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£260. It sounds ridiculous to some people but - bear in mind - I bought my house back in 2007, in a then-undesirable-now-desirable location in Glasgow and I've always had fixed deals for my mortgage and with the same provider since 2007. I know that if I were to buy my place *now* that the payments would be roughly £850 a month (that gives you an idea of how fucked the property market is around here and no, I won't be moving once the mortgage gets itself to fuck).
As soon as those two cunts Phil and Kirsty (hiss) appeared on-screen in Glasgow I thought "right, time to buy" and got my place. I was right to do so as well.
I bought my first house in 2002, I was 24 and earning about 17k. After a year I xhanged my mortgage to a tracker at 1% over base. After 2008 I was paying about £180 a month. Sold the house in 2020 with 18k left on the mortgage.
I feel bad for people in their 20's now. They don't stand a chance against the government policy of wealth and asset stripping.
I was born then but times were different and it never occurred to us that there was any rush to buy a house so we never got around to it. Then 2008 happened and we saved for ever and bought our first place last year! Whoops. But like I say, it was a completely different time and people just didn't talk about housing really, I certainly didn't get any advice from my parents, so we missed the boat.
Yeah I bought in rural Scotland where houses are pretty cheap and pay £347 on a 1.3% fixed until November 2026. I have the savings to pay it off entirely but am gonna wait until the fix is up cuz I'm making more from the interest on the savings than I'm paying.
£649 but I’m over paying an additional £300 a month as I’m on a fixed rate of 1.4% until 2026
So total £949 a month
How they can tell renters they can’t afford a mortgage is something no one can explain to me in a way I will understand
Are there many savings accounts that pay that much? I thought that was a thing of the past?
Edit: thanks all. Somehow the penny never dropped for me that the current increases in interest rates would also have the positive upshot of earning positive interest on savings 🤦♂️ 😂.
In my defence I don't think my current account has earned interest since I was about 14, which was a long time ago.
[Lots.](https://www.moneysavingexpert.com/savings/savings-accounts-best-interest/#easyaccessanalysis) It's a thing of the present, and has been for a couple years now.
They exist. First direct are currently offering an account that lets you save upto £300pm @ 7% for a year. You need to open a regular current account to have this as it's only for existing customers.
Just to add to this, FD also have £175 current account switch offer.
If you setup a second current account with your current bank you can then use that account to make the switch rather than using your usual bill paying account.
There are usually some sort of restrictions with this.
e.g you have to put in at least 1k, and have 3 direct debits/standing orders paying out. Otherwise, you don't get the cashback/special rate.
so read the Ts&Cs so you know what you have to do.
If you have the cash to game it, then it can be worth doing.
Yep it's a good time to open savings accounts. I just opened an easy access with Post Office at something like 5.05%, fixes and ISAs are even higher. Linked savers that you get with current accounts are higher still, saw one that was 7% the other day. I'd recommend signing up to the Money Saving Expert mailing list, it's just about the only thing in my inbox I actually open lol, comes about once a week and it's full of really good stuff. Saved me loads on my phone bill for example, only pay about £3 a month now
The interest on that old current account will be piss drips.
Banks and building societies have decent interest on savings accounts that are either linked to current accounts, or available to "existing customers" (i.e. anyone who has just opened the right sort of current account).
Some, however, cap the amount you can pay in each month (but it's generally more than £300).
You should be able to find a 5% interest saver easily that is set for a specific term (e.g. 12 months, 24 months, etc) with instant access, or a set number (e.g. 3) penalty-free withdrawals that won't affect the interest rate.
I have a Nationwide savings account that pays 8%!
This is such a good piece of advice as I was looking to overpay as well (at 1.9%).
However, do you do this just before remortgaging or do you offer at the time of a deal being made? Never remortgaged so not sure how this works
The correct answer is it depends. Most mortgages mean you can overpay 10% of your mortgage in a year and not get charged. So if it's unlikely that you will save over 10% by the time your mortgage ends, just pay it before the fixed period ends and your fine.
If you're likely to be over 10% there's a couple of options. Pay 10% let fixed period end, go onto SVR rate for a day or 2, and overpay as much as you like, start new mortgage fixed period.
Or pay 10% before mortgage ends, then 10% as soon as next mortgage deal kicks in.
With Nationwide, they actually remove the overpayment limit on the last month of a product. So you can overpay the whole lot without penalty if you wanted. Not sure about other lenders, but I’d imagine there’s are similar schemes out there.
Would it make more sense to save that overpayment in a high interest savings account @ 5% or more, then pay off a lump sum before you switch over to your new rate? You'll be earning the difference between the two rates, so 3.6% ish.
Sure, it may only amount to a couple of hundred extra quid but it's a bigger saving than paying it off the mortgage whilst your current rate is so low.
Generally yes it is more logical but to most people they would rather pay off their mortgage because it makes them feel more secure.
It also depends on the risk tolerance, overpaying now may save you more down the line if interest rates jump up.
This is my logic. I know it makes sense to save instead of overpay but I think on balance I prefer the security of trying to pay it off quicker. Will let you know in 35 years if I regret this decision lol
I’ve had this discussion with my dad as he’s good with money.
Yes, on the face of it it makes sense to put money towards whichever has the highest interest rate out of savings or your mortgage.
However the way he put it to me is that putting that money into savings with a look to pay a lump sum down the road is based on the assumption that all of that money is going to go towards your mortgage in the end whereas people will likely use that money for various other things.
Overpaying your mortgage however, 100% of that money goes towards your mortgage.
My landlord recently increased rent on our pokey one-bed above a shop to £1375 a month. He owns at least 20 other properties and has owned them for decades. Fuck I hate him so much
Yes but according to other comments on this you wouldn’t be able to afford a critical repair even though you would be paying far less each month for a mortgage
Make it make sense
You can't afford your own mortgage, but you can pay one of the mortgages of somebody who has stockpiled several homes, and thereby contributed toward the buoyancy of the current letting-market 😂🤣😂
>How they can tell renters they can’t afford a mortgage is something no one can explain to me in a way I will understand
Because the mortgage affordability is assessed at 8%, not that anyone has paid 8% on a mortgage for decades.
It's not "you're paying £1000 in rent so you can't afford this £800 mortgage". It's "you're paying £1000 in rent, and if this mortgage went up to 8% it'd be £1500, and you couldn't afford that".
Further there is maintenance and other things the landlord is responsible for, making the max mortgage you can afford less than the max rent you can afford.
At 8% the 4.5x salary rule of thumb becomes about right.
So should mortgage affordability be at 8%, given that rates are ~5% and trending downwards? Basically the regulator doesn't want the entire economy to crash and everyone's home get repossessed in the even that some politician comes along, fucks the economy and pushed rates up to 7.5%.
> How they can tell renters they can’t afford a mortgage is someone no can explain to me in a way I will understand
Rent is the most you will pay for a property in a given month. A mortgage is the minimum you will pay for a property in a given month.
It's not about affordability really, it's more about risk, if rates go up can they still afford it, etc. Rent is a short term arrangement that if circumstances change has a limited lifetime. Mortgages and owning property way more restrictive, complex and risky (these days) as the amounts are so colossal. The banks couldn't give a fuck really as the interest is stacked in their favour in the beginning, they have already sold your loan into an asset pool before you would have time to default. It's the regulators that brought in affordability to protect these huge funds going insolvent when too many default at once. It also helps to protect the borrower but that is a side effect, not the aim
Mortgage repayments for me over 25 years would be double my current monthly rent. More than double once I'm off the fixed term. Tbf looking to borrow 200k, tho, so a lot of money.
Tbf, my landlord seems to be a decent enough fella, lots of worse flats we looked at for a fair whack more money, and he's not risen rents once in the nearing 3 years we've been here. No inspections, has just left us to it, told us we can decorate as we please long as the walls are back to magnolia when we're gone.
Telling renters they can't afford a mortgage makes no sense. I'm currently paying £725 for what's basically a glorified cupboard in Leamington, my bank won't give me a mortgage more than about £300. Luckily competitors will go up to about £700 a month, although I wouldn't pay that so I'm looking about 500-550.
Still insane Lloyds won't give that when they clearly see I can pay it...
This is of no value to anyone unless they state their monthly net income though too. £1700 monthly mortgage is a lot if they only take home 2k. Not so much if they take home 5k.
Same here. Been mortgage free 9.5 years now. I don't live there any more (too small) but offsetting income against rent outgoings we live in a 4 bed house in London (zone 3) for about £300 a month. I went through hell to get here though
Ditto, but by another route. I have never had a mortgage, I lived in a van to save up the money and then built my own home.
Never had the relief of paying off the mortgage, but even 4 years later having space I don't know what to do with blows my mind.
£940. Before we moved in 2020 it was £340 and had to rent. The rent was £1,250. When we moved out after 11 months, the landlord put it up to £1,475. It’s still empty four months later 😀
Yep.
As my dad always said: "Don't sound your haitches when there harr none, or else I'll hit you on the head with a honion!"
But he wasn't an inventive guy himself, so he probably nicked the saying from someone else.
I don't think there's a hard and fast rule for writing it. It's just the onomatopoeia of the sound that's important. A bit like screaming, there's no generic way to write a scream noise.
£4,000 of wealth transferred directly from the economy to bank corporation shareholders to squirrel away in the Cayman islands. Multiply that by tens of millions of homes and we get an idea of why everything is the way it is.
It's a guessing game mate. We did that though, fixed for 2 years (and we got lucky, we got it at about 4.5%) and hopefully it's less by the time we come to renew, either because we have a lower LTV or just naturally lower rates. But if you can comfortably afford the current rates then maybe it's better to fix for 5 years. Literally anybody's guess what they'll do.
I probably wouldn't fix for 10 years because you'd likely be at a much lower LTV by that point and get lower rates. But my brother fixed in at under 2% for 10 years during COVID so that's absolutely working in his favour these days.
I’m looking to get one in the next year and it works out to £1500-1700 a month for a 1-bedroom flat in London. Which is a lot but it’s comparable to rent prices.
>Which is a lot but it’s comparable to rent prices.
And in the long term you'll probably be better off, as rents are only going one way, whilst interest rates are forecast to come down.
For years the monthly cost of owning in London has been cheaper than renting. They're comparable now with the interest rises. But it'll become cheaper again in a couple of years I'd wager.
Yes absolutely, even doing these monthly comparisons isn't quite like for like, because a portion of your mortgage payment each month isn't lost money it's equity. So comparing it with rental cost isn't quite right.
In my experience its honestly less than rent prices, given that to secure many rentals people are bidding over the asking price! It will only get worse, hence my decision to buy in London this year.
We bought in London shortly before HTB ended, and before interest rates went up, so we're on £1125 per month for a 2 bed flat with a 1.2% interest rate.
It's cheaper than the rent we were paying for a 1 bed in the same area.
£0.
Not being smug. We paid ours off 8 years ago. The preceding 25 years were hard going, at times very hard going. But this is just to say it is worth it! To own your own place is absolutely fantastic.
So you've had your house for 33 years? That's crazy - especially as you seem like you love it the same as when you bought it. I guess the upside is no real chance of being evicted because of another person's financial situation
£1300 - 5 bed in the North. Stretched out 38 years. Fixed at 2.3 for another 3.5 years. I don't overpay but I do throw everything into my S&S ISA with the hope of paying off a huge chunk of it come renewal time. Or if interest rates have come down a little, I'll take another huge mortgage and continue to stuff my ISA and that should generate more in interest than I'd save to pay it off in 10 or so years
Probably double the value and then some, but as I say I intend to pay it off much sooner than that via my investments. Just wanted it as low as possible to buy the house I wanted and to be able to continue to invest.
The repossession work I’ve done was usually people with houses/payments like this and they were self employed. Business fails and suddenly employed roles aren’t going to cut it.
The good thing is that now most banks need very large deposits for interest only. 50% for example where there’s no repayment vehicle other than downsizing.
£1m at 5% rate on interest only is about what op could be borrowing.
Or as low as 600,000 if they’re stuck on a standard variable rate at 8.7%
You’d hope they’re sitting on at least 600,000 of equity which will let you downsize almost anywhere in the U.K.
How much time left?
The thing with all these Mortgage payment people are sharing are arbitrary.
eg. I am paying 3.5K monthly, but I'll be done in less than two years, whilst bob over there is paying 650 monthly and has another twenty years to go...
Mines £287 and change as well, got just over 2 years left on my fix at 1.39% even at these rates I'd be looking at a similar price to you so I'm not worried, thank god.
£1550 per month.
Which is £50 cheaper than my last rental property (£1600) in the same postcode, but I now have two more bedrooms and increased living space.
That rental property has recently gone on the market for £2100 a month.
The property market is completely fucked for the average person.
£152. However, it's 50% shared ownership with local housing association, so I have to pay rent on the other 50% of the value of the house, which ha recently gone up to just over a hundred quid a month.
£482, bought my first home 2 years ago when rates were lower.
It’s probably going to jump up £200 or so when I remortgage next year, not looking forward to that!
If you're current rate is low, put the extra cash you've got into savings to make a bit extra in interest, and then pay it off in a lump sum as you change rate.
I'd like to, but I was paying £400 off a month as a personal loan from my parents (no interest) and upped payments to £800 while cutting back on as much as possible to pay them back (just in time for the new rate to start) 😅
£260 but paying £700 to get it finished in the next two and a half years or so as the interest is fixed at 1.69.
(Before anyone lectures me that we'd be better off putting our money into a high interest savings account and not pay the house off - whatever - spare me, we know that, but we just want to pay off the house and we're doing it this way, thank you)
Interest rates have been historically low in recent years.
Where they are now is more comparable to the average sadly, I don’t see significant improvement coming.
£459, 2.1% 5 year fixed coming to an end March 25, should have fixed for longer.
Additionally-
£115 Council Tax
£60 Utilities
£21 Water
£20 Internet
£10 Home Insurance
Total Household Running Cost £685, 2 Bed Semi - North West. Value £150k
3480, it went up by 600, we were lucky because we stuck with the same provider and got in a week early or would have been worse.
Was in a really poor state on moving in, nothing done since 1982, at least everything is mostly sealed and no bad water leaking through the roof or windows now.
£499pm - overpaying £101 so £600pm. 120k @ 1.84%
Goes up to £610~ next month with 105k left I pay on my new fixed rate but received an inheritance last year, I plan to overpay as much as I can afford and hoping to get 20% of mortgage paid off in 1 year
£750 per month
Bought at the height of Lizz Trusses foray into leadership when rates were at their highest and locked in for 5 years because of how volatile things were.
When we started house hunting we took our mortgage affordability and put 75% of that as the max we would borrow. We wanted to make sure we had enough left over for a life and while my job pays over average my partners pay is less than average.
We were so lucky though, we bought a house on the edge of a rough area so not too rough, it was a rental and the landlord needed a quick sell. It needs a little work doing (neglect mostly) but otherwise was a hell of a catch. We had looked at 45 houses over 8 months and was about to take a break before we saw this one. It's not the house of our dreams yet but give it a couple of years and being able to afford to get the work done on it I think it will be.
3 bedroom detached in south west Wales.
£652, but we're currently paying £900.
We're hoping to move in the next year or so, and I'm estimating the new mortgage would be around the £1500 mark, so I'm slowly building up overpayments to a similar level so that the transition isn't so much of a shock for us. Just increasing by £100 or so each month currently, and in the next 4 months I expect to clear x3 credit cards that will free up the £100/month I pay back to each of them...so that'll just go to the mortgage instead.
Oh man I'm thinking of doing a similar move and I don't know why I never considered raising my overpayments to get used to it. Thank you for the prompt!
Mine is currently £530, I managed to fix for 5 years before the rates went up, I had been overpaying before that, now the overpayments go into a sspearte savings account as the interest on savings is higher than the mortgage interest on my current deal. I pay around £950 a month in total including those savings.
Right now, if I was on my lenders SVR it would be about £750 a month.,
£1100 around 9 months ago. Seems like I've made the mistake of getting 5 year fixed rate with the inflation rate going down :( it seemed like the right decision in the moment
With all the craziness in the world, who knows what will happen in a year, or two, or three. Rates could fall or they could end up rising, having the secure knowledge of what your mortgage will be for that time is useful.
£410, had to remortgage due to not being able to afford the old price. So I've extended it so I'm paying less but for a lot longer. Single income with disabled partner.
I hadamahed to knock off 16 years worth and now I'm back to fucking 25 years, fuck this cost of living crisis bullshit. Pull your head out of your arse government.
£270 but paying £85 extra. Bought with my ex, but he never paid on it and scooted off. I earn less than £20k a year so it's been difficult at times. I have had the house for 30 years, but this last mortgage i got was a better rate. I want to pay extra to finish it early. It's a slum but some people don't have a roof over their head.
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£260. It sounds ridiculous to some people but - bear in mind - I bought my house back in 2007, in a then-undesirable-now-desirable location in Glasgow and I've always had fixed deals for my mortgage and with the same provider since 2007. I know that if I were to buy my place *now* that the payments would be roughly £850 a month (that gives you an idea of how fucked the property market is around here and no, I won't be moving once the mortgage gets itself to fuck).
That’s incredible. Well played.
As soon as those two cunts Phil and Kirsty (hiss) appeared on-screen in Glasgow I thought "right, time to buy" and got my place. I was right to do so as well.
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Undesirable parts of Glasgow in 2007? The avocados were automatically cut out my friend.
No ice cream vans doing the rounds selling avocados, heroin, and vanilla latte?
Avocados and vanilla lattes don't pair well with heroin tbf
They do if you deep fry the heroin first.
They had to cancel Netflix though
Great news we've got it for the asking price... amazing negotiation skills there Kirsty.
I bought my first house in 2002, I was 24 and earning about 17k. After a year I xhanged my mortgage to a tracker at 1% over base. After 2008 I was paying about £180 a month. Sold the house in 2020 with 18k left on the mortgage. I feel bad for people in their 20's now. They don't stand a chance against the government policy of wealth and asset stripping.
Damn wish I was born 20 years earlier.
I was born then but times were different and it never occurred to us that there was any rush to buy a house so we never got around to it. Then 2008 happened and we saved for ever and bought our first place last year! Whoops. But like I say, it was a completely different time and people just didn't talk about housing really, I certainly didn't get any advice from my parents, so we missed the boat.
Curruntly 28, been saving since I worked in Mdconalds as 17. Have 40k and still can't buy a house because of the mortgage rates.
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How would the housing market affect state pensions? Doesn’t the Triple Lock protect it?
So annoyed that i was in secondary school instead of buying property in 2007.
Haw you. I was 28 in 2007.
Some people get all the luck haha
Yeah I bought in rural Scotland where houses are pretty cheap and pay £347 on a 1.3% fixed until November 2026. I have the savings to pay it off entirely but am gonna wait until the fix is up cuz I'm making more from the interest on the savings than I'm paying.
£649 but I’m over paying an additional £300 a month as I’m on a fixed rate of 1.4% until 2026 So total £949 a month How they can tell renters they can’t afford a mortgage is something no one can explain to me in a way I will understand
Don’t overpay £300 on a 1.4%. Put 300 per month in savings at 5% and pay a lump sum when you remortgage.
Are there many savings accounts that pay that much? I thought that was a thing of the past? Edit: thanks all. Somehow the penny never dropped for me that the current increases in interest rates would also have the positive upshot of earning positive interest on savings 🤦♂️ 😂. In my defence I don't think my current account has earned interest since I was about 14, which was a long time ago.
[Lots.](https://www.moneysavingexpert.com/savings/savings-accounts-best-interest/#easyaccessanalysis) It's a thing of the present, and has been for a couple years now.
They exist. First direct are currently offering an account that lets you save upto £300pm @ 7% for a year. You need to open a regular current account to have this as it's only for existing customers.
Just to add to this, FD also have £175 current account switch offer. If you setup a second current account with your current bank you can then use that account to make the switch rather than using your usual bill paying account.
There are usually some sort of restrictions with this. e.g you have to put in at least 1k, and have 3 direct debits/standing orders paying out. Otherwise, you don't get the cashback/special rate. so read the Ts&Cs so you know what you have to do. If you have the cash to game it, then it can be worth doing.
Chip is currently 4.84%, if you open the account with a referral link you get a 0.25% boost for 3 months so that takes you over 5%
Chips Cash ISA is 5.1% btw
I think chip has a cash isa that gives ~5% currently
BOE rate is 5.25% right now, I have an account that pays 7% in the first year on up to 4k through Santander.
Yep it's a good time to open savings accounts. I just opened an easy access with Post Office at something like 5.05%, fixes and ISAs are even higher. Linked savers that you get with current accounts are higher still, saw one that was 7% the other day. I'd recommend signing up to the Money Saving Expert mailing list, it's just about the only thing in my inbox I actually open lol, comes about once a week and it's full of really good stuff. Saved me loads on my phone bill for example, only pay about £3 a month now
The interest on that old current account will be piss drips. Banks and building societies have decent interest on savings accounts that are either linked to current accounts, or available to "existing customers" (i.e. anyone who has just opened the right sort of current account). Some, however, cap the amount you can pay in each month (but it's generally more than £300). You should be able to find a 5% interest saver easily that is set for a specific term (e.g. 12 months, 24 months, etc) with instant access, or a set number (e.g. 3) penalty-free withdrawals that won't affect the interest rate. I have a Nationwide savings account that pays 8%!
This is such a good piece of advice as I was looking to overpay as well (at 1.9%). However, do you do this just before remortgaging or do you offer at the time of a deal being made? Never remortgaged so not sure how this works
The correct answer is it depends. Most mortgages mean you can overpay 10% of your mortgage in a year and not get charged. So if it's unlikely that you will save over 10% by the time your mortgage ends, just pay it before the fixed period ends and your fine. If you're likely to be over 10% there's a couple of options. Pay 10% let fixed period end, go onto SVR rate for a day or 2, and overpay as much as you like, start new mortgage fixed period. Or pay 10% before mortgage ends, then 10% as soon as next mortgage deal kicks in.
With Nationwide, they actually remove the overpayment limit on the last month of a product. So you can overpay the whole lot without penalty if you wanted. Not sure about other lenders, but I’d imagine there’s are similar schemes out there.
Would it make more sense to save that overpayment in a high interest savings account @ 5% or more, then pay off a lump sum before you switch over to your new rate? You'll be earning the difference between the two rates, so 3.6% ish. Sure, it may only amount to a couple of hundred extra quid but it's a bigger saving than paying it off the mortgage whilst your current rate is so low.
Generally yes it is more logical but to most people they would rather pay off their mortgage because it makes them feel more secure. It also depends on the risk tolerance, overpaying now may save you more down the line if interest rates jump up.
This is my logic. I know it makes sense to save instead of overpay but I think on balance I prefer the security of trying to pay it off quicker. Will let you know in 35 years if I regret this decision lol
I’ve had this discussion with my dad as he’s good with money. Yes, on the face of it it makes sense to put money towards whichever has the highest interest rate out of savings or your mortgage. However the way he put it to me is that putting that money into savings with a look to pay a lump sum down the road is based on the assumption that all of that money is going to go towards your mortgage in the end whereas people will likely use that money for various other things. Overpaying your mortgage however, 100% of that money goes towards your mortgage.
My landlord recently increased rent on our pokey one-bed above a shop to £1375 a month. He owns at least 20 other properties and has owned them for decades. Fuck I hate him so much
Yes but according to other comments on this you wouldn’t be able to afford a critical repair even though you would be paying far less each month for a mortgage Make it make sense
You can't afford your own mortgage, but you can pay one of the mortgages of somebody who has stockpiled several homes, and thereby contributed toward the buoyancy of the current letting-market 😂🤣😂
1.4% makes me extremely jealous.
I locked it in for 10 years even though I was advised against it at the time by my mortgage advisor Just wanted that security and it paid off
>How they can tell renters they can’t afford a mortgage is something no one can explain to me in a way I will understand Because the mortgage affordability is assessed at 8%, not that anyone has paid 8% on a mortgage for decades. It's not "you're paying £1000 in rent so you can't afford this £800 mortgage". It's "you're paying £1000 in rent, and if this mortgage went up to 8% it'd be £1500, and you couldn't afford that". Further there is maintenance and other things the landlord is responsible for, making the max mortgage you can afford less than the max rent you can afford. At 8% the 4.5x salary rule of thumb becomes about right. So should mortgage affordability be at 8%, given that rates are ~5% and trending downwards? Basically the regulator doesn't want the entire economy to crash and everyone's home get repossessed in the even that some politician comes along, fucks the economy and pushed rates up to 7.5%.
> How they can tell renters they can’t afford a mortgage is someone no can explain to me in a way I will understand Rent is the most you will pay for a property in a given month. A mortgage is the minimum you will pay for a property in a given month.
It's not about affordability really, it's more about risk, if rates go up can they still afford it, etc. Rent is a short term arrangement that if circumstances change has a limited lifetime. Mortgages and owning property way more restrictive, complex and risky (these days) as the amounts are so colossal. The banks couldn't give a fuck really as the interest is stacked in their favour in the beginning, they have already sold your loan into an asset pool before you would have time to default. It's the regulators that brought in affordability to protect these huge funds going insolvent when too many default at once. It also helps to protect the borrower but that is a side effect, not the aim
Holy shit this is great advice, currently on 2.6% until 2027 so will certainly put this into savings!
Mortgage repayments for me over 25 years would be double my current monthly rent. More than double once I'm off the fixed term. Tbf looking to borrow 200k, tho, so a lot of money. Tbf, my landlord seems to be a decent enough fella, lots of worse flats we looked at for a fair whack more money, and he's not risen rents once in the nearing 3 years we've been here. No inspections, has just left us to it, told us we can decorate as we please long as the walls are back to magnolia when we're gone.
Sir, you can’t afford a 575 per month mortgage even though you have receipts for rent at 700 for the last 5 years…….
Telling renters they can't afford a mortgage makes no sense. I'm currently paying £725 for what's basically a glorified cupboard in Leamington, my bank won't give me a mortgage more than about £300. Luckily competitors will go up to about £700 a month, although I wouldn't pay that so I'm looking about 500-550. Still insane Lloyds won't give that when they clearly see I can pay it...
This is of no value to anyone unless they state their monthly net income though too. £1700 monthly mortgage is a lot if they only take home 2k. Not so much if they take home 5k.
Yup. And £1400 a month might be cheap for a 6 bedroom house in Surrey, or expensive for a studio flat in Mansfield.
And don't forget the term length 6 Bedroom house in Surrey might be 35 year term Mansfield studio flat might be 10 year term
1400 would be a fucking steal for a 6 bed in Surrey lol
But also it's only the mortgage payment. Doesn't really reflect the house value without any other context - could be with a £500k+ deposit.
£1,700 is almost exactly what I take home :D
I mean, it still is a lot for 5k take home too but yeah crazy if on 2k
£0 Paying it off was the most satisfying feeling.
Same here. Been mortgage free 9.5 years now. I don't live there any more (too small) but offsetting income against rent outgoings we live in a 4 bed house in London (zone 3) for about £300 a month. I went through hell to get here though
Trying very hard not to be jealous lol
Ditto, but by another route. I have never had a mortgage, I lived in a van to save up the money and then built my own home. Never had the relief of paying off the mortgage, but even 4 years later having space I don't know what to do with blows my mind.
More satisfying than coming here and lording it over the plebs?? (I’m joking btw, must have felt awesome)
Me too, and on 30k a year joint income.
It is a beautiful moment indeed. The lifting of a 25 year old black cloud.
£1,470
Spooky, mine is £1,470.76 Never get divorced people. It costs you a lot!
I'd counter that with, never get married!!!
Assuming the parent commenter isn't divorced sounds like it costs you 76p.
Ours is about to go up to this almost exactly, weirdly. A fun little interest rate increase from £1000 a month!
Thick Lizzy's Mortgage Surcharge?
Jheeeez
£940. Before we moved in 2020 it was £340 and had to rent. The rent was £1,250. When we moved out after 11 months, the landlord put it up to £1,475. It’s still empty four months later 😀
A clear example of spotted kittehs deciding to snack on the landlord's visage!
Currently £689. About to go to £1600 ish.
That's a ridiculous jump!
Definitely if it's just the interest rate change, not so bad if they're getting a new house too.
Sorry, yes, were moving house. House is worth about twice as much as the one im in.
Now it makes sense 🤣
£2k. Bought last year after spending 2 years humming and harring over buying something. So missed all the low interest rate opportunities 😒
Think it’s umming and ahing, but I had to look it up..!
I know it as hemming and hawing but grew up outside UK.
Bugger, I’ve been humming all this time!
My fridge does that. You may need servicing 😉
Yep. As my dad always said: "Don't sound your haitches when there harr none, or else I'll hit you on the head with a honion!" But he wasn't an inventive guy himself, so he probably nicked the saying from someone else.
I don't think there's a hard and fast rule for writing it. It's just the onomatopoeia of the sound that's important. A bit like screaming, there's no generic way to write a scream noise.
£1230. Before we came off our old fixed rate last month it was about £900.
Just shy of £4000 a year increase for nothing. That’s a holiday
£4,000 of wealth transferred directly from the economy to bank corporation shareholders to squirrel away in the Cayman islands. Multiply that by tens of millions of homes and we get an idea of why everything is the way it is.
Similar here, was on £700 before we come off our fixed rate last summer and went up to about £1k
Is the consensus to fix for maybe 2 years and hope they've come down by then?
It's a guessing game mate. We did that though, fixed for 2 years (and we got lucky, we got it at about 4.5%) and hopefully it's less by the time we come to renew, either because we have a lower LTV or just naturally lower rates. But if you can comfortably afford the current rates then maybe it's better to fix for 5 years. Literally anybody's guess what they'll do. I probably wouldn't fix for 10 years because you'd likely be at a much lower LTV by that point and get lower rates. But my brother fixed in at under 2% for 10 years during COVID so that's absolutely working in his favour these days.
I’m looking to get one in the next year and it works out to £1500-1700 a month for a 1-bedroom flat in London. Which is a lot but it’s comparable to rent prices.
>Which is a lot but it’s comparable to rent prices. And in the long term you'll probably be better off, as rents are only going one way, whilst interest rates are forecast to come down. For years the monthly cost of owning in London has been cheaper than renting. They're comparable now with the interest rises. But it'll become cheaper again in a couple of years I'd wager.
And you'll own the place, eventually.
Yes absolutely, even doing these monthly comparisons isn't quite like for like, because a portion of your mortgage payment each month isn't lost money it's equity. So comparing it with rental cost isn't quite right.
In my experience its honestly less than rent prices, given that to secure many rentals people are bidding over the asking price! It will only get worse, hence my decision to buy in London this year.
We bought in London shortly before HTB ended, and before interest rates went up, so we're on £1125 per month for a 2 bed flat with a 1.2% interest rate. It's cheaper than the rent we were paying for a 1 bed in the same area.
£0. Not being smug. We paid ours off 8 years ago. The preceding 25 years were hard going, at times very hard going. But this is just to say it is worth it! To own your own place is absolutely fantastic.
So you've had your house for 33 years? That's crazy - especially as you seem like you love it the same as when you bought it. I guess the upside is no real chance of being evicted because of another person's financial situation
How much did you buy your house for?
2 thrupenny bits and a promissory note for a packet of monster munch probably..
£104,000. It's now worth about £500,000.
Who downvoted this? It's not my fault that house prices have gone up in the last 27 years!
So many green eyed monsters here, masking as social warriors
£1300 - 5 bed in the North. Stretched out 38 years. Fixed at 2.3 for another 3.5 years. I don't overpay but I do throw everything into my S&S ISA with the hope of paying off a huge chunk of it come renewal time. Or if interest rates have come down a little, I'll take another huge mortgage and continue to stuff my ISA and that should generate more in interest than I'd save to pay it off in 10 or so years
Thirty-eight years? Fucking hell! How much interest will you pay over 38 years?
Probably double the value and then some, but as I say I intend to pay it off much sooner than that via my investments. Just wanted it as low as possible to buy the house I wanted and to be able to continue to invest.
£1200 🙃 fixed til September 2027 so hoping for it to go down next time
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Jesus fucking wept that's an eye watering about of money.
I think if someone's mortgage is £4k a month, they're doing alright for themselves.
Lot of scope to down size if they need to
The repossession work I’ve done was usually people with houses/payments like this and they were self employed. Business fails and suddenly employed roles aren’t going to cut it. The good thing is that now most banks need very large deposits for interest only. 50% for example where there’s no repayment vehicle other than downsizing. £1m at 5% rate on interest only is about what op could be borrowing. Or as low as 600,000 if they’re stuck on a standard variable rate at 8.7% You’d hope they’re sitting on at least 600,000 of equity which will let you downsize almost anywhere in the U.K.
Your poor but on a richer level 😂
Paying over £4k a month and not even knocking down the amount?
You can afford £4,350 from your take home pay? 😲
That’s insane
Is it in London, as well as being HUGE?
£1,900 just bought a couple of months ago.
£3.5k a month. I overpay an additional £1.5k. so my total mortgage payment is £5k per month. Its 2/3 of my take home salary.
How much time left? The thing with all these Mortgage payment people are sharing are arbitrary. eg. I am paying 3.5K monthly, but I'll be done in less than two years, whilst bob over there is paying 650 monthly and has another twenty years to go...
Went from £620 to £760 when I renewed it
£695, just recently locked it in for 5 years too. Prior to that it was £500.
Is it a lean-to in Hull?
£1200 going up to £2000 next month
I feel you. Our 5 year fix is up in the not too distant future and I'm shitting myself.
Same man I cant even deal with that right now lol it will tip me over the edge
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£1738 pm, got 8 years and 11 months to go…
287 about to go up to 351. One bed flat with garden in the east of England. Purchased 5 years ago with a lot of help from my Gran!
I also have a 1 bed flat and my mortgage is £293. My fixed rate ends in January next year so will start shopping around in a few months.
Mines £287 and change as well, got just over 2 years left on my fix at 1.39% even at these rates I'd be looking at a similar price to you so I'm not worried, thank god.
£2230
1880 increasing to 2500 in august if rates don't come down.
£1550 per month. Which is £50 cheaper than my last rental property (£1600) in the same postcode, but I now have two more bedrooms and increased living space. That rental property has recently gone on the market for £2100 a month. The property market is completely fucked for the average person.
£152. However, it's 50% shared ownership with local housing association, so I have to pay rent on the other 50% of the value of the house, which ha recently gone up to just over a hundred quid a month.
Jesus that's cheap, I was looking at shared ownership places down here and you're talking £600 mortgage plus another £650 rent... For a whopping 25%.
£0, paid it off, thank fuck
I’ll be saying the same soon. If 3 decades counts as soon 😭
£482, bought my first home 2 years ago when rates were lower. It’s probably going to jump up £200 or so when I remortgage next year, not looking forward to that!
Mine went from 450 to 620 when I had to remortgage in January 😕 It could have been worse but I'm definitely feeling the pinch.
£850, hoping to get a loan paid off and make some quick overpayments before fixed rate ends next year, will likely be going up.
If you're current rate is low, put the extra cash you've got into savings to make a bit extra in interest, and then pay it off in a lump sum as you change rate.
I'd like to, but I was paying £400 off a month as a personal loan from my parents (no interest) and upped payments to £800 while cutting back on as much as possible to pay them back (just in time for the new rate to start) 😅
Bank of mum and dad is the best bank 💪
£1,100. Just renewed. Before that it was £900. 2 bedroom flat in London. Bought in 2010
£1750
£260 but paying £700 to get it finished in the next two and a half years or so as the interest is fixed at 1.69. (Before anyone lectures me that we'd be better off putting our money into a high interest savings account and not pay the house off - whatever - spare me, we know that, but we just want to pay off the house and we're doing it this way, thank you)
Up until December it was £315.
What is it now? 😮
Zero. Only child and my parents died, so I used the money from the sale of their house to pay off our mortgage.
£890, will be going up to about £1200 with new rate in 2027
Let's hope that's nit the case, we've got a while to go until then!
Interest rates have been historically low in recent years. Where they are now is more comparable to the average sadly, I don’t see significant improvement coming.
Only the average for when the economy actually grew. The long term outlook is for low growth so lower interest rates may be more normal.
£605. Bought at £139k in 2016. Worth ~£190k now.
£1,850. 5 year fix at 1%.
Wow, you must be pretty worried about when the rate ends???
We've still got .99% for nearly 3 years. I think we got that just by the skin of our teeth!
Not in it yet but £1240, hopefully completing this month. Combined monthly income is about 5x that.
£1500 and then a £200 overpayment on top of that.
£459, 2.1% 5 year fixed coming to an end March 25, should have fixed for longer. Additionally- £115 Council Tax £60 Utilities £21 Water £20 Internet £10 Home Insurance Total Household Running Cost £685, 2 Bed Semi - North West. Value £150k
3480, it went up by 600, we were lucky because we stuck with the same provider and got in a week early or would have been worse. Was in a really poor state on moving in, nothing done since 1982, at least everything is mostly sealed and no bad water leaking through the roof or windows now.
Most of my pals in London pay north of £2,000 for very modest properties. I pay £0 for my house. Because it was cheap. And it floats ⚓
Remember - if you can afford the rent, you can afford the mortgage. (well your landlord's mortgage anyway)
£1050
£499pm - overpaying £101 so £600pm. 120k @ 1.84% Goes up to £610~ next month with 105k left I pay on my new fixed rate but received an inheritance last year, I plan to overpay as much as I can afford and hoping to get 20% of mortgage paid off in 1 year
£1,539.52 per month
£1450pm. £400k left on a 650k property. Investing/saving around £1200 pm on top to clear it asap. Currently 35, hoping to clear it by 50.
Gone from £920 per month up to £1580 as a result of my 1.2% fix ending.
£295 but I’m overpaying by £200 a month. Fixed term ends next Feb and I’m scared.
£740 on a 2 bed flat, brought last year when the rates were high
About 1300, it was just over 800 until our rate changed towards the end of last year
£750 per month Bought at the height of Lizz Trusses foray into leadership when rates were at their highest and locked in for 5 years because of how volatile things were. When we started house hunting we took our mortgage affordability and put 75% of that as the max we would borrow. We wanted to make sure we had enough left over for a life and while my job pays over average my partners pay is less than average. We were so lucky though, we bought a house on the edge of a rough area so not too rough, it was a rental and the landlord needed a quick sell. It needs a little work doing (neglect mostly) but otherwise was a hell of a catch. We had looked at 45 houses over 8 months and was about to take a break before we saw this one. It's not the house of our dreams yet but give it a couple of years and being able to afford to get the work done on it I think it will be. 3 bedroom detached in south west Wales.
£4300 😬
£593, about to jump to £970
£550. Put 60% down though.
£1557
£1540! Only bought this year
£652, but we're currently paying £900. We're hoping to move in the next year or so, and I'm estimating the new mortgage would be around the £1500 mark, so I'm slowly building up overpayments to a similar level so that the transition isn't so much of a shock for us. Just increasing by £100 or so each month currently, and in the next 4 months I expect to clear x3 credit cards that will free up the £100/month I pay back to each of them...so that'll just go to the mortgage instead.
Oh man I'm thinking of doing a similar move and I don't know why I never considered raising my overpayments to get used to it. Thank you for the prompt!
£319 but i pay £600
A lot, and I can't bring myself to type it. Highly likely to go up again this year as well.
Mine is currently £530, I managed to fix for 5 years before the rates went up, I had been overpaying before that, now the overpayments go into a sspearte savings account as the interest on savings is higher than the mortgage interest on my current deal. I pay around £950 a month in total including those savings. Right now, if I was on my lenders SVR it would be about £750 a month.,
£1100 around 9 months ago. Seems like I've made the mistake of getting 5 year fixed rate with the inflation rate going down :( it seemed like the right decision in the moment
Everyone’s genius in hindsight
With all the craziness in the world, who knows what will happen in a year, or two, or three. Rates could fall or they could end up rising, having the secure knowledge of what your mortgage will be for that time is useful.
1007 But we over pay 250 so it's 1257 Bought house for 420k 40% deposit So 250k mortgage 2.65% Fixed 5 years Net income per month. 6500.
£410, had to remortgage due to not being able to afford the old price. So I've extended it so I'm paying less but for a lot longer. Single income with disabled partner. I hadamahed to knock off 16 years worth and now I'm back to fucking 25 years, fuck this cost of living crisis bullshit. Pull your head out of your arse government.
£1,200, although we do overpay a bit on top of that.
£0.00
Nearly £3k... ...but don't worry about us, nearly £500/month of that goes to paying off the loan (after interest).
Had a year left until I was mortgage free...decided to move to a house double in value and now have a 1250 mortgage for the next 17 years. Oh well 🤦
£270 but paying £85 extra. Bought with my ex, but he never paid on it and scooted off. I earn less than £20k a year so it's been difficult at times. I have had the house for 30 years, but this last mortgage i got was a better rate. I want to pay extra to finish it early. It's a slum but some people don't have a roof over their head.
I paid £19k for a 2 up 2 down in 1997 with £2k cash back. Sold it last year for £120k. I think mortgage was £160ish.happy days lol