Energy Prices (Strictly NO referrals!)

But owning a home doesn't give you cash. they'd have to remortgage to release equity if they need to pay the bills?

I understand what you're saying, but I think it's probably less simple than that? Perhaps I'm wrong... I'm not denying that being in the middle, i.e. seasoned career, decent income, feels harder to live the life of riley, so many outgoings and many less luxuries, but I can't help but feel that things are going to be tough not just for the likes of us on decent salaries but for the low earners, younger families and older people that don't have disposable / extra income available. I guess some pensioners could go back to work.
 
Freefaller said:
But owning a home doesn't give you cash. they'd have to remortgage to release equity if they need to pay the bills?

I understand what you're saying, but I think it's probably less simple than that? Perhaps I'm wrong... I'm not denying that being in the middle, i.e. seasoned career, decent income, feels harder to live the life of riley, so many outgoings and many less luxuries, but I can't help but feel that things are going to be tough not just for the likes of us on decent salaries but for the low earners, younger families and older people that don't have disposable / extra income available. I guess some pensioners could go back to work.
Click to expand...

But at least that's an option. Equity release.


Really. It doesn't matter how old you are. If you aren't rich or asset rich you are screwed.

Absolutely screwed. There isn't enough money available (that the gov will take) to prop up everyone this winter. I don't know what gov are going to do.

If bills hit 3k a year? Well I guess will find out what happens in due course.
 
Foghorn Leghorn said:
Again with the assumptions that pensioners are all sitting in their own homes on final salary pensions. It isn't the case.
Click to expand...

It’s not an assumption and I never said all pensioners. You are clearly not reading what is posted and are just responding based on what you want it to say instead of what it actually says.

Since when does ‘average’ equal all, I clearly said across the population which covers a range of people who have next to nothing to those rolling in cash.

I’ve also not said pensioners are not being squeezed, I’ve said working age people are being squeezed more, because they have less free money to start with. There is a clearly a difference.

Another place the squeeze is coming to working people is the national insurance rise. The one tax that pensioners don’t pay but they benefit from what it’s being spent on.
 
413x said:
But at least that's an option. Equity release.


Really. It doesn't matter how old you are. If you aren't rich or asset rich you are screwed.

Absolutely screwed. There isn't enough money available (that the gov will take) to prop up everyone this winter. I don't know what gov are going to do.

If bills hit 3k a year? Well I guess will find out what happens in due course.
Click to expand...

Totally this.
 
Uther said:
Basically this. That's a crazy cost for a 1 bed flat. My combined cost is half that in a 2 bed house, and I think even that is excessive.
Pray for a long, hot summer.
Click to expand...
@Lysander
Yes, They are paying more than us in a 4 bed detached house, which is always very cold without heating, and an electric vehicle, which I only charge at home at currently 15p kWh. [I've just switched to a 7.5p kWh charging rate]
How is that possible for a 1 bed flat without an EV to cost more !!!
Their usage must be crazy high - serious crypto mining rig farms maybe ? :p
 
b0rn2sk8 said:
Totally this.
Click to expand...

I'm thinking they will obviously not call the payback of that loan. I'd go so far as to say they knew this and may use it as a "look how nice we are" card.

There will be more pressure to raid BP etc for cash. But I kind of agree this could chase them out of being a UK company.

But what else? Obviously with NI increase they are already against the wall. Feels like the very last "we are out of options" card.

So it's either yet another increase? Or people die?
Probably both.
 
413x said:
But at least that's an option. Equity release.


Really. It doesn't matter how old you are. If you aren't rich or asset rich you are screwed.

Absolutely screwed. There isn't enough money available (that the gov will take) to prop up everyone this winter. I don't know what gov are going to do.

If bills hit 3k a year? Well I guess will find out what happens in due course.
Click to expand...

Equity release means you still have to pay back the mortgage though no? So you're taking out equity on your home which you won't be able to pay off... ok it'll get you out of the immediate issue, but say you live another 20 years and only take an interest only mortgage out, that could be £200+ per month you have to pay back, which again for a pensioner isn't ideal, especially if retirement is your time to enjoy not having to worry about money, supporting your family/grandchildren etc...

Say their home goes into negative equity when they die, and they have a mortgage sill on it, does it get written off?

Maybe I'm oversimplifying it or making it more complicated. Either way, the majority of people even those on large salaries who are millionaires are going to be feeling the pain.
 
Freefaller said:
Equity release means you still have to pay back the mortgage though no? So you're taking out equity on your home which you won't be able to pay off... ok it'll get you out of the immediate issue, but say you live another 20 years and only take an interest only mortgage out, that could be £200+ per month you have to pay back, which again for a pensioner isn't ideal, especially if retirement is your time to enjoy not having to worry about money, supporting your family/grandchildren etc...

Say their home goes into negative equity when they die, and they have a mortgage sill on it, does it get written off?

Maybe I'm oversimplifying it or making it more complicated. Either way, the majority of people even those on large salaries who are millionaires are going to be feeling the pain.
Click to expand...

No. Equity release is yours.
I don't know if you effectively get another mortgage?

I believe its effectively selling your house at an absolute loss so you can use the money now and someone else (lender) effectively makes money when you sell.

I'm far away from it. But you're selling your house while living in it.

I'll be doing it as I have no dependants. And I'll need it if we don't get a state pension
 
b0rn2sk8 said:
It’s not an assumption and I never said all pensioners. You are clearly not reading what is posted and are just responding based on what you want it to say instead of what it actually says.

Since when does ‘average’ equal all, I clearly said across the population which covers a range of people who have next to nothing to those rolling in cash.

I’ve also not said pensioners are not being squeezed, I’ve said working age people are being squeezed more, because they have less free money to start with. There is a clearly a difference.

Another place the squeeze is coming to working people is the national insurance rise. The one tax that pensioners don’t pay but they benefit from what it’s being spent on.
Click to expand...

Fair point, poorly worded on my part.

Everyone is being squeezed, the trouble is for the last 20+ years we've seen low inflation, low interest rates and a stable economy, when inflation (which is being under reported) runs away like this it throws everything out of balance, some will do very well out of it if their industry can capitalise on it, others will get hammered.

It's also worth remembering that the government have suspended the triple lock so pensioners relying on their state pension will be seeing a rise considerably lower than inflation.
 
413x said:
No. Equity release is yours.
I believe its effectively selling your house at an absolute loss so you can use the money now and someone else (lender) effectively makes money when you sell.

I'm far away from it. But you're selling your house while living in it.
Click to expand...

So it's a finite amount still, and as you say it's very much a last chance saloon. Pretty grim.
 
Einskis said:
do you know how you come across? you posted about a greater than ten % payrise and in the position you are, i am going to guess that your pay rise is higher than most people earn in a year.

you cannot help that things are goint to be tough for low earners? oh really? of course they are going to be tougfh for low earners etc etc. this is going to cause severe hardship for most of the popupation. but youre alright jack and sod everyone else.

people like you who sneakily throw theiur riches and their wealth in others faces all while pretending to be modest make me sick. its like those bitcoin millionres who boast non stop about the money theyve made.

people are genuinely having to decide whether to heat their houses or feed there familys and you are saying youve turned the heating down by 1C and makeing that out as some kind of hardship.
Click to expand...

eh? where did this hostility come from? I'm going to be under pressure just like everyone else? And I'm also concerned about my family, what's the issue? I'm not alright jack, I've made significant cut backs to save money to help ride the storm. Yes I changed roles and I'm doing "ok" (the only reason for my pay rise, had I stayed where I was it wouldn't have been more than 2%), but I drive a 15 year old skoda octavia and mid spec renault SUV... why? Because I sold my sports car and less "nice" family car so that I can save some money there. We're a 1 income family at the moment, although my wife does a bit of part time work - but that just covers her bills.

I'm stating that I'm making an effort to reduce my bills? what's the problem? We've been forecast over £2k per annum utilities bill increase this year - if I can reduce that I will.

what have I done to wind you up so much?

I do genuinely care for people that are struggling on early career incomes, and pensioners, because I know a lot of those people, some are family too.

What's your issue?
 
Freefaller said:
Pretty depressing really.
Click to expand...

Really is. Feels like personal forecasting is going to become more important. Gf said today she's glad I'm responsible for the financial stuff as she'd not have a clue.

Hard Times coming. About time politicians actually earnt their money. As though decisions are coming. Much tougher than covid.

Not much at a global or national level to be happy about

Oh. And that attack you had was disproportionate.
 
Lysander said:
We are paying £221 a month for our electricity in a one bed flat in Central London. Now I get an email saying it will go up to £300 a month. What the hell can be done about this? Sorry, I haven't read the whole thread. I have phoned EON who just said, "it reflects your usage" and one woman even said, "don't you know there's a crisis on at the moment, haven't you watched the news?"

B****.
Click to expand...

Ouch. We are currently on £64 per month on our fixed tariff. Unfortunately that runs out in October 2022 so i expect it to jump to £300 per month.
 
Housey said:
I have oil fired heating at home and oil prices have flown up in the last 6 months meaning I am spending circa £2800 a year on oil I suspect, close to a doubling on last years spend, which working from home has increased too. I am with OVO for my electricity and I got an email this week that suggests my electric will cost me around 1/3 more this year than last. I don't have a gas supply so am not impacted by that thankfully.

I've not looked at my food bill, outside of my fridge/freezer failing at the start of the week taking much of the food in it with it sadly, but that too and fuel for my cars means world got a lot more expensive of late. Painful times even if it doesn't create personal hardship thankfully, I still wince when I see the bills.
Click to expand...

How old is your oil boiler? Ours was needing more and more repairs each year so bit the bullet and bought a new super efficient condensing boiler. Found it cut our annual oil consumption in half and would have paid for itself in a few years years! If I had known, i would have swapped the boiler years ago.

For your info we went from using 3,000 litres per annum to less than 1500 litres. At current prices that means a £900 per year saving.
 
Mines gone from £157 to £250 plus £110 for coal/logs pcm £360 is now more than my mortgage wtf is that about, new boiler fitted few months ago, one income as my Mrs gets peanuts for not working due to illness :(
 
When people say they are switching to Aldi/Lidl what are you swapping? Just buying everything from there? As based on what we buy when we’ve done a weekly shop the following week at Lidl the costs were not very different to what we would’ve spent at Morrisons?

Do people just buy the own brand pizzas (for an example)?
 
Greebo said:
How old is your oil boiler? Ours was needing more and more repairs each year so bit the bullet and bought a new super efficient condensing boiler. Found it cut our annual oil consumption in half and would have paid for itself in a few years years! If I had known, i would have swapped the boiler years ago.

For your info we went from using 3,000 litres per annum to less than 1500 litres. At current prices that means a £900 per year saving.
Click to expand...
I did the same less than 2 years ago.
 
You must log in or register to reply here.
Back
Top Bottom