How are people actually coping with mortgage payments increasing?

cook0891

wobjelly said:

Ballymoney said:

Wow £710k is the biggest mortgage I’ve seen on here yet. That’s a whopper! Especially with interest only and a larger than normal term too. 

I hope you find a solution that works for you. When does your current fix end? Guessing if you have 28 years remaining you only fixed for 2 years originally?

Our current term ends in May 2023.. it is 2 year fix with Halifax. I guess as lots of others do, we will try to secure remortgage offer in January. 

We have just done a large scale renovation in the last year putting lots of my thoughts into the design of the house and will feel totallly gutted if we need to sell the house off now..!

Might be worth ringing them and seeing if can get a cheaper rate now (will have to pay ERC) 

Mine expired end of Apr 23 and I rang them yesterday and offered cheaper rates and went with 3 year fixed at 3.69%. They are tailored per customer so might not be on offer to you and not sure how much your repayment charge will be, but for me it was worth doing. Good luck. 👍

Aberdeenangarse

Be warned! Unfortunately the halfwits from Housepricecrash have been trolling this thread. These are the people who’ve been predicting a crash for the last 20 years! Most of them are now living with their mums and know they’ll never be able to afford to buy their own home!

mi-key

Aberdeenangarse said:

Be warned! Unfortunately the halfwits from Housepricecrash have been trolling this thread. These are the people who’ve been predicting a crash for the last 20 years! Most of them are now living with their mums and know they’ll never be able to afford to buy their own home!

I wondered why some people on here seemed to happy to predict 50% drops in house prices. Nobody who has a mortgage would want that!

propertyhunter

wobjelly said:

Ballymoney said:

Wow £710k is the biggest mortgage I’ve seen on here yet. That’s a whopper! Especially with interest only and a larger than normal term too. 

I hope you find a solution that works for you. When does your current fix end? Guessing if you have 28 years remaining you only fixed for 2 years originally?

Our current term ends in May 2023.. it is 2 year fix with Halifax. I guess as lots of others do, we will try to secure remortgage offer in January. 

We have just done a large scale renovation in the last year putting lots of my thoughts into the design of the house and will feel totallly gutted if we need to sell the house off now..!

I would speak to a mortgage broker and see what your options are. Some brokers on this forum are not anticipating the next few interest rate rises completely feeding through into mortgage rates, as the banks have accounted for some of this already (the gap between the BoE base rate and mortgage rates is about 3.0-3.5%, when normally it is 1.5-2.0% for the best deals (which for 40 LTV you could well be on).

Selling your house off after spending all that time and effort doing it up should of course be the last resort. There's loads of people with large mortgages in London - I'm one of them - so you're not alone!

themoomins

Sea_Shell said:

Reading some of these posts, you realise how much money is going to be sucked out of the wider economy, if the otherwise "quite well off" are having to pay £1000s more a month in mortgage payments, rather than discretionary "nice" things ☹️

Similar with fuel bills, but on a smaller scale, which hits further down the income scale.

Yes, this is what I was thinking.  All that money that went into small (and even big) retail and leisure businesses will now be redirected to banks and utility companies.  Those businesses will struggle to survive, the owners and staff struggle to pay their bills and mortgages and down we spiral.  You can see how quickly this could escalate if those with the tools to get a grip don't do so very soon.

al4x

I did well. 

Back in March I got spooked. Spent a long time with excel, reading up, watching news, doing some research.
Felt that my current deal ending in Feb 2023 was probably the worst time of all. 

The big scare for me was when I worked out a 1pc rate rise was over 100gbp a month. Current rate was 1.8.

So I decided to pay my 2k erc (1pc on 200k mortgage). 

Fixed at 1.9 for 5 years. Monthly repayment 900. Now, if I had waited that would be 1350.

450,each month, every month! 

Suddenly that 2k erc seems well worth paying when it only takes 5 months paying 450 to exceed it! 

I did the same with energy in October 2021. Fixed at 22p elec, 5p gas until September 2024.

Right now I'm 100 a month better off through energy. And 450 on mortgage. 

Could easily be 550 a month worse off. 

I feel quite proud of the effort and work I put in. These were not easy decisions! 
Many thought I was crazy fixing ar 22p electricity when, at the time, it was 17p ish

housebuyer143

al4x said:

I did well. 

Back in March I got spooked. Spent a long time with excel, reading up, watching news, doing some research.
Felt that my current deal ending in Feb 2023 was probably the worst time of all. 

The big scare for me was when I worked out a 1pc rate rise was over 100gbp a month. Current rate was 1.8.

So I decided to pay my 2k erc (1pc on 200k mortgage). 

Fixed at 1.9 for 5 years. Monthly repayment 900. Now, if I had waited that would be 1350.

450,each month, every month! 

Suddenly that 2k erc seems well worth paying when it only takes 5 months paying 450 to exceed it! 

I did the same with energy in October 2021. Fixed at 22p elec, 5p gas until September 2024.

Right now I'm 100 a month better off through energy. And 450 on mortgage. 

Could easily be 550 a month worse off. 

I feel quite proud of the effort and work I put in. These were not easy decisions! 
Many thought I was crazy fixing ar 22p electricity when, at the time, it was 17p ish

To consider though, it's not just thought, a little luck went into these too? 
Your rate just happened to have a year left and the ERC was only £2k.. Would you have considered doing the same thing if your fixed ended in 2024? 
You could have just as easily fixed and utilities went down or mortgages didn't increase all that much. 

Most successful people in life are so because they not only had the knowledge and motivation but also were in the right place at the right time. 

BikingBud

Aberdeenangarse said:

Be warned! Unfortunately the halfwits from Housepricecrash have been trolling this thread. These are the people who’ve been predicting a crash for the last 20 years! Most of them are now living with their mums and know they’ll never be able to afford to buy their own home!

Unsure what the point of the post is other than to troll people that you feel are incapable of rationale thought. Do you often criticise other minority groups in such a manner?

I feel there is a distinct difference between predicting a crash and suggesting there has long been a need for moderation in the market. As with all systems if the control is ineffective or delayed, or in this case the inflation has been encouraged, then major reversal (crash) will occur. It is inevitable.

Whilst I have no wish to see people in great hardship the responsibility falls on the many for perpetuating the myth of never ending growth. And it's still going on where people think offering over asking is not only acceptable but the correct thing to do!

On a money saving site🫣

BikingBud

housebuyer143 said:

al4x said:

I did well. 

Back in March I got spooked. Spent a long time with excel, reading up, watching news, doing some research.
Felt that my current deal ending in Feb 2023 was probably the worst time of all. 

The big scare for me was when I worked out a 1pc rate rise was over 100gbp a month. Current rate was 1.8.

So I decided to pay my 2k erc (1pc on 200k mortgage). 

Fixed at 1.9 for 5 years. Monthly repayment 900. Now, if I had waited that would be 1350.

450,each month, every month! 

Suddenly that 2k erc seems well worth paying when it only takes 5 months paying 450 to exceed it! 

I did the same with energy in October 2021. Fixed at 22p elec, 5p gas until September 2024.

Right now I'm 100 a month better off through energy. And 450 on mortgage. 

Could easily be 550 a month worse off. 

I feel quite proud of the effort and work I put in. These were not easy decisions! 
Many thought I was crazy fixing ar 22p electricity when, at the time, it was 17p ish

To consider though, it's not just thought, a little luck went into these too? 
Your rate just happened to have a year left and the ERC was only £2k.. Would you have considered doing the same thing if your fixed ended in 2024? 
You could have just as easily fixed and utilities went down or mortgages didn't increase all that much. 

Most successful people in life are so because they not only had the knowledge and motivation but also were in the right place at the right time. 

Dare I say that many people that are in houses that are purported to be worth significant sums of money or with property portfolios have done nothing other than exploit the circumstances that were presented. But are now becoming keenly aware of the exposure that has brought about and the extremely difficult position that they and their close family, especially the younger generations, are now facing.

johnbhoy70

al4x said:

I did well. 

Back in March I got spooked. Spent a long time with excel, reading up, watching news, doing some research.
Felt that my current deal ending in Feb 2023 was probably the worst time of all. 

The big scare for me was when I worked out a 1pc rate rise was over 100gbp a month. Current rate was 1.8.

So I decided to pay my 2k erc (1pc on 200k mortgage). 

Fixed at 1.9 for 5 years. Monthly repayment 900. Now, if I had waited that would be 1350.

450,each month, every month! 

Suddenly that 2k erc seems well worth paying when it only takes 5 months paying 450 to exceed it! 

I did the same with energy in October 2021. Fixed at 22p elec, 5p gas until September 2024.

Right now I'm 100 a month better off through energy. And 450 on mortgage. 

Could easily be 550 a month worse off. 

I feel quite proud of the effort and work I put in. These were not easy decisions! 
Many thought I was crazy fixing ar 22p electricity when, at the time, it was 17p ish

You did well. There is always some element of luck involved but in my opinion you got informed and took control yourself. I did very similar myself.

I pay no mortgage interest at the moment as i'm fully offset but it's possible i may do in future. This time last year i was on a variable rate with FD but booked a fee free rate of 1.99% for 2 years. It was valid for 6 months and i took them up on it at the start of the year. Would have cost me nothing as it was free free if i hadn't taken it up. Now if i have to pay interest in the next 18 months or so at least it's a decent rate. I've regularly booked fee free rates in the past at the end of my 2 year fixes for belt and braces and probably let more offers lapse than i've taken. 

Smilar with energy bills. Just before i booked this mortgage rate last year i bailed from Avro to Sainburys Energy on a 2 year fixed. There was an increase to monthly bills and i was wary as i'd never fixed energy beyond a year before. When Avro went pop a few days later that made my decision easy. Sainsburys Energy also have no exit fee which meant if prices had amazingly tumbled then i could bail from them too. 

We were lucky but it sounds, like me,  you felt that the days of cheap cash and borrowing and energy bills were coming to an end, for the time being anyway.

The whole place is mental since Covid began!!