Energy Prices (Strictly NO referrals!)

200sols said:
I don't think 3% is ridiculous, especially by historical standards. Low interest rates are simply not viable long term. While I don't see rates hitting 10% unless something goes badly wrong, fwiw markets have priced in the base rate being 3% by year end.
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Its ridiculous when you consider that its low rates that have driven house prices up and up, and now the rug is being pulled potentially leaving people with crippling debt that they can't do anything about.
 
danlightbulb said:
Might be needing to change the name of the thread soon to "This is getting ridiculous (mortgage prices)".

My girlfriends remortgage is due and the best she can get is 3.2% (previously 2% five years ago). She's on an LTV of under 40%, yet that is the best she can get. It will add £50 to her monthly unless she extends the term.

Gonna be a world of pain for many people. If rates are 6% in five years time, I'd need to find an extra £350 ish on the mortgage I just took out. If rates were 10%, nearly an additional £1k. That would probably be house repossession territory.




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when you took your mortgage out they would have given you what the paykent would be if rates were at 8% or something. Didn’t you consider if you could pay that when you took it out?
I appreciate everything is getting more expensive, and if rates did hit 8%, I’d have to make some major changes but it’s nowhere near repo time.
No wonder there are issues if people are so reckless.
 
Puzzled said:
www.bbc.co.uk

Bedford gas explosion: One dead as blast wrecks flats

Police warn further bodies could be found by emergency workers as they search the block of flats.
www.bbc.co.uk

Another gas explosion
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I'm hoping that they are all just a horrible coincidence, rather than people risking their lives because of having no money for safety checks or messing around with meters. It's always shocking to see the absolute carnage caused by a gas explosion. :(
 
Ahleckz said:
when you room your mortgage out they would have given you what the paykent would be if rates were at 8% or something. Didn’t you consider if you could pay that when you took it out?
No wonder there are issues if people are so reckless.
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What other choice is there?

Buy a cheaper house? There aren't any.

Save more deposit - what if house prices are rising faster than you can save?

Rent for life - what happens when you retire?


Even if people find a way to absorb the increased cost, it will leave them no disposable and destroy the economy anyway. We're seeing cutbacks on non-essentials now, after a couple hundred a month of energy cost increases - what non-essentials can be cut back to find £500-£1000 in mortgage increases?
 
Ahleckz said:
when you took your mortgage out they would have given you what the paykent would be if rates were at 8% or something. Didn’t you consider if you could pay that when you took it out?
I appreciate everything is getting more expensive, and if rates did hit 8%, I’d have to make some major changes but it’s nowhere near repo time.
No wonder there are issues if people are so reckless.
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People are desperate to get into a house, and with rates being so low for so long a lot probably never really believed they might have to afford that 8%...
 
Certainly scary times ahead if you
A) Cant pay an ERC to get out and refix (ship probably has sailed there)

Anyone fixing later this year or beyond will be looking at significantly more expensive life costs.

I think there will be serious pain at 5pc+ rates.
 
Simon0001 said:
You continue renting
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and what happens when you retire and your income drops? Live off welfare?

What happens if the house you're renting, the landlord has to sell up because of the increasing mortgage costs? Or passes it on to tenants so you're paying it anyway.

Not sure what your situation is but sounds like you haven't got a clue to me. Perhaps you're sitting pretty already so you don't care.
 
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