Mortgage Rate Rises

[glenimp617]

Anecdotally I'm not seeing any properties around here selling. Used to be the case most for sale boards were sold (seller's market) but it's the opposite now. Feels like a collapse is on the cards

Yep, house prises around me have stayed the same or gone up even the difference this time, is nothing is selling

 

[glenimp617]

I've just gone onto a tracker at 5.48% without an ERC, because we plan to move by summer.

You need to be one hell of a gucci belt high revenue earner to be paying that each month

 

[glenimp617]

What's a good savings account these days?

 

[glenimp617]

Looks like more major banks have upped their fixed rates today.

Just goes to show nobody knows what's going on

 

[glenimp617]

Its just an exercise in curiosity.

Essentially he wants to see if the interest paid over the mortgage has been eroded away by the increase in house price e.g.

• Paid £100,000 for house in 1995
• Use the calculator in his link to estimate what £100,000 is now equal to in today's money - £198,000 (rounded from that calculator)
• House is now "worth" £300,000 today (price if you were to sell it today)
• £300,000 less £198,000 (value of house currently less value of house in 1995 adjusted for inflation) = £102,000 "gained value"
• Total Paid in Deposit+Mortgage Payments = £250,000 (so £100,000 for house (point 1) and therefore £150,000 paid in interest)
• £150,000 interest paid less £102,000 "gained value" = £48,000 in interest paid (comparatively)

At least I think that's what he is trying to see.

I was thinking this exact same thing yesterday.

 

[glenimp617]

Heard on the radio this morning the UK is on the verge of a housing boom

 

[glenimp617]

I'm really struggling to overpay the mortgage as we need a new bathroom and kitchen. My goal is to be mortgage free before 55, but when you need new carpets, kitchen, bathroom etc etc with the usual wear and tear items it's a real struggle.

Not sure how people are doing it.

 

[glenimp617]

A lot of people spend a lot of money on things they don't need. It all adds up very quickly. New phone every year or 2. There is £1000. Couple of holidays a year. Theres a few thousand pounds or more. New car or car on finance. Theres another £4k/year. Eating out or getting takeaways 4-5 times a month, Theres another £2k/year. Expensive hobbies, clothes etc.

Its very easy to have two people on identical salaries and have one spending £10k more than the other on "luxury goods" without even really thinking about it. People are funny with money. We know far too many people who plead constant poverty and yet **** money up the wall on things that we wouldn't dream of doing despite being on far better salaries. Each to their own I guess.

Yep, they definately add up. I was talking about the big ticket items really. Hopefully after the next couple of years I can really start to make inroads.
Still plenty of time left.

 

[glenimp617]

I think people ignore the small things far too much thinking its the big items that kill you. Its not. We have a credit card bill that is about £1500/month on average and every time I look at it I think "how on earth are we spending that much!". Its death by a thousand cuts. 4 shops. Some insurance payment. A fix on the car. A few fuel fill ups. A takeaway. A day out. Some bits from amazon. Nothing much above £100 but it all mounts up.

I bet they do. I'm probably one of those really frugal types who records everything in excel. Can budget months, even years in advance.
Nothing on credit cards or any buy now pay laters. Don't get me wrong, whilst I don't spend anything on drink,takeaways,going out etc etc I do treat myself now and again....usually an expensive one off thing like a vr headset

It's a balance, but if I didn't need a new bathroom and kitchen I could pay it off that much quicker.

 

[glenimp617]

Do you need to overpay the mortgage?
Do you need all that new stuff?

Its mega expensive that sort of thing. I certainly couldn't do both. New kitchens and things like seem constantly impossible to justify on my priority list. It would have to be a bomb site for me to spend that much.

We're holding off as long as we can