Cost of living!

[C8RKH]

22 hours ago, Bibs said:

Yes I do, my family live here and I like to spend time with them without a journey either end. 

That's a choice, and one you are perfectly entitled to make. But that restricts your choice and buying power so you accept it.

I'm happy with my choice, which means I can retire if I wish now, at 56, or at any point from now. That's due to the choice I made.

Some people, not all, seem to think that despite them making their choices, others should bail them out.

We're obsessed with house ownership in this country, to the point that it fundamentally shifted from being about a "home" to an investment to be milked, for many. House ownership was weaponised as a wealth creation tool by the middle classes in large numbers. The same ones in many cases who now complain their kids can't buy 

[LotusLeftLotusRight]

Have a look at this from the BBC News website front page. Various tales of woe about home owners’ cheap fixed rate mortgages coming to an end. Not one of them mentions the fact that they have probably been paying way below the standard variable rate for months/years.

https://www.bbc.co.uk/news/uk-england-norfolk-65761233

Does anyone pity the poor woman who has an interest only mortgage on a rental property? Not me. Hopefully a flood of sales of such properties will bring prices down for first time buyers.

[C8RKH]

Yeah, same BS from people who were stupid enough to take out an interest only mortgage who at the end of 25 years are screaming as they still need to pay off the capital!

FFS, how stupid are people?

[LotusLeftLotusRight]

I remember when I went into the bank to sign my first repayment mortgage contract. This would have been summer 1997 and a mortgage value for a flat of about £90k capital + interest. I was probably paying about 9%, compared to about 6% today.

I distinctly remember the advisor telling me that for many years, my monthly repayments would primarily be allocated to the interest part of the loan and that it would barely scratch the surface of the capital until well into the term of the loan. That was quite scary for a buyer on the first wrung of the ladder.

Anyway I sold the property in 2005, paid off the mortgage and used the capital growth and a fair whack of savings and inheritance to buy a 4 bed detached house in a less expensive part of the country, mortgage free. Since the financial crisis of 2008, mortgage and saver rates fell through the floor, which hasn’t helped me one iota.

Around that time, I was tempted back to sign an interest-only mortgage for a new build rental property in London with a view to the tenants covering the mortgage and me eventually cashing-in on capital growth come sale time, probably 25 years later. However, the monthly stress of chasing rent, sorting problems, changing tenants (even with an agency), tax implications, etc made me decide to cut my losses and sell up after just a few years. Overall I doubt that we made any profit on the whole project, but I sure am glad now that we got rid.

[exeterjeep]

38 minutes ago, C8RKH said:

FFS, how stupid are people?

that's also why when the TV / press talk about inflation, or even a percentage, they have to explain what it means.

Interest rates are still less than when we had a mortgage years ago and inflation was also high.. (paid ours off in 2006 before I stopped work in 2007)

[Kimbers]

22 hours ago, C8RKH said:

Yeah, same BS from people who were stupid enough to take out an interest only mortgage who at the end of 25 years are screaming as they still need to pay off the capital!

FFS, how stupid are people?

I have a Santander Flexi Mortgage where the minimum I have to pay is the interest (Currently 1.5% for another 2 years). However interest is calculated monthly so I can pay off as much as I want. Over the last 3 years I have brought it down from £175k to £134k as the mortgage rate is so cheap I am better having my money in my ISA at 4%. However I do pay off around £3-500 a month every month still, just not big amounts like I used to. 

However when we moved here we both knew it was for investment purposes as we already had a nice 4 Bed Detached place in Wymondham This move from a £250k house to then £345k bargain with a big garden (we bought some of the field behind us) 5 car drive, an Art studio and Office out back has paid off as we now have a house valued at £650-700k (though its dropped 10% in the last year) that is partly our retirement fund.

Long story short, we made a calculated risk to take on another big mortgage at nearly 50 years old. Hopefully there is no scenario where we have to pay off the capital though I could just about manage it by selling the Lotus, Shares, savings and possibly a grandchild or 2!!

[Kimbers]

And I have another question!

How come the BOE interest rate is 5% yet 95% of savings accounts and ISA's out there are over half that rate?

Infact my bank is 1% on my Cash ISA (Which I am about to change to a better rate).

[exeterjeep]

just opened an account paying 5.1 1 yr bond.

[pete]

So bank rate went up a half a percent to 5% and this is an economist to the government's view

[Chillidoggy]

I feel this thread title should be updated to reflect the fact that we’re now moaning in 2023.

[Bibs]

[pete]

45 minutes ago, Chillidoggy said:

I feel this thread title should be updated to reflect the fact that we’re now moaning in 2023.

who is moaning

[Rambo]

22 hours ago, exeterjeep said:

just opened an account paying 5.1 1 yr bond.

5.51% for 12 months with Allica Bank Keith 😉

[red vtec]

On 22/06/2023 at 20:11, pete said:

So bank rate went up a half a percent to 5% and this is an economist to the government's view

His known in the City as Andrew “ asleep at the wheel” Bailey. 

[LotusLeftLotusRight]

On 05/06/2023 at 17:02, LotusLeftLotusRight said:

My May energy spend of £188 was only a fraction less than April’s £192. That’s £6.06 per day, compared to £6.40 per day in April. Gas consumption was down from £81 to £56, due to heating being off. However, electricity spend increased from £111 to £133, which was a bit disappointing, especially with the much reduced need for lighting. In fact EDF claim I used 6.8% more electricity in May (362 kw/h) than I did in January (339 kw/h).

Just checked my June energy usage, which is the last month before the price reduction on 1 July. Total spend down to £173, so £5.77 per day. Gas consumption down again to £49 and electricity also back down a bit at £124, but that’s still the same as January, which I cannot quite fathom. Anyway, overall my June energy bill is £100 less in total than the winter months.

Edit: just noticed that EDF are now offering a fixed term plan until 31.07.24 at estimated £183 per month. The unit prices are only a tiny fraction higher than the new July variable prices. Might be a good time to fix: what do you think?

[C8RKH]

My bill for electricity for June was £58.92 for 190kwh. I honestly have no idea what you guys are using - do you all have heated swimming pools or jacuzzis?

[jep]

You have lots of hot air to keep the house and swimming pool warm.......😊😉

 

[Rambo]

Our electricity bill for June was £49.15, so £600 pa (Octopus)

I can't work out what you guys in Englandshire are doing either. I thought it was supposed to be warmer down south?

 

[LotusLeftLotusRight]

Well according to the EDF energy hub, the 337 kWh (£124) of electricity breaks down as follows:

Home entertainment £34

Washing machine & dishwasher £24

Fridge & fridge freezer £16

PHEV charging £15

Cooking £12

Everything else £22

I think having two kids at home accounts for a large part of the electricity consumption (TV, gaming, charging, clothes washing, local car journeys etc.).

The 400 kWh (£49) of gas used in June was solely used for heating water for baths, showers and sinks. That’s £1.63 per day for a family of 4, so no complaints really.

[Rambo]

43 minutes ago, LotusLeftLotusRight said:

Well according to the EDF energy hub, the 337 kWh (£124) of electricity breaks down as follows:

Home entertainment £34

Washing machine & dishwasher £24

Fridge & fridge freezer £16

PHEV charging £15

Cooking £12

Everything else £22

I think having two kids at home accounts for a large part of the electricity consumption (TV, gaming, charging, clothes washing, local car journeys etc.).

The 400 kWh (£49) of gas used in June was solely used for heating water for baths, showers and sinks. That’s £1.63 per day for a family of 4, so no complaints really.

How does that EDF energy hub know if your washing clothes or watching TV? Cooling beers in the fridge or charging your e-car? 🤔

[exeterjeep]

From mumsnet,

https://www.mumsnet.com/talk/cost_of_living/4659255-edf-energy-home-hub

We have this, and I've had exactly the same thought! Entertainment seems very high, and I wonder how they calculate it, and whether it's accurate. I guess the only thing to do is get a real time monitor and go round turning stuff off to see what impact it has.

Your Energy Breakdown
Set up your energy profile by answering a few simple questions and you'll be able to:
Get an indication of how much energy you're using on things like heating, cooking and lighting

Basically it doesn't really know but goes on your answers in your profile. Its not accurate. It says I spent £3 heating my home but I haven't turned my heating o yet. I wouldnt read too much into it.

[Sparky]

I've done this analysis using individual smart plugs.  The annual big hitters are freezer, central heating pump, audiovisual and, of course, kettle (ludicrous volume of hot beverages).  The MIL has her TV/box setup on almost 24 hours a day.  Switching her off would represent a significant saving, but I've yet to figure out how to get away with it.

[jep]

Can you unplug the MIL at the mains? 🤔

[Sparky]

I'd prefer to do the opposite.

[Rambo]

35 minutes ago, Sparky said:

The annual big hitters are freezer (ludicrous volumes of ice for my gin and tonics), central heating pump, audiovisual and, of course, kettle (ludicrous volume of hot beverages)

🤣