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

I was with Natwest too but opted to move away to find a better rate for a 2 year fix.

I was also with Natwest and that 5.69% was an option. Broker found a 5.36% 🙃, have gone for the offset.

Our mortgage has 5 parts due to various moves/extra borrowing. They all end at different periods and we had hoped to bring them together but I’m just leaping on the lowest rates as they reach the end of their fixed deals at the moment.
The next part up for renewal has offers of 5.4% for 5 years, or 5.7% for 1 year. I’m so tempted to just do 1 year on the off chance it may go down even by 1% by then, but we like certainty.

Is anyone fixing for shorter terms or are you locking in for longer?

2 years for me.

I fixed for 5 years at 5.69%. I'm a very anxious person, I can't handle uncertainty and don't have a large buffer. Everyone is different though in terms of attitude to risk.

Is there a fee for the 1 year?

I'm the opposite - I actually paid to get out of my fixed rate last year and went for a ten year fix! 😬
It's just me so I can't be doing with all this turmoil.

We fixed for 5 years, although tempting to ask about 10 year fix... just for that certainty.

I keep thinking that this will be it for a while, with the interest rates, they've been so historically low for a long time, and I'm wondering if the higher rates will be with us for a while.

Experts are now expecting rates to continue to rise into the first quarter of 2024, then come down slowly over the next 5 years, settling at around 3.7%. I didn't want to lock in a high interest rare for long.

Yes, there was a fee for 1 year which also puts me off. I don’t tend to go for ones with fees as you end up paying well over the odds in the end.

I fixed two parts in May for 5 years because it was 4.1% which I felt was reasonable and probably where they will end up. But the rates are so much higher that I’m reluctant to go that long again.

They (Santander) also offered 2 years with no fee which is 5.89% but avoids us slamming back into the market when it may still be stupidly high so I’ve booked that (we get 14 days to consider). They obviously think that the rates will sink a bit or the short term ones wouldn’t be so much higher than the long term. I don’t want to get stuck paying higher rates than we need to. Always a risk that they will keep going up but hopefully 2 years gives a chance for a bit of stability.

Ho Hum, have to do this all over again in September for the next part. Joy.

Best of luck. Sounds like you have considered everything.

My 1.99% fixed mortgage comes to an end February 2024 and I am bricking it tbh.

It seems very unfair that only some people will be affected by the interest rates increasing to tackle inflation. It is not a burden being shared by all. My mortgage will increase by at least £300 per month, although who knows what the rates will be in a few months time when I can take on another deal. Whereas my smug friend is fixed for another 9 years on 1.24%.

Honestly I am bitter. It feels like my generation gets f'ed from every direction. High house prices (my house cost £100k more than the previous people paid 4 years prior) and now this.

In another four years time, it might be back down to the price that the previous people paid.

Our mortgage is in two parts. Our first 1.28% comes to an end November. Luckily I did the product transfer as quickly as I could and locked in before this latest hike at 2 years 4.99% however, the second part is at 3.69% and due to end next December. Initially I was hoping that rates would fall and we'd get another deal at a similar level but now I'm panicking that it will be much much higher. Just remortgaging the first part or our mortgage has increased our payments £240 and we'll find that crippling, but to potentially have that doubled again is going to mean we potentially lose our house. Trying not to worry as our deal ending is 18 months away, but can't help it!

Is there any way that you can break from the 3.69 percent early and remortgage that part now, or does that cost a lot to do? for peace of mind that its locked in for 5 years (although it would be at a higher rate of course) I can't see rates decreasing in the next 18 months but then what do I know. They might be starting to come down a bit by 2025 so you might be lucky. I guess locking for 5 years is also a risk if rates doo come down.

@MadameameBeans I wouldn't do that in this climate as the best rate we could get now would be circa 6.5% and an early repayment charge of 1.5% on top. I don't actually think that would be a good idea. Just have to hope that rates start coming down towards end of 2024 as predicted

Wow, yes, you are right! 6.5% and an early repay charge does not sound like a good idea. At all!

Fingers crossed for you!

I went direct through Lloyds last week and have a minor panic every day that I am doing the paperwork wrong or something. Everything seems to be progressing ok, so I hope we get our formal offer soon. The solicitors sent me an ERC document today and I panicked that we had actually left and started at the new higher rate already. It's so stressful!

Our mortgage is up at the end of November but can't lock in until exactly three months before without paying a fee. The lowest they are offering us is 5.5% with the same broker. Have a looked on comparison websites etc but to be honest can't see much of a better deal anywhere 😩 is it worth fixing now and paying a fee or waiting it out a bit longer ? 😩😩

You can get an offer without incurring a fee. You don't take up the offer until your current fix expires.

My mortgage is set to go up by £620. I don’t know what to do to be honest.

currently on 1.4% for another 2 years but I’m paying an ERC of £7k as I’m moving to Europe where I will have a (not that big) 15 year mortgage at 3.3%. Pissed at the ERC but not much I can do about it.

Managed to get a 5.61 5 year fix. Bricking it, our broker advised not to take the 2 year as we might be coming out of it with an even higher rate. £600 extra a month, down the drain. Such bollocks. Only fixing for this long because at least I know we can (barely) afford this and ensures we aren't homeless for another 5 years

Hitting myself for not following my gut earlier in the year, paying an exit fee and settling on something more in the 3.5 range :(

Scary thing seems to be brokers and financial experts are pretty clueless when it comes to predictions as it seems to be an unprecedented rise in inflation (due to cost of living I presume). The energy companies which overinflated their prices for massive shareholder bonuses will have blood on their hands

Jesus, that's alot of money. How much longer can this go on.

That's the same jump for us too @JaffacakeJanine - I'm looking for a second job and DH is doing over time. But not sure how realistic it is that I'll find a second job that suits childcare etc!

My DP is upping their hours and I also have a second job 😭😭 going to be a tough five years. Do wonder if we'll have to sell up