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?

The whole situation wasn't created by the present generation, was it?

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

Or people that do not see fit to squander every spare penny they earn. But yeah lets blame the tories, thats always makes us feel better.

@Youdontsay87

Yes it does affect renters which is why the ones that are enjoying this shitshow should not be so gleeful

Sorry to hear about your sisters rent that is shit for her and unfair 💐 No bloody excuse for HAs / council rent to go up its meant to be affordable rent 😞

See a mortgage broker and see if you can move to interest only for two years.
Fix the rate.
You can still overpay (up to 10% of the balance per year).
You'll be looking at below 6%.
Then go back to a repayment mortgage once oldest is in school.

Is it really nasty to point out a fact? Anyone who assumed mortgage rates would stay at sub 2% was naive in the extreme. It might not be the most tactful thing to do do point out someone’s naivety, but it’s hardly nasty!!

childcare for two young children could easily be £2.5k to £3k a month. Even with 30 free hours, the nursery bill for my preschooler and baby came in at about £2.5k for four days a week. That’s the going rate where we live. The other nurseries around either charge similar or more.

so add a mortgage of £2k and you are looking at £4.5k to £5k, without paying any other bills or getting food etc

So OP is paying, what, £2k/month for the 2 kids in nursery?
£2k on mortgage.
That leaves about £1500/month for other costs, I think?

How come your three year old isn't getting 30 free hours? By what you've said, neither of you earn over £100k (thru don't consider the combined figure, it's per person). This isn't the same criteria as tax free childcare. Double check you're not missing out.

www.gov.uk/30-hours-free-childcare

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

Renters are likely hit much harder

Taxing the ‘rich’ more would make no difference to interest rates, as they’re increasing because inflation is high. A blunt instrument admittedly, but that’s the game they’re playing. Taxing the rich more would make no difference to inflation, as that’s being caused by a shortage of labour and higher material/commodity prices driving up costs. All it would do is make the less rich feel better about their predicament. The politics of envy. Which has never got the opposition anywhere.

I just wish the government would subsidise childcare for parents who are both working or single parents

Why? Why should the government subsidize companies who u deeply their workers. You SHOULD be able to afford your own childcare so you feel the benefit when they go to school. Government subsidy for the short term does not make you better paid long term.

You are being ripped off and made to feel grateful.

Ok, I'll bite.

Our household income is more than the OPs but our childcare costs for kids of the same age are £2k a month full time. Council tax is 300 a month, have to spend £160ish in fuel just for essential journeys, £500 on food. So if our mortgage was 2k a month, we'd have spent just under 5k before car insurance, home insurance, electricity, gas, clothing or home repairs.

Childcare is expensive.

OP I would keep the 20k for emergencies (e.g. roof repair, redundancy) and look at moving to interest only for a period (I think most lenders are offering this for at least 6 months at the moment) or extending the term.

And ignore the sad little cretins trying to stick the boot in.

They're probably just feeling a bit smug that now homeowners are feeling similar worries as they have had for years. They'll soon tone it down when they see the destruction it's going to cause I'm sure.

It is awful about HA housing. It's not cheap cheap like it used to be. My sister still worries and often goes hungry which kind of defeats the purpose of 'affordable housing' but hey ho

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.

So how have you collaborated with others? @Timetochangegonzo

Are you sure you don’t get the 30 free hours from age 3? To not get it one of you has to be earning more then £100k gross.

But your household take home amount is £5 - £ 5.5K per month

It's probably more like 6k due to tax & two salaries

15 % interest rates were savage

Not this again. 15% of a smaller amount isn't different to a lower % of a higher amount.

Yes, interest rates were low, but housing and rental prices are ridiculous, and even on good salaries people are struggling.

I had written a long post, but I think I will put this into perspective as follows:

In 2006 my salary was £18k for an entry level finance/admin role. During the pandemic, I was earning £21k in an admin role (local average on the higher end). Wages have stagnated!

My partner had to support me, I could just about afford to buy the cheapest toiletries - no hairdresser or anything else.

Thankfully, my job is a remote one now, otherwise I’m not quite sure how I would survive.

It’s a joke that our wages haven’t increased, but everything else has.

@Tryingtokeepgoing this isn’t true. Google ‘how could windfall tax help inflation‘ there’s a lot of info on this

@Tryingtokeepgoing sorry but to add, the very rich like to imply it’s the average people that determine and maintain the inflation / interest rate but our wealth is so low compared to the top % it makes little difference

Could u not extend the rate and then overpay when possible to bring it down quicker? Hopefully if things improve in a few years u could make significant overpayments, obviously within the limits so u don’t get charged!

We remortgaged earlier this year and got an offset mortgage. Definitely worth looking at if you have some savings which you want to keep back just in case. There aren’t many offset mortgage providers from memory. We’re with Yorkshire Building Society.

In 2006 my salary was £18k for an entry level finance/admin role. During the pandemic, I was earning £21k in an admin role (local average on the higher end). Wages have stagnated!

Wages have stagnated but one reason for this was low interest rates. We never actually recovered from the 08 crisis but low interest rates masked it. And many didn't notice wages hadn't grown because borrowing was cheap & house had gained value. Now the mask has been pulled off & people are realising their salaries haven't moved in over a decade.

Don't overpay

Use your 20k to supplement the hike

So if you have a 2 year fix

E.g Fund 200 a month of hike from salary and 500 from savings

When nursery bills reduce replace savings

ODFOD 🙄