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?

Yes, I’m 150 years old 😂

I’ve had my mortgage for just coming up to 2 years so have had no years of less than 2%. I wish I had.

It's a joke isn't it !!

Well not really. Rates of 1% were the joke.

In a similar boat. I’ve had to give up working due to ill health and about £1700 a month down now.

We’ve switched to interest only for the time being and accepted that we’ll never pay off this mortgage in full and will downsize nearer retirement with the equity we have at the time.

Have you taken into consideration that utility bills will drop this year and the changes to ‘free’ childcare start to change in April - don’t know if this will reduce your childcare costs at all?

?

It’s really tough. I’m selling up and downsizing, and trying to get a fixed rate when I do.

We're in a similar position - mortgage went up £700 a month in April, on a tracker and still rising - it's awful. We are downsizing, in the process of buying a smaller house to cut the mortgage by 200k. Once the kids are a bit bigger and childcare bills less (and hopefully mortgage rates might settle a bit) we'll extend the house (and the mortgage again!). Not ideal at all but it's an option to have smaller bills in the painful childcare years

Do you get 30 hrs free for the 3 year old? Or do you earn too much combined to qualify? Could one of you cut a day /half a day work to reduce your salary? Meaning you would qualify for 30hrs free? Meaning you could nearly cut your childcare bill in half.

That would be solicitors fees , estate agent , getting the house sale worthy and any work in the new house .
Plus the stress !

I'd fight like hell to stay put .

Are you able to pay interest only for about 3 years to give you some breathing space, and save up as best as you can so you can throw a chunk of those savings at the mortgage when those years are up?

We don’t get the 30 hours abs it’s unlikely that either of us could go part time

My mortgage is until I’m 68. I’ve extended many times. It’s cheaper than renting and I have to live somewhere. I got a mortgage in 1989 and I’m still paying a mortgage in 2023. Just extend the term and don’t over think.

I mean yeah. Last resort option. But it's an option.

I just double checked and it seems that as long as one person doesn't earn over £100k you can get 30 hrs free. How come you dont get it?

I wouldn't use the £20k to pay off part of the mortgage. You will only save 1k a year so it won't make much of a dent in the extra you are paying. I would use it as part rainy day fund and part to subsidise child care costs over the next year until you have one dc in school, then child care costs will start to drop.

See, here’s your problem OP. You think it’s crazy that a person will be paying off student loans at 43. For most people that went to uni who are under 35, this is the reality.

They also will never see rates <2% for the length of their mortgage, maybe the end? But that’s far worse than having low at the start, like you did.

Go on, give us the full picture. What’s your mortgage, what’s the value of your 4 bed?

Not at all the same, but my energy fixed rate is due to expire in a month and my new estimate charges on the new rate is double. Fucking Tories.

I just wish the government would subsidise childcare for parents who are both working or single parents. My DC are all grown up now but to me it would make sense.

Why? Why were lower % rates a "joke" ?

My rate is 2.1 and ends in a few months so we're chucking every spare penny at overpaying in the hope that we won't get completely fucked at renewal.
if they went up by 1 or 2% then not great but fair enough I guess if its apparently "for the good of the economy" 😴 Although how the fuck making people 100s of £s a month skinter is in anyway "helping the economy" is beyond me

but for so many peoples mortgages to be going up by absolutely 100s and 100s a month now that IS a joke imo esp with the cost of absolutely everything else 😡

I know I am not the only one to feel like this

https://www.landc.co.uk/

Try and see if you can get another deal from London and Country. I've always found them very competitive as they scan the whole market for deals.

Yeah it sucks but I guess it's relative. I have to remortgage as my deal ends in a few months. Likely go up £300 for me and my household income is less than half yours. I'm a lone parent. No other income.

You probably have more options than many (though it's hard on loads of people).

This is spectacularly unhelpful, unkind & frankly ignorant.

It makes me so angry that there's a select few are bearing the full brunt of the BOE (shutting the stable door long after horse's bolted) attempt to curb inflation, and bearing it completely disproportionately.

It's helish for you OP, and I don't think it's hit enough people yet who're still in their fixed term, to cause enough of a political backlash.

Quoted wrong post, sorry!!

They do: through 15/30 hours "free" nursery hours, Tax Free Childcare which is worth a decent slug, and WTC childcare element, which is potentially enormous.

It's not subsidised as much as in some European countries, but there is quite a lot of money going in.

Maybe these hikes will cool the market (it appears to be doing so in some places), people will stop paying more and more and more for housing and the prices will stabilise or fall a bit. The constant rising in prices is untenable. People borrowing more and more to buy a home. Buy to letters seeing housing as investments and other people having no chance of owning a home of their own.

Lots of greed in the market and fuelling it and a reset is needed.

Longer term to pay the money back, tighten the belt and cut back in other areas, people have become used to lower rates of interest and assumed things wouldn't change. Some people just over stretch and don't bother with wiggle room at all. Some plan for changes in income or circumstances and some stick their head in the sand. Everyone makes different choices and then those choices come back.