Cost of living crisis

[sendô]

Pfft I paid £6.60 for a pint of Peroni in London the other day.

[MB]

New projections have the BoE base rate peaking next year at just above 5% rather than just above 6%. Hopefully a continuing trend over the coming months as even a base rate of 5% means ouch level payments.

[mumbles87]

New projections have the BoE base rate peaking next year at just above 5% rather than just above 6%. Hopefully a continuing trend over the coming months as even a base rate of 5% means ouch level payments.

oh but didnt you get the memo that interest rates have been low for too long and people getting used to easy credit and these rates are needed to reward savers as the wealth's been transferred..

no regard for the people who cant afford to pay their mortgages when renewal time comes ofc

[White Goodman]

I got mine done when I had a suspicion that things were heading this way, so pretty happy that I'm paying an extra grand from what it was in January.

That said, I've separated from my other half, so we live together now despite not being together as it is about £50k hit early redemption. Oh well , just another 4 years .

Happy days!

[whuben]

I got mine done when I had a suspicion that things were heading this way, so pretty happy that I'm paying an extra grand from what it was in January.

That said, I've separated from my other half, so we live together now despite not being together as it is about £50k hit early redemption. Oh well , just another 4 years .

Happy days!

**** me how big is your mortgage? early repayment is usually upto to about 5% of the balance, depending on how long your deal is

[White Goodman]

It's big . The benefit with my current situation is that the house is correspondingly large, so I never have to see her really.

I live in what I like to call the North Wing

[MB]

Given their gas usage, I can only assume your (ex) other half is Evil C

[btajim - mcfc]

Pfft I paid £6.60 for a pint of Peroni in London the other day.

That’d be £5.00 in Manchester. A city also getting quite expensive.

[Prob]

Pfft I paid £6.60 for a pint of Peroni in London the other day.

How about £5.70 for a pint of Birra Moretti near Weymouth.

£6.50 for a pint of Guinness near the London stadium in hackney wick

Went to a British legion after a christening only £3 a pint of Moretti. I wasn’t going to drink Carling.

[btajim - mcfc]

Pubs are there for the company, atmosphere etc. I doubt you’d experience a damn good night out at a British Legion Club.

[YorksHammer]

The mortgage and associated costs of them is something I've been a little bit on top of, and the last couple of weeks have been bonkers for them.

As someone who's trying to get back on to the property ladder, I've got a deposit together that will afford me a fairly decent house in terms of just the money itself. But when it comes to mortgages I've gone from looking at places in January/February of this year which were in the £210k-£220k range and thinking the mortgage at that point was reasonable (and less than my rent of £825 a month) to now having to cut my budget down to £170k maximum and still likely be paying monthly the same amount as my rent or slightly higher. As little as a month or so ago I was still pretty comfortable with a decent budget for moving house, but the last fortnight has just seen a metaphorical bus drive through it.

I'm kind of fearful my rent will be going up this Christmas - it'll be a year since I moved in then - which will be rough, but equally I can't see myself managing to buy anything anywhere at the moment. I'm kind of assuming I'm best holding fire for the time being and seeing where things are in 12-18 months. Equally, in 12-18 months I could just continue to be priced out of moving without major cuts in interest, and mortgage, rates.

[MB]

Hold off Yorks, you'll be able to afford a place as big as Evil's for that kind of money soon:

[YorksHammer]

Christ! And that's just extrapolating from 6%, which I'm assuming won't be where they hold if the BoE keeps on increasing interest rates.

I honestly can't see this going anywhere other than a pretty sizeable cut in property prices. There will be people who, sadly, are forced out of their houses because they can't make the payments, there will be properties that just don't shift. I can't imagine new home builders are going to be doing well out of this, either.

I've spotted some weird quirks in my recent searches - notably it seems like it's now cheaper to fix for five years rather than two (Natwest, for example, is 5.29% for five, 5.79% for two). Nationwide are currently setting their rates at the same for their five year fixed and their ten year fixed.

[MB]

That’s because the peak is expected next year Yorks so shorter term fix bakes in more of the peak as a % of the life of the deal.

But yes very bleak in terms of the affordability data. There are a lot more people on fixed rates than in the 1980s but there will be cliff edge at some point. Just a case of how big the cliff is.

Was taking to one of my clients earlier. They are looking to sell in Greenwich and already getting offers 10% below asking price.

[fjthegrey]

The mortgage and associated costs of them is something I've been a little bit on top of, and the last couple of weeks have been bonkers for them.

I've taken the money I was going to buy a 2nd rental property with and put it in a bond for a year. That world is too volatile at the moment, hard to trust any of it. Feels like with any random announcement by the government prices could come tumbling down within a few weeks.

Even with a 40-50% deposit it seems like a bad time to be buying.

[stu1]

Christ! And that's just extrapolating from 6%, which I'm assuming won't be where they hold if the BoE keeps on increasing interest rates.

The current levels of 6% mortgages have already factored in multiple further BoE rises.

It wouldn’t surprise me if within the next 6 months and BoE has raised the base rate by a further percent but simultaneously mortgage rates drop to around 5%.

Always worth remembering mortgage rates are effectively made up of two parts, the risk free (BoE rate) and further market expectations (known as the curve).

The second part is why you see 5 and 10 year rates being lower than 2 year rates, as the market expects rates to peak other the next 2 years and then fall.

[delbert]

Pubs are there for the company, atmosphere etc. I doubt you’d experience a damn good night out at a British Legion Club.

Depends on the Legion and the company.......

[btajim - mcfc]

We’ve been asked to leave places before for attempting to enjoy ourselves or even cheering a goal. Members / regulars often dictate who is welcome and who isn’t.

[Tenbury]

In my family set up it falls on me to do all the house keeping /shopping/cooking. I shop once or twice a week, fitted around taking my son to football training, matches, reffing etc, in order to save diesel. I only ever shop at Aldi or Lidl( back in more lucrative times they were the best place to buy the sort of Mediterranean stuff my kids like, now they're just cheap!).
I've no idea where this figure of a 10%rise in inflation comes from, from the evidence of my own eyes and debit card, it's a fact that basic food prices have risen far, far higher than that. I've had two kids leave for Uni, and my overall food bills have still gone up. We're lucky, our housing costs are achievable I cant begin to think how stressful it must be for many people,just to keep a roof over their heads, but continually being told that 'inflation is running @10%' is getting on my t*ts.

[YorksHammer]

Does it depend on what you buy? Not being funny about it, Tenbury, more legitimately wondering. I've been shopping at Lidl recently as its just round the corner, and to be honest prices have maybe shifted by a couple of quid a week for me - but equally I'm vegan so it's fruit, veg, and grains mostly plus a couple of freezer bits to feed the kids every now and again. Equally my weekly food bill is only around £30/£35, so 10% is between £3 and £4 extra for me.