How do people do it? Can’t afford mortgage

[MonsterTrunk]

Hello,

We are a family of three - DH, myself and our 3 year old.

So our current income is just under £50k with DH working full time and me part time. Our current mortgage Rate runs out this year and it was £900 a month and current rates are around £1300 a month. With energy rates and petrol and food and savings as we need a new roof we’re okay at the moment but that loss of £400 is going to make things very tight. Very very. As I I don’t know if we will be able to afford it.
The answer would be me working full time but then we have to pay for childcare - we have no family to help so I’d have to pay for before/after school club and holiday care, so the extra money would possibly be gone.

What do people do? The mortgage rates are a killer. We’re going to go through everything and tighten where we can and will hopefully be okay, but this situation is just awful. I didn’t realise the jump would be so high. We’ve been very lucky with our last mortgage and I realise that now.

Work more hours, train for a higher paid job

Or leave uk

Or downsize

Lots don’t. Our eldest’s neighbour and family are having to sell their much loved home after just a year or so. They’re heartbroken.

We can’t downsize, our house is tiny. It doesn’t even have a garden. I guess we could all sleep in one room. And we can’t leave the U.K. I’ve already mentioned me increasing hours and my concerns, that’s what I’ve come to ask about. I don’t have the spare money to retrain.

Could you and your DH both work compressed hours and then cover some of the childcare that way? Also we juggle holidays between us rather than pay for lots of holiday clubs.

Or could one of you pick up extra work in the evenings./weekends?

You've only got the options for you both to increase your income really. What do you both do for work?

Got a new job- I appreciate, especially in the public sector, that’s not always possible. But honestly that’s how I’ve coped, I earn £600 more a month than I did in 2022 and I have the same amount of disposable income. Otherwise it would be so hard.

That’s awful. This situation is just awful, so many people in crisis. I’ve been so naive to assume we would be okay.

Are you already claiming the 30 "free hours"? And using the tax free childcare account? And claiming child benefit?

You could use a childminder instead of the nursery even if it's just for the extra hours you work, they are usually considerably cheaper that nursery.

Can you remortgage? Pay it off over a slightly longer period? Shop around for mortgages rather than staying with your current provider. Google a mortgage provider that's all of market.

I don’t want to say as too outing, but even when I was full time the most I earned was £20k. I stopped working full time as we calculated after childcare is only have an extra £100 a month and that didn’t include petrol costs so it seemed daft at the time. But of course now I guess even £10 a month will help.

I was coming on to say downsize, but you say you are already in smallest home in your area then moving out of your area is probably your only choice.
Selling up and renting won't help as certainly where we live renting is more expensive.
We own our terraced house and pay half what next door pay for rent, that's with remortgaging last year ( 4.44% was previously 2.14%)

Similar, I realised I just had to climb the career ladder to even though my children were small so worked long into the night when they were in bed. It's been worth it.

Vinted / ebay

Cancel all unnecessary subscriptions

Heating down / off

Batch cook, veggie based meals

Yes but we won’t get all the child benefit as it’ll be over £50k so will only get a percentage of that.

Weve not been using total 30 hours as I stupidly thought you could bank some and use them in the holidays, I’ve only just discovered you can’t, so we’re going to address that.

Already do/done all of this. We will see where else we can save by addressing our budget.

thing is, most of our ‘spare’ money is being saved for a whole new roof and chimney as it’s leaking.

I know people always suggest this but it's not going to make up hundreds of pounds every month.

OP it really is new job/more hours/2nd job or move to a cheaper area.

It sucks but it is what it is.

You just have to wing it until you are out of childcare. We get by on a wing and a prayer each month but DD starts school this year and it will be easier.

Yes I guess this will have to be it. I already hate where we live and the prospect of going to one of the areas here which is cheaper scares me as they’re very rough and I worry for my son growing up but you have to do what you have to do.

Look for a second job in the evening? Babysitting or pub/supermarket or cleaning/care work?

Could you do a child swap with a friend one day a week to free you up for more work availability?

I extended the mortgage term so I went from 19 back to 25 years. So I’ll be 69 when it ends! That way my mortgage payment stays the same. It is a bit rubbish but hopefully can overpay. Look at the £10 a day thread for ideas on how to make extra cash working from home around the Dc. Surveys, micro tasks, mystery shopper stuff.

You will get all of the child benefit. You only lose some if one of you earns over 50k. Not both of you.

Speak to your mortgage lender about options, if on repayment you could go interest-only or extend the term further which will reduce the payments.

I feel like an awful parent. What was the point in having kids and not being able to give them a decent future? Freezing at home with no heating on, worrying the roof is going to collapse and just stemming the leaks.

All for a house we can’t afford to live in.

Irritates me some of the ridiculous responses to these posts, retrain - how much does that cost?! If I could retrain to a higher paying job whilst earning at least what I do now to do so - then I would but it’s not at all feasible. Move to a smaller house/cheaper area, again how much spare cash do you need to do this?! Have some common sense people.

You will get the child benefit! You have to go over 50k as an individual to start paying back / not claiming.