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?

Exactly. People already get a lot of help with childcare and it's increasing shortly.

We have a similar household income and pretty sure will qualify for 30 free hours?

It’s cool. We know who you meant.

Seriously?!?

This. We are now returning to a more normal rate. 5%-6% BOE rate I imagine.

I don’t know if this will help to inspire anyone but in case you aren’t familiar with it, there is a mortgage free wannabe section on Money Saving Expert which might help

https://forums.moneysavingexpert.com/categories/mortgage-free-wannabe

I know it might seem like a huge undertaking but in my experience it was a worthwhile journey.

I’m sorry OP. It is really tough.

Based only on what you have said I can’t see any reason why you wouldn’t qualify for tax-free childcare and 30 hours for your 3yo. Why do you think you don’t qualify?

Exactly, as a FTB I’m just relieved I will never see such a hike…unless we go from 5% to 9% rates. Which of course, as i come off a fix, I’m sure we will.

I would not use savings to pay it down. If something worse happens, you will need that savings. I would just try to find other places to save money. Utilities and food are often things that can be reduced (although you sometimes have to pay extra at first, like paying someone to caulk the windows or paying for new insulation). Transportation can sometimes be a place to save. Entertainment, eating out, etc. Also, decluttering, if that is an issue, can save money as you are not buying things you already own but can't find in the clutter. Hopefully you have that savings in a high yield account at the least.

I'm not sure if offset mortgages are still available and if that would help in your situation. £20K would be a reasonable sum to offset against the interest. We had one and our mortgage was reducing every month

So hang on

One of you earns more than 100k pa?

So your "100k income" is net not gross?

In which case, you have a shit load of money, your mortgage is still only a quarter of your NET income, stop moaning

No advice really but we’re in the same miserable boat. Looking at reducing our pension contributions in the short term if necessary.

I’m shocked at how low a lot of Uk mortgages have been honestly. OPs new mortgage for a 4 bed semi is in line with rent we pay for a 3 bed semi in another part of the country. Yep rent so we don’t own it and we arent in an expensive part of the country. I don’t think most people realise how much rent is. A lot of people have had really low mortgage rates/payments whilst rent has gone up up up. So yes it is relevant.

Offsetting made a big difference to my daughter's mortgage. I'm not sure if she's still doing it/it's available, as she's had to remortgage in the last couple of months.

It's difficult. But these low interest rates have fuelled the rise in house prices over the last few years. You could look at extending the term but that's not really ideal as nobody wants to do that.

But the only way rates were going to go was up! I genuinely don’t get all the drama......the rates were never going to stay that low. I don’t understand how people didn’t appreciate it wasn’t going to stay that way forever.

And yes, mine also went up....but I never lived to my means and was able to whack a huge amount off......

Grabs popcorn.

I'm going to say it - people who stretched themselves on a 2% interest rate or less were in many cases naive.

Fair enough to those who had to do it to get on the housing ladder, but in OP's case you don't need a 4 bed house for 2 adults and 2 kids and loads of people also spread their babies out in order to avoid two in nursery. I do empathise, but it was always unlikely the low rates would stay forever.

We are in a 2.5 bed terrace, we could have borrowed more but didn't for exactly the reason that we knew this could happen, and we knew nursery would cost a lot.

Struggling on over 100k

Mn at its finest

You earn 100k and are crying about having to part with 12 lots of £700 ….
I would assume that earning 100k you must have a bit hanging around.
I would also assume that many people on 25k would be crying more at their mortgage hike

Well despite your username, that really isn't helpful. Downright nasty.

Even if you don't qualify for the 30 free hours, your 3 year old will be in school in just over a year so the burden of two lots of childcare and 2k mortgage will just be one year. So at least you have the 20k if things get tough. Then things will get better

Why? Why were lower % rates a "joke"

Because they were designed to save the economies ass after the financial collapse circa 2008. They were never supposed to exist in the long term. But sadly as a country we fell into an economy based on debt rather than productivity.

Now we have a nation of debt junkies 15 years down the line who do not know any better.

Although how the fuck making people 100s of £s a month skinter is in anyway "helping the economy" is beyond me

The irony being you were "100s of £s" better off for the last however many years but probably pissed it up the wall.