While this is sad, if her and a husband can’t afford a £200 rise then they probably shouldn’t have taken out the mortgage in the first place.
A short mortgage term during a period of historically low interest rates seems like a bad idea.
All you “yeah but-ers” and “to be fair-ers” need a reality check. It’s not just people’s mortgages that have gone up, it’s everything. Inflation is at *double digits* and prices on basics are going up astronomically, not to mention the soaring energy rates. There’s thousands of families in this position due to the economic incompetence of the conservative party and it has nothing at all to do with family finacial planning.
Sad seeing a flavour of “if she couldn’t have afforded this she should never have got a mortgage (read: *dared to try to get on the property ladder*) in the first place” wealthsplaining already going on in this very thread.
This is the angle they wanted you to adopt when they wrote this article. Well done for clapping in the right place.
Every person like this shaken off the ladder is quite literally another little step to property being an asset of the elite. When they come for you I hope the people earning above your pay grade are more empathetic in their reddit comments when they make assumptions about your income, household budget and affordability checks you may or may not have done when you took out your mortgage.
Some people found that with some extra deposit they could move from a really high rent to a mortgage 60% that rent.
Honestly few people would have predicted the whole Ukraine, gas, whatnot escalation.
Not ideal, but switching to interest only for a short term would be better than selling quickly for undervalue. Either until repayments are affordable or selling at full market value.
I’d take the ERP pain and extend to maximum term on a tracker just to keep the payments down. Short term sticking plaster for a couple of years.
I’m a touch sceptical about the story. They’re still in their fixed term, the mortgage hasn’t even increased yet, so why the rush to sell? Surely it’s better to build up a bit of mortgage arrears rather than sell at £40k under value?
(Maybe she’s seen a sneak preview of Hunt’s budget.)
People pay around £800 to rent a BEDROOM.
I want to feel sorry for the people in the article but I am all out of effs to give for mortgage holders.
I am so happy for the millions of renters that will be able to get on the property ladder now… Hur Hur. Completely broken market.
I’d be interested to see how they worked this out because paying a mortgage and paying rent for a shared ownership can’t be much less than the mortgage she will otherwise be paying.
“Mrs Piddock’s two-year fixed mortgage currently costs £711 a month but is coming to an end.
The family would be paying at least an extra £200 a month if they stayed in their three-bed mid terrace home, which they have owned for four years.”
So she’s borrowed up to the hilt, assumed a 0% base rate will last forever, taken 0 steps to create cash buffers or overpay during the good years… and now she’s crying.
Personal Finance basics being ignored here
This is going to be the case for so many ppl. Harsh times.
The last 20 years we’ve pretty much fuelled growth through cheap borrowing and ultra low interest rates. This was never sustainable and the can has been kicked down the road for the last 12 years. Rising interest rates are used to counter inflation. We have record inflation due to global gas prices, so this isn’t unique to the UK. What people seem to fail to grasp is that the property market has been in a bubble; as interest rates rise, so will mortgage repayments. Meaning overall loan will be lower. So unless you’re selling to someone with a massive deposit, the selling price will have to come down. A lot.
The next 2 years are going to be very, very painful.
She’s 32 and is already talking about passing on equity from the house to her children. Fuck the fuck off.
I don’t understand the logic. The family couldn’t afford £200 more monthly payment but is willing to sell the house £40,000 cheaper.
I have little sympathy. This is just poor financial planning and borrowing more than she could afford. If you take out a mortgage, it’s irresponsible to not consider the affordability of it if interest rates rise. When I took mine out, I calculated how much my repayments would be if interest rates jumped to 15% (they were around 2% when I took it out) to ensure I could still pay it if that happened. She chose not to do that and is now reaping the consequences of that decision.
Think I’m one of the lucky ones my energy bills are the only ones to really go up, roughly 3 food in the past few year. My mortgage only went up £12 because I had a high deposit at the time. When I applied with the Nottingham part of their affordability was to show I could still afford the mortgage if rates went up to 9%.
Just an example of real inflation. I went to greggs last month The sausage roll was 1.00 now it’s 1.15. 15% increase.
The rich are coming for middle class homes. Upward redistribution pure and simple.
I am in a similar spot, the cost of a remortgage next year is going to push us into “barely scraping by” territory and that’s not a good position to be in. Other factors aside, we chose to move to get some semblance of control back in our finances.
Our buyers have a small family home, valued at around £230k (incidentally, the same cost we are purchasing for as we are downsizing). They had 12 viewings in one day. The sheer demand on affordable housing now is propping the prices up as supply is thin. Not enough affordable housing is being built though.
Headlines on BBC articles often don’t match too well on the content.
It really seems unlikely that anyone in her situation would just blame the increased mortgage payment.
This is appalling. It’s so depressing to read.
My mortgage went up by £140 a month. We’re ok and can afford it (on top of energy/council tax/food rises), but SO MANY CANNOT!
In order for a society to function, inequality needs to be low. We seem to be becoming a poor country with a few rich people, who are keeping prices high.
We have a broken currency, backed by absolutely nothing except from the collective delusion of who holds it.
Great British Pound, used to be a redeemable piece of paper in exchange for a pound of gold.
Fiat currencies are like cinema tickets. And the cinema doesn’t exist.
24 comments
While this is sad, if her and a husband can’t afford a £200 rise then they probably shouldn’t have taken out the mortgage in the first place.
A short mortgage term during a period of historically low interest rates seems like a bad idea.
All you “yeah but-ers” and “to be fair-ers” need a reality check. It’s not just people’s mortgages that have gone up, it’s everything. Inflation is at *double digits* and prices on basics are going up astronomically, not to mention the soaring energy rates. There’s thousands of families in this position due to the economic incompetence of the conservative party and it has nothing at all to do with family finacial planning.
Sad seeing a flavour of “if she couldn’t have afforded this she should never have got a mortgage (read: *dared to try to get on the property ladder*) in the first place” wealthsplaining already going on in this very thread.
This is the angle they wanted you to adopt when they wrote this article. Well done for clapping in the right place.
Every person like this shaken off the ladder is quite literally another little step to property being an asset of the elite. When they come for you I hope the people earning above your pay grade are more empathetic in their reddit comments when they make assumptions about your income, household budget and affordability checks you may or may not have done when you took out your mortgage.
Some people found that with some extra deposit they could move from a really high rent to a mortgage 60% that rent.
Honestly few people would have predicted the whole Ukraine, gas, whatnot escalation.
Not ideal, but switching to interest only for a short term would be better than selling quickly for undervalue. Either until repayments are affordable or selling at full market value.
I’d take the ERP pain and extend to maximum term on a tracker just to keep the payments down. Short term sticking plaster for a couple of years.
I’m a touch sceptical about the story. They’re still in their fixed term, the mortgage hasn’t even increased yet, so why the rush to sell? Surely it’s better to build up a bit of mortgage arrears rather than sell at £40k under value?
(Maybe she’s seen a sneak preview of Hunt’s budget.)
People pay around £800 to rent a BEDROOM.
I want to feel sorry for the people in the article but I am all out of effs to give for mortgage holders.
I am so happy for the millions of renters that will be able to get on the property ladder now… Hur Hur. Completely broken market.
I’d be interested to see how they worked this out because paying a mortgage and paying rent for a shared ownership can’t be much less than the mortgage she will otherwise be paying.
“Mrs Piddock’s two-year fixed mortgage currently costs £711 a month but is coming to an end.
The family would be paying at least an extra £200 a month if they stayed in their three-bed mid terrace home, which they have owned for four years.”
So she’s borrowed up to the hilt, assumed a 0% base rate will last forever, taken 0 steps to create cash buffers or overpay during the good years… and now she’s crying.
Personal Finance basics being ignored here
This is going to be the case for so many ppl. Harsh times.
The last 20 years we’ve pretty much fuelled growth through cheap borrowing and ultra low interest rates. This was never sustainable and the can has been kicked down the road for the last 12 years. Rising interest rates are used to counter inflation. We have record inflation due to global gas prices, so this isn’t unique to the UK. What people seem to fail to grasp is that the property market has been in a bubble; as interest rates rise, so will mortgage repayments. Meaning overall loan will be lower. So unless you’re selling to someone with a massive deposit, the selling price will have to come down. A lot.
The next 2 years are going to be very, very painful.
She’s 32 and is already talking about passing on equity from the house to her children. Fuck the fuck off.
I don’t understand the logic. The family couldn’t afford £200 more monthly payment but is willing to sell the house £40,000 cheaper.
I have little sympathy. This is just poor financial planning and borrowing more than she could afford. If you take out a mortgage, it’s irresponsible to not consider the affordability of it if interest rates rise. When I took mine out, I calculated how much my repayments would be if interest rates jumped to 15% (they were around 2% when I took it out) to ensure I could still pay it if that happened. She chose not to do that and is now reaping the consequences of that decision.
Think I’m one of the lucky ones my energy bills are the only ones to really go up, roughly 3 food in the past few year. My mortgage only went up £12 because I had a high deposit at the time. When I applied with the Nottingham part of their affordability was to show I could still afford the mortgage if rates went up to 9%.
Just an example of real inflation. I went to greggs last month The sausage roll was 1.00 now it’s 1.15. 15% increase.
The rich are coming for middle class homes. Upward redistribution pure and simple.
I am in a similar spot, the cost of a remortgage next year is going to push us into “barely scraping by” territory and that’s not a good position to be in. Other factors aside, we chose to move to get some semblance of control back in our finances.
Our buyers have a small family home, valued at around £230k (incidentally, the same cost we are purchasing for as we are downsizing). They had 12 viewings in one day. The sheer demand on affordable housing now is propping the prices up as supply is thin. Not enough affordable housing is being built though.
Headlines on BBC articles often don’t match too well on the content.
It really seems unlikely that anyone in her situation would just blame the increased mortgage payment.
This is appalling. It’s so depressing to read.
My mortgage went up by £140 a month. We’re ok and can afford it (on top of energy/council tax/food rises), but SO MANY CANNOT!
In order for a society to function, inequality needs to be low. We seem to be becoming a poor country with a few rich people, who are keeping prices high.
We have a broken currency, backed by absolutely nothing except from the collective delusion of who holds it.
Great British Pound, used to be a redeemable piece of paper in exchange for a pound of gold.
Fiat currencies are like cinema tickets. And the cinema doesn’t exist.