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