How are people actually coping with mortgage payments increasing?

brownbagsFTB

@EnterUserName let’s hope it doesn’t come to that. Anything can happen in the next few months. MIRAS is a tax relief on mortgage interest. It was scrapped in 2000 but helped a lot of people ride out high interest in the 80’s/90’s 

mi-key

It may help to view the mortgage over the whole term, rather than just short periods. If you have paid of 5 years when the interest rates were low, and now have to pay a few years with them higher, it all averages out over time. Yes things may be tight for a lot of people, but the important thing is to keep a roof over your head, and hopefully not fall off the property ladder.

Circumstances can change for any number of reasons ( unemployment, health etc.. ) and not many people these days are secure enough to be able to not worry. Always look at options such as downsizing, you may not love the house you are in, but who knows what will change in 5 years time, and you may be in a position to buy somewhere nicer again.

As for people thinking house prices will crash, I don't think this will happen. At worst I think they will stagnate, or grow at a small amount ( in the area I live in, they have been going up nearly 20% a year, but that was after maybe 7 years of very little increase ). Prices will never drop anymore as there is too much demand for housing 

kassy64

Awful reading some of these posts on here particularly affecting families with young children. I managed to fix with HSBC about 10 months ago at 1.04% and expires early 2024 and will have funds to pay off the balance at that time. 
First mortgage back in the late 80's was something like 9% though so over a 20–30-year period you are bound to get highs and lows I suppose, it's just having had the lows it's tough when rates start rising again.
I always remember my dad (now passed away) going on about how great high interest rates were for savers, and now i suppose my time has come around, it all goes in cycles !

aayush

My mortgage repayment gone from 121 a month to 151 a month all things  going up apart from salary when u bring up this subject you get told we the account staff costing company money if that the case let staff in show room deal with the debts as well as the bills as the government not helps working class
when is the government going to do something re cost-of-living 
Richer get richer 

Rustin

Re-mortgaged in 2018, 10 year fix at 2.69, high'ish payments, mortgage payed off at end of the term. Was worried about Brexit, regretted it for a bit afterwards, not now. No one saw this coming, pure dumb luck.

Daughter renting now and we're having to chip in, she was hoping to buy in next couple/three years. Just an awful state of affairs.

Bubblebutt9

Purely cutting back on non essentials for me. Like I have given back my pricey new car, it’s unnecessary and that extra money saved will go a long way. I have swapped for a very small economical car now - massive down grade but needs must! I have also cut down on socialising, having meals out and takeaways. Small changes like that really do make a big difference 

mi-key

Bubblebutt9 said:

Purely cutting back on non essentials for me. Like I have given back my pricey new car, it’s unnecessary and that extra money saved will go a long way. I have swapped for a very small economical car now - massive down grade but needs must! I have also cut down on socialising, having meals out and takeaways. Small changes like that really do make a big difference 

As long as the car works and gets you from A to B then its not a downgrade

mi-key

Rustin said:

Re-mortgaged in 2018, 10 year fix at 2.69, high'ish payments, mortgage payed off at end of the term. Was worried about Brexit, regretted it for a bit afterwards, not now. No one saw this coming, pure dumb luck.

Daughter renting now and we're having to chip in, she was hoping to buy in next couple/three years. Just an awful state of affairs.

SImilar here, I remortgaged in March, 10 year fix at 2%.  Even then people said I was mad for fixing for ten years. I just wanted to have the certainty that if something happened ( and boy did it ! ) I would at least know what my outgoings would be 

shadyron

mi-key said:

Rustin said:

Re-mortgaged in 2018, 10 year fix at 2.69, high'ish payments, mortgage payed off at end of the term. Was worried about Brexit, regretted it for a bit afterwards, not now. No one saw this coming, pure dumb luck.

Daughter renting now and we're having to chip in, she was hoping to buy in next couple/three years. Just an awful state of affairs.

SImilar here, I remortgaged in March, 10 year fix at 2%.  Even then people said I was mad for fixing for ten years. I just wanted to have the certainty that if something happened ( and boy did it ! ) I would at least know what my outgoings would be 

How did the conversation with the lender go? I got 10 years at 1.86 with Lloyds which took effect at the beginning of this month. Mine was "This is a very long fix, and you need to be sure that this is the right decision for you." and all of the other regulatory information. Spoke to him in September and he said he thought I was incredibly lucky to have called that choice. There but for the grace of God.

mi-key

shadyron said:

mi-key said:

Rustin said:

Re-mortgaged in 2018, 10 year fix at 2.69, high'ish payments, mortgage payed off at end of the term. Was worried about Brexit, regretted it for a bit afterwards, not now. No one saw this coming, pure dumb luck.

Daughter renting now and we're having to chip in, she was hoping to buy in next couple/three years. Just an awful state of affairs.

SImilar here, I remortgaged in March, 10 year fix at 2%.  Even then people said I was mad for fixing for ten years. I just wanted to have the certainty that if something happened ( and boy did it ! ) I would at least know what my outgoings would be 

How did the conversation with the lender go? I got 10 years at 1.86 with Lloyds which took effect at the beginning of this month. Mine was "This is a very long fix, and you need to be sure that this is the right decision for you." and all of the other regulatory information. Spoke to him in September and he said he thought I was incredibly lucky to have called that choice. There but for the grace of God.

Yeah pretty much the same here. They were telling me they had good 5 year fixes at a slightly lower rate ( was about 1.85 IIRC ). I had always had 5 year fixes before, but thought a 10 year fix would be better for my anxiety !