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

My fixed rate of 1.67% ends in September, best deal I've got is an extra £400 a month, with all other bills going up I've had no choice but to put my house on the market. 5 weeks in and no offers and I've reduced the price already. I'm a single parent and stupidly never considered I'd be in this position. The rising feeling of panic and not sleeping at night is awful. I feel for everyone in this position.

My fixed deal ends next month and just had to remortgage at 5.1% which puts up the mortgage by £250. It was the best deal I could get as we are stuck with the same lender after splitting up with ex in February so change in circumstances. Luckily he agreed to remortgage even though he’s not living here as selling is not a great option as there’s so many houses in our area that have come on to the market in the last few months and they don’t seem to be selling. Don’t know how I’m going to manage now I’m a single parent working part time.

Those who are struggling should consider whether they can extend the term or go interest only for a while. Not ideal, but better than being forced to sell.

I expect that the government will make it easier to switch to interest only mortgages in the coming months, as they are already starting to put pressure on banks to support their borrowers

www.telegraph.co.uk/business/2023/06/23/ftse-100-markets-live-interest-rates-consumer-confidence/

Most providers will let you "port" your mortgage over to a new property, so I wouldn't let that put you off fixing.

Sorry to hear this. Are you able to extend the term to keep payments lower?

@euff the term is already until I'm 75 unfortunately.

@coolpineapple1 I'm so sorry. Would the 6 month interest only for 6 months help take the pressure off while you are selling? I think that's one of the things from the government's deal with the banks.

How are people getting the interest only breaks? My bank (Halifax) has said no

My new monthly payment goes out in July, an additional £250

I think people with mortgages are going to end up having to keep explaining the figures! We can't a downsize!

The not being able to do any of things is kind of the point, they need us to have less discretionary spends so inflation stops rising ☹️

None of this economics BS is working though is it.

Let's stop people from eating out and spending money so we can cause a mass unemployment issue 🙃

And tbf, the real issue right now is for those who aren't even spending money on eating out etc, they're still being hit by this but even harder. They're gonna lose their house and their job and still not be able to buy essentials for living like food and fuel

The problem is that the pain of interest rate hikes is not shared fairly. It it mainly hitting the unlucky people who bought recently and have to remortgage and renters (via higher rents due to BTL mortgages). The wealthiest people are not suffering as they don't have a mortgage and don't rent.

To drop inflation quickly they would have to implement a wealth tax. I don't think a Tory government would ever do that though. So the unlucky ones will get to suffer for longer, lose their homes and we will still have high inflation...

I fixed my mortgage at the end of last year at 3.44% for 5 years. Even that seemed steep at the time - a jump to from 2.27%. I am relieved I fixed for 5 and not 2 as I was originally going to. Lord knows how people are going to cope.

The wealthy are massively benefitting! They'll be looking at all that lovely interest crediting their savings account every month and rubbing their hands together with glee.

So no, we are certainly NOT all in this together. There are a winners and losers in all this and it's pretty clear the government are trying to trigger a recession. They couldn't give a shit that some people are unable to cover their bills and worried about losing their homes.

I was rushing to have everything in place to get a deal but it feels like right now is the most uncertain and expensive time. We can lock something in from next week but now I feel there is no rush. I'm just going to wait and see what my current provider offers and take it from there.

I think that's wise.

Great. Got our 'offer' through from Natwest for 2 year fixed rate. 6.24%

Gives you a good starting point to base things off I guess

Yikes that's high @afterdropshock can you look at a 5 year or move lenders?

I’ve just had a news notification that the average five year fix rate now on offer is over 6%.

Obviously there’ll be some people with lower credit ratings and therefore limited, higher rate options only available to them affecting that average, but it’s not great.

Oh I'm just so gutted we didn't leave our 5 year fix early and remortgage last year. I just don't know what to do now, we go onto variable rate this month at an increase of about £350 a month. I was hoping to take the hit for a while in the hope that rates start to drop before we fix again but is that even going to happen now? Will it just keep creeping up and up??

It will evenntually come down... just not for a while. and very slowly. im afraid.

placemarking