mortgage payment gone up by almost 300%

opinions4u

badgermum wrote: »

Here's a good one thought I'd share, We received a letter on Monday from our mortgage company telling us that as from August our monthly payments will be up nearly 300%. that's up by £900 a month.

Please tell us the lender, the special rate and the SVR. Then people can offer views on fairness.

It would also be useful to know how much you owe and how many years remain.

We've come to the end of our special rate and there is nothing else available... Have taken advice and been told to either sell (we're in negative equity) or walk away!! not so easy with 3 kids and no where to go.

Are the payments affordable? If not, what has changed since you took the mortgage?

Who's advice have you taken?

Gut feeling is that you should have anticipated the change. That's why I'm interested to know if your personal situation / income has changed significantly to make this unaffordable now.

badgermum

The mortgage was originally with TMB but have been advised they've gone bust and it's now with Birmingham Midshires

Wakey2008

badgermum wrote: »

My husband is self employed in building trade

This makes me think that it might have been a self cert also so there is the possibility that they overstretched themselves by over stating the hubby's income when they applied, thinking they could afford the initial payment and not giving consideration to the future payments.

beecher

4.84% is a pretty good rate - if you're stuffed on that rate then things must be pretty bad and I'm assuming you're getting professional help. Hopefully from someone who doesn't say walking away is an option, because it isn't. This forum isn't really about making people feel better, it is about giving practical advice but I don't think there's anything anyone can say to you if the situation's as bad as it seems.

badgermum

Wakey2008 wrote: »

This makes me think that it might have been a self cert also so there is the possibility that they overstretched themselves by over stating the hubby's income when they applied, thinking they could afford the initial payment and not giving consideration to the future payments.

As i I said when this mortgage was taken we could afford it, even without the special rate that is due to end but we couldn't predict the downturn my Husbands business was due to suffer.
I posted on here because I thought that maybe someone on here would be in a similar situation and would offer some support or general advice.

beecher

badgermum wrote: »

As i I said when this mortgage was taken we could afford it, even without the special rate that is due to end but we couldn't predict the downturn my Husbands business was due to suffer.
I posted on here because I thought that maybe someone on here would be in a similar situation and would offer some support or general advice.

Bankruptcy might have to be an option. Just make sure you don't walk away. Sounds like there's bigger problems than just with your house though so maybe the Debt Free Wannabee/Bankruptcy forums are the place to head?

Wakey2008

You mentioned you are on interest only. Have you got a repayment vehicle for this?

If so can this be dipped into to maintain payments until you are back on your feet?

ginvzt

badgermum wrote: »

As i I said when this mortgage was taken we could afford it, even without the special rate that is due to end but we couldn't predict the downturn my Husbands business was due to suffer.
I posted on here because I thought that maybe someone on here would be in a similar situation and would offer some support or general advice.

I think you should give the full detail as asked by earlier posters if you want to get advice. You already said it was interest only mortgage, not the best idea in any case, in my opinion. Here was the list of question by Wakey:

• When was the mortgage taken?
• How much is the balance?
• What is the term?
• What was the special rate?
• What is the new rate? - you said 4.84%, which is a rather good rate at the moment anyway
• Who is the lender? - You said Birmingham Midshires

I would also add:

• What is the value of house or LTV?

Gorgeous_George

So, I estimate that you have a mortgage of £300K on interest only terms.

I'm surprised that you think 4.84% in unreasonable. Sure, it is more than 1.61% that you must have been enjoying before but it is hardly a h igh rate. I'd be more worried about what will happen when rates rise - you could easily be asked to find half as much again.

Selling sounds like good advice IMHO.

GG

unite79

DID TMB - ever offer a rate of 1.61% (Seems INCREDIBLY Low)