Mortgage Rate Rises

platinum87 said:
What gordy says is true, so i would say you keep that 10k or whatever it is, in savings accounts paying the most which have FSCS protection.

The £200 or whatever it is, you should put into an index tracker, best bet would be with Vanguard

Edit, the 10k figure is basically how much you want to have for emergencies, for me that number is £0, because i could take out quite a lot on credit cards to cover any possible emergency.
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I'd never want to dip into that £10k fund, it will sit there in whatever is the highest interest easy access account I can get, just on the off chance something happens over a short or long term and I need something to dip into either for myself or close family. That may change in the future but for now, its staying there.
It that smart? no its not, but its not something I want to think about it.

The extra I make each month after all bills will indeed go into "something" will decide once I've actually got a house.

Also I HATE credit cards, I hate debt of all forms. I have a credit card that that I used for a few year just to get some credit rating as I have literally nothing, I hated using it, comfortable in the high end of credit rating at the moment so I stopped using it awhile ago. Will probably resume using it once I have actual things I need to spend money on as at the moment my monthly expenses are just petrol and board money with very little spending inbetween as I just...dont need anything or have any partiuclar "wants" outside of what I already have. Could do with a new PC as this one has been showing its age for awhile i5 2500k with SLI 670! but its still fine for very few games I play these days.
 
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platinum87 said:
That argument is used by people who lie to themselves out of fear and uncertainty, it is the brains way of justifying things to keep you in your comfort zone of minimal effort.
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What on earth are you blabbing on about?

You do realise that not all minimum wage jobs are awful you know?

Some of the most important jobs that keep the country running are minimum wage.

Equally there aren't enough higher paid jobs to cater for everyone to get one so ultimately there will always be people on minimum wage and some of them will be perfectly happy doing them as long as they have enough to cover their outgoings and a little extra to spend/save.

Edit - by the sounds of it I'm very similar in outlook on life as MatsyLR. Things like fancy cars, extravagant holidays, posh restaurants etc just don't interest me in the slightest. As long as I have a PC/Console capable of playing the games I enjoy then I'm a happy chappy.

With regards to jobs. If I find one I like then I just stick with it as long as it covers my modest outgoings. I've been in my current role 20 years. Never been interested in promotion or doing anything else. I dont dread going into work so why rock the boat?

I'm only now having to look for something else because the position will soon become redundant. If it wasn't for that I'd have happily done another 20+ years doing the same thing. Unfortunately though, the role is unique to the company I work for, so couldn't do the job for anyone else.
 
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MatsyLR said:
Thinking over things, as a general rule of thumb this is my outgoings on a 12 year mortage.

WAGES £1,350
Savings Interest £22 per month

Mortgage £354
B&C Insurance £10
Council Tax £90
Water £20
Pet Insurance £10
Car insurance £60
Car Tax £12
Electric & Gas £120
Boiler Insurance £15
Broadband £30
Petrol £80
Phone SIM £5

Misc
Food £120
Pet Food £15
Pet litter £10

Totals around £951, say £1000 to be safe, with £350 left over. Keeping in mind I would also have £10k in the bank after deposits/fees paid and I also get comission on top of my wage (not gaurenteed) and I'm a very frugal person to begin with.

The more I think about it I think I'll do a 12 year fix at £354 for 5 and also overpay by 10% each month. Over 5 year that reduces my term by 1 year 3 months so it will look more like a 10 year fix in the end if after 5 years things have averaged around 5%
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Total ends up being a lot more after you add allowances for

Clothes, Shoes etc
Car Maintenance & repairs
Replacement or upgrade of car
Replacement or repairs for kitchen appliances (washing machine, dryer, cooker, Fridge, freezer etc) when needed
Replacement or repairs for other House hold stuff when needed like curtians, Beds & bedding, TV's, flooring, heaters, Paint & decorating, repairs, etc
Replacement or upgrade of mobile phone, Computer or laptop or Tablet
Toiletries
Etc
Etc
Etc
 
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chaparral said:
Total ends up being a lot more after you add allowances for

Clothes, Shoes etc
Car Maintenance & repairs
Replacement or upgrade of car
Replacement or repairs for kitchen appliances (washing machine, dryer, cooker, Fridge, freezer etc) when needed
Replacement or repairs for other House hold stuff when needed like curtians, Beds & bedding, TV's, flooring, heaters, Paint & decorating, repairs, etc
Replacement or upgrade of mobile phone, Computer or laptop or Tablet
Etc
Etc
Etc
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Yeah sure which is why I'm keeping a chunk untouched for any situation that comes up and any left overs monthly will go untouched unless needed.
 
The money vs. job happiness/satisfaction/whatever is always an interesting one - and I feel I totally fit what was said above - I was in a really underpaid job with relatively few career prospects and kept telling myself that since I ultimately liked it and felt it was for a worthwhile cause I should just stick with it - because money isn't everything and being in a job I was happy with was more important. But eventually got the courage up to apply for other things and try moving elsewhere and now I earn around 3x as much doing a pretty similar job. I would say I don't feel quite the same sense of job satisfaction or that the stuff I'm doing is so worthwhile, but the job is fine enough and I certainly appreciate not being terrified that the car or the fridge or whatever is going to break down
 
The £200 or whatever it is, you should put into an index tracker, best bet would be with Vanguard
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Considering how much UK household is spending on energy, I figure its now a hedged bet to be in FTSE either way one side is winning. But also stay liquid is better then many achieve so hard to disagree
 
MatsyLR said:
To be honest, yes, for the most part it has been sitting doing nothing which was stupid on my part, its not something I thought about. When I think of how many bitcoins I could have bought in the early days....
Currently the money is getting around £200 each month in interest, but I've already hit the cap so I'll start paying taxes on it next month....but there is no point doing anything with it at the moment, maybe the £10k or at least some of it but still deciding what to do.


I care very little about food, but the food I do "like" to eat is cheap, I love cereal like bran flakes, wheatabix (store brand), I can eat cereal every day for a "meal" and be happy about it. I couldn't get enough of broccolie and carrots. I'm easy to please when it comes to food, put food in front of my and i'll eat it and be happy no matter what it is. I love chocolate, lindor being a favorate but I'm happy with a cheap bar of supermarket chocolate or b&m for a fraction of the cost. I cant remember the last time I bought a take away meal as I have no craving for it. At this moment in time what I have a craving for is some salted nuts and some rasens. Different tastes I suppose.

I'm 31 years old now, my 20's are behind me althought I could probably pass for an 18 year old with how young I look as no one can guess my age i've worked with. I went out enjoyed it for what it was and I'm at a point where I just cannot be bothered and prefer to left alone in the peace and quiet.
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It’s your life I’m the same age as you, I know everyone is different but as others have said don’t regret things later go and live a little now I have some amazing memories in my 20s
 
uncle_rufus said:
The money vs. job happiness/satisfaction/whatever is always an interesting one - and I feel I totally fit what was said above - I was in a really underpaid job with relatively few career prospects and kept telling myself that since I ultimately liked it and felt it was for a worthwhile cause I should just stick with it - because money isn't everything and being in a job I was happy with was more important. But eventually got the courage up to apply for other things and try moving elsewhere and now I earn around 3x as much doing a pretty similar job. I would say I don't feel quite the same sense of job satisfaction or that the stuff I'm doing is so worthwhile, but the job is fine enough and I certainly appreciate not being terrified that the car or the fridge or whatever is going to break down
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I'm at the edge of where more money = more responsibility + more stress + doing less of what I actually enjoy doing as a job.

My rough rule was to try and earn £1k per year of age, but I only managed that from the age of 28 onwards, and now have a decent buffer of like 8 years, but still this week I pulled back massively on our grocery spend and just bulk cooked veggie curry and veggie chili for the week.
 
kona786 said:
What's the return on that 3k after a year?
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The rate jump on the account means that people can potentially make up to £81.25 in interest on the account if they have the 5% interest rate for the full 12 month period, compared to up to £16.25 at the 1% rate over 12 months.
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Although by my calculations sticking £3k in their 3% easy access (Max £10k) would net you £90 over the same period..
Curlyriff said:
£150 at end year.
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No because you can only pay in £250 a month!
 
200sols said:
Although by my calculations sticking £3k in their 3% easy access (Max £10k) would net you £90 over the same period..

No because you can only pay in £250 a month!
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right and the following year you'd get £150 at 5% assuming they don't change rate following year. Yes in year 1 you only get £81.25 because of the monthly build. I use the Barlcays rainy day saver after someone posted about it in here. There is no limit to how much you put in and you get 5% up to £5000 in it so even in year 1 you could possibly get £250.
 
Curlyriff said:
right and the following year you'd get £150 at 5% assuming they don't change rate following year. Yes in year 1 you only get £81.25 because of the monthly build. I use the Barlcays rainy day saver after someone posted about it in here. There is no limit to how much you put in and you get 5% up to £5000 in it so even in year 1 you could possibly get £250.
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After 12 months all money saved + interest is paid out as a lump sum into another account (usually their flex saver at 0.5%) You cant get £150, or £250 ever.
 
200sols said:
After 12 months all money saved + interest is paid out as a lump sum into another account (usually their flex saver at 0.5%) You cant get £150, or £250 ever.
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Rainy Day Saver | Barclays

Looking to start and grow your emergency fund? If you’re a Blue Rewards member, you could earn more interest with a Rainy Day Saver account.
www.barclays.co.uk www.barclays.co.uk

No I can put £5k into my account and I would get £250.27 as per linked.
 
Curlyriff said:

Rainy Day Saver | Barclays

Looking to start and grow your emergency fund? If you’re a Blue Rewards member, you could earn more interest with a Rainy Day Saver account.
www.barclays.co.uk www.barclays.co.uk

No I can put £5k into my account and I would get £250.27 as per linked.
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Fair enough I didn't see you switch and start referring to Barclays, you still cant get £150 from the HSBC account though.
 
For monthly savers to calculate interest you take the monthly and multiply by 12 to get the saved amount, so £250 is 250x12 = £3000

Then you take the amount saved * rate * 0.5, or half the amount or the rate
eg 3000 x 2.5% or 1500 * 5%, all three end up in the same result, which ever suits your maths.

So the result is £75

But you should apply the same to where the money would be also stored if it already is in your hands
So if it was in a 2% paying current account you would also need to add £3000 x 2% x 0.5 so £30

The combined total of £105 would be the £3k starting in a 2% account and being moved to the 5% over the year.
 
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