I’m a junior doctor on £40k. My mortgage has shot up overnight and I don’t know what to do

Welcome to Money Matters: GLAMOUR’s weekly dive into the world of finance. We’re chatting all things personal finance, from contracting rights in the workplace to expert mortgage advice and saving for your first home, to ISAs and dealing with debt, to help empower you to make better choices. Now more than ever, it’s important to understand our money, but so many of us feel as if we don’t have a handle on it – or worse, feel anxious and scared about money.

So each week, a woman in a unique situation will give us an honest breakdown of her finances, and our expert will give her easy tips on how to tackle it.

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Juliette* is a 31-year-old junior doctor on roughly 40k a year. She lives with her partner in Manchester in a house they bought two years ago using savings (and additional support from their families).

They recently received a letter saying their mortgage has shot up and they’re in a state of shock. Juliette works day and night to help others but feels she can’t even help herself.

Her partner is also a junior doctor, and the combined stress is putting a serious strain on their mental health, which is compounded by worrying about their finances.

They had been planning to try for a baby but have decided they can’t afford it, as they’re struggling to envision how to move forwards.

Here, she shares her money diary:

MY ACCOUNTS

Current account: £3,400
Savings account: £0

MY INCOMINGS

Annual salary pre-tax: £40,000
Annual salary post-tax: £31,000
Monthly wage pre-tax: £3,333
Monthly wage post-tax: £2,544
Other incoming payments: £0

MY OUTGOINGS

Rent/mortgage: £1,200
Bills: £200
Splurges: £0
Other: £0
Any student loan/credit cards/overdrafts etc: £1000 per month on my student loan.

MY MONEY THOUGHTS

My worst money habit: Worrying about it.

My biggest money worry: Losing my home due to the mortgage.

My financial hopes for the future: I honestly don’t know.

Current money mood: ????????????

Makala Green is a multi-award-winning Chartered Financial Adviser at Schroders Personal Wealth and has over 18 years of experience in the financial industry. She understands managing money can be complicated and confusing, which is why she is passionate about making financial planning more accessible for all. She is also the Author of The Money Edit; a no shame no blame guide to taking control of your money.

Review your finances.

When facing financial hardship or going through changes in your circumstances, the best thing you can do is review your current finances. Take a deep dive into all your outgoings and explore if there are any areas you can temporarily cut back on. It might only be a small amount, but every bit helps. Once you know what you can afford, it’s worth contacting your lender, running through your budget with them, explaining your circumstances, and seeing how they can support you.