Its Happening All Over Again

Sleepysophie

After joining the DFW forum about 8 years ago and starting a DMP with StepChange we really got ourselves to a good place. This was because we were very firm with our spending but also because our income increased making it easier to target our debt. Since December last year our income decreased back to pre 2015 levels but because its been over 6 years since entering (and paying off all our debt) our credit rating is back to "excellent" levels. We therefore have access to credit again. Prior to our income decreasing I decided to fix our mortgage for 5 years. It was a low (but not great) rate however we were limited to only "ok" interest rates due to our occupation. I thought I would fix it for 5 years. 

We are now a year into the 5 year fix and we are struggling. We meet the payments but our debt is increasing. We are cutting back as much as we can but with three children who - although older teens - still very much rely on us financially. 2 of them have part time jobs while in education but there are still things that we should help with.  Also the cost of living increase has hit us hard. We expect income to decrease again in the next 18 months. We both work. 

I can see every month our debt is increasing. I take long 0% fixed rates (we are eligible for these at least!)  but its making me feel really sick to see it rising again, knowing we are going to be in the same situation we were in back in 2014. 

If I went back to the mortgage provider - Skipton - and tried to arrange a lower monthly payment, the T&Cs suggest we will need to pay £8k in fees and £5k next year. However, they probably won't even let us rearrange it as our income is lower than when we agreed it. I just feel awful because my husband leaves all the financial stuff to me and I feel responsible for this. 

Has anyone successfully managed to renegotiate a mortgage repayment / term without having to pay their massive exit fees? 

shell16

Hi there.  Im not able to answer your question on the negotiating of your mortgage, however it would likely help you if you could post a SOA on here.  We may be able to help in other ways.

Good luck x

TheAble

You wouldn't be changing your rate as such - you'd be asking to extend the overall term of the mortgage while still adhering to the fix rate for 5 years. So it's possible that no early repayment charge would apply.

However that said - you may be better off looking for other places to save money first before tinkering with your mortgage, as your provider probably won't like it all that much. That's what I'd recommend. Also consider ways in which you might increase your income etc.