Mortgage going up!

Poodle34

Hi,

Hubby and I BR since July and our fixed rate is ending soon which means our mortgage is going to go up by a minimum of £175 - even if I tie into a new deal with my provider?

Can anyone tell me if I have any other options other than to just accept this as I am very worried indeed!

Thanks

Poodle

nervousmother

Not really, you wont have the benefit of been able to try get a deal elsewhere.. what was your fixed rate? with interest rates being so low its strange that yours is going up!

Of course you still have the option of going rented...

Poodle34

We were on a fixed term tracker so when the interest rates dropped our mortgage dropped too. Now the provider has offered me to go on svr at a cost of £175 more per month (but this is only ever go up) or a fixed term of £180 more. I guess we will have to try and swallow it elsewhere but it's a big worry!

Can't go rented have just bought beneficial interest back and if we don't keep this property doubt we will ever get back on the ladder!

skylight

Well, as interest rates can only possibly go up I think I would fix it as it's only £5 more than not fixing it. (This is my own opinion and not anything else!!!)

Is there anything you could cull for this? Sky? OH?????!!!

sizzler

Have you got an IPA?

sizzler

nervousmother

If you have a IPA in place you can have that cut due to your increased costs..
It stinks though to be worse off by that amount per month is bad :-( as sky says see if you can cut back on other household bills.

immoral_angeluk

Can you switch to interest only for a while?

MissCynical

I wish you luck in asking your lender to change your mortgage payment to interest-only. My lender replied to my exact same request today saying that as I hadn't got a suitable repayment vehicle I would have to keep mortgage as part-repayment/part-interest. The difference is £240 per month. I did explain that I only wanted to have monthly payments as interest-only until I could buy back the BI from RTLU. They didn't give a monkey's! I said that if I couldn't buy back the BI then the only options would be a forced sale by the Insolvency Service or for me to hand back the keys. Chap on phone said that I was a special circumstances case but as I didn't fit into their criteria and wasn't in arrears then they couldn't help.... Great!

diddly74

We had exactly the same from HSBC last year! My husband was made redundant and after using all our savings paying the mortgage for 3 months we ran out of money. We went to see them when he was made redundant and again as soon as we knew that the money had run out and would not be able to make the next payment. And they said the same to us - they could not switch to interest only payments, they could not give us a payment break. They only offered "help" once we had fallen into arrears and the CAB got on the case with us. But then it was only to "allow" the arrears and the consolidate them back into the capital once my OH got a job.

This is the reason we are BR, and will be handing our keys back to the bank very soon. We begin our move out on Saturday!!!!