The rising cost of living

[Delphinho123]

I just remortgaged at 4.6% with Barclays off my 1.5% rate. I gave them £5k for the privilege. Monthly payments up £500 (pure interest). I went with a 5 just for a bit more added security. I personally predict we’ll see interest rates drop back down to 2/2.5% in 3 years time. I just felt that even if they do, 4.6% seems like a decent rate. 

Absolutely gutted. Felt physically sick for last couple of days but needs must. I was due to remortgage next June when it’s widely predicted the BOE rate will be closer to 5-6%. That would potentially put me at 7.5/8% mortgage which means I’d have to sell the house. 

I have peace of mind now at least. Just such bad luck when my best mate remortgaged 6 months ago for 5 years at 1.8% and he’ll pay £30k less interest than I will over the next 60 months. 

My LTV was 59% btw and it’s only because it was a product switch that allowed me to secure the 4.6% rate. I was actually failing the affordability tests with other banks which is laughable considering they couldn’t wait to throw money at me 18 months ago. 

Millions are going to struggle next year I think. So sad. 

[markavfc40]

5 minutes ago, Delphinho123 said:

I have peace of mind now at least. 

 

I really feel for you mate but what you said above is what is most important. Don't beat yourself up about the extra money it has/is costing you. You cannot put a value on having peace of mind and feeling that you are secure in terms of that you can cope with your repayments now/going forwards. 

[Delphinho123]

6 minutes ago, markavfc40 said:

I really feel for you mate but what you said above is what is most important. Don't beat yourself up about the extra money it has/is costing you. You cannot put a value on having peace of mind and feeling that you are secure in terms of that you can cope with your repayments now/going forwards. 

 Cheers Mark. 

[sidcow]

46 minutes ago, Delphinho123 said:

I just remortgaged at 4.6% with Barclays off my 1.5% rate. I gave them £5k for the privilege. Monthly payments up £500 (pure interest). I went with a 5 just for a bit more added security. I personally predict we’ll see interest rates drop back down to 2/2.5% in 3 years time. I just felt that even if they do, 4.6% seems like a decent rate. 

Absolutely gutted. Felt physically sick for last couple of days but needs must. I was due to remortgage next June when it’s widely predicted the BOE rate will be closer to 5-6%. That would potentially put me at 7.5/8% mortgage which means I’d have to sell the house. 

I have peace of mind now at least. Just such bad luck when my best mate remortgaged 6 months ago for 5 years at 1.8% and he’ll pay £30k less interest than I will over the next 60 months. 

My LTV was 59% btw and it’s only because it was a product switch that allowed me to secure the 4.6% rate. I was actually failing the affordability tests with other banks which is laughable considering they couldn’t wait to throw money at me 18 months ago. 

Millions are going to struggle next year I think. So sad. 

Glad you got sorted with something at least possible, sorry you were dealt such a shit hand. 

[rjw63]

Asda have done a great job with their low-priced budget range of food (even though it's mostly bad for you).

Until you see how they've raised all other prices to compensate.

examples:

Skimmed milk 1 litre, was 59p now 69p.

Bacon medallions, were £2.25 or 2 for £4. Now £3 0r two for £5

Baking potatoes pack of 4, were 42p, now 60p.

3kg frozen chicken breat, was £3.49 now £3.79

2x 200g grated cheese, was £3.50 now £4.50

asda dry cat food was £1.15 now £1.25

500g passatta was 40p now 45p

2 Steak medallions was £4 now £4.50

2.5kg white potatoes was 99p now £1.15

2 litre fabric softener was £2 now £2.25.

I could go on.

Annoying but still not as bad as ocado's price hikes.

[Brumstopdogs]

On 06/10/2022 at 21:56, sidcow said:

Glad you got sorted with something at least possible, sorry you were dealt such a shit hand. 

 

[Brumstopdogs]

On 06/10/2022 at 21:09, Delphinho123 said:

I just remortgaged at 4.6% with Barclays off my 1.5% rate. I gave them £5k for the privilege. Monthly payments up £500 (pure interest). I went with a 5 just for a bit more added security. I personally predict we’ll see interest rates drop back down to 2/2.5% in 3 years time. I just felt that even if they do, 4.6% seems like a decent rate. 

Absolutely gutted. Felt physically sick for last couple of days but needs must. I was due to remortgage next June when it’s widely predicted the BOE rate will be closer to 5-6%. That would potentially put me at 7.5/8% mortgage which means I’d have to sell the house. 

I have peace of mind now at least. Just such bad luck when my best mate remortgaged 6 months ago for 5 years at 1.8% and he’ll pay £30k less interest than I will over the next 60 months. 

My LTV was 59% btw and it’s only because it was a product switch that allowed me to secure the 4.6% rate. I was actually failing the affordability tests with other banks which is laughable considering they couldn’t wait to throw money at me 18 months ago. 

Millions are going to struggle next year I think. So sad. 

At least now you know what you will be paying but sounds like you were so unfortunate with the timing of the rate increases.

Remortgaging can be such a lottery,

[Demitri_C]

On 14/10/2022 at 12:49, rjw63 said:

Asda have done a great job with their low-priced budget range of food (even though it's mostly bad for you).

Until you see how they've raised all other prices to compensate.

examples:

Skimmed milk 1 litre, was 59p now 69p.

Bacon medallions, were £2.25 or 2 for £4. Now £3 0r two for £5

Baking potatoes pack of 4, were 42p, now 60p.

3kg frozen chicken breat, was £3.49 now £3.79

2x 200g grated cheese, was £3.50 now £4.50

asda dry cat food was £1.15 now £1.25

500g passatta was 40p now 45p

2 Steak medallions was £4 now £4.50

2.5kg white potatoes was 99p now £1.15

2 litre fabric softener was £2 now £2.25.

I could go on.

Annoying but still not as bad as ocado's price hikes.

What annoys me is when u walk into tesco and i see "Aldi price match" on certain products. Why "match" and nit better their prices?

[Delphinho123]

1 hour ago, Brumstopdogs said:

At least now you know what you will be paying but sounds like you were so unfortunate with the timing of the rate increases.

Remortgaging can be such a lottery,

I was very unfortunate. Had I had my mortgage appointment the week before when it was supposed to be, I’d be about 8k better off over the next 5 years.

But listen, right now, 4.65% looks like a bit of a steal. Especially given what the BOE have said today. I can see the base rate being at 4% before Jan 1st 2023 and that’s likely to see interest rates of 7%+ for a lot of people. My mortgage at 7/8% simply isn’t affordable so I’m trying to look for the positives!

[ender4]

4 minutes ago, Delphinho123 said:

I was very unfortunate. Had I had my mortgage appointment the week before when it was supposed to be, I’d be about 8k better off over the next 5 years.

But listen, right now, 4.65% looks like a bit of a steal. Especially given what the BOE have said today. I can see the base rate being at 4% before Jan 1st 2023 and that’s likely to see interest rates of 7%+ for a lot of people. My mortgage at 7/8% simply isn’t affordable so I’m trying to look for the positives!

Yep, a good way to look at it is you’ll probably save £10-15k over 5 years compared to people who try and remortgage from this point onwards.

[Delphinho123]

25 minutes ago, ender4 said:

Yep, a good way to look at it is you’ll probably save £10-15k over 5 years compared to people who try and remortgage from this point onwards.

Very good point.

Any bets on what BOE base rate will hit next year? 

6% tops surely?

[Genie]

I reckon about 3-3.5%

[Brumstopdogs]

42 minutes ago, Delphinho123 said:

Very good point.

Any bets on what BOE base rate will hit next year? 

6% tops surely?

We have another two interest rate deicsions left this year so the base rate might be about 3.25%-3.50% at the end of 2022 I reckon.

For next year possibly could go up to 5.00%  - but obviously anyones guess.

[sidcow]

More interest rate rises are due today.

I still don't think this is going to change inflation.

Prices are rising directly because of increased energy costs.  Sainsburys are already saying everyone is tightening their belts.  Papers are full of stories of people turning off spending on various things.

They can put the interest rate up to 50%*.  It's not going to remotely affect the price of a pint of milk, or a loaf of bread or a new TV.  They will keep rising in line with their oil, electricity and gas costs   I am baffled why they can't see this is not a traditional inflation issue requiring traditional inflation control.

 

* Well, other than modern society would collapse so we will probably end up either stealing these items by use of force or bartering.

Edited November 3, 2022 by sidcow

[Genie]

Rates confirmed, +0.75% to 3%.
Biggest rise for 33 years.

[Genie]

10 minutes ago, sidcow said:

More interest rate rises are due today.

I still don't think this is going to change inflation.

Prices are rising directly because of increased energy costs.  Sainsburys are already saying everyone is tightening their belts.  Papers are full of stories of people turning off spending on various things.

They can put the interest rate up to 50%*.  It's not going to remotely affect the price of a pint of milk, or a loaf of bread or a new TV.  They will keep rising in line with their oil, electricity and gas costs   I am baffled why they can't see this is not a traditional inflation issue requiring traditional inflation control.

 

* Well, other than modern society would collapse so we will probably end up either stealing these items by use of force or bartering.

I think it will have some effect on inflation, but not massive.

As you say there are things that just won’t or can’t budge. But i’m sure there’s plenty of businesses out there with room to lower prices too if they have to to keep customers.

Lots of things like food items went up stupid amounts this year, many can be wound back if needed. 

Also we’re definitely being ripped off for petrol and diesel. They are higher than they should be. Supermarkets have stopped being the bottom price which is holding everything up too high.

Diesel also shouldn’t be 20p+ a litre more than petrol.

The problem with petrol and diesel is that in most cases people have to pay for it. It would need political pressure to understand why the supermarkets in particular have changed their pricing.

[Chindie]

Predicting longest recession in UK history, 2 years.

*car crash noises as Britain comes grinding to a halt*

[Davkaus]

40 minutes ago, Genie said:

Rates confirmed, +0.75% to 3%.
Biggest rise for 33 years.

Christ. I'm glad I'm fixed for another 4 years.

In theory, affordability stress testing should ensure that people can survive this, but on top of all of the other cost of living increases, we're going to see a lot of people going under 

[Genie]

Just now, Davkaus said:

Christ. I'm glad I'm fixed for another 4 years.

In theory, affordability stress testing should ensure that people can survive this, but on top of all of the other cost of living increases, we're going to see a lot of people going under 

Same here, I have till Feb ‘26 to really start panicking but it’s going to be devastating for a many households.

[Ingram85]

It’s going up again to a predicted 4.5% this time next year isn’t it? 

Yay Britain. For the wealthy only this country.