London Daily

Focus on the big picture.
Friday, Dec 05, 2025

'Our mortgage got so high we put off having a baby'

'Our mortgage got so high we put off having a baby'

Alex Czok and her husband Tom Beech had hoped to start a family this year but when their mortgage went up by hundreds of pounds they put their plans on hold.

They are one of the four million UK households facing higher mortgage bills this year.

On Thursday, the Bank of England increased the UK's main interest rate to 4% - its highest in almost 15 years.

But mortgage payments aren't counted in the main cost of living figure that drives pay and benefit rises.

Ms Czok and Mr Beech were keen to get a move on with starting a family after the pandemic delayed their wedding plans.

They had done the budgeting for kids. They could make ends meet during a baby's first year with money set aside for her maternity leave or childcare later on. But that all changed.

"Because of the mortgage going up by £300, the money I was thinking of putting aside for the child, it would eat up most of that, so I will have to wait until we get a better mortgage deal," the 26-year-old said.

The average monthly mortgage bill will go up from £750 to £1,000, the Bank of England said in December.

The couple's repayments are going up by a bit more than that average rise of £250.

It's more than double the rise in energy bills that they had to suck up last year. Ms Czok says starting a family is going to have to wait.


Two different cost of living crises


The pay bump she got with a new job as an admin assistant for the council doesn't come close to the double hit of inflation and rising interest rates.

And it is a double hit: two different cost of living crises.

The official inflation number that drives discussions of the cost of living doesn't take account of mortgage interest costs.

But that number determines how much benefits will rise and it sets the tone for salary negotiations between employers and unions.

So the difference matters. Unions like Unison, who represent many council workers, say that "inflation statistics are of vital importance to our members".

Why doesn't inflation include mortgage payments?

The main measure of inflation - the Consumer Price Index (CPI) looks at the prices of things we buy and use up: like food, fuel or holidays using internationally agreed rules.

It's designed for officials working out what to do with interest rates or for comparing the UK to other countries.

But it's not exactly the same as the cost of living.

You don't use up your house if you own it. Eventually you'll sell it, maybe at a profit. So the rules don't count house prices.

They also don't count the interest paid for things you buy with your credit card - only the original price is tracked.

But your cost of living does depend on interest payments. Especially the one in your mortgage.

The Office for National Statistics (ONS) is developing new statistics designed to capture better the cost of living, including mortgages, for different types of households, like pensioners or families with children.

A bigger hit than food or fuel


Unison argue for a different measure of inflation that does take account of mortgage rates.

But if we want to target help to households with different needs, then our price statistics should be "specifically designed" to measure those different needs, argues Jill Leyland, an inflation expert at the Royal Statistical Society.

Most households won't be hit directly by the huge repayments that Ms Czok and Mr Beech will face. For example, people who don't own or plan to own a home or who have already paid off their mortgage.

But those who are getting hit will be hit hard. It moves serious money worries back up to people we would have previously thought of as doing ok.

Stu Hennigan, for example, has a decent job as a senior librarian, earning a salary that his 30-year-old self would have described as a "jackpot".

Stu Hennigan and his family spends almost a third of their income on their mortgage


But the rising cost of living means he's returned to the skint feelings he remembers from his younger, minimum wage days - using cards to spread unexpected costs like a car repair over a couple of months.

Half that hit came last year, with the food and fuel bills story familiar to everyone, just as the Hennigans' two kids started to reach the age of growth spurts and enormous appetites.

But the family's finances took another hit in November when their bank told them what their new mortgage payments would be.

They're now spending nearly a third of all their income on the mortgage.

But Ms Czok and Mr Hennigan still feel they're relatively lucky.

And Ms Czok and Mr Beech hope in a few years that time and money will be on their side when it comes to starting a family.

Newsletter

Related Articles

0:00
0:00
Close
UK Inquiry Finds Putin ‘Morally Responsible’ for 2018 Novichok Death — London Imposes Broad Sanctions on GRU
India backs down on plan to mandate government “Sanchar Saathi” app on all smartphones
King Charles Welcomes German President Steinmeier to UK in First State Visit by Berlin in 27 Years
UK Plans Major Cutback to Jury Trials as Crown Court Backlog Nears 80,000
UK Government to Significantly Limit Jury Trials in England and Wales
U.S. and U.K. Seal Drug-Pricing Deal: Britain Agrees to Pay More, U.S. Lifts Tariffs
UK Postpones Decision Yet Again on China’s Proposed Mega-Embassy in London
Head of UK Budget Watchdog Resigns After Premature Leak of Reeves’ Budget Report
Car-sharing giant Zipcar to exit UK market by end of 2025
Reports of Widespread Drone Deployment Raise Privacy and Security Questions in the UK
UK Signals Security Concerns Over China While Pursuing Stronger Trade Links
Google warns of AI “irrationality” just as Gemini 3 launch rattles markets
Top Consultancies Freeze Starting Salaries as AI Threatens ‘Pyramid’ Model
Macron Says Washington Pressuring EU to Delay Enforcement of Digital-Regulation Probes Against Meta, TikTok and X
UK’s DragonFire Laser Downs High-Speed Drones as £316m Deal Speeds Naval Deployment
UK Chancellor Rejects Claims She Misled Public on Fiscal Outlook Ahead of Budget
Starmer Defends Autumn Budget as Finance Chief Faces Accusations of Misleading Public Finances
EU Firms Struggle with 3,000-Hour Paperwork Load — While Automakers Fear De Facto 2030 Petrol Car Ban
White House launches ‘Hall of Shame’ site to publicly condemn media outlets for alleged bias
UK Budget’s New EV Mileage Tax Undercuts Case for Plug-In Hybrids
UK Government Launches National Inquiry into ‘Grooming Gangs’ After US Warning and Rising Public Outcry
Taylor Swift Extends U.K. Chart Reign as ‘The Fate of Ophelia’ Hits Six Weeks at No. 1
250 Still Missing in the Massive Fire, 94 Killed. One Day After the Disaster: Survivor Rescued on the 16th Floor
Trump: National Guard Soldier Who Was Shot in Washington Has Died; Second Soldier Fighting for His Life
UK Chancellor Reeves Defends Tax Rises as Essential to Reduce Child Poverty and Stabilise Public Finances
No Evidence Found for Claim That UK Schools Are Shifting to Teaching American English
European Powers Urge Israel to Halt West Bank Settler Violence Amid Surge in Attacks
"I Would Have Given Her a Kidney": She Lent Bezos’s Ex-Wife $1,000 — and Received Millions in Return
European States Approve First-ever Military-Grade Surveillance Network via ESA
UK to Slash Key Pension Tax Perk, Targeting High Earners Under New Budget
UK Government Announces £150 Annual Cut to Household Energy Bills Through Levy Reforms
UK Court Hears Challenge to Ban on Palestine Action as Critics Decry Heavy-Handed Measures
Investors Rush Into UK Gilts and Sterling After Budget Eases Fiscal Concerns
UK to Raise Online Betting Taxes by £1.1 Billion Under New Budget — Firms Warn of Fallout
Lamine Yamal? The ‘Heir to Messi’ Lost to Barcelona — and the Kingdom Is in a Frenzy
Warner Music Group Drops Suit Against Suno, Launches Licensed AI-Music Deal
HP to Cut up to 6,000 Jobs Globally as It Ramps Up AI Integration
MediaWorld Sold iPad Air for €15 — Then Asked Customers to Return Them or Pay More
UK Prime Minister Sir Keir Starmer Promises ‘Full-Time’ Education for All Children as School Attendance Slips
UK Extends Sugar Tax to Sweetened Milkshakes and Lattes in 2028 Health Push
UK Government Backs £49 Billion Plan for Heathrow Third Runway and Expansion
UK Gambling Firms Report £1bn Surge in Annual Profits as Pressure Mounts for Higher Betting Taxes
UK Shares Advance Ahead of Budget as Financials and Consumer Staples Lead Gains
Domino’s UK CEO Andrew Rennie Steps Down Amid Strategic Reset
UK Economy Stalls as Reeves Faces First Budget Test
UK Economy’s Weak Start Adds Pressure on Prime Minister Starmer
UK Government Acknowledges Billionaire Exodus Amid Tax Rise Concerns
UK Budget 2025: Markets Brace as Chancellor Faces Fiscal Tightrope
UK Unveils Strategic Plan to Secure Critical Mineral Supply Chains
UK Taskforce Calls for Radical Reset of Nuclear Regulation to Cut Costs and Accelerate Build
×