thread for us fixers so many ??????

Aylesbury_Duck

pickapennyup said:

im no expert on here far from it but am concerned about my fix so thought us fixers shouid have a thread
im on a 2 yr fix and being honest was happy with it now im concerned,i guess we will find out in the next few days

2 adults (im disabled and dont work) one gamer teen 3 bed detached monthly dd £210 a month fixed from 16th August this year till 16 th August 2024

Electricity

Next Loyalty 24M Fixed Rate - June 2022 Issue 2

Fixed term ends 16/08/2024

41.03 p/kWh 43.39 p/day

(All rates inc. VAT)

Gas

Next Loyalty 24M Fixed Rate - June 2022 Issue 2

Fixed term ends 16/08/2024

10.52 p/kWh 27.22 p/day

(All rates inc. VAT)

feel free to join in

I don't understand why you're concerned.  You took a fix on a tariff you (presumably) planned to be able to afford, so why does it matter what happens to the price cap?  If the Ukraine war ended tomorrow and we resumed trade with Russia soon afterwards we'd probably start to see energy costs fall and you'd still be on your fix with an option to exit, fees applied.  Why is this potential new "price cap cap" any different?

It seems to me that many who fixed expect to have their cake and eat it.  Isn't it similar to taking insurance or fixing a mortgage?  You pay a premium to protect against something that might happen.  If the thing doesn't happen you might argue your money was "wasted", but would you have been comfortable not fixing?  

I can understand why you might feel miffed, in the same way I've felt when taking mortgage fixes only to see rates stagnate or fall, but I don't see why you're concerned.  You took a fix precisely because you were concerned about prices rising further, didn't you?

jak22

The its tough posts and silly analogies continue. To help with the not understanding the concerns are only what action fixes should now take - and normally this forum/site loves to give advice - and hoping to see non-capped users covered by the announcement.

Fixes were taken out paying above cap for several months to avoid paying a lot more with rising caps - and the cap has gone up with prediction - it's the new variable rate subsidy thats suddenly changed things. Some help was bound to happen but an extension to the rebate for everyone seemed more likely until only days ago. 

Fixed took action themselves - contracting with the energy companies rather than £100bn govt funding - but will still be some part of paying all this back. 

Steve_79_P

"It seems to me that many who fixed expect to have their cake and eat it.  Isn't it similar to taking insurance or fixing a mortgage?  You pay a premium to protect against something that might happen.  If the thing doesn't happen you might argue your money was "wasted", but would you have been comfortable not fixing? "

Market forces haven't changed the rates. Without intervention rates would be as per OFGEM sept cap and only going one way. Essentially rates will STILL be this high but the government backed loans will cover the difference. 

In the mortgage example, it's akin to me fixing at say 4% when I could take a variable rate at 2%. Fixed mortgage rates are usually lower than the SVR, the only time they aren't is when it is strongly suspected that rates will rise, so we know a rise is coming.....

So sometime afterwards, the (variable) rates are due to RISE to 8%. BUT the gov steps in cos people won't be able to pay and the banks will go bust, and people will lose their homes. So they pay the banks 5% of the interest (as a loan out of general taxation) and the customers only have to PAY 3%.. The interest rate is STILL 8%. The bank still gets 8%. 

Meanwhile the guy who is on the fixed rate pays more than those who are "paying" 8%, gets no help from the gov, the bank makes less money off him, and still has to shoulder some of the debt which will accrue helping everyone else but him.

Fixers would happily bite the bullet if market forces changed the rates. It's a risk we know. They also wouldn't mind paying a bit more for security, knowing they can afford the bills.

The rates have not gone down, the gov have only chosen to help some people whilst claiming to help all.

london21

Difficult to please everyone.

I am on variable with Bulb but we will find out tomorrow. 

[Deleted User]

Steve_79_P said:

"It seems to me that many who fixed expect to have their cake and eat it.  Isn't it similar to taking insurance or fixing a mortgage?  You pay a premium to protect against something that might happen.  If the thing doesn't happen you might argue your money was "wasted", but would you have been comfortable not fixing? "

Market forces haven't changed the rates. Without intervention rates would be as per OFGEM sept cap and only going one way. Essentially rates will STILL be this high but the government backed loans will cover the difference. 

In the mortgage example, it's akin to me fixing at say 4% when I could take a variable rate at 2%. Fixed mortgage rates are usually lower than the SVR, the only time they aren't is when it is strongly suspected that rates will rise, so we know a rise is coming.....

So sometime afterwards, the (variable) rates are due to RISE to 8%. BUT the gov steps in cos people won't be able to pay and the banks will go bust, and people will lose their homes. So they pay the banks 5% of the interest (as a loan out of general taxation) and the customers only have to PAY 3%.. The interest rate is STILL 8%. The bank still gets 8%. 

Meanwhile the guy who is on the fixed rate pays more than those who are "paying" 8%, gets no help from the gov, the bank makes less money off him, and still has to shoulder some of the debt which will accrue helping everyone else but him.

Fixers would happily bite the bullet if market forces changed the rates. It's a risk we know. They also wouldn't mind paying a bit more for security, knowing they can afford the bills.

The rates have not gone down, the gov have only chosen to help some people whilst claiming to help all.

We have no idea yet what the government have chosen to do.  You're taking predictions as facts, both now and in hindsight.

Steve_79_P

"We have no idea yet what the government have chosen to do.  You're taking predictions as facts, both now and in hindsight."

This entire thread is precisely to discuss this point.......

Steve_79_P

I was responding specifically to the mortgage rate analogy and explaining why it is not the same thing (which in itself was a post which assumed the latest speculation will become fact)

[Deleted User]

Steve_79_P said:

"We have no idea yet what the government have chosen to do.  You're taking predictions as facts, both now and in hindsight."

This entire thread is precisely to discuss this point.......

And yet you are using your guess as evidence that other posters are wrong and stating that "the gov have only chosen to help some people"

[Deleted User]

jak22 said:

The its tough posts and silly analogies continue. To help with the not understanding the concerns are only what action fixes should now take - and normally this forum/site loves to give advice - and hoping to see non-capped users covered by the announcement.

Fixes were taken out paying above cap for several months to avoid paying a lot more with rising caps - and the cap has gone up with prediction - it's the new variable rate subsidy thats suddenly changed things. Some help was bound to happen but an extension to the rebate for everyone seemed more likely until only days ago. 

Fixed took action themselves - contracting with the energy companies rather than £100bn govt funding - but will still be some part of paying all this back. 

It's perfectly possible to hope for a balanced package of help in appropriate portions to all people, whilst pointing out that there shouldn't really be an expectation that the government would bail you out of freely signed contracts.

Steve_79_P

[Deleted User] said:

Steve_79_P said:

"We have no idea yet what the government have chosen to do.  You're taking predictions as facts, both now and in hindsight."

This entire thread is precisely to discuss this point.......

And yet you are using your guess as evidence that other posters are wrong and stating that "the gov have only chosen to help some people"

Yes, in the HYPOTHETICAL mortgage analogy......