Mortgage hike misery 😔

[Bexbiscuit]

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?

Extend the term as far as possible if you have a 1 and 3 year old but earn well. We took out our mortgage over a term ending when DH was 67, but once we stopped having £1k a month* childcare fees I have put that against the mortgage and we are overpaying it very quickly.

(* that was for the whole of primary school, obviously it must be way higher for you with two at nursery).

@Helpfulperson123 you weren't giving perspective at all, it was an unhelpful and un necessary comment

A £700 hike is ridiculous and sorry this is happening OP. I don't have a mortgage but don't know how I ever would manage to get one with these kind of costs

Blasphemy. And I thought my post was the most controversial.

@Bexbiscuit Fellow four bed semi with s**t kitchen here. Ours is going up to £2,046 in Dec if rates don’t fall. How joyful…

i suppose we could but I really don’t want to

If you are on £100k joint and only paid £1,290 mortgage before you must have some savings. How about paying off a chunk?

FFS really!??

We’ve got 20k saved. We paid our other debts last year so savings were not really our main priority. Will need to see what difference paying off 20k will make

This.

Have you paid off student loans? I need to potentially up my take home estimate.

Child care costs are such a huge cut of wages. In 2 years time your youngest will be 3 and entitled to some free education hours and your eldest will be in school and you will feel the benefit of that. I know it doesn't help now but this is a shit time but there's better to come!

This makes sense

Many many people will be in this situation either now or over the next year or so.

Anyone out there who gets all high and mighty about it needs to have a word with themselves.

We will probably have to sell and downsize because we can't cover the £1k rise we expect. It's hard.

Can you look into slightly cheaper childcare? Child minder who can take both? How long til the 3yo gets some free hours?

You really need to consider changing your username.

We're on a tracker because we came to the end of our term and are selling so...pretty stuck. We're at an increase of £800 and rising. All I can advise is to just be really grateful that you earn enough to not be fucked. You'll get through it, chin up.

OP I'm with you. Since our mortgage went up plus all the bill increases etc, we can't make it through each month without using our credit cards. Just can't do it. No fat left to trim. In a year or so we'll have a loan paid off so will have that money back and it'll ease things. I just have to have hope

We’ve got 20k saved. We paid our other debts last year so savings were not really our main priority. Will need to see what difference paying off 20k will make

Take the £20k off the balance then work to try and rebuild your savings put by cutting out luxury spending. Whilst making the term longer cuts your monthlies, you are only kicking the problem further down the road.

when does your current rate end? lock on to a new rate (after shopping around) 6 months before the end of your rate and if the rates come down before it changes, the bank is obliged to give you the lower rate. That goes for anyone coming to the end of your mortgage rate.

I think this is your best bet OP. I wouldn't lock in too long either as inflation is finally coming down so that means after Xmas rates might fall. When I had 3 DC small I increased my term from 25 to 30 years. It made me miserable to do it but I didn't want to have literally nothing left to do things with DC ever. As they got older I remortgaged back to 23 years then after another 5 years to 15 years then paid that off in 12. You do what you have to do to get by but remember nothing is set in stone. You can be flexible to the markets and your own situation. Sorry it's tough for you ATM OP.

Extend the term and set up a regular overpayment within permitted limits.

Bring it up to the 2k you would pay but at least then in a month you have a big car bill or the boiler goes you can reduce it down slightly.

It's not ideal but it gives you a bit more flexibility rather than being tied to the highest payment with no slack.

You should be able to earn 1k a year in interest on your 20k savings if you'd prefer to keep a buffer. Use that to overpay the mortgage a little for any months you need to reduce your payment (assuming you extend term then overpay).

We are in a similar situation, OP. My plan is to elongate the term but overpay. That means you’re paying down capital by overpaying but your cash flow is protected so if you are desperate you have wiggle room to divert the amount you overpay to your coffers for a month.

Could you elongate the term so you’re obliged to pay less every month, but overpay so you pay the £2k anyway (unless you really couldn’t for a specific reason)?

You’re ridiculous. Look up empathy.

It's a joke isn't it !! Mine is probably almost doubling and I've got a 3 bed 3 storey pretty average newish build. It's nice but it isn't £1200 a month nice. This is what pisses me off, I don't believe my home is "worth" that but I am Gona have to pay it if I want to stay here.

A year or two ago (around here anyway) £1200-£2000 a month mortgage would get you a 5/6 bed lovely detached home

I am honestly so angry about it, they're just fucking us all up the arse left right and centre.

Yeah I get that. It's really hard at the moment to downsize as well as the cheaper houses are getting snapped up as far more demand.

Worth looking at if you really start to struggle bit hopefully 3 year old will get some funded hours soon which will help?

Honestly I would run some numbers in a calculator with the term

I get what you mean about not wanting to extend it but you can always make overpayments and reduce the term back when rates aren't so insane!
We found just adding 2 years on brought the payments for us down by £90 a month. OK not masses but it's worth running the numbers.