Mortgage Rate Rises

it will go to 6% as people are still spending .. after lock down fever ..debt is a thing thats going to be with a lot of people .. but most low wage and middle class will build it up a write it off .. ride the storm for 5 yrs and start again ..
people are going to feel pain by next yr .. lad at work just bought a 7k car just so he was in debt enough with what else he owes to write it off ...
 
Our 1.85% mortgage deal ends next January :(

Wish I had done my research before I took the deal as we could have taken it a few years longer. No good dwelling on the past though.

Thinking about selling our place and downsizing to reduce mortgage debt. Not desperate or struggling but don't fancy paying all that extra just for interest.
 
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flea.rider said:
it will go to 6% as people are still spending .. after lock down fever ..debt is a thing thats going to be with a lot of people .. but most low wage and middle class will build it up a write it off .. ride the storm for 5 yrs and start again ..
people are going to feel pain by next yr .. lad at work just bought a 7k car just so he was in debt enough with what else he owes to write it off ...
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Agree it will go up before it comes down.
Tough decision to make, I'm trying to delay it as much as possible by paying off one of my mortgages due for renewal in October, and instead renewing the January one.
 
Cadder said:
Our 1.85% mortgage deal ends next January :(

Wish I had done my research before I took the deal as we could have taken it a few years longer. No good dwelling on the past though.

Thinking about selling our place and downsizing to reduce mortgage debt. Not desperate or struggling but don't fancy paying all that extra just for interest.
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Would the stamp duty and moving costs be less than the amount of interest saved over the next 5 years for instance?
 
dLockers said:
I'm the absolute mirror of this TBH. The kid situation is a big one for my wife (and secretly me). I'd love another but the finances are now actively preventing it.
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Genuine question and I'm not being facetious but to raise 2 or 3 children, how much more income would you or anyone else for that matter need?

I don't have children but would definitely like to have some in the future. I'm just worried about not earning enough to provide all the opportunities I can for them so for example music lessons, sports, and other things ( I have no idea what children do these days but I hear parents complaining about the cost).
 
flibbage0 said:
Genuine question and I'm not being facetious but to raise 2 or 3 children, how much more income would you or anyone else for that matter need?

I don't have children but would definitely like to have some in the future. I'm just worried about not earning enough to provide all the opportunities I can for them so for example music lessons, sports, and other things ( I have no idea what children do these days but I hear parents complaining about the cost).
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for 3 depends where you live .. up north 60-70k household income down south double triple that then knock 10k-15 of per kid ya don't want
 
ProStreet said:
Would the stamp duty and moving costs be less than the amount of interest saved over the next 5 years for instance?
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The places we are looking at are below stamp duty threshold. Moving costs shouldn't be too much unless we go quite far away.

We're looking to move regardless, this situation just has a slight influence on our approach to the move.
 
flibbage0 said:
Genuine question and I'm not being facetious but to raise 2 or 3 children, how much more income would you or anyone else for that matter need?

I don't have children but would definitely like to have some in the future. I'm just worried about not earning enough to provide all the opportunities I can for them so for example music lessons, sports, and other things ( I have no idea what children do these days but I hear parents complaining about the cost).
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Tbh it's all relative and you'll make sure they can do all of that no matter what. It's just when you have one you understand the fixed cost which in my case is 1400/mo in nursery fees. She'll be at school shortly after I get dinged by mortgage rates hence why I'm not worried about the roof over my head. But a 4k mortgage plus 1400/mo for another kid is just out of the question.
 
dLockers said:
Tbh it's all relative and you'll make sure they can do all of that no matter what. It's just when you have one you understand the fixed cost which in my case is 1400/mo in nursery fees. She'll be at school shortly after I get dinged by mortgage rates hence why I'm not worried about the roof over my head. But a 4k mortgage plus 1400/mo for another kid is just out of the question.
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Will you be saving for university tuition etc? Student loans are only getting worse!
 
dLockers said:
Tbh it's all relative and you'll make sure they can do all of that no matter what. It's just when you have one you understand the fixed cost which in my case is 1400/mo in nursery fees. She'll be at school shortly after I get dinged by mortgage rates hence why I'm not worried about the roof over my head. But a 4k mortgage plus 1400/mo for another kid is just out of the question.
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£17k a yr wow .. thats a hit ..
 
flibbage0 said:
Genuine question and I'm not being facetious but to raise 2 or 3 children, how much more income would you or anyone else for that matter need?

I don't have children but would definitely like to have some in the future. I'm just worried about not earning enough to provide all the opportunities I can for them so for example music lessons, sports, and other things ( I have no idea what children do these days but I hear parents complaining about the cost).
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Biggest cost to us is childcare - we both work FT, and you can be looking at 1200 pm for full-time nursery for a 1 year old from Monday to Friday 8am to 6pm.

Food, clothes, nappies, baby milk etc are small fry compared to nursery costs.

Ours is just coming up to 2 years old, so no idea what future costs will come up, but the school we've picked is about 7k per year, and we have £400 a month being put aside in our budget that goes into an account specifically for child costs. You can probably do it for as little or as much as you'd like - the best thing you can do for them is give them all the time you can.
 
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BongoHunter said:
Biggest cost to us is childcare - we both work fu, and you can be looking at 1200 pm for full-time nursery for a 1 year old from Monday to Friday 8am to 6pm.

Food, clothes, nappies, baby milk etc are small fry compared to nursery costs.

Ours is just coming up to 2 years old, so no idea what future costs will come up, but the school we've picked is about 7k per year, and we have £400 a month being put aside in our budget that goes into an account specifically for child costs. You can probably do it for as little or as much as you'd like - the best thing you can do for them is give them all the time you can.
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This is what I don't understand.
How do people afford kids on average salaries. It seems impossible. I mean without being in debt or living paycheck to paycheck.

I'm on a very high salary compared to most and still don't feel like I can afford them.
 
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dLockers said:
Tbh it's all relative and you'll make sure they can do all of that no matter what. It's just when you have one you understand the fixed cost which in my case is 1400/mo in nursery fees. She'll be at school shortly after I get dinged by mortgage rates hence why I'm not worried about the roof over my head. But a 4k mortgage plus 1400/mo for another kid is just out of the question.
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Wow.

Did not expect that cost, BRB going to start up a nursery.

How on earth do people afford this??? I need to pull my finger out if it's going to cost me £1400 a month, even if it's not full time. I'm guessing part time for 2 kids it'll probably cost the same?
 
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