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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:
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5
Soapyspuds · 19/08/2023 23:06

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.

With their magical money forest i suppose?

🙄

Dibblydoodahdah · 19/08/2023 23:07

ladyvivienne · 19/08/2023 22:47

You earn £100k a month between you and can't afford £2k a month on your mortgage? What luxuries are you spending your money on? Just cut those. I'm guessing holidays, hair, nails, gym memberships. There you go. Ours has gone up from £600 to £1k a month and we're on £50k income between us. Haven't moaned because you cut your cloth don't you?

It's not like you're not going to be able to eat is it?

Given that she’s got a 1 and a 3 year old I suspect it’s going on childcare rather than luxuries.

benfoldsfivefan · 19/08/2023 23:07

But your household take home amount is £5 - £ 5.5K per month - have I worked that out correctly? So how will you be ‘very close to the wire’ paying 2K mortgage a month even considering childcare and other bills?

Soapyspuds · 19/08/2023 23:07

We should be not be encouraging people to become single parents. But that is another can of worms

ifyougochasingrabbits · 19/08/2023 23:07

Soapyspuds · 19/08/2023 22:38

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.

Debt junkie 😆

I've not even got any debt apart form my mortgage and I've got a modest house .
Like an awful lot of people I'd imagine. I've lived in poverty in the past and private rented and council rented and really struggled though most of my adult life until the last few years. so I'm really careful .
I just wanted a secure and affordable home for my family while still being able to afford a life not some flash keeping up with the joneses pad .

4 years ago Our mortgage broker advised us that we could borrow £200k more than we did !! Thank fuck we didn't 🥺

Youdontsay87 · 19/08/2023 23:08

That's a big increase. Having said that I know people on half your salary that pay the same in rent as well as all the nursery fees etc. so it's doable with some cut backs.

Timetochangegonzo · 19/08/2023 23:09

Mines going up by £1000 and I’m a single parent. It’s ridiculous and unfair. Will probably lose the house

ifyougochasingrabbits · 19/08/2023 23:09

I reckon there's one or two bitter people on here posting that rent, can't buy and they are enjoying mortgage payers struggling

Like it's a race to the bottom

cestlavielife · 19/08/2023 23:10

You have a,4 bed house snd 20k in the bank
And a decent incime
So you will be ok
Even if you dip in those savings over nx years whike childcare costs are high

Take in a lodger?

Sureaseggs44 · 19/08/2023 23:10

NyanBinaryJohn · 19/08/2023 22:06

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?

Unfortunately when you take out a repayment mortgage you are mostly only paying interest in the initial few years anyway , the repayment part increases as the years go on .

ifyougochasingrabbits · 19/08/2023 23:10

Timetochangegonzo · 19/08/2023 23:09

Mines going up by £1000 and I’m a single parent. It’s ridiculous and unfair. Will probably lose the house

Shit I'm so sorry

This is my worst nightmare 💐 x

See it's causing this kind of thing, it's not fucking okay

ifyougochasingrabbits · 19/08/2023 23:11

frippu · 19/08/2023 22:50

I've said on here before it's a huge mindshift to get your head around paying so much just on debt, many can afford it but who wants to lose disposable income to service debt.

That's what pisses me off so much

oakleaffy · 19/08/2023 23:13

This reply has been deleted

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2! Percent!!

Bloody hell that was dirt cheap
Never had any less than 6 % and often loads more.
People have been very lucky with low rates.

Timetochangegonzo · 19/08/2023 23:13

With their magical money forest i suppose

perhaps by taxing the rich properly? A windfall tax on the very rich would eradicate the need for the huge hike in interest rates. But Tories won’t do that as rich vote for rich and there’s an election coming up.

The UK is incredibly rich. The fucking over of the poor to middle class is totally avoidable. Educate yourself

Youdontsay87 · 19/08/2023 23:16

ifyougochasingrabbits · 19/08/2023 23:09

I reckon there's one or two bitter people on here posting that rent, can't buy and they are enjoying mortgage payers struggling

Like it's a race to the bottom

To be fair this effects renters too. Even social housing has gone up. My sister now pays over £1k a month for her little 3 bed terrace from a housing association. Her annual rent is half her salary.

Timetochangegonzo · 19/08/2023 23:16

And then people on here berating others on middle incomes for ‘enjoying lower rates’ is pretty gross. Lower and middle class should be collaborating and rising up not telling each other off.

who do you think high interest rates benefit? Those who have a lot of savings and investments. The rich. The tories

Viviennemary · 19/08/2023 23:17

ifyougochasingrabbits · 19/08/2023 23:09

I reckon there's one or two bitter people on here posting that rent, can't buy and they are enjoying mortgage payers struggling

Like it's a race to the bottom

I think people that can't even get on the housing ladder and are paying exorbitant rents are in a worse position than those facing mortgage interest rises. It's the increase in house prices fuelled by low interest rates that had house owners rubbing their hands in glee and asking ever higher prices for property. A correction is long overdue.

FerryPink · 19/08/2023 23:19

Viviennemary · 19/08/2023 23:17

I think people that can't even get on the housing ladder and are paying exorbitant rents are in a worse position than those facing mortgage interest rises. It's the increase in house prices fuelled by low interest rates that had house owners rubbing their hands in glee and asking ever higher prices for property. A correction is long overdue.

Show quote history

Agreed, renters don't have choices like extending their mortgage term , they're at the mercy of landlords

oakleaffy · 19/08/2023 23:19

loveandpoprockz · 19/08/2023 21:37

Not a helpful comment

Show quote history

But it’s true!
15 % interest rates were savage.
Lots of people lost their homes then
People got used to very cheap borrowing , not thinking that interest rates could soar in future.

Justanotherlurker · 19/08/2023 23:19

As hard as it is, some people haven't understood the warnings that was even promoted on the likes of Homes under the hammer, a generation has been built on ever rising house prices whilst ignoring the economical issues.

The hard truth is you expected the gains and ignored the downfalls, this thread is a perfect example of the old adage of being more right wing as you get older and how the I'm alright Jack narratives has become a meme.

Bloodyhelldog · 19/08/2023 23:21

Justanotherlurker · 19/08/2023 23:19

As hard as it is, some people haven't understood the warnings that was even promoted on the likes of Homes under the hammer, a generation has been built on ever rising house prices whilst ignoring the economical issues.

The hard truth is you expected the gains and ignored the downfalls, this thread is a perfect example of the old adage of being more right wing as you get older and how the I'm alright Jack narratives has become a meme.

I think the OP just wanted some advice and sympathy on how to survive a rough patch, to be honest. For which, she came to the wrong website.

FatBurger · 19/08/2023 23:21

I feel you.

We're in the same boat - same increase, same income, same nursery/ child care issue.

It's hideous.

HateTheView · 19/08/2023 23:21

This reply has been deleted

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Not helpful!

ifyougochasingrabbits · 19/08/2023 23:22

Timetochangegonzo · 19/08/2023 23:16

And then people on here berating others on middle incomes for ‘enjoying lower rates’ is pretty gross. Lower and middle class should be collaborating and rising up not telling each other off.

who do you think high interest rates benefit? Those who have a lot of savings and investments. The rich. The tories

THIS

Isitautumnyet23 · 19/08/2023 23:22

Trying to be helpful but not much advice to give. Are there more free nursery hours coming in next year for everyone? You might be paying less fees with any luck.

As others have said, make the most of the fact they are so young and really dont need any flash days out/holidays at that age - parks, picnics, feeding the ducks, walks. Make the most of it before they are nagging you to see the latest film or go to a theme park. Clubcard points are brilliant for days out/meals out too if you shop in Tesco.

Also, I know you mentioned about your kitchen but it really doesn’t matter. You have your home thats all yours and if you can make everything else as nice as possible in the house (without spending too much - a fresh coat of paint everywhere for example), then you can put up with it for a few more years till things get easier.

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