

It isn't an awful rate. People have got used to exceptionally low rates.

But if you've overstretched yourself you may not have any wriggle room and I've every sympathy with that.

OP just listed all her outgoings.

" after mortgage, bills, food and fuel we are left with £1150."

^^ this

OP you must have known this was coming. It been on news for about a year. We've had twelve rate rises in a row. I would have thought as you must have known it's coming you would have put a bit of money aside each month to help you prepare. My dd has 2 years left out of a five year fix and she puts something back each month to help when her low rate of 2 percent runs out. Nationwide, currently has a 3.99 5 year fix. That's not too bad as some mortgages are now over 5 percent. You will manage because you have enough money left after bills to pay more. It will just mean cutting back on treat spending. Some are in much worse situations as they don't have income left after the bills to pay increase.

Side hustle?

Life isn't fair though is it. we've been fortunate enough have such low interest rates previously and if you want a mortgage you have to accept and and take into account the fact rates can go up anytime and payments will increase. You can pay all your bills so I do know what you're fuming about. You can still pay your mortgage, bills, food and fuel. It's a privileged position to be in.

OP, everyone has a stressy moment in their mortgage life. This is yours. You'll cope. 🙂

Mine was when interest rates went up 5% in one day. I was on my own, I'd only had my flat three months. It had taken me years to save the deposit. I thought I'd lost everything. I survived too.

Just cut spending on everything you can think of, swap your gym for parkrun, cook at home from scratch and work weekends if all else fails. You will cope.

So you honestly can’t see that people have vastly different outgoings after the basics of bills fuel and mortgage??

OnlyFlans?

Why the Italics?

Can we not have another subforum we can move these threads into? "Read the room", maybe?

£1100 in disposable income every single month is a figure about which millions of people can only dream.

If you believe the posts on here everyone has the wealth of Croesus, is slightly up on the Rothschild's and bought their home for 1p in 2000...

I suspect fibbing...

If you have a child/ren in childcare that’s absolute peanuts.

Hopefully in future people will take into account potential future rate and cost rises when deciding how much to borrow, it’s always been advised but the rises seem to have come as a shock to so many.

Why the frothing italics? 🙄Yes, people's outgoings do vary, but I'd struggle to see how you'd blow through 1k+ in a month when all other bills are covered, unless it was for childcare. But then I'd have expected OP to list that as an outgoing, rather than coming out of disposable income.

Agreed. But OP hasn't mentioned childcare.

100 a day childcare - that is unaffordable. In 2005, I paid £500 pcm 3 days FT, more recently £4.20 an hour...

lunch included and nappies.

Why the pissed off eye roll?

you’d struggle to see how wouldn’t cover extras above the basics, fair enough. OP and myself…. Would struggle