Mortgage Rate Rises

JamesH85 said:
I wonder how many homeowners are in a position where they don't have like 2-3 months worth of salary saved to be able to survive a residency or job loss and find another within that space of time.

I understand not everyone is fortunate enough to be in that position, however I'd feel vulnerable if not.
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Being poor is the biggest tax for the poor.
 
JamesH85 said:
I wonder how many homeowners are in a position where they don't have like 2-3 months worth of salary saved to be able to survive a residency or job loss and find another within that space of time.

I understand not everyone is fortunate enough to be in that position, however I'd feel vulnerable if not.
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Try 19 days...
www.yourmortgage.co.uk

Working families just 19 days from the breadline

A new study has shown a drop in the financial resilience of households, as the cost of living crisis starts to bite
www.yourmortgage.co.uk www.yourmortgage.co.uk
 
Uther said:
Try 19 days...
www.yourmortgage.co.uk

Working families just 19 days from the breadline

A new study has shown a drop in the financial resilience of households, as the cost of living crisis starts to bite
www.yourmortgage.co.uk www.yourmortgage.co.uk
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WTF

L&G found that households have average savings of £2,431 and debts of £610. Accounting for average daily expenses of £93, this would see them run out of money in less than three weeks if they were to lose their income.

No1 I wish I had savings of £2431 with debts of £610
No2 Who TF is spending £93 a day?
 
JamesH85 said:
I wonder how many homeowners are in a position where they don't have like 2-3 months worth of salary saved to be able to survive a residency or job loss and find another within that space of time.

I understand not everyone is fortunate enough to be in that position, however I'd feel vulnerable if not.
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Would have thought the vast majority of homeowners are sensible enough to have a safety net. I'd be panicking if I only had 2-3 months in this job market tbh.
 
RedWarrier said:
Lol.
It's worrying the number of economic illiterate people who are posting on this thread, and the amount of time they waste trying to convince others that they are right and everyone else is wrong.

The Bank of England don't expect interest rates to have to increase as much as markets anticipate. That is because inflation will start to fall rapidly later on next year because there will be a large number of people not able to spend due to job loss. That is kind of what happens during a recession, and anyone who can't see how unemployment will surge clearly has difficulty understanding basic concepts. The method chosen to reduce inflation is precisely mass job losses. Both the BOE and government wins here. BOE gets inflation under control and governments can service their debt due to interest rates not having to rise too high. There's quite a few sheep about to become sacrificed.
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You forgot to mention the rise in benefits being paid to the unemployed whilst a reduction in income to the government through reduction in tax take from the wages not being paid to the newly unemployed so there are some negatives to the government.
 
div0 said:
You're conflating two very different things here.

1) Putting your (spare) money where it will give you the best returns.
2) Having readily available savings for things like an emergency boiler fix.

If you overpay the mortgage and don't have funds available to pay an emergency boiler fix, then you (potentially) made the wrong decision.
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They're (sort of) deliberately conflated, because plans change over the course of a 25 year mortgage, and overpaying a mortgage is a permanent payment toward a huge debt.

People are (in my opinion) conflating two different forms of managing money as "you can get more bang for your buck with savings than mortgage. Simple maths". Emergency funds get depleted as emergencies happen, and easy-access cash gets easily accessed. The reason why that cash is put to one side is forgotten, and people will lose out.

I think my problem with the majority of discussions is how people say that paying off the mortgage is purely a piece of mind thing, when it really isn't, there are lots of other reasons why it's a better idea in some circumstances than merely offsetting it with some savings.

Sorry if that wasn't clear.
 
dLockers said:
WTF

L&G found that households have average savings of £2,431 and debts of £610. Accounting for average daily expenses of £93, this would see them run out of money in less than three weeks if they were to lose their income.

No1 I wish I had savings of £2431 with debts of £610
No2 Who TF is spending £93 a day?
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I'm guessing the £93/day is average and covers bills, mortgage etc as well as normal everyday spending.

But yes, that's still around £2,500/month which is a fair amount so I agree.

Thankfully the only debt I have now is my mortgage now that my 0% loan has finished but, as I recently renewed on a 5yr fix, expenses have increased considerably (1.6% to 3.4%). So still £100/month net loss even after the loan payment stopped due to mortgage increase... That's before you factor in energy, fuel and food inflation.
 
dLockers said:
WTF

L&G found that households have average savings of £2,431 and debts of £610. Accounting for average daily expenses of £93, this would see them run out of money in less than three weeks if they were to lose their income.

No1 I wish I had savings of £2431 with debts of £610
No2 Who TF is spending £93 a day?
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How hard is that to work out?

The average UK house price at £290k, less a 10% deposit on a 5% rate is nearly £1600 a month. So that leaves £30 a day for literally everything else.
 
Karl said:
They're (sort of) deliberately conflated, because plans change over the course of a 25 year mortgage, and overpaying a mortgage is a permanent payment toward a huge debt.

People are (in my opinion) conflating two different forms of managing money as "you can get more bang for your buck with savings than mortgage. Simple maths". Emergency funds get depleted as emergencies happen, and easy-access cash gets easily accessed. The reason why that cash is put to one side is forgotten, and people will lose out.

I think my problem with the majority of discussions is how people say that paying off the mortgage is purely a piece of mind thing, when it really isn't, there are lots of other reasons why it's a better idea in some circumstances than merely offsetting it with some savings.

Sorry if that wasn't clear.
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Aside from peace of mind, the only other reason is a lack of self discipline.

I.e. Pay off your mortgage first, because if you offset it, you will eventually have £25k, then reach a mid-life crisis and buy a convertible for no reason.

That being said, i would say you should invest your money in the stockmarket, rather than overpaying, and not in savings or whatever offset mortgage products exist.
 
Nitefly said:
Now down to 5.19%
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I was just thinking about you, do you remember this post

Nitefly said:
My house went up £100k in value 5 years (a 40% increase). I have made £100k (on paper at least) by doing nothing. That is absolute madness - literally impossible for me if I was buying now. This is the sort of thing that people resent the market conditions for. I can’t blame them!!

Loopy times.
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platinum87 said:
Re-mortgage and lock in fixed term deal for 10 years
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Psycho Sonny said:
Worst advice in this whole thread
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So anyway, what happened with your mortgage?
 
dLockers said:
WTF

L&G found that households have average savings of £2,431 and debts of £610. Accounting for average daily expenses of £93, this would see them run out of money in less than three weeks if they were to lose their income.

No1 I wish I had savings of £2431 with debts of £610
No2 Who TF is spending £93 a day?
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Thats not per person in case that's what you are thinking. It's the average for everyone in the home. £93 per day or £2500+ sounds about right if we are talking 2 or 3 people.
 
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