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Original poster

Mortgage rate rise - what a nightmare

150 replies

sallynew · 25/04/2023 15:28

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

OP posts:
namechange3394 · 25/04/2023 16:33

Vivalaive · 25/04/2023 16:27

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

Show quote history

Childcare is a bill!

Youheshetheysaid · 25/04/2023 16:34

I save £450 a month for annual holidays

£500 a month pension

and that’s just for starters. I have two children and they are my most expensive commodity!!!

JingleBellez · 25/04/2023 16:36

Children are very expensive... but so worth it.

IhearyouClemFandango · 25/04/2023 16:36

Yes, but you could not save 450 for holidays if needs be and still be able to put food on the table.

Original poster
sallynew · 25/04/2023 16:38

arethereanyleftatall · 25/04/2023 15:47

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?

Yes but I am fuming because its not just the mortgage. It's the food bill, the energy bill, everything is just totally out of control

OP posts:
JingleBellez · 25/04/2023 16:38

OP which supermarket

JingleBellez · 25/04/2023 16:40

there's always a way

WowIlikereallyhateyou · 25/04/2023 16:42

Chewbecca · 25/04/2023 16:29

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.

This ^^

Original poster
sallynew · 25/04/2023 16:45

HecticHedgehog · 25/04/2023 16:20

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.

I disagree that it's a privileged position to be in. We have worked hard and played by the rules. It's not privileged to have a bit of money left for luxuries. Why is it always a race to the bottom

OP posts:
Youheshetheysaid · 25/04/2023 16:54

IhearyouClemFandango · 25/04/2023 16:36

Yes, but you could not save 450 for holidays if needs be and still be able to put food on the table.

Yes of course

but it depends how you view these things. I do see holidays as important

and I don’t think anyone could argue that pension isn’t important m
so that’s best part of grand on two things.

now factor in clothing, hobbies, school expenditure, days outs, presents… I could go on and on

Temporaryname158 · 25/04/2023 16:54

If you can’t see that £1100 spare after all bills including the increase in your mortgage you need to learn a little gratitude.

I work hard and played by the rules too but don’t have that. You don’t work any harder than I do.

perhaps use some of the £1100 to overpay your mortgage to deuce the rate/term

GoFasterKnickers · 25/04/2023 16:55

OP - it's really annoying, I get it. But if you are left with £1150 after expenses, it's just one of those things you have to accept. You have a home, so many people don't. You are incredibly lucky - even if that 'luck' was of your own making. No one WANTS to spend more on their mortgage, but if you have to, that's just the way it is. It's not 'unfair' it's just more fun to go on a holiday than spend money on a mortgage.

Please remember many people also 'work hard and play by the rules' and have far, far less than you.

SarahAndQuack · 25/04/2023 16:58

sallynew · 25/04/2023 16:45

I disagree that it's a privileged position to be in. We have worked hard and played by the rules. It's not privileged to have a bit of money left for luxuries. Why is it always a race to the bottom

Show quote history

But you're trying to have it both ways.

When the system suits you, it's not 'privilege,' it's 'we played by the rules'.

When it doesn't suit you, it's 'unfair' and you're 'fuming'.

It makes it sound as if you think you weren't at all lucky to earn so well (of course you were), and as if the world owes you lower mortgage rates/lower bills (of course it doesn't).

Totally fine to be scared or angry that the cost of living is going up; I think virtually everyone feels like that. But you're describing it as if you think it's somehow personally unfair on you, and that isn't the case.

Lcb123 · 25/04/2023 16:58

Sorry but you can't be surprised about this. It's been the case since September. You still have a very amount of disposable income. Rates are returning to historic average, and benefit savers/investors. Extend the term to lower the payments, if you can.

mamnotmum · 25/04/2023 17:01

It's awful. Same here. And everything (except wages!) have gone up. From food shopping to the dog walker and everything in between.

You have the same house and have to pay so much more for it. It is so stressful.

TheyWentToSeaInASieve · 25/04/2023 17:15

Don't fix for too long, they are expected to come down again in a year or two's time. They are already falling. You should be able to get close to 4% if you have enough equity. But if you are still at the beginning of the whole property ownership malarkey and haven't paid off much yet, it will be tough. Maybe offset if you have some savings?

Tiredalwaystired · 25/04/2023 17:31

Extend your mortgage term and it will keep the monthly payments down.

sorry, OP, but you’re not a special case, everyone with a mortgage is going to be similarly hit sooner or later and we will all cut our cloth accordingly. No point in fuming. Some will sell up, some will rent out a room, some will extend the term, some will absorb it from their existing salaries. It is what it is.

Rayn22 · 25/04/2023 17:34

Like others have said fuming is abit strong. You were happy when low interest rates were about. You knew interest rates may rise. Its not just you OP. The cost of living impacts everyone alongside though who chose to get a mortgage. Mine had jumped enormously but I have to accept that. I knew when I took on the mortgage that interest rates would not remain low forever. I have far less disposable income than you as well. Yes it's frustrating. Yea it's shit but it be is no surprise.

2ManyPjs · 25/04/2023 17:57

Not sure if it's been mentioned yet, but I would be going on a standard variable at the moment as it's quite likely rates will come down, and then look to fixing again. Or go for the shortest term fix you can find.

Babyroobs · 25/04/2023 17:58

OnlyFoolsnMothers · 25/04/2023 15:48

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

Show quote history

Yes exactly. We paid above 5% interest for almost all over our mortgage term but bought in 2002 for 99k. never paid more than about £600 a month unless we were overpaying it. Since then house prices have been allowed to spiral out of control due to low interest rates and wages have not increased much. I feel so sorry for people trapped in this nightmare and for the young people today who will struggle so much to buy.

Porkandbeans1 · 25/04/2023 18:09

Well it shouldn't come as a surprise. The ridiculously low base rates since 2008 have not been "normal".

I don't know who, or what you're mad at?

CantFindTheBeat · 25/04/2023 18:27

@sallynew

It IS fortunate to have money for luxuries and savings etc.

You may work hard, but so do lots of other people and they don't all have adequate income, for a number of reasons.

Your increase in mortgage may be shit, but it's not unfair.

I have money to save and spend. I recognise how fortunate I am. So should you.

JingleBellez · 25/04/2023 18:30

My first 2 bed terraced home was 95k in 2002. I know I'm lucky. Sold it and moved up ladder twice.

JackGrealishsLegs · 25/04/2023 18:58

Why don’t you try to frame it as you’ve had discounted mortgage rates for several years (as they have been unusually low) and now they’re returning to normal? It’s out of your control so no point in fuming about it. You have 2 choices, pay it or sell your house and move 🤷🏻‍♀️

Calmdown14 · 25/04/2023 19:23

I think with interest rates being so artificially low people got hooked on the best deal and not long term affordability.

10 year ago 5 year fixed have been available a long time (not sure what you are coming off?) But were until covid times fractionally more expensive. I fixed for 10 years at 2.5% five years ago. I'd have got lower for 2 years but thought over 10 it would be a decent deal - plus I was coming off 3.5% (and when I took it out it was 5.75% on a tracker 16 years ago).

My brother paid the early exit fees of about 4k to secure a 10 year at 1.2% in September calculating that adding it to the mortgage would be cheaper in the long run.

These options were presumably open to you but you chose different risks. That wasn't necessarily wrong. You have benefited from a low rate at the beginning of your mortgage while the proportion of interest is largest is greatest.

You've saved over the other choices for several years but no one 'wins' in a changeable market all of the time