Interest rate rises is forcing us to put house on market

emmie

When we moved into current house, took a tracker rate which of course varies with Bank of Englands rate. All the interest rate rises are crippling us.

We have also taken out an extension loan, car loan, bank loan and are overdrawn

My Mum has just given us 5k to bail us out (thanks Mum)... but am getting stressed out by all the debt we are in, and the house move itself..

Anyone in similar situation?

Trying_to_be_good

Emmie

Can you change your mortgage to interest only, if you're currently on a repayment basis? It would give you some breathing space in the short term. Look on the Old Style board for advice on how to cut back on household expenses, or try the Debt Free forum for more detailed advice - really helpful people.

kingkano

A 1.25% rise has crippled you?? There is the distinct possibility of 1-2 more in the near future.

When you took out the mortgage, didnt the key facts document give you figures for if the rates rise?

Pobby

Not wishing to be unkind,but did you not factor into your calculations that interest rates were historically low?

emmie

It has been the succession of interest rises that has crippled us.

No Pobby, unfortunately we didn't factor that interest rates were historically low.. just did it anyway .....

Dead_Eye_Jones

There has been a wave of such posts around many forums. Im not sure if this is a true reflection of whats going on or just people with a vested interest in a price crash trying to scare people.

Good luck with it all

cells

Dead_Eye_Jones wrote: »

There has been a wave of such posts around many forums. Im not sure if this is a true reflection of whats going on or just people with a vested interest in a price crash trying to scare people.

Good luck with it all

some 3million homes where sold in the last 3 years. surely some of them will have trouble with a 27.78 % rise in their mortgage costs.



To the op, if you have equity in your house, it might be the best thing to do when you look back at it in 5 years

Skintymcginty

We sold up in Dec, downsized to a 2 bed flat. Whilst we weren't exactly crippled at the time, we had no spare cash, every penny went on the monthly outgoings. I thought this is crazy, no quality of life, just to sit with this roof over our heads. We'd been in the house 8 yrs, paid £98k, sold for £315k. Cleared everything, credit cards, car payment. Still got a small mortgage £19k/8yrs repayment, best move we've ever made. Enjoying the extra cash at the moment, but plan to pump it into the mortgage and my super annuation in the near future. Life's to short in my opinion

Leighthal

Dead_Eye_Jones wrote: »

There has been a wave of such posts around many forums. Im not sure if this is a true reflection of whats going on or just people with a vested interest in a price crash trying to scare people.

Good luck with it all

I get this impression too.But as the OP has been amember since 2005 then I think it's genuine.Maybe the OP can switch to interest only or use the cash from his/hers mum to remortgage to a more manageable sum or even take in a lodger?

poppy10_2

emmie wrote: »

It has been the succession of interest rises that has crippled us.

Err... no, it was the car loan, extension loan and bank loan (probably used on a holiday or a new kitchen, just like the colourful adverts say) that have crippled you. That and your own stupidity and greed. Sorry, I'd like to be more helpful but I have no sympathy at all. You need a short sharp shock to teach you how to live within your means. It will be better for you in the long run.

DawnW

This is a bit harsh. Lots of people are in this position. Maybe it is partly their fault, but silly amounts of credit have been easily available for ages now, and interest rates low. People have been encouraged to live like this, IMHO. Maybe the OP is too young to remember a time when the situation was different.