Mortgage Rate Rises

[mattyprice4004]

Tell me about it. We were having a garage extension done a few years ago. Didn't, then got a requote last year. Price had doubled

Similar story, but extending my garage (making it a bit wider and doubling the length).
Needless to say, I've chosen to de-clutter and the car can just go nose-in for any work now!

 

[Curlyriff]

The point about in work vs out is that there was massive house price suppression due to many being out of work. When people are losing jobs and struggling they often end up selling at a desperate price

Sorry was going to comment oh house mix as well. Maybe its because Oxford is more expensive, but generally even in the most expensive areas of Suffolk the estates are more larger houses than smaller ones.
They just get them in a bit tighter.

Right I get that factor in terms of what the market value may well have been but that doesn't change what the actual figures are and what relative it was at during the 70s, 80s, 90s, 00s, 10s, 20s as is.

That still doesn't change if you want to compare cost of living. That is not the same thing in that we are talking about the cost of living. We had similar spikes mid 90s and 2008+

 

[Mercenary Keyboard Warrior]

Finally got what I was trying to remember. The insurance backed thingy was the MIG, the mortgage indemnity guarantee.
It did nothing for the borrower, it was purely for the lender. But the borrower paid it.

It was significant. From memory it was 1 or 2% but maybe it was more, I remember it was pretty painful seeing it added to your mortgage balance.
It was often one of the differentiating factors between lenders, since the % it started at could make a significant difference to the monthlies.

The Mig issue | Money Marketing

Last week, I received an email from an IFA accusing me of being a w****r, "along with your mates at the Consumers' Association, who promoted endowments in the 1980s and then said the opposite a few years later".Regarding the gibe at the Consumers' Association, now called Which?, I am familiar...

www.moneymarketing.co.uk

 

[Derek W]

Made an initial enquiry about timescales for obtaining a redemption statement as I'm not keen on remortgaging in April. So looks like I'll have to request it officially a month before i want to pay off the remainder of my mortgage. It'll wipe out my savings but it'll give me peace of mind knowing I've got a roof over my head / asset forr the future.

 

[Mickcas]

This thread seems a little all over the place but I thought I'd share my situation in case it's if use to anyone.
We bough in 2016, first home, average wages, so average rate at the time, around 4% maybe a little less, this was a 2 years fixed to start with, probably a bad move, went for 5 years after this.

My 5 year fixed comes to an end this April.
Just remortgaged with the same lender at 4.37%, which considering some rates I've seen, I thought was ok.
Makes for an increase of about £ 32 a month not great but considering the circumstances and how bad some people are being hit, I'm not going to complain.
luckily we live well below our means so any increase would have little to no impact on us.
We had been considering moving in 2023 but the house we would want would likely be double in value and I think it would be best to give it a few more years for everything to settle down.

its horrible to hear of those who are impacted to the point whereby their increase means a re-evaluation of their lifestyle, people say be careful, don't spend on this or that, but even for those who live payday to payday you have to have some sympathy for.

 

[fredwi]

I literally live in my excel spreadsheet. I've mapped out the entire years finances already to plan for a garden renovation, holiday and the dreaded mortgage renewal in July

How have you done a year

Is it as simple as a holiday will cost x next year so I need to save x per month

Bills I guess you can say council tax has increased by x percentage

I track my savings into excel pots as a big sum of money I don’t want to spend but if a pot has enough in for that item I will spend it

Plus it helps with my ground rent and service charge not looking forward to my mortgage in aug but luckily I will just be over paying less sadly

 

[danlightbulb]

Im another spreadsheet tracker. Ive been tracking all my spending, savings and debt repayments since 2015.

My bills and fixed outgoings come out first, then I track everything Im spending so I know how much I have left in the month at any moment.

 

[kona786]

One of the Best things I did was have a separate bank account that covers the monthly DDs for household bills. My personal bills come out of my own account. And another account for joint savings. And then another account for my sole savings.

The segregation keeps it clear for me.

 

[ci_newman]

Im another spreadsheet tracker. Ive been tracking all my spending, savings and debt repayments since 2015.

My bills and fixed outgoings come out first, then I track everything Im spending so I know how much I have left in the month at any moment.

I'm the same. It has taken a bit of joy out of pay day though My salary is spent and accounted for before it even hits my bank account...

 

[jon86]

I don't understand why we don't have lifetime rates as standard.

That's basically what we have in the USA; 30 year fixed rate at 2.5%. We're in the position of potentially wanting to move up in house, but only being able to do that if we throw a lot of our savings into the mix (and thus get as low a mortgage as possible) because rates are really high at the moment (6+%).

Finally got what I was trying to remember. The insurance backed thingy was the MIG, the mortgage indemnity guarantee.
It did nothing for the borrower, it was purely for the lender. But the borrower paid it.

It was significant. From memory it was 1 or 2% but maybe it was more, I remember it was pretty painful seeing it added to your mortgage balance.
It was often one of the differentiating factors between lenders, since the % it started at could make a significant difference to the monthlies.

The Mig issue | Money Marketing

Last week, I received an email from an IFA accusing me of being a w****r, "along with your mates at the Consumers' Association, who promoted endowments in the 1980s and then said the opposite a few years later".Regarding the gibe at the Consumers' Association, now called Which?, I am familiar...

www.moneymarketing.co.uk

MIG is called PMI (Private Mortgage Insurance) in the USA, and it's usualky applicable if you have a deposit smaller than 20%. It's similarly expensive.

 

[MikeTheNative]

@jon86 Are the early termination fees really high if you want to move then?

 

[Mysterae_]

Any juicy templates you lot want to share ?

Not without giving away financial information . However I will describe what it consists of.

- A worksheet for each month of the year, with the end of month balances copied and linked to the beginning of the following month. This way you can see the impact of any large unforeseen purchases at any point of the year.
- Within the sheet above the credit card statement date is tagged so that you can capitalise on the maximum interest free period and know exactly how much it is to clear the balance monthly.
- A sheet for tracking the mortgage, the impact of any overpayment and of the rate change for when the fixed term ends.
- A sheet for investments (shares, DCA'ing crypto, savings etc)
- A few other project sheets for things I'm doing and planning to do in the future.

For starting out the first point above is the minimum I would suggest. You could even copy it for further years but 2 years ahead is fine for me. My biggest suggestion is to be honest with yourself and your finances.

 

[jon86]

@jon86 Are the early termination fees really high if you want to move then?

I have no ERC or overpayment penalties on my mortgage. I think that this may be an artifact of the fact that two large government-backed companies (Freddie Mac and Fannie Mae) own the majority of mortgages in the USA (including mine), although I'm not 100% sure on that.

 

[413x]

One of the Best things I did was have a separate bank account that covers the monthly DDs for household bills. My personal bills come out of my own account. And another account for joint savings. And then another account for my sole savings.

The segregation keeps it clear for me.

Have same. Definitely helps. I'll often use my tesco CC for shopping and bank transfer cash to my account. But may just point that at the joint.


I do wish banks had clearer info on who you bought from. Not the cryptic name. The store front name. Remember one instance I saw "red rock" on my statement and 50 pounds transaction. Couldn't remember what it was.
Was a petrol station! Was an embarrassing call to the fraud department!

 

[Richie]

its horrible to hear of those who are impacted to the point whereby their increase means a re-evaluation of their lifestyle, people say be careful, don't spend on this or that, but even for those who live payday to payday you have to have some sympathy for.

The number of people on here lacking in any basic level of empathy in general (not just on this topic) is saddening....

For some, it's went past the point of being non-plussed about others situations to being actively and enthusiastically enjoying hearing other people suffering whilst simultaneously sticking the knife in more and piling on....

 

[Doobedoo]

One of the Best things I did was have a separate bank account that covers the monthly DDs for household bills. My personal bills come out of my own account. And another account for joint savings. And then another account for my sole savings.

The segregation keeps it clear for me.

I do something similar but the thought of living my life through a spreadsheet would make me want to jump off the nearest bridge.

 

[kona786]

I do something similar but the thought of living my life through a spreadsheet would make me want to jump off the nearest bridge.

It works for some people.

But agreed, not something I need or want to do.

 

[Uther]

One of the Best things I did was have a separate bank account that covers the monthly DDs for household bills. My personal bills come out of my own account. And another account for joint savings. And then another account for my sole savings.

The segregation keeps it clear for me.

Yeah that's how we do it.
Bills account
Joint account
Then our own savings / personal spending accounts.

 

[bigmike20vt]

Have same. Definitely helps. I'll often use my tesco CC for shopping and bank transfer cash to my account. But may just point that at the joint.


I do wish banks had clearer info on who you bought from. Not the cryptic name. The store front name. Remember one instance I saw "red rock" on my statement and 50 pounds transaction. Couldn't remember what it was.
Was a petrol station! Was an embarrassing call to the fraud department!

could not agree more. it works the other way as well. I let a transaction through when credit card fraud called me because it sounded similar to something the wife may have been using at the time. only a 5er or so, however they then tried a bigger amount of £30 a few weeks later. luckily i got that one and managed to rever that one. I didn't get a fraud call that time however as I have already white listed the company.

 

[jaybee]

I do something similar but the thought of living my life through a spreadsheet would make me want to jump off the nearest bridge.

I know a couple that got divorced and one of the main reasons was a spreadsheet that the women tried to enforce. I'm not saying she was wrong or right. I use spreadsheets to knock up adhoc things during purchase decisions, but don't use one all the time tracking everything. I have one I knocked up purely to help me understand mortgage projection stuff.