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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:
Hawkins003 · 25/04/2023 19:32

sallynew · 25/04/2023 16:38

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

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It's a mix at times

Scottishskifun · 25/04/2023 19:37

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

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Come on OP over £1100 isn't having a bit of money left over for luxuries.....that's a break at St Andrews each month!

Yes it's not a race to the bottom but I mean are you having Michelin dining each month if you think that amount is a bit?!

The cost increases are rubbish but you can clearly afford them so thank your lucky stars to have fallen on your feet!

OnlyFoolsnMothers · 25/04/2023 19:40

Scottishskifun · 25/04/2023 19:37

Come on OP over £1100 isn't having a bit of money left over for luxuries.....that's a break at St Andrews each month!

Yes it's not a race to the bottom but I mean are you having Michelin dining each month if you think that amount is a bit?!

The cost increases are rubbish but you can clearly afford them so thank your lucky stars to have fallen on your feet!

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Seriously it’s not a holiday each month, it’s all the miscellaneous crap that pops up each month, like school shoes, or god forbid a cinema trip out with the family - the OP is not living large- nor will she starve - but at that level £400 is a lot

updin · 25/04/2023 19:46

Why is everyone so surprised by this, we are 6+ months in since Truss, I stressed tested our finances to 6% when we got our first mortgage in 2017. I relaxed for a few years when I realised that was OTT, but as soon as the shit hit the fan last year I started testing the predicted rates against our finances despite our mortgage being fixed for another 3 years, it shouldn't be a surprise at this stage! But yes it's royally shit, but we should have all known it was a possibility.

Twattergy · 25/04/2023 19:46

"It's not privileged to have a bit of money left for luxuries"
🤔

Swansandcustard · 25/04/2023 19:49

What’s hideous is the fact that the BoE keep increasing the rates, despite the fact that it is the energy issues causing the inflation, not reckless spending.

Bearpawk · 25/04/2023 19:52

Op what % Inflation did your mortgage broker stress test your income to?
When I took out my 2% fix (a few years ago) they stress tested up to 6% at lease

Bearpawk · 25/04/2023 19:52

*at least

coolnice · 25/04/2023 19:59

OnlyFoolsnMothers · 25/04/2023 16:12

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!

But instead we've got the house prices of 2023

AND high mortgage rates

I love how some people are saying it is not unfair ...it bloody IS unfair it's a fucking joke. Like people aren't already struggling with the rip off cost of absolutely everything else

And it's not a race to the bottom

Mummy2mybear · 25/04/2023 20:03

I do sympathise with you op its easy for people to judge, that extra money is a big loss and no doubt it is a nightmare for so many. I'm sure you have shopped around but could you extend the term ? Maybe put in a lump sum at the end of your deal if you are in a position to do so to bring you in a higher ltv bracket? Could you get a lodger depending on circumstances to help. You seem to be left with a decent amount but without knowing your situation and circumstances its easy to for people to judge not everybody has the same financial commitments.

shivawn · 25/04/2023 20:06

Well I think the replies you're getting here are quite unfair (I only read the first page). Of course it's sickening to have your mortgage jump up by so much. £450 a month is a lot of money.

LucifersLight · 25/04/2023 20:11

Apparently £450 is not a lot of money though because OP says £1150 for luxuries isn’t a lot. Hypocritical. She can’t have it both ways. If £450 is a lot then £1,150 is a fortune - but not enough apparently.

It’s normal for the mortgage to be 50% of joint take home income. At least it was in the 80s.

People gonna cry if they can’t get their nails done or pay for the car they thought they could afford. Cry me a river.

Jeannie88 · 25/04/2023 20:14

Our mortgage was on a fixed low rate for a long time, now payments have more have doubled. I feel so sorry for the young ones who have to start at this rate, we have been lucky all this time, now reality has hit. Same for us all, COL is affecting everyone with everything. X

Dibbydoos · 25/04/2023 20:20

Extend your mortgage term this will reduce your monthly payment. You can overpay up to 10% on most mortgages once you can afford this to bring the term down again.

Also, the gen advice out tgere is to only take a 2 year fix - I know it'll be more expensive than a 5yr fix, but all commentators are saying that rates should come down in next 18m.

Mum2jenny · 25/04/2023 20:22

Average interest rates for mortgages over the last few decades were typically around 6%.
I think we may have some further increases on the horizon.
OP your mortgage broker should have advised you of this and stress tested your income accordingly

verdantverdure · 25/04/2023 20:23

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

Solidarity OP.

Same here only with bugger numbers.

And because if it the rental market prices are hitting up too.

It's a shitshow and the Tories did it to us.

Don't vote Conservative.

shutthewindownow · 25/04/2023 20:29

You can switch to interest only if you really can't survive on over a grand a month !!!!!!!!! Poor thing

CornishGem1975 · 25/04/2023 20:30

You can stress test all you like but 5 years ago that didn't take into account at how much everything else was going to have risen and how little wages were going to go up.

My fixed rate ends this year and we're going to be lucky to have a few hundred quid left over. And by 'left over' I mean to pay for unforeseen stuff like new school shoes or a school trip, and other things like birthdays, or a broken boiler, or a flat tyre.

Aslanplustwo · 25/04/2023 20:33

JingleBellez · 25/04/2023 16:05

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

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Seriously???? Interest rates have been low for a ridiculously long time, and so many got sucked into believing they would never rise, and anyone who cautioned that they undoubtedly would was treated like an old fool who didn't know what they were talking about. The world, and its economics, are constantly changing, and anyone with their wits about them would factor this into any financial transactions. It's happening everywhere btw, not just the UK!

Aslanplustwo · 25/04/2023 20:42

Youheshetheysaid · 25/04/2023 16:21

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

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Well, those people with vastly different outgoings will have to economise, just like everyone else. Whining on MN, where, if you bothered to read a few threads, many are struggling to put food on the table, is never going to go down well.

Coolstylishwannabe · 25/04/2023 20:43

Stress testing isn't always possible. My mortgage is lower than my rent would be for equivalent house. So it was take a risk/overstretch....or pay someone else's mortgage off/rent.

I am fixed at a good rate and I'm looking for a way to increase my earnings before I have to renew because I would currently struggle to pay more.

Bapbap · 25/04/2023 20:45

Ours has gone from 315 to 840 a month. It's become a real struggle.

Tiredalwaystired · 25/04/2023 20:50

Bapbap · 25/04/2023 20:45

Ours has gone from 315 to 840 a month. It's become a real struggle.

Wow! What interest rate did you fix on? There surely must have been a better deal than that?

Coolstylishwannabe · 25/04/2023 20:54

If my disposable income was close to the take home national minimum wage I think I'd probably just keep my grumbles to myself, online or in real life. It's not "a race to the bottom" to be sensitive to living in a time when many are struggling to eat, cloth their kids, keep their home etc. I hate the it's not a race to the bottom comeback in this context. Because it's by not getting about those at the bottom that we have the government we have.

Fallin · 25/04/2023 20:59

Peoples standards are on the floor 1k a month disposable is fuck all in today's world.

Fortunately you will weather the storm OP, but your right it is shit.

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