The rising cost of living

[Genie]

 

[The Fun Factory]

In regards to Sturgeon isn't most of the Scottish economy still heavily reliant on north sea oil and banking? And about 400 landowners own about half of Scotland. Glass houses and all that.

[markavfc40]

Shows the scale of the shit storm approaching. If interest rates hit 6%, then you are looking at mortgage rates being around 8%-9%.

 

[Genie]

Who’d have thought the pandemic years would be looked upon as the good old days.

[Genie]

The dollar price fell back to $1.06 after the BoE said it was keeping an eye on the situation, but not doing anything immediately.

They did say longer term they will increase interest rates as much as needed to get inflation back to 2%.

[Delphinho123]

If interest rates hit 6% I’ll have to sell my house. Really scary times at the minute.

[Follyfoot]

8 minutes ago, Delphinho123 said:

If interest rates hit 6% I’ll have to sell my house. Really scary times at the minute.

I would imagine there will be widespread and negative equity as well as the housing market is going to crash dramatically 

[ender4]

4 hours ago, markavfc40 said:

Shows the scale of the shit storm approaching. If interest rates hit 6%, then you are looking at mortgage rates being around 8%-9%.

 

Though if you fix for 10 years then the interest rate is tracking much lower so that might be the best thing to do if the alternative is to lose your house or struggle in the short term.

[ender4]

4 hours ago, The Fun Factory said:

In regards to Sturgeon isn't most of the Scottish economy still heavily reliant on north sea oil and banking? 

Nah, they’re reliant on handouts from London

[Delphinho123]

3 minutes ago, ender4 said:

Though if you fix for 10 years then the interest rate is tracking much lower so that might be the best thing to do if the alternative is to lose your house or struggle in the short term.

I’m looking at a 10 year fixed. They have you by the balls with the early repayment charge but I don’t actually want to move house ever anyway.

The killer is if interest rates drop back down to 0.25% in 3/4 years time. 

Im going to be royally screwed either way. At the moment, it’s all about trying to keep hold of my house. My fixed rate comes to an end at the end of May ‘23. I’ll probably have to pay the 5.8k to get out of this fixed period early and secure a new mortgage. That’s all my savings gone. Feel sick. 

[villa89]

3 hours ago, Genie said:

They did say longer term they will increase interest rates as much as needed to get inflation back to 2%.

The problem with that is the interest rates alone may not be enough to curb inflation. A resource shortage, labour shortage, global issues are all contributing to inflation, plus more.

[sidcow]

7 minutes ago, villa89 said:

The problem with that is the interest rates alone may not be enough to curb inflation. A resource shortage, labour shortage, global issues are all contributing to inflation, plus more.

I don't think interest rates will affect inflation one jot.  Its all extraneous circumstances nothing to do with reckless consumer spending. 

[ender4]

15 minutes ago, Delphinho123 said:

I’m looking at a 10 year fixed. They have you by the balls with the early repayment charge but I don’t actually want to move house ever anyway.

The killer is if interest rates drop back down to 0.25% in 3/4 years time. 

Im going to be royally screwed either way. At the moment, it’s all about trying to keep hold of my house. My fixed rate comes to an end at the end of May ‘23. I’ll probably have to pay the 5.8k to get out of this fixed period early and secure a new mortgage. That’s all my savings gone. Feel sick. 

Can’t you stick to your current fixed until May.  Then fix onto a 10 year fix at that point.  Of course, you’ll be gambling on what the rates will be at that point.  
 

[Genie]

18 minutes ago, Delphinho123 said:

I’m looking at a 10 year fixed. They have you by the balls with the early repayment charge but I don’t actually want to move house ever anyway.

The killer is if interest rates drop back down to 0.25% in 3/4 years time. 

Im going to be royally screwed either way. At the moment, it’s all about trying to keep hold of my house. My fixed rate comes to an end at the end of May ‘23. I’ll probably have to pay the 5.8k to get out of this fixed period early and secure a new mortgage. That’s all my savings gone. Feel sick. 

Have you spoken to them about taking another deal with them earlier? Sometimes they will waiver the fee if you take another product from them. Or they might add it to the loan. It’ll cost more in the long run but your savings / safety money is safe.

[markavfc40]

21 minutes ago, Delphinho123 said:

I’m looking at a 10 year fixed. They have you by the balls with the early repayment charge but I don’t actually want to move house ever anyway.

The killer is if interest rates drop back down to 0.25% in 3/4 years time. . 

I wouldn't even look at it like that mate. You can't put a price on peace of mind so if you can fix for 5 or 10 years at a rate/repayments that you can reasonably comfortably afford then do it. 

I fixed for 10 years at 2.49% at the end of 2016 and I am in no doubt that I have been paying slightly over the odds for much of that period, given how low interest rates dropped, but I have never beat myself up about it. The flipside to that is now interest rates are rising rapidly I don't have to worry and you can't put a value on that.  

[ender4]

5 minutes ago, Genie said:

Have you spoken to them about taking another deal with them earlier? Sometimes they will waiver the fee if you take another product from them. Or they might add it to the loan. It’ll cost more in the long run but your savings / safety money is safe.

That’s a good point - if sticking with the same provider they might be willing to just move you across at minimal cost. 

[Delphinho123]

18 minutes ago, Genie said:

Have you spoken to them about taking another deal with them earlier? Sometimes they will waiver the fee if you take another product from them. Or they might add it to the loan. It’ll cost more in the long run but your savings / safety money is safe.

They won’t waive the fee. It’s up front as well, not added to the mortgage. I can secure another product 6 months out (1st Dec) but the rates will have gone up again then I imagine. Problem is, anything I ‘lock in’ may then get pulled if they keep going up by May. 

Barclays will allow me to switch on Jan 1st to a fairly attractive rate (all things considered) but all this talk of emergency interest rate increases puts paid to everything. 

Rignt now, I’m really thinking the only option is a 6k early repayment to try and lock in a long term interest rate of roughly 3.1%. 

[Delphinho123]

18 minutes ago, markavfc40 said:

I wouldn't even look at it like that mate. You can't put a price on peace of mind so if you can fix for 5 or 10 years at a rate/repayments that you can reasonably comfortably afford then do it. 

I fixed for 10 years at 2.49% at the end of 2016 and I am in no doubt that I have been paying slightly over the odds for much of that period, given how low interest rates dropped, but I have never beat myself up about it. The flipside to that is now interest rates are rising rapidly I don't have to worry and you can't put a value on that.  

This is where I’m at Mark. Right now, I feel like not doing anything isn’t an option as it’s gambling with my house. 

If I have to move from paying £900 a month to £1200 a month and lock something in long term, then so be it. I can afford £1200 (begrudgingly), but what I can’t afford is £1600/£1700 which is where it’s headed given a lot of the predictions I’m reading.

Scary times

[ender4]

2 minutes ago, Delphinho123 said:

They won’t waive the fee. It’s up front as well, not added to the mortgage. I can secure another product 6 months out (1st Dec) but the rates will have gone up again then I imagine. Problem is, anything I ‘lock in’ may then get pulled if they keep going up by May. 

Barclays will allow me to switch on Jan 1st to a fairly attractive rate (all things considered) but all this talk of emergency interest rate increases puts paid to everything. 

Rignt now, I’m really thinking the only option is a 6k early repayment to try and lock in a long term interest rate of roughly 3.1%. 

3.1% is a pretty good interest rate, it might take a few years to get back below that rate.  And at least you won’t be paying 6-8% over the next 2-3 years!

[Delphinho123]

Just now, ender4 said:

3.1% is a pretty good interest rate, it might take a few years to get back below that rate.  And at least you won’t be paying 6-8% over the next 2-3 years!

That’s what I’m thinking. I’m going to pull the trigger on it as soon as possible I think. Just wish Barclays would pick up the phone!