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

Not really sure what to do anymore
They said it would peak at 5%
Seems something significantly changed last week or so. Follow you tuber moving with Charlie and his twitter.
I know the express can be dramatic doom and gloom.

https://www.express.co.uk/news/uk/1780808/homeowners-negative-equity-worst-decades

But svr seems be 6% plus now main lenders. Nationwide

Need to book mortage broker soon loads deals been pulled last few days and they pricing in already bank of England rate rises next week.
Might phone current provider Halifax maybe even book at appointment see what will go upto after next week's rise but assume 2nd rate rise later this year before xmas possibly 3rd in new year.

Ours ends Dec. The fed met today dident change rates they meet again July and forsee least 2 more rate rises 2023 and speculation 4 rate decrease in 2024.
As bank of England seem copy the fed although USA economy very different I'm wondering if risk tracker and risk 1 year higher payments than fixing at 5% plus .

It's always a roll of the dice when you commit to a fixed rate, particularly for those remortgaging now vs 4 years ago when rates were fairly static and fairly low.

How tight are things? If they're very tight and you don't have a lot of wriggle room financially I would try to get less hung up on the rate and focus more on what you can actually afford.
If you can afford 5% but 6% would be very difficult/impossible then I wouldn't be hanging around if a deal came up for 5%, waiting for rates to drop when they just as easily could rise.

If you're in a position where you can afford 4/5/6/7% etc but you just want to get the best deal you can, then you're in a better position to take a gamble knowing that the worst that will happen will be less disposable income, not losing your house.

If your mortgage isn't up until December you can always provisionally book some deals and then if things change between now and then withdraw from them and go for something else.

What @FabbyDab says I think.

I've always fixed because I've needed that stability (single, low wage etc) When rates went super low I was locked in at 4% ish. For the next two years I'll still be at 1.5% when the rates are much higher. Beyond that I'll fix the best deal I can and decide in the term at the time.

It's important to be aware of the climate, stay informed etc. but then ultimately you need to do the best you can in your circumstances.

Just got my renewal letter through as current deal - 1.49% - finishes 1st December. Oh, how I wished I'd fixed for 5 years! I remember debating it at the time, and ended up opting for just 2 years as I wasn't sure if I'd want to downsize or even emigrate.

Best deal I can get is 4.69% fixed for 5 years with current lender, which is an extra £180 per month which I suppose I could afford, but I can't say I won't feel it. Especially with all the other increases. It's so hard knowing what to do isn't it? Maybe I'll still want to downsize, although I guess if I do that I could port and make overpayments. No longer considering emigrating as haven't learned the new language as couldn't be arsed. It was too hard.

It's all on me too as although I have a partner, or boyfriend who lives with me, the house is all in my name, and he's skint anyway.

I’ve fixed at 4.59% (£250 more a month 😭).

In the end I went for 5 years. I decided the security was more important to us as a family over the uncertainty of fixing for 2 and hoping rates come down or following trackers.

I feel a bit of a weight off my shoulders for finally sorting it at least.

No longer considering emigrating as haven't learned the new language as couldn't be arsed.
This made me laugh, it’s like something I’d do.

Yeah, this is how I'm leaning too. I do worry a lot, so at least by fixing I'd know I could meet my commitments - even though it would mean less money for treats. Or food. I've messaged my son as he's just done a masters in some Economics type subject so seems to know a lot about these things, but I'm definitely leaning towards fixing now just for peace of mind. It just really really pains me to pay more money to banks for essentially nothing. It's not as though my house as suddenly got 180 quid a month nicer.

Yeah, it was a nice idea. I got as far as looking at houses on the Latvian equivalent of Rightmove, and deciding which type of house with it's own lake and orchard I might like to buy for 50k but unfortunately, the language is very difficult and they have a much bigger alphabet than we do and have to do this difficult rolling "r" sound which I found impossible. So it's off the table now.

I couldn't bear the stress and uncertainty, so after a whole 4 hours since getting home and reading the letter from my bank, and a mere 2 hours from posting on here, I signed up to a new deal. I couldn't even wait until the markets opened after the weekend, let alone hold my nerve until December!

I played around with different rates on a mortgage calculator and even if interest rates dropped on a fixed deal by a whole 1% that only made £58 quid difference. Which is a Chinese takeaway. As much as it pains me to be paying more money for yet another price increase, I can't cope with the uncertainty. Maybe, I'd have been better to wait, time will tell I guess. I just looked at how the average rates on 5 year fixed deals had been increasing pretty much every day all month and panicked/made a wise decision 🤷‍♀️

I'd probably have done the same @Casilero it's impossible to predict at the moment (well at least for me!) so I would accept that a higher payment is worth some certainty.

Mine is an adverse lender so my rate was higher anyway
Their new standard rate is 8.96%
Currently pay 4.73% and fixed until Oct 2026 so I'm going to improve my credit and cross my fingers things settle by then. Earn min wage so I really can't afford huge rate increases

@whereeverilaymycat that makes me feel a bit better that someone else agrees with me.

It is galling that it's yet another bill, but I know people renting who have had even bigger increases. It's just shit really. Plus when I got my last pay rise in April, I thought at the time, "that will all be going on the mortgage increase". I'd estimated an increase of £250 per month so if I squint really hard I can possibly see it as a good thing. Actually, no I can't, I'm pissed off. I know others are worse off but that doesn't make it better at all. Especially when "others" are my own children stuck in rented.

@bonfirebash

You've got 3 years though so a lot can change in that period.

I do absolutely hate banks with a passion though. You shouldn't be in that position. I'm sure I remember stuff in the Bible from Sunday school/Brownies about God also hating money lenders and interest. It's a vague memory, but I'm convinced God agrees with me on this.

AND we bloody bailed them out in 2007! Bailed them out so they could shaft us a little bit more 😡

I've just spotted the title
Yeah I'm hoping things settle, every part of life seems to be up in the air, food, energy, mortgages...
thankful mine is a small mortgage but on a take home of £1500 there is no wiggle room

I’ve just locked in a 5 year fix at 4.22% to begin in December. It actually works out at almost exactly the same as I’ve been paying for the previous 5 years - literally to within a few pence - but obviously is an increase in real terms as I’ve paid off 25% of the loan amount in that time. A 2 year fix wouldn’t have been much more per month, about £15, but I want the certainty of the longer term. Inflation isn’t under control yet and with all predictions pointing to a change in government within the next 18 months, I want to see if that brings any lasting financial stability before I have to stress about fixing again.

@HarpyValley

Bollocks! Where did you get the 4.22% fix from? I'm wondering if I've been a bit hasty now. I did a moneysupermarket comparison and I didn't see a deal like that. I think it might have been 2 quid cheaper to switch to a new lender but my current lender came up second cheapest so for ease I fixed with them - Natwest.

Maybe your deal wouldn't have been available to me though? I had to start again when I bought my ex out so my mortgage finishes when I'm 67. My LTV is low though - 34%.

I've got proper buyers remorse now. I'm also thinking again maybe I should have just downsized. Smaller house would be cheaper to heat as well. I HATE being responsible for all decisions myself.

Just a reminder that, if you stay with your current lender, choosing a fix 6 months before the end of your current rate is fine. You are not held to it, if rates get better during that time then you just get them to cancel your offer and reapply - it should be fairly easy.

It is definitely harder if you’re looking at switching providers. You may shave a fraction of a percentage off the rate, but bear in mind that you’ll be subject to full affordability checks, new valuation, etc. Sometimes it’s not worth the risk.

For those mentioning wanting new valuations to bring their LTV down - think a 40% mark was quoted. LTV bands don’t go that low. The lowest band tends to be 60% and under - once you hit that bracket, you are already being offered the best rates, they don’t improve after that.

I guess it depends on what they mean by “just”. Was it in the last day or two, or a few weeks ago? I was very lucky to get 3.99% 3 weeks ago with my current lender. As of tonight, with the exact same metrics, the rate is now 5.09%.

This. Mine was similar. I could have got 3.99 last month - this month it’s over 5.

I’m lucky - I have a tiny mortgage because I’m older and have paid most of it off so it doesn’t make a massive difference in payments but the difference is going to hit a lot of people hard.

Has anyone got a fixed mortgage ending in early 2024?

Mine expires in February and I'm scared looking at the increases. At the moment mine is 1.99% but the best I can see now is 5.09%. I won't be able to change for a few months, but does anyone think the rates may come down at all?

MN is being spammed by links to that moving house with Charlie YouTube channel, so watch out.

I would fix now for as long as my life circumstances dictated - I would want the certainty of knowing I had a fixed payment until kids out of nursery/primary and childcare costs reduced, for example. I very much doubt rates will be cheaper in even 5 years’ time, tbh.

We will have an election next year which will add uncertainty, but I do think inflation will drift down. I can only see interest rates dropping if the economy does really badly and I think I’d rather have the interest rates raises than a prolonged recession.

Thank you Furries. Useful advice.

Yeah I have noticed that too - his YouTube gets mentioned on almost every property thread now. I'm getting a bit suspicious that this is deliberate advertising under the guise of posters pretending to be helpful.

We are porting our mortgage and need a small top up amount. The interest rate for the top up has gone up over 0.6% in a week 😭