Hard to imagine it'd be tolerable. Average cost of a home seemingly £277k so if you just took out a mortgage in the past few years you could realistically have a £200-250k balance. A 2% fixed rate jumping to 9% when remortgaging basically doubles the cost of that mortgage. You'd be paying circa £850-1000 a month more (so £10-12k a year more in mortgage payments).
Energy Prices (Strictly NO referrals!)
- Thread starter DXP55
- Start date
Exactly the situation we were in. We 210 debt. Where 1pc is 100ppm.
When 1pc = 100ppm things get unpleasant quickly. And frightening is very real..
Something couldn't possibly have considered just a year ago. So many of us haven't ever been impacted or even seen normal Interest rates.
In isolation this isn't too bad. It sucks but it isn't life wrecking. But when energy can jump 100s a month too. You're looking at life changing stuff.
Soldato
The average mortgage debt for houses not fully owned (approx. 60% are fully owned) is £137k.
But 49.7% of all mortgage debts are either single earner at over 4x income or joint earners borrowing over 3x their income so room for manoeuvre for many across all relatively significant debt values wouldn't be particularly high.
Soldato
By "not fully owned", I assume you mean shared ownership scheme? In which case, while the mortgage part is "only" £137k, would the rental on the shared part not also increase?
He likely means: fully owned = no mortgage
Soldato
Fully owned as in no mortgage I.e. own the house outright. The rest are mortgage.
Associate
Just going to sit here quietly appreciating my 5 year mortgage fix (well 4 years to go)
Soldato
Soldato
I wouldn't rule it out. What would you have thought a year ago if someone told you that within the next 12 months interest rates would be getting close to 20% and your energy prices are going be increasing by more than 3x? No one would have been taken seriously, yet here we are.
Consider me jealous.
Not quietly enough.
Soldato
Very true.
Unfortunately I’m not one of those fortunate enough either. I’ll be riding the interest and inflation rollercoaster with everyone else.
Yes but they aren’t part of the average mortgage value as there is none of course.Ah, well, the average mortgage debt for a house fully owned would be £0 surely?
Family of 6 we spend £800-£1000 a month in supermarkets according to my bank app
Soldato
May I ask the ages? £1k seems pretty high. I can make dinner for 4 adults for about £5 if needed (probably slightly more now). My family, me, wife, 2 boys (4 and 7) average monthly spend c£450 - Sainsburys as well (could save say c10-15% if I switched up to Aldi all the time)
Side note, I did find the BBC Inflation calculator amusing, similar household monthly spend figures:
Eating and drinking out: £285?!
Clothes - £181 -> Who actually spends this much on clothes each month?
Holidays - £128
Childcare - £45 (the most amusing one)
Mega recession
We don't eat fancy food but that included beer and wine which I drink most days. Perhaps I drink too much.
13,11, 9,7. (48,40)
She cooks from scratch most nights.
Soldato
Each to their own I guess, I wasn't questioning that.
Just to qualify, I'm not talking steak
I'm talking bolognase from scratch for about £5-6. Mince, Pasta, Passata, some herbs etc, garlic bread. Even some self made gusto recipes (we stopped it after the discounted trial) we frequently make can come in fairly good value 
Been thinking of cutting down anyway. I have been drinking a lot of red wine lately so that would save me a fair bitEach to their own I guess, I wasn't questioning that.
Just to qualify, I'm not talking steak
can come in fairly good value