Had my remortgage meeting and...

ElleWoods

...from 1st May, I've got to find another £50 a month for the mortgage . Interest rates have gone up loads in the 2 years since I last remortgaged, so there's no getting around it. I'm struggling as it is, so god knows how I'm going to find another £50 every single month.

Any ideas?

CC x

dunstonh

Interest rates have gone up loads in the 2 years since I last remortgaged

They havent and a £50pm increase is very small.

Interest rates are still historically low and anyone looking at mortgages currently should be budgeting for half as much again as a possibility.

so god knows how I'm going to find another £50 every single month.

Any ideas?

Sell up and move to renting
Get a lodger
Reduce your expenditure (get rid of sky, cigs, takeaways, booze or whatever)

dmg24

Yep, £50 is a small increase compared to some!

If you are struggling with your outgoings, post your SOA on the Debt Free Wanabee board x

Dan_Collins_2

£50 is not alot if you have it guys, lets be fair until we know more.

Look at your budget Cuba and I bet you can trim down on a few things that are not as important as your mortgage. If you have a repayment mortgage have you looked at extending your mortgage term? You need to look at your retirement age etc but it may make things easier.

dunstonh

£50 is not alot if you have it guys, lets be fair until we know more.

Its not a case of being fair or unfair. In mortgage related terms, £50 increases are nothing. Especially when you are coming off a period of lower interest rates. Perhaps I am considering experiences of the 90s when mortgages were more than double what they are now but on a typical mortgage, if you are struggling with a £50 increase in a period of low interest rates then you really do have to consider your position.

dmg is right in suggesting a post in the debt free wannabee section. There are some very good people in there who could help.

Charlton_King

Silly question, I know, but does it have to be a £50 monthly increase? Have you no other cheaper lender to turn to (since you say it's a remortgage situation)?

Have you any possibility of reducing the amount you're seeking to borrow, either by applying any savings you have or borrowing from e.g. a kind relative?

When all else fails... an economy drive? Food, fuel etc etc can all be pared down. Check out the 'Old style' and other fora.

Maybe a combination of all the above could wipe out the £50 increase you're looking at?

Scotsman_1984

Just had my review yesterday after a 2 year fixed with Northern Rock came to and end and our mortgage has gone up £5. Thats with One Account (Royal Bank of Scotland), think it was 5.7% rate, signed up for a 5 year fixed, may be worth investigating further.

Got it through our financial advisor.

Dan_Collins_2

dunstonh wrote: »

Its not a case of being fair or unfair. In mortgage related terms, £50 increases are nothing. Especially when you are coming off a period of lower interest rates. Perhaps I am considering experiences of the 90s when mortgages were more than double what they are now but on a typical mortgage, if you are struggling with a £50 increase in a period of low interest rates then you really do have to consider your position.

dmg is right in suggesting a post in the debt free wannabee section. There are some very good people in there who could help.

You say that but we dont know how big the mortgage is. If they are paying £350 per month than a £50 increase is a lot!

Lets see what comes next!

dunstonh

You say that but we dont know how big the mortgage is. If they are paying £350 per month than a £50 increase is a lot!

£50 increase on £350 isnt a lot. Back in the 90s, a £350 mortgage became £700, if not more. Any decent mortgage adviser would tell someone with a £350 mortgage to budget on half as much again, or more if taken out at the real low points on interest rates.

I know a £50 increase is a pain but it does need to be looked at in the context that mortgages go up and down in a cycle and you need to budget for that. Whilst interest rates are not high at the moment, if £50 is a struggle now then what would it be if it was £100 more or £150 more?

ElleWoods

Thanks all for your replies and your suggestions.

£50 might not seem much but it is to me! No point selling as the rents in my city are the same or more expensive than my mortgage. Can't squeeze in a lodger - already thought of that but with me and my toddler son there's no room left in the house for a lodger. I don't smoke, drink, eat takeaways, hardly ever go out as it means finding (and affording) a babysitter, and I don't have sky.

I can't increase my term as I'm 35 and it's already a 30 year term. I have no savings to put against it and no relatives able to help out.

The good thing is the rate quoted to me is quite good at 5.44%, so don't think I'll find better. I already posted an SOA last year and cut back on a lot of uneccessary spending then, so looks like there's going to be even more belt tightening ahead. So will post on DFW board for advice in the next day or so and hopefully get some more advice from there.

Thanks again for replying. Have a good evening!

CC x

Dan_Collins_2

dunstonh wrote: »

£50 increase on £350 isnt a lot. Back in the 90s, a £350 mortgage became £700, if not more. Any decent mortgage adviser would tell someone with a £350 mortgage to budged on half as much again, or more if taken out at the real low points on interest rates.

I know a £50 increase is a pain but it does need to be looked at in the context that mortgages go up and down in a cycle and you need to budget for that. Whilst interest rates are not high at the moment, if £50 is a struggle now then what would it be if it was £100 more or £150 more?

dunstonh, we are all different, not everybody has a plan b, we dont know the story. If it was £100 then they may have to sell. I normally agree with your input, but I think your picking!

End of!