Drop in income - am I stuck?

Thomo97

Almost exactly two years ago my wife and I moved house. We were both working and earning decent wages and the mortgage was a shade under 3 x combined income. We went for a three year capped tracker mortgage that has proved to be a great deal ...

... but. My wife is now out of work (she was the larger earner) with no real prospects of another job and realistically no desire for one following the birth of our daughter.

The current deal runs out next June at which point we'll inevitably see a hike in interest rates and the mortgage would be around 6 x my income (Loan to value will still, hopefully, be under 75% depending on how much further property prices slip).

Should I accept that I'll be on a standard variable rate and subsidising the mortgage payments out of savings with a view to moving to a cheaper house or may someone lend at a fixed rate that enables us to tread water for a few years until either my income catches up or my wife is ready to go back to work.

Reading this back I suspect that unless Mystic Meg is out there I may just have to sit tight and figure this out for myself as the situation develops but grateful for any thoughts!

_Andy_

No lender will do 6x income for you. Your only option will be to see what your existing lender will offer.

Thomo97

Thanks - that's kind of what I thought. I've just been in over-optimistic denial for a while!

Thrugelmir

Thomo97 wrote: »

Almost exactly two years ago my wife and I moved house. We were both working and earning decent wages and the mortgage was a shade under 3 x combined income. We went for a three year capped tracker mortgage that has proved to be a great deal ...

... but. My wife is now out of work (she was the larger earner) with no real prospects of another job and realistically no desire for one following the birth of our daughter.

The current deal runs out next June at which point we'll inevitably see a hike in interest rates and the mortgage would be around 6 x my income (Loan to value will still, hopefully, be under 75% depending on how much further property prices slip).

Should I accept that I'll be on a standard variable rate and subsidising the mortgage payments out of savings with a view to moving to a cheaper house or may someone lend at a fixed rate that enables us to tread water for a few years until either my income catches up or my wife is ready to go back to work.

Reading this back I suspect that unless Mystic Meg is out there I may just have to sit tight and figure this out for myself as the situation develops but grateful for any thoughts!

Take time out to reconsider all your options carefully. Personally I would move to a smaller property and rebuild from there. As why spend your life worrying about paying the mortgage.