Will I lose my home?

AdmittingDefeat

Scared stiff. Fixed rate (currently 3.5%) comes to an end in June 2024. Since buying a house, had an unplanned child (and therefore unplanned costs of childcare etc). Already just about breaking even each month and terrified what will happen when mortgage goes up. Due a pay rise later in the year, husband has scope to also but not sure it’ll be enough to cover the rise. Already in debt due to still paying off wedding and debt accrued during maternity leave. Anyone have any positive stories of not being able to pay their mortgage but coming out the other side? 

fatbelly

This is about debt management. Pop over to debt-free wannabe and post there

elsien

Your mortgage needs to come first before any unsecured debt from the wedding etc.

murphyslaw2020

However much in debt you are, the first bill you pay immediately upon receiving your salary is the mortgage. 

You need to pay to keep a roof over your head.

MWT

fatbelly said:

This is about debt management. Pop over to debt-free wannabe and post there

This.

Plenty of people who have been through it all and reached the other side over there who can help others navigate the maze...

AdmittingDefeat

Posted in mortgages but been redirected here. Fixed rate (currently 3.5%) comes to an end in June 2024. Since buying a house, had an unplanned child (and therefore unplanned costs of childcare etc). Already just about breaking even each month and terrified what will happen when mortgage goes up. Due a pay rise later in the year, husband has scope to also but not sure it’ll be enough to cover the rise. Already in debt due to still paying off wedding and debt accrued during maternity leave. Other thread said this is about debt management and to pay mortgage before unsecured debt (loan). Scared of the repercussions of not being able to pay it all. Anyone have any positive stories of not being able to pay their mortgage but coming out the other side? 

BlueC

Welcome to the forum. You'll get some great advice and support here and if you read around you'll find many people have overcome hardship and seen the other side. You've done well to recognise the problem and you have some time to plan and make good decisions and put things in place. You will be able to take some positive steps and you'll feel better about it.

First thing would be to post a SOA so the good people here can understand the full situation:

https://www.lemonfool.co.uk/financecalculators/soa.php

Floss

Please keep paying your mortgage, to keep a roof over your family. Also check with your mortgage company as to what extra help they are currently offering.

RAS

First off. 

You pay priority debts before consumer debts. Those are mortgage, tax, Council Tax and any fines.

If you can't then afford to repay your other debts, it will affect your credit record but you can still remortgage. As a rule, you choose the best offer from your current provider's portfolio and transfer over without a credit check. You can probably start looking six months ahead. Might not be the best on the market but...

We really need to see the full scope of problem before advising further. 

No-one knows what rates will be like in June 2024, but it may be possible to use better budgeting, use your pay increase to improve the debt situation, and a mortgage broker to get another deal before them. Or it may mean prioritising your secured debts and putting your pay increase now into an emergency fund to cover the mortgage shortfall until the childcare situation eases.

So it would help to know how old your child is, as well.

But the SOA is key.

londoner2019

You’re in a good position because you’ve recognised a potential issue a year out from when your mortgage fixed rate ends. You’ve got a year to arrange things. 

Agree with others here - post an SOA and you’ll get some superb advice on where you can make changes. And don’t panic! There will be a solution of sorts.

sourcrates

AdmittingDefeat said:

Posted in mortgages but been redirected here. Fixed rate (currently 3.5%) comes to an end in June 2024. Other thread said this is about debt management and to pay mortgage before unsecured debt (loan). Scared of the repercussions of not being able to pay it all. Anyone have any positive stories of not being able to pay their mortgage but coming out the other side? 

The repercussions of not been able to pay it all, are precisely why you have posted on this forum I imagine.

There are no positive stories of anyone ever, having not paid a mortgage, and still managing to avoid re-possession, as that would fall within the realms of fantasy, or a fairy-tale, and life is neither.

However, there are countless thousands of positive stories of those who have managed to keep paying their mortgage, but have not been able to fully service their unsecured debts, the most common solutions, and the basis of all debt advice, are either a debt management plan, or token payments, were there disposable income was used to service there non priority debts, paying what they could afford, over a longer period of time, with all interest and charges stopped.

When you reach the situation where your expenditure exceeds your income, then debts have to be paid in priority order.

Starting with your mortgage/rent/any secured borrowing, then in order of importance, council tax/utility bills/food/everyday expenses, and last of all, unsecured credit debts.

Unsecured credit debts are last on the list to pay, as they are just that, unsecured, so non priority, if your budget doesn't stretch to paying anything, then so be it, a creditor cannot take what you do not have, and they are very well aware of their position in this hierarchy, so make no mistake, they may shout and scream at first, but once you explain yourself to them, all will be fine.

Its up to you to do the common sense thing now, and having a steady budget to work with, which is paramount to this succeeding.