How are we supposed to afford an 40% increase in mortgage payments...this can't go on!

Rjhsteel
Rjhsteel Forumite Posts: 240
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edited 7 July at 4:54PM in Mortgages & endowments
When we bought our new home in May 2022, the mortgage rate was 1.44%. With the mortgage rate atm we will be paying close to 40% more a month! 

How the hell is that affordable? Do they want people to hand back their homes? 


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  • coypondboy
    coypondboy Forumite Posts: 93
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    Anyone who bought a flat under help to buy or shared ownership in London and other city centres over past 7 yrs unlikely to have made any money and mat have fallen in price what will happen when they come to re-mortgage if don't meet the affordability criteria and end up on lenders SVR which could be 9% next year?
  • lojo1000
    lojo1000 Forumite Posts: 135
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    Rjhsteel said:
    When we bought our new home in May 2022, the mortgage rate was 1.44%. With the mortgage rate atm we will be paying close to 40% more a month! 

    How the hell is that affordable? Do they want people to hand back their homes? 


    I don't understand that in little over 1 year there are people who cannot afford their mortgage.

    You have not indicated that your personal circumstances have changed so what the hell were the banks doing when they extended these loans?

    If mortgage rates can go from 8% to 4% in 2008 then why did the banks not think they could go the other way in the same amount if time? 
  • fiish
    fiish Forumite Posts: 805
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    What kind of mortgage deal are you on? If you're on a fix, you have time to prepare. Even with a 2 year fix you would have almost a year to get yourself financially ready, if you start today.
  • penners324
    penners324 Forumite Posts: 2,235
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    Aren't you still on a fixed rate?
  • lojo1000
    lojo1000 Forumite Posts: 135
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    not everyone is as financially astute as they should be.


    It has nothing to do with finance. All you need do is appreciate that a number can go up as well as down. Does that really require a financial mindset?
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