Energy prices and mortgage

[Citybreak1]

My mortgage deal ends next year and also my energy has went up £60 pounds. I checked at switching provider but was quoted £80 more. Is this what it’s likely to rise to by October? Are we going to see a gold rise on minimum wages as I have never seen a situation where it has risen so fast people can’t afford to pay bills?

 

[birchesgreen]

Personally i'd stick at my energy provider at the moment due to the uncertainty.

 

[skyhigh]

also my energy has went up £60 pounds. I checked at switching provider but was quoted £80 more. Is this what it’s likely to rise to by October?

Without knowing how much you're paying, it's very hard to say if that's reasonable as the total % increase can't be worked out. The short answer is if you can find a fixed deal around or slightly more than your current energy rates, it might be worth taking. More than that, and it might not be, but again hard to say.

Knowing your unit costs and actual usage is also a much better way of comparing energy providers as opposed to the monthly direct debit figure they quote.

 

[roversfan2001]

Martin Lewis advised on his show this week that if you can find a fix that's ~30% more than the variable tariff then it's worth considering as it may work out cheaper over the length of the deal.

 

[Citybreak1]

Martin Lewis advised on his show this week that if you can find a fix that's ~30% more than the variable tariff then it's worth considering as it may work out cheaper over the length of the deal.

They told me today they don’t offer fixed rates anymore.

 

[skyhigh]

They told me today they don’t offer fixed rates anymore.

Then shop around, but don't switch to a bad deal just to get a fix.

 

[DelayRepay]

There are very few fixed rate energy deals at the moment, and most of the ones there are seem to be offered only to existing customers. The price cap is effectively acting as a fixed rate for all energy suppliers.

I think for most people the focus over the summer should be looking at ways to cut energy consumption rather than trying to find a cheaper package that probably does not exist. I know that insulation is expensive, but people need to look at what they can afford to do. Even small steps like using rolled up towels to block draughts around doors will help. I know this will be difficult for those who don't have money available to spend on energy efficiency and those who have already taken steps to minimise consumption.

My mortgage deal ends next year

This is where you ought to look. As your mortgage fixed rate comes to an end, you need to look for a new fixed rate. Interest rates are only going to rise, so my personal view is that it's better to fix for longer even if this is at a slightly higher rate. This will also provide certainty, i.e. you know your mortgage payment isn't going to increase for xx years.

Depending on your current rate, the Early Repayment Charge on your current mortgage and your view of what might happen to rates between now and the end of your fixed rate, it may even be worth switching early to move to another fix.

 

[alxndr]

I think for most people the focus over the summer should be looking at ways to cut energy consumption rather than trying to find a cheaper package that probably does not exist. I know that insulation is expensive, but people need to look at what they can afford to do. Even small steps like using rolled up towels to block draughts around doors will help. I know this will be difficult for those who don't have money available to spend on energy efficiency and those who have already taken steps to minimise consumption.

Renters will struggle too. I’m back renting temporarily pending the sale of my house going through and there’s so much that could be done to make this house more efficient, but it’s outwith my power as a mere tenant.

The place I’m in has an circa 70s warm air heating system, the windows don’t fit to the frames, and the shower trips out if you stay in it too long (frivolous and wasteful perhaps, but I know from past experiences that when it’s bitterly cold inside and out a few extra minutes of warmth can be a real boost). Already we’ve had to forgo hot running water as the hot water tank is so poorly insulated you’d have to constantly heat it, and I’m not paying for that!

I’m fortunate enough that I’ll hopefully have moved out by the time winter comes, but that doesn’t help the next tenant, or the thousands of others across the country that are at the whim of their landlord when it comes to taking steps to reduce their bills. And those renting are likely to be the ones that will struggle with the cost of living the most.

 

[AM9]

Renters will struggle too. I’m back renting temporarily pending the sale of my house going through and there’s so much that could be done to make this house more efficient, but it’s outwith my power as a mere tenant.

The place I’m in has an circa 70s warm air heating system, the windows don’t fit to the frames, and the shower trips out if you stay in it too long (frivolous and wasteful perhaps, but I know from past experiences that when it’s bitterly cold inside and out a few extra minutes of warmth can be a real boost). Already we’ve had to forgo hot running water as the hot water tank is so poorly insulated you’d have to constantly heat it, and I’m not paying for that!

I’m fortunate enough that I’ll hopefully have moved out by the time winter comes, but that doesn’t help the next tenant, or the thousands of others across the country that are at the whim of their landlord when it comes to taking steps to reduce their bills. And those renting are likely to be the ones that will struggle with the cost of living the most.

A few months ago, I suggested that the Government were avoiding doing the most obvious thing to get through this period of rising energy cost, i.e. improving insulation. The answer from some here was that it was too expensive. When average annual energy prices have doubled in a year, and of course will continue to rise in future years, there will be an increasing proportion of dwellings that could have had insulation improvements that would be paid for in reduced energy costs.
Poorly insulated housing is just like a leaking fuel tank - the solution is to fix the leak, not fill it more often. Who should pay for it, - well with the latest support hand out, the vulnerable will have received over £1000 which in many cases would have enabled a significant reduction in energy use, - and that reduction would be forever!

 

[TheBigD]

They told me today they don’t offer fixed rates anymore.

I've just moved house. My previous supplier only offered 2 tariffs, a very expensive fixed deal and a green deal. Shopping around I found that some suppliers were only offering 1 variable tarriff and no fixed deals.

 

[AM9]

I've just moved house. My previous supplier only offered 2 tariffs, a very expensive fixed deal and a green deal. Shopping around I found that some suppliers were only offering 1 variable tarriff and no fixed deals.

You probably wouldn't want a tariff that promised a flat rate that is high enough to cover the next two price rises so there's no point in offering one. The capped variable tariff is now effectively a fixed tariff for as long as a supplier can support it. The market has changed.

 

[Starmill]

The April 2023 minimum wage rate is likely to be in the range £10.14 - £10.50, depending on the exact track of inflation and what evidence industry offers the Low Pay Commission about affordability. This means that a rise of approximately 8% is likely. It may also depend on the whether the government chooses to extend the full rate to 21 and 22 year olds for next year or waits until the year after. The central estimate for April 2024 is £10.95.