Fixed mortgage ends 2023 support thread

[Echo40]

Just wondering anyone else same boat?

Our fixed 5 year mortgage ends Dec 2023 currently Halifax fixed at 2.44%.

Freinds daughter trying get mortgage currently and she's been offered 6% as rates always above base rate.

Bank of England predict least 2 more rate rises in spring go try and control inflation they say as inflation the enemy.

Looked at recent annual statement.
Worked out what would be left to pay I dec.
Used Martin Lewis mortgage repayment calculator.
Can't extend term due to age.
Want to stay on repayment mortgage.
House definitely worth more than we paid and we put down 22.5% 54k so think we should have least 100k equity so no idea of the loan to value who get us a good rate.
I think we can start shopping around 6months before and think read Lloyd's would honour quote they could give us in July.
I put in worst case interest rate of 7%, as was trying to stress test us and see how much Increase we could be looking at.
Its around £300 per month at 7% as its so far away still no idea I reckon 6% very possible.

But add in Increase in energy and food which continues to rise could be looking at finding a extra £500 per month how is that viable for so many?

Not sure what to do trying not to panic it's beyond my control.
I'm focusing on what is in our control as follows and wondering what everyone else is thinking 🤔 or doing.

We wanted to extend as have 4 kids 3 bed house but scrapped that idea and we moving our bedroom into front lounge as have small lounge at back and divided one bedroom into 2 sides this way 17 year old gets own bigger room.
Son gets small box room and 2 middle girls can share but be divided compromise is much smaller lounge.

Added a 2nd income its minimum wage but every little helps.

Not through choice new boiler as old one condemned hoping long term that save us a little money and placed £2700 on 0% credit as paid 1k cash from savings.

Considering costs and savings of Woodburner in dining room as back of house open plan as worry about energy next winter without any government help at the moment we getting 67 month and cap is £2500. Cap goes up to 3k April and based on current dd we already exceeding 3k a year if stayed same for 12months.
We really need to replace 1 single glazed window and door this summer big expense but offsetting expenditure v energy bills.

Debt we have some credit card debt not because of luxuries just Increase in living costs mostly car related as have very little savings.
Transfered bulk of it to 0% deal think 15 months left on that need to check.
Aim is with credit card 2 which we do pay interest on is clear by summer.
Dont want to go into mortgage with large amounts debt or as they say high levels of gearing.
Credit score fairly good.

Other steps want to achieve before winter is

Save up 1 k emergency fund
Clear overdrafts and use them as emergency not credit card as short term help not live in them every month.

Have a xmas savings fund and buy majority presents early.
Already brought cards and other items cheap in sales.
This should take pressure off in December when I'm stressed about new mortgage.

As above try and find ways save money on energy to help us cope next winter maybe build up a credit over summer months give us a cushion.
Thinking getting air fryer, heated clothes airer and dehumidifier to try save some money on energy.

Stock pile more long life food do tinned / dried things with long life.
No foods like cleaning and bathroom which will help lower grocery bill for 2024 as our increased mortgage payments start xmas.

If we clear debt
Try lower food and energy
Have savings

Hopefully can absord the Increase still a worry hence why forward planning now.

Wondering if very high if even worth moving maybe as well continue with current lender on variable rate.
If we officially in recession will Bank of England start to lower base rates can't see it in 2023.

Anyone else stressing or planning.
Any ideas welcome
Think Martin Lewis keeps warning government this be next big crisis as everything is going up.
Even if inflation goes down energy and food prices won't fall.
Most peoples wages not keeping up with inflation anyways.
Will even effect renters too.
I guess the housing market will drop as house opposite sold 230k during time truss came to power then buyer lost mortgage deal so back on market and now months later sold 290k.

www.manchestereveningnews.co.uk/news/property/word-warning-millions-homeowners-fixed-25932216?int_source=amp_continue_reading&int_medium=amp&int_campaign=continue_reading_button#amp-readmore-target

uk.news.yahoo.com/million-uk-households-mortgage-crisis-155952811.html?guce_referrer=aHR0cHM6Ly93d3cuZ29vZ2xlLmNvbS8&guce_referrer_sig=AQAAANZx-abkLVCD5EFxvgng5NPtX8Qq2XltIoDkkVuowETEvGWU66PWd_TGqRANmEA7ZUHawSNUb5BamGmVaquZnrUjOUSMQoSqvaahvsuV2Zyt20w6XAf0EM-yBWjngmvhje7K5KiagW_Q7tJoXESE-CRkpQDg6kbuIOhC3eqiFpkr

amp.theguardian.com/business/2023/jan/08/mortgage-payers-face-squeeze-in-2023-after-uk-interest-rate-rises

www.express.co.uk/news/politics/1719063/bank-of-england-inflation-uk-economy-interest-rates/amp

This is bloody crazy. And unfair.
A PP (or it might have been someone on another thread) posted that they had increased their term from 29 years to 40 and I'm ashamed to admit I didn't believe it because a) I didn't know they did 40 year mortgages and b) I couldn't believe that you could extend by that much and your monthly payments still go up by ~£500

What a fucking shitshow 🤬

Don’t forget. This could be over tomorrow if the Tories imposed an interim wealth tax. Instead the wealthy are getting wealthier with their interest on savings and the rest of us are getting poorer. All because the tories want their backers at the next election.

They could stop this tomorrow.

Exactly. Inflation is being driven by greed. Us PAYE losers are taking the hit.

Well after much procrastination and differing since we started this thread and waiting 6months before fixed deal ends finally taken action.

Biggest driver for me was disagreement between economists on peak base rate and how long high rates would last.

Looked at wide variety of economists , bankers and mortgage brokers in newspapers/ twitter and you tube even.
General consensus was high rates here to stay all of 2024 and may not drop until 2025.

Spoke to colleague at work who managed secure 4.5% in early June.

Rang my provider Halifax as husband was against fixing and said they would come down let's weather being in standard variable rate for 12months.

So I ask what variable rate is and is no where near base rate
8.49%!
Hell no do you offer tracker?
Nope haven't offered those in years.

So last Tuesday

2 year 5.89%
5year 5.41%
10 year 5.5%

Husband was like maybe we should wait.
The monetary policy Committee at Bank of England meet 8 times a year technically they could callemergency meeting but they were not during to meet again to decide interest rates until August.
Issue is lenders seem to be upping their rates above base S they factoring in more rate rises.
The next key panic date was today June inflation figures came back bit lower but I'm skeptical Bank of England will cit base rate or stop another 2 rises as most inflation is supply side issues not consumer spending/ wage driven.
So many things currently that could cause another spike
Russia blocking agricultural exports from Ukraine.
Lack of energy security expect energy rise again oct.
Extreme heat wave Europe could mean many crops we import more expensive.
Health certificates launched in October for eu importers adds to costs.

I did a mse mortgage calculator putting in 7% as worst that's extra £420a month.

Wemt to see independent mortage advisor and decided stick with Halifax as money supermarket not coming up with any amazing deals.

Settled on 5 year fixed at 5.41%
House book valuation 302k reckon ours is worth more but house prices may drop 10%.
We have 53% loan to value and 19 years left repayment good credit rating.
Dont want extend term due to age and extra interest need it paid off earlier as latest pension statement is crap.
5 years as husband Home related retail so when recession hits reckon sales and commission drop.

So we looking at extra £220 per month next 5 years still annoying but doable.

Many years ago 10plus husband signed up agency work on days off.
Also if work Mon to Fri could add evening or weekend retail shift.
Most peoples increase eans adding extra income most people can't make £500plus through efficiency savings.
No idea we did right thing time will tell wr can change before Dec if rates drop.

Well done. At least you did your research and made an informed decision, and can stop thinking about it now. I am going with 2 year fix and changing provider. Just waiting for the formal offer to arrive to sign and send to the solicitor. Our current fix ends 31-12-23.

I hope people remember all this crap come election time. Rising interest rates, inflation, Liz Truss, the handling of covid, energy bills , that's just off the top of my head, obviously there are loads more.

I'm not saying Labour could have necessarily handled it much better, but all the story decisions are in favour of the rich few, rather than the ordinary person who just wants to earn a living, have a roof over their head, afford food and just maybe have a few pounds at the end of the month to spend.

*Tory decisions

Should have locked in with Halifax yesterday as there 5 year deal has gone up from 5.41% to 5.61% today ! 😩

If you're disciplined do consider extending the term and then making overpayments. Dh got made redundant about 10 years ago when our mortgage was £1000 and we struggled. Thankfully he found a new job fairly quickly and when we renewed we extended the term to the max bringing our mortgage down to £600. We have still made payments of £1000 a month though so the term is coming down all the time and won't actually be any longer than it originally was, but should the worst happen again we can immediately start paying £600 a month instead of trying to negotiate with the bank while one of us is out of work. We're with First Direct who allow unlimited overpayment

The rates have gone down a teeny teeny teeny bit.If your mortgage ends in 6 months (like mine) are you locking in now or waiting to see if they drop a bit more before your current deal ends?

I should state that this is what I’d do for myself, I am not a financial advisor! Also, I have no known plans to move house, so that impacts my view.

If you are within the six month time-frame, I would look to lock in now with your current lender. Firstly, I would give them a quick call to double-check that, if you secure a rate now, that you are easily able to cancel and secure a new one if rates move favourably before your six months is up. This shouldn’t be a problem, my lender just said to allow at least 10 days for a final change before current fix ends.

You will then need to decide whether tracker (usually two years), or fixed (usually 2, 3 5 or 10 years). Each of those options (with my lender) are then broken down into “no product fee”, “product fee upfront” or “product fee added to loan”. So it’s easy to see the overall cost for arch option.

Locking in now, with your current lender, means you’ve at least secured a “worst-scenario” rate.

Also, bear in mind that, with your current lender, you won’t need to go through new financial checks, there’ll be no valuation, etc. It should all be straight forward - I did mine online, took 10 minutes max.

Thats the first hurdle done. You’ve secured the best rate you can, with your current lender, for the least amount of hassle.

Then, just keep an eye on the news and check in on your lenders website every week or so to see if your metrics have changed more favourably.

In the meantime, also keep checking mortgage comparison sites. You may find a more favourable option during the six months. However, bear in mind that moving to a new lender may shave a fraction of a % off your rate, but it will involve full financial checks, valuation, fees, etc - sometimes that small saving isn’t worth it.

The other thing to bear in mind, though it’s obviously not easy for most of us at the moment, is restrictions on overpayments. Some mortgage companies only allow, say, 10% per annum of the CURRENT mortgage balance. Others allow 10% per annum of the ORIGINAL amount borrowed. This could maybe help your decision with how long to fix for - you might go for the slightly longer term with a slightly lower rate, but it gives you the option of knowing your fixed costs and having the flexibility to overpay if and when you have the means.

One last piece of advice. Make “peace” with the decision you decide upon - as you’ll have made the best decision based upon your circumstances at that time. Don’t then torture yourself with what rates are doing once your new deal starts, it’s not worth the stress!

Meant to add, and I said this on another thread. If you do decide to change lender, personally I would probably be sticking with one of the more well-known names.

Am sure that’s me being over-cautious, but having seen the demise of so many utility companies, I’d be feeling more comfortable with one of the main players rather than a name I don’t recognise.

All good advice. I have just secured a rate with a new lender. I will now keep an eye on how things change. I have until the end of the year.

Woop! Managed to complete. Only £230 more a month... joy.

Yes my great deal I have secured (aka worse case scenario) is £300 more a month and I had to extend the term for that!

It is so depressing isn't it.

I mid- sale (divorce) and will need a new mortgage to buy again. A year ago I could have done it but with rates as they are now, it isn't possible. Can't go for an extended term due to age.

Finally had the rate (4.34%) secured today, after what felt like months going back and forth. Almost 50% more than we are paying currently but glad we sorted it when we did at least. Just wondering now if 5 years fixed was a good choice or not.

think 5 yrs @ that rate is decent....

That's a great rate, who with?

Natwest @BringItOn2023 , first got that in principle back in April but just taken this bloody long to do the paper work due to a name change on title deeds to our married name now etc

I have contacted broker today and worried what he comes back with....
fixed 2year ends mid September... I wish I went for 5year fixed 2 years ago😖

Is anyone with Nationwide? Have they offered you competitive rates when it comes to taking so out a new deal ? I expect they will contact me next month.

You can log into Nationwide and see your options for remortgaging. Thankfully my DD was able to fix back in April after her 2 year deal ended, all done online.

Yup, as Borg says, if you’re six months or less until your current fix ends, then log-in to Mortgage Manager on Nationwide and you can do it online. It doesn’t take long, you can secure your best available option. Then just keep checking back on their site - if rates drop, you can cancel your booked deal and reapply for a better rate.

Thanks both. If the rates drop, can you change online if you have already fixed a rate, or do you have to call up in that case?