Will I lose my home?

Altior

MFWannabe said:

AdmittingDefeat said:

fatbelly said:

MFWannabe said:

OP have you put the figures into a mortgage calculator to see what it will go up to next year based on 5% or above? So you have some idea of what payments you’ll be looking at?  

If your mortgage deal is ending in June 2024, it's worth looking at remortgaging options in Dec 2023. This is because you can lock in a new rate and switch when your current deal ends, avoiding an ERC.

If you're looking at a 5-year fix, you should probably budget for 5.5% - if you can do better then that's good

At 5.5% it would be an extra £136 a month, but 5.5% seems low after everything I’ve seen in the news etc? 

That’s about the rate for current deals at the moment 
have you checked what rates your current lender is offering? I know you’re still fixed but it will give you some idea 

Shared ownership will usually be above the typical headline market best rates.

I believe an overarching strategy to complete staircasing is quite important for the OP. Working around the rate increase next year should be doable. This is from my own experience as my rent portion was pegged to RPI. 

Floss

MFWannabe said:

AdmittingDefeat said:

fatbelly said:

MFWannabe said:

OP have you put the figures into a mortgage calculator to see what it will go up to next year based on 5% or above? So you have some idea of what payments you’ll be looking at?  

If your mortgage deal is ending in June 2024, it's worth looking at remortgaging options in Dec 2023. This is because you can lock in a new rate and switch when your current deal ends, avoiding an ERC.

If you're looking at a 5-year fix, you should probably budget for 5.5% - if you can do better then that's good

At 5.5% it would be an extra £136 a month, but 5.5% seems low after everything I’ve seen in the news etc? 

That’s about the rate for current deals at the moment 
have you checked what rates your current lender is offering? I know you’re still fixed but it will give you some idea 

5-year fixes are up to 6% and more, as of yesterday.

400ixl

AdmittingDefeat said:

MFWannabe said:

AA breakdown cover is horrendous and a complete rip off! Check on a comparison site and see what you can get; mine is only £60 a year; full Uk and home cover 

Do you need to pay any excess with that? And what is the waiting time for call outs like? I just worry that if we go with a less-known company (with probably fewer vans etc) that we could be waiting hours in the case of a breakdown? 

And you believe the AA won't leave you waiting hours? A recent Which? Survey shows that its pretty much a muchness with Start Rescue actually getting to more people within an hour than anyone.

Provider	Up to 30min	30min-1hr	1-2hrs	2hrs +
Green Flag	27.9%	46.3%	18.4%	7.4%
AA	21.7%	50.8%	19.4%	8.1%
Start Rescue	15.4%	76.9%	7.7%	Nil
RAC	17.4%	39.6%	22.4%	20.6%
Emergency Assist	16.7%	38.9%	22.2%	22.2%
LV= Britannia Rescue	18.2%	54.5%	15.2%	12.1%

AdmittingDefeat

400ixl said:

AdmittingDefeat said:

MFWannabe said:

AA breakdown cover is horrendous and a complete rip off! Check on a comparison site and see what you can get; mine is only £60 a year; full Uk and home cover 

Do you need to pay any excess with that? And what is the waiting time for call outs like? I just worry that if we go with a less-known company (with probably fewer vans etc) that we could be waiting hours in the case of a breakdown? 

And you believe the AA won't leave you waiting hours? An example Survey show that its pretty much a muchness with Start Rescue actually getting to more people within an hour than anyone.

Provider	Up to 30min	30min-1hr	1-2hrs	2hrs +
Green Flag	27.9%	46.3%	18.4%	7.4%
AA	21.7%	50.8%	19.4%	8.1%
Start Rescue	15.4%	76.9%	7.7%	Nil
RAC	17.4%	39.6%	22.4%	20.6%
Emergency Assist	16.7%	38.9%	22.2%	22.2%
LV= Britannia Rescue	18.2%	54.5%	15.2%	12.1%

They’ve been very quick when I’ve used them before but that’s just my personal experience. Those numbers look reassuring though- will definitely be switching over 👍🏻

Altior

Other small providers use a network of independent recovery vehicles, they don't employ their own drivers. In the days when the AA man could perhaps fix the issue, there was some value to it. But with modern cars there's very little they can do at the roadside, aside from the basics such as jump start or change a wheel. Which any independent can do. 

AdmittingDefeat

Altior said:

MFWannabe said:

AdmittingDefeat said:

fatbelly said:

MFWannabe said:

OP have you put the figures into a mortgage calculator to see what it will go up to next year based on 5% or above? So you have some idea of what payments you’ll be looking at?  

If your mortgage deal is ending in June 2024, it's worth looking at remortgaging options in Dec 2023. This is because you can lock in a new rate and switch when your current deal ends, avoiding an ERC.

If you're looking at a 5-year fix, you should probably budget for 5.5% - if you can do better then that's good

At 5.5% it would be an extra £136 a month, but 5.5% seems low after everything I’ve seen in the news etc? 

That’s about the rate for current deals at the moment 
have you checked what rates your current lender is offering? I know you’re still fixed but it will give you some idea 

Shared ownership will usually be above the typical headline market best rates.

I believe an overarching strategy to complete staircasing is quite important for the OP. Working around the rate increase next year should be doable. This is from my own experience as my rent portion was pegged to RPI. 

Just had a little nosy- current provider is offering 7.3% for shared ownership mortgages at the minute- which obviously will go up by December which is the earliest we can get a fix in. 

So my plan is; 
- make swaps on life insurance and breakdown cover
- overpay whatever possible now on the car loan to get that paid off ASAP (I am due a small pay rise later in the year which should be approx an extra £80 a month) 
- any other spare money to keep going in emergency fund to cover cost increases
- switch in December before any potential rises next year
- DMP if situation is no better by the time mortgage increases 

MFWannabe

Altior said:

Other small providers use a network of independent recovery vehicles, they don't employ their own drivers. In the days when the AA man could perhaps fix the issue, there was some value to it. But with modern cars there's very little they can do at the roadside, aside from the basics such as jump start or change a wheel. Which any independent can do. 

This 👆 
honestly I’ve never had a problem; the very few times I’ve had to call them out it’s been within the hour 
AA and RAC rely on you being scared to move to a smaller company so they can carry on ripping you off 

MFWannabe

OP also when shopping around for deals have a look if you can get cash back through Quidco or Top cash back 

MFWannabe

AdmittingDefeat said:

Altior said:

MFWannabe said:

AdmittingDefeat said:

fatbelly said:

MFWannabe said:

OP have you put the figures into a mortgage calculator to see what it will go up to next year based on 5% or above? So you have some idea of what payments you’ll be looking at?  

If your mortgage deal is ending in June 2024, it's worth looking at remortgaging options in Dec 2023. This is because you can lock in a new rate and switch when your current deal ends, avoiding an ERC.

If you're looking at a 5-year fix, you should probably budget for 5.5% - if you can do better then that's good

At 5.5% it would be an extra £136 a month, but 5.5% seems low after everything I’ve seen in the news etc? 

That’s about the rate for current deals at the moment 
have you checked what rates your current lender is offering? I know you’re still fixed but it will give you some idea 

Shared ownership will usually be above the typical headline market best rates.

I believe an overarching strategy to complete staircasing is quite important for the OP. Working around the rate increase next year should be doable. This is from my own experience as my rent portion was pegged to RPI. 

Just had a little nosy- current provider is offering 7.3% for shared ownership mortgages at the minute- which obviously will go up by December which is the earliest we can get a fix in. 

So my plan is; 
- make swaps on life insurance and breakdown cover
- overpay whatever possible now on the car loan to get that paid off ASAP (I am due a small pay rise later in the year which should be approx an extra £80 a month) 
- any other spare money to keep going in emergency fund to cover cost increases
- switch in December before any potential rises next year
- DMP if situation is no better by the time mortgage increases 

Well done OP for planning ahead 👍

AdmittingDefeat

MFWannabe said:

OP also when shopping around for deals have a look if you can get cash back through Quidco or Top cash back 

I already use Quidco for Cashback, another one I’ve seen is JamDoughnut which looks like it could be good- intend to give it a go!