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Original poster

Mortgage hike misery 😔

435 replies

Bexbiscuit · 19/08/2023 21:29

Hello,

we met with our broker today to look at our options as our fixed rate is about to expire.

the cheapest we can get is 2k a month. 2 fucking K. I cried in the car on the way home.

this is an increase of about £710 per month. We will manage it but it’s going to change our lives significantly.

we both work on good jobs with a joint income of 100k but this increase, coupled with nursery fees, utility bills etc etc we are going to be very close to the wire

just how is this situation sustainable?

OP posts:
Thread gallery
5
CrashyTime · 21/08/2023 15:13

Youdontsay87 · 20/08/2023 16:16

Build more actual affordable housing not the £500k+ new builds they're been building would be a start. Just good solid basic low priced starter family homes so people can atleast get on the ladder. Then build more social housing not just a few allocated plots on an expensively priced estate.
The average small 3 bed family home near me is £400k minimum and we're nowhere near London. 1 bed flats around £200k most young professionals are priced out of life these days. I don't think many will afford a family and the wait list is 14 years for social housing that is now pricey in itself at over £900 a month for a 3 bed.

Show quote history

They won`t need to do that as the existing housing stock will fall in price as interest rates rise.

CrashyTime · 21/08/2023 15:17

PurpleButterflyWings · 20/08/2023 14:08

I do think it's rather uncalled for, and quite cruel to say 'ha ha ha! You shouldn't have got ideas above your station and thought you were better than you were, by going for a 4 or 5 bedroom detached house straight away.' I don't think there is anything really wrong with going for a bigger house to start with, as it can be a very good investment.

I mean me and DH didn't go for a 1 bed flat and then a 2 bed semi detached house, then a 3 bed detached house, then a 4 bed detached house. Like many people now, we went from a 3 bed semi to a 4 bed detached. BUT you do need to be sensible and not max yourself out!!! We didn't, and whilst we did struggle when mortgage rates went up some 2 decades ago, we didn't lose our house.

Also, the banks and building societies need to take some responsibility for lending people massive mortgages that they could only just afford to pay - and that they would struggle to afford if the interest rates went up. On the other hand, as a few posters have said, it probably wasn't a very good idea. to go and max yourself out, with interests rates being crushingly low. So yes of course, individuals have to take responsibility too. Still, it's unfair to say 'ha ha! Serves you right!' That's just not nice.

I'm very, very proud of both my adult children actually (both in long term relationships and due to get married soon,) as both of them have got their mortgage based on the wage of one of the couple only. So they've got lots and lots of wriggle room - as well as having fixed rates for another three or four years or so - both of them.

But yes, some people are certainly revelling in the misery of these mortgage rates going up, and people struggling. I know several people in social housing sitting pretty in their permanent tenancy home with their tasty £380 to £450 a month rent that's barely gone up at all - laughing at people whose mortgage has gone up from £650-£750 a month to £1100-£1300.

The reason they're laughing at them is because these very same people, are the ones who looked down their nose at people in 2 and 3 bed social housing houses, and 1 bed social housing flats, whilst they were sitting pretty in their five bed detached £450,000 house on a private estate. A few people in social housing have this 'not so smug now are ya?' attitude.

This has really levelled the playing field hasn't it? And it just goes to show. some people did borrow more than they should have., when they really didn't have the money to pay it back, if the interest rates went up. (And they WERE going to go up weren't they, as they were so LOW!)

But yeah, pretty unpleasant and rude to revel in peoples downfalls! There but by the Grace of God and all that!!!

Yes you are correct on all points, rising rates do level the playing field as you say, in fact they make the people in social housing much better off TBH, but people can`t really complain the reality of interest rates having to go up has been warned about for years.

pompomdaisy · 21/08/2023 16:16

I had a lodger in the early 90s to help pay for the 8% mortgage and thirty years on she's still a very good friend. Will probably do it again if we feel the pinch as we quite like it and have spare rooms.

CrashyTime · 21/08/2023 16:22

Bexbiscuit · 19/08/2023 21:29

Hello,

we met with our broker today to look at our options as our fixed rate is about to expire.

the cheapest we can get is 2k a month. 2 fucking K. I cried in the car on the way home.

this is an increase of about £710 per month. We will manage it but it’s going to change our lives significantly.

we both work on good jobs with a joint income of 100k but this increase, coupled with nursery fees, utility bills etc etc we are going to be very close to the wire

just how is this situation sustainable?

"just how is this situation sustainable?"

As people have been saying for a long time, it isnt sustainable, property prices have to come down, WAY down. As for your situation you are lucky in that you can afford to service your debt, many wont be able to and will lose their home.

pocketpairs · 21/08/2023 17:03

All this highlights is poor financial planning and risk management. Everyone (or at least your mortgage broker) should have anticipated that interest rates would increase at some point (given long term average is around 5%), especially given the huge amounts of stimulus enacted across the world during covid (basic supply / demand).

I know many people that paid off mortgages in recent years, or got 10 year deals at close to 2%. If you didn't, only yourself to blame I guess.

CrashyTime · 21/08/2023 17:27

I believe long term average is 7% for base rate? That seems easily reachable in this climate.

Ctu24agent · 21/08/2023 17:47

LittleMrsPretty · 19/08/2023 21:40

Its really shit, our income is lower than yours - 90K before tax but ours id also going up by £700 to 1.7K pcm.

its really shit but we have accepted that this is our home and we will make what ever cutbacks and sacrifices needed to keep our home. This is the point of interest rate increases and it wont be forever!!

Crikey that’s a HUGE jump. Ours was £1060, now £1285…. With Halifax. How come yours went so high? I don’t understand the difference between yours and mine being so vast.

cestlavielife · 21/08/2023 17:56

It depends on £££ owed.
Incrase of xx %points on 60k is different to an increase on 250k or 450k

tommyhoundmum · 21/08/2023 18:22

still paying a mortgage at 76. Try not to worry too much about extending, things could change later. Also assume you have considered taking in a lodger/tenant?

WeeSmurfy82 · 21/08/2023 19:25

I can absolutely empathise, mines is due to go up in March. I live in Scotland so salaries (and house prices of course) are much lower but I’m so so worried. We are on a combined £50K but don’t have the childcare costs to worry about however, all the increasing bills are really affecting us. We moved to a bigger house 2 years ago after I convinced myself for 20 years that we couldn’t afford it (childhood poverty trauma made me believe that) so doubled our outgoings which was fine but then the COLC hit & this increase is so worrying. To top it off we need to either hand back our car (on PCP) to get a smaller, more affordable one or absorb the balloon payment when re-fixing our mortgage

FlutteryButterfly · 21/08/2023 19:44

Ctu24agent · 21/08/2023 17:47

Crikey that’s a HUGE jump. Ours was £1060, now £1285…. With Halifax. How come yours went so high? I don’t understand the difference between yours and mine being so vast.

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Partly LTV and remaining term @Ctu24agent

TeenLifeMum · 21/08/2023 19:44

I don’t understand why you don’t qualify for 30 hours childcare the term after dc hits 3 line everyone else unless one of you has a net income of £100k. But you say it’s a joint income of £100k.

Dibblydoodahdah · 21/08/2023 19:57

TeenLifeMum · 21/08/2023 19:44

I don’t understand why you don’t qualify for 30 hours childcare the term after dc hits 3 line everyone else unless one of you has a net income of £100k. But you say it’s a joint income of £100k.

It’s not necessarily a question of not qualifying. Many nurseries and pre schools don’t accept the 30 free hours.

TeenLifeMum · 21/08/2023 19:59

@Dibblydoodahdah then in the op’s option would be to look for funded childcare.

Dibblydoodahdah · 21/08/2023 20:06

TeenLifeMum · 21/08/2023 19:59

@Dibblydoodahdah then in the op’s option would be to look for funded childcare.

But she might live in an area where childcare providers are only offering 15 hours. When it increased from 15 to 30 hours, many providers refused to accept the 30 hours.

TeenLifeMum · 21/08/2023 20:09

Then take the 15 hours - it still helps. It was 15 hours when my dc were little. Op seems to suggest she’s not entitled to any help with childcare which is why I posted.

Dibblydoodahdah · 21/08/2023 20:24

TeenLifeMum · 21/08/2023 20:09

Then take the 15 hours - it still helps. It was 15 hours when my dc were little. Op seems to suggest she’s not entitled to any help with childcare which is why I posted.

She never mentioned not getting 15 hours. All three and four year olds are entitled to 15 hours.

PetuniaT · 21/08/2023 20:26

Get over it! If you didn't stress test your mortgage when you took it out then you, like many others, were careless. Interest rates have been so low for so long and it's about time that those of us who paid much higher interest rates from much lower incomes, albeit on lower mortgage amounts on lower house prices, benefited from decent interest rates on our savings which have been non existent for the last 20 years of so.

Helpfulperson123 · 21/08/2023 20:30

PetuniaT · 21/08/2023 20:26

Get over it! If you didn't stress test your mortgage when you took it out then you, like many others, were careless. Interest rates have been so low for so long and it's about time that those of us who paid much higher interest rates from much lower incomes, albeit on lower mortgage amounts on lower house prices, benefited from decent interest rates on our savings which have been non existent for the last 20 years of so.

Do you still own your own home?

Are you planning on downsizing soon?

Are you close to pension age, or are a pensioner?

Do you have investments in the stock market?

(SPOILER ALERT: higher interest rates aren’t making you the kind of sweet profit you hope for).

Ctu24agent · 21/08/2023 20:31

FlutteryButterfly · 21/08/2023 19:44

Partly LTV and remaining term @Ctu24agent

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Thanks! I’d not even thought about that! Baby sleep deprivation is real 😂

PetuniaT · 21/08/2023 20:45

Helpfulperson123 · 21/08/2023 20:30

Do you still own your own home?

Are you planning on downsizing soon?

Are you close to pension age, or are a pensioner?

Do you have investments in the stock market?

(SPOILER ALERT: higher interest rates aren’t making you the kind of sweet profit you hope for).

Show quote history

Savings interest rates may be lower than borrowing rates but our savings are currently earning more than we are currently spending and thus are increasing - for the first time in years. The rest of your questions are irrelevant.

Michael343 · 21/08/2023 20:45

Same situation here. Extreme interest rise. Very similar circumstances to you. I'm sorry if this doesn't help, but just know you're not alone.

ssd · 21/08/2023 20:48

PetuniaT · 21/08/2023 20:26

Get over it! If you didn't stress test your mortgage when you took it out then you, like many others, were careless. Interest rates have been so low for so long and it's about time that those of us who paid much higher interest rates from much lower incomes, albeit on lower mortgage amounts on lower house prices, benefited from decent interest rates on our savings which have been non existent for the last 20 years of so.

"Albeit on lower mortgage amounts on lower house prices".....
You're not wrong petunia, your arse would be making buttons if you had to buy your house in todays money

Still you'll have your big savings pot keeping you warm

MummytoA · 21/08/2023 20:48

OP, have you heard of the Mortgage Charter?

https://www.gov.uk/government/publications/mortgage-charter/mortgage-charter

It has been introduced by the government.

It's not a long term fix, but may help.

Mortgage Charter

https://www.gov.uk/government/publications/mortgage-charter/mortgage-charter

Helpfulperson123 · 21/08/2023 20:50

@PetuniaT

Going to assume you are extremely wealthy if you are earning more in interest per month than you spend! What do you have like £500k in savings?!?