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‘My Mortgage Payments Will Increase by 66%, But There’s No Way Out’

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My husband and I purchased our current home at the end of 2019. I’ve been looking for a property for a long time, but it was really difficult to buy in my hometown of Liverpool, England.

At the time, I was working as a software engineer and earning a good salary of £75,000 ($85,636), so it wasn’t unrealistic to be able to afford it. I’ve been looking for it for a long time, but it was really difficult to buy it in my town.

The type of house we wanted usually got a lot of interest from other people. I lost 10+ in the whole process. I’ve been looking for about 3 years and got nowhere.

In the end, you decide to buy a new home for £380,000 ($432,343) and pay a booking fee. It would be more expensive, but my husband and I were fed up at that point. I didn’t have to worry about someone else bidding higher or the seller changing their mind.

Emma Jarvis, 32, from Liverpool, is the founder of pregnancy subscription service Dearbump.
Emma Jarvis

get a fixed rate mortgage

Instead of getting a completely new mortgage, I transferred an old 2-year fixed rate 1.2% repayment mortgage from my previous property. The mortgage was renewed at the same fixed rate in early 2020, resulting in an increased payment rate from February 2023.

Shortly after purchasing the house COVID-19 crisis strike. Some members of my work team have been laid off. So while they couldn’t go to work, the government paid part of their wages.

This led me to take on extra work from furloughed team members while trying to cope with other issues such as homeschooling. I was not satisfied with the amount of work the company was putting on me alone, so I left the company immediately.

About four years ago, I started a business offering select support for pregnant women through a subscription box. After quitting my job, I devoted myself to the company full time.

Our mortgage at the time was £1,200 ($1,365) a month, so we were able to handle the payments while growing the business. however, cost of living crisis The economy deteriorated due to the war in Ukraine and other factors, and sales plummeted.

Because we were in a direct-to-consumer business, many customers couldn’t afford to continue to buy our products. People were really sad about it. Not only did our customer base cancel, we were told, ‘I’m really sorry, but I can’t afford that.’ It was really sad. So I lost my income because of it.

Loss of income during the COVID-19 pandemic

Earlier this year, we pivoted to helping other companies retain talent by enabling female employees to return to work. The company is not yet profitable. We were, but since becoming a B2B company, we’ve stopped focusing on our primary source of sales.

The business earns about £50,000 ($56,911) a year, but margins are minimal due to cost of goods and other expenses. I pay £1,000 ($1,138) a month in benefits, sometimes less. My husband works, so our combined income is currently around £3,500 ($3,983) per month.

The cost of living crisis has increased other household costs by around £300 ($341.50). To save money, I reduced my 3 year old son’s daycare hours from her 5 days to her 3 days.

Increased mortgage payments

Emma Jarvis
Early in the pandemic, Emma changed its business model from direct-to-consumer sales to business-to-business sales.
Emma Jarvis

A week ago I received an email stating, “Your mortgage will renew in February. Click here for options.”

The only options it gave me were a two-year fixed rate at 5.83 percent or a floating rate of 5.89 percent. This increased his payments by £700 ($796), bringing his monthly total to £2,000 ($2,276).

I couldn’t believe it. It looks like we haven’t actually paid off the mortgage, it’s just interest. Money transferred directly to a bank. I feel like I’m throwing that money in the trash every month.whole point Buy a house invests in real estate, but if you’re wasting nearly £1,000 ($1,138) a month on interest, you’d be better off renting in my opinion.

I was going to consider switching mortgage providers, but I am self-employed so it is very difficult. Normally I have to provide 3 months of bank statements to prove my income but since I am self employed he has to provide 3 years of bank statements which I don’t have. I can’t even get a phone contract now.

If I can’t get a full-time job now and have three months of bank statements before February rolls around, I’m stuck. stuck. I’m stressed, I’m under pressure, I’m worried.

I don’t think all mortgages are this bad. This is my provider’s current rate and it’s my only option, but if you’re looking to get a new mortgage, I’d recommend talking to your broker to find the lowest possible rate.

Emma Jarvis, 32, from Liverpool, is the founder of Dearbump, a pregnancy subscription service for workplace support and Parent Promise by Dearbump.you can visit their website here When here.

All views expressed in this article are those of the author.

told Newsweek deputy editor Monica Greep.

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