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

You are me! I bought last year and good heavens someone take it off my hands. It’s frigging huge and expensive and freezing.

Sorry, it was an insomnia-induced typo! It’s 4.42%, not 4.22.

We fixed last month at 4.19% which felt horrific at the time but now maybe isn't so bad. We added £6K due to converting the garage into an office for DH. We've come off a super low rate so the payments have gone from a lovely, manageable £888 all the way to £1269 😵‍💫

I think you'll be alright. Although you've been paying what must have like seemed a crazy rate on the current mortgage, as you say in three years your financial misdemeanors should all be be forgiven and forgotten, and the ordinary fixed rate you'll get dumped onto will probably be much the same as what you're paying now.

I’ve just been looking at ours which is probably going to rise around £300-£400.

Not sure how we are supposed to afford it along with the other rises. We were stress tested but not with a £200 increase in utilities and the rising costs of everything else. I would guess we are going to be around almost £700 worse off in total, almost my wage.

Praying for positive changes in the next few months.

Rates are going up daily now and it’s so scary. My daughter has just settled on 5.69% for a two year fixed rate. She went via a broker she’s used before and that was the best he could find. His view is that things will be easier in a couple of years and a better deal should be available then but he’s just guessing like the rest of us. She will be paying £270 more a month than she is now.

It's so depressing 😔 our 5 year deal is ending soon. I just don't know why we didn't fix for 10 years. I can remember it being an option but I suppose we went for the lowest rate option at the time. Absolutely kicking myself. We would have saved thousands now.
Really don't know what to do next, short term fix for a year or two and see if things improve?

How long are people fixing for? 2 year fixes are more expensive as people seem to think they will be down by then but will they?

I fixed on Friday for 3 years with HSBC, which seemed like a reasonable halfway house.

We fixed for 5 about 8 weeks ago at 4.19%. I would have preferred to fix for 2, but as the days go by it's starting to look less bad. We've gone up by £389 per month on a 5 year (including taking out an extra £6K) which is bad enough, a 2 year was just unaffordable.

We’ve fixed for 5 on 4.28%. Starts shortly but we locked the rate in March, we just couldn’t face waiting to see what would happen. Our payment has gone up ~£350 a month, luckily we can absorb it. I would be terrified to be on a tracker right now, or trying to buy, it’s just crazy.

My fixed ends in December..just completed a MSS check and the best 2 year would take my current £690 mortgage up to £1029 😢

We fixed last week at 4.22% for 5 years, to start on 1 aug when our current deal ends. Wish we’d done it sooner but the way things are looking, I’m glad we at least have it sorted now….

What a shit show. I'm fixed at 2% until the end of 2025, but I will pretend that it's going up to 4% now, so I get used to higher payments.

This is going to have a devastating impact on small businesses. I'm already noticing that cafes and coffee shops are quieter.

Exactly @MidnightMeltdown people are going to be seriously squeezed now, it will have a huge knock on impact.

Thought we would be a much better position now both children out of nursery and finally get to have some disposable income to enjoy but now with the mortgage situation we are going to be back where we were again. It's so demoralising.

I'll swap you, yes the bills are smaller in my doll's house but I need more room. Desperate for it.

@TokyoSushi seems we fixed very similar period. I got the same in early May. And thought similar. But as days go by 5 years fixed doesnt seem as bad..
Our mortgage went up £300. Scary stuff!

Yeah I'm looking at 3 years. I hope to be in a better job by then.

Wow this really is scary. A couple of weeks ago I was getting quoted 4.22% on a 2 year fix. Now it is close to 6%! Our monthly repayments would go up by £300. Luckily I can up my hours at work so am counting on about £200 per month more.
I really hope rates come down. I don't want to fix at these rates for more than 2 years, and there is always a possibility we will relocate so I prefer not to fix for too long. Hoping things change a bit soon as our current fix ends at the very end of this year.

We fixed at 5 years at 4.34% in April, monthly mortgage costs will be going from a manageable £795 to £1343, will be transferring across to that in October. Really bloody hope something happens in the mean time as £548 extra a month is going to cripple us, especially as nursery fees have gone up from £55 a day to £79!

And also have buyers remorse here too.... bought a 1960s build that hasn't been touched. Boilers just been condemned, electrics need doing desperately as they're not earthed and ofc on top of that all our white goods have just packed in too

@Kalodin your figures sound similar to ours.
Currently paying £709 on 189k with 32 years remaining…been quoted a £500 increase.

We really can’t afford to absorb this but I have no idea what else I can do!

I know, and it's like my family don't believe we will be struggling @Retrain12345 . I even sent them a full break down of all our income and expenditure but they just keep saying "it won't come to that, something will sort it out" and my mum just doesn't seem to beleive our mortgage could ever be so high (or our childcare), I had to show her our bank statements!

We could sell up... but we live in a modestly sized wreck of a house so will make a loss and will still be struggling with the mortgage payments on a 1 bed flat!

This is just hideous. As I said upthread, we've gone from a manageable £888 to a pretty grim £1265 on a 5 year fix. I remortgaged about 8 weeks ago. The cheapest I can see now on that same mortgage is £1318.

We can absorb the cost, but it's not pleasant at all and we have much less discretionary spend.

I'm not sure how this is sustainable. People likely will pay their mortgages. But they won't go out to eat, or to the cinema, or buy new clothes, or get their hair highlighted etc etc and the knock-on will be huge.

We only have £1000 left over after bills anyway since our wreck of a house decided to almost fall down after we bought it- we had to get a loan for a condemned 1970s boiler, dangerous electrics and windows growing plants in them in order for us to be able to live in it.

I have nothing at all to cut back on other than food. The petrol costs alone this year have doubled, along with our energy bills etc.

I don’t know why the govt don’t stop the banks from doing it, but then again I don’t know much about the economy!

Really scary times.