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Savings and Investments thread
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I'm not an IFA so maybe take this with a pinch of salt. However if you're invested in funds 20 seems way too many. 5 or 6 should be plenty to give decent diversification. If it's direct investments I would wonder whether that's right from the limited amount you say or whether some funds might be better, particularly if you are worried about the downside.TelMc32 said:
A further drop to 9.29% down today…I hope she’s got a good limit on her credit card!!! 🤦🏻♂️TelMc32 said:Meeting my pension advisor in person for the first time tomorrow, having started with them 15 months ago. Investment is down 8.58% since opening on 30 June 2021, so I’ll be ordering some very nice wine with the lunch that she’s paying for!! 😉0 -
Very fearful that the bed of sand that the property market has called a solid base for the past 20 odd years is about to sink in on itself.
Listening to James OB this morning and many of the situations people have got themselves into is terrifying.
Can't help but think that a fair bit of dangerous naivety is also part of the mix. One fella said that this 'wasn't supposed to happen' when asked about a possible interest rate of 6%.
Many just don't appear to factor in 'average' interest rates when they mortgage themselves up to the hilt to afford their dream home.
No doubt we'll soon see the mortgage providers affordability criteria as the sham it is.
And don't even get me started on the buy-to-let ticking time bomb2 -
I have been warning this is coming for some months!carly burn said:Very fearful that the bed of sand that the property market has called a solid base for the past 20 odd years is about to sink in on itself.
Listening to James OB this morning and many of the situations people have got themselves into is terrifying.
Can't help but think that a fair bit of dangerous naivety is also part of the mix. One fella said that this 'wasn't supposed to happen' when asked about a possible interest rate of 6%.
Many just don't appear to factor in 'average' interest rates when they mortgage themselves up to the hilt to afford their dream home.
No doubt we'll soon see the mortgage providers affordability criteria as the sham it is.
And don't even get me started on the buy-to-let ticking time bomb
Far too many people have borrowed based on the very low interest rates. Those of us old enough can remember when high single digit % interest rates were the norm. Work for a bank and you got a really decent 5% fix which until now seemed ridiculous for the past 10 years.
BTL professionals will weather it, but those who kept one or two flats etc will be in trouble. Although if it does go as pear shaped as I think it can then it may push rents up even further.2 -
We bought our first house in 1993 and fixed the mortgage for 2 years at 7.99%, which was reasonable at the time. Every subsequent fix and a bit of shopping around meant that the rate only ever decreased until the last bit was at 1.29%, which felt like a bargain given the historical rate profile. To the many who have only ever known low interest rates in their property owning stage of life, rises from such a low base are going to be horrific. In the past, a rise from 5% to 7% might well have been manageable if you could already afford the 5%, but from 2% to 4% or more it will be a disaster, especially in the early stages of a repayment mortgage when interest is such a large part of the monthly payment.3
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As an IFA I disagree. I would usually recommended somewhere between 12 & 15 funds in a portfolio ; a couple of US equity funds, 3 UK equity funds, a European equity fund, an Asia pacific fund (maybe inc Japan but of not then a separate Japanese fund) a commercial property fund & then 4 bond funds. That is for a 60/40 moderate risk portfolio.redman said:
I'm not an IFA so maybe take this with a pinch of salt. However if you're invested in funds 20 seems way too many. 5 or 6 should be plenty to give decent diversification. If it's direct investments I would wonder whether that's right from the limited amount you say or whether some funds might be better, particularly if you are worried about the downside.TelMc32 said:
A further drop to 9.29% down today…I hope she’s got a good limit on her credit card!!! 🤦🏻♂️TelMc32 said:Meeting my pension advisor in person for the first time tomorrow, having started with them 15 months ago. Investment is down 8.58% since opening on 30 June 2021, so I’ll be ordering some very nice wine with the lunch that she’s paying for!! 😉
But I'm in the minority as the advisor market seems to be going down the route of multi-asset funds. But even if I do this I would usually recommend 2 or 3 multi asset funds, maybe 4 depending on the amount being invested.0 -
If rates go to 6% it will only be temporally as once inflation is back to 5% or less, and the inept chancellor/Government are sent packing then rates should be back down to around 3%-3.5%.carly burn said:Very fearful that the bed of sand that the property market has called a solid base for the past 20 odd years is about to sink in on itself.
Listening to James OB this morning and many of the situations people have got themselves into is terrifying.
Can't help but think that a fair bit of dangerous naivety is also part of the mix. One fella said that this 'wasn't supposed to happen' when asked about a possible interest rate of 6%.
Many just don't appear to factor in 'average' interest rates when they mortgage themselves up to the hilt to afford their dream home.
No doubt we'll soon see the mortgage providers affordability criteria as the sham it is.
And don't even get me started on the buy-to-let ticking time bomb1 -
Fair enough. In this context is a multi asset fund a mixture of equities, bonds, property, but with the manager changing the balance within the fund as he sees fit?golfaddick said:
As an IFA I disagree. I would usually recommended somewhere between 12 & 15 funds in a portfolio ; a couple of US equity funds, 3 UK equity funds, a European equity fund, an Asia pacific fund (maybe inc Japan but of not then a separate Japanese fund) a commercial property fund & then 4 bond funds. That is for a 60/40 moderate risk portfolio.redman said:
I'm not an IFA so maybe take this with a pinch of salt. However if you're invested in funds 20 seems way too many. 5 or 6 should be plenty to give decent diversification. If it's direct investments I would wonder whether that's right from the limited amount you say or whether some funds might be better, particularly if you are worried about the downside.TelMc32 said:
A further drop to 9.29% down today…I hope she’s got a good limit on her credit card!!! 🤦🏻♂️TelMc32 said:Meeting my pension advisor in person for the first time tomorrow, having started with them 15 months ago. Investment is down 8.58% since opening on 30 June 2021, so I’ll be ordering some very nice wine with the lunch that she’s paying for!! 😉
But I'm in the minority as the advisor market seems to be going down the route of multi-asset funds. But even if I do this I would usually recommend 2 or 3 multi asset funds, maybe 4 depending on the amount being invested.0 -
Just had a mortgage rate update from Nationwide.
As from tomorrow their fixed rates for a House Purchase are as follows (all with a £999 product fee)-
2 & 3 year - 5.59%
5 year - 5.19%
10 year - 4.89%
The interesting thing (apart from the fact these are around 3.5%-4% more than 12 months ago) is that these are for ALL LTV's up to 85%. So makes no difference if you are putting down a 15% or 50% deposit.
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Blooming heck. That is going to cause a good few some pain.golfaddick said:Just had a mortgage rate update from Nationwide.
As from tomorrow their fixed rates for a House Purchase are as follows (all with a £999 product fee)-
2 & 3 year - 5.59%
5 year - 5.19%
10 year - 4.89%
The interesting thing (apart from the fact these are around 3.5%-4% more than 12 months ago) is that these are for ALL LTV's up to 85%. So makes no difference if you are putting down a 15% or 50% deposit.0 -
Ouch! 4.2% more than mine in December.golfaddick said:Just had a mortgage rate update from Nationwide.
As from tomorrow their fixed rates for a House Purchase are as follows (all with a £999 product fee)-
2 & 3 year - 5.59%
5 year - 5.19%
10 year - 4.89%
The interesting thing (apart from the fact these are around 3.5%-4% more than 12 months ago) is that these are for ALL LTV's up to 85%. So makes no difference if you are putting down a 15% or 50% deposit.
Can't help but think the usual suspects are actually trying to price themselves out of the market.0 - Sponsored links:
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wow. My daughters fixed is due next month. Currently at 1.24%. She is in for a nasty shock!golfaddick said:Just had a mortgage rate update from Nationwide.
As from tomorrow their fixed rates for a House Purchase are as follows (all with a £999 product fee)-
2 & 3 year - 5.59%
5 year - 5.19%
10 year - 4.89%
The interesting thing (apart from the fact these are around 3.5%-4% more than 12 months ago) is that these are for ALL LTV's up to 85%. So makes no difference if you are putting down a 15% or 50% deposit.
Out of interest what is their variable rate?0 -
Those fixed rates are scary.
Luckily my youngest is 2 years into a 5 year fix at 1.6% (or thereabouts) and my eldest took out another 2 years fixed a few months ago at around 2%.
This is going to make the cost of energy look like small fry in comparison.1 -
Their variable rate (SVR) is 5.24%redman said:
wow. My daughters fixed is due next month. Currently at 1.24%. She is in for a nasty shock!golfaddick said:Just had a mortgage rate update from Nationwide.
As from tomorrow their fixed rates for a House Purchase are as follows (all with a £999 product fee)-
2 & 3 year - 5.59%
5 year - 5.19%
10 year - 4.89%
The interesting thing (apart from the fact these are around 3.5%-4% more than 12 months ago) is that these are for ALL LTV's up to 85%. So makes no difference if you are putting down a 15% or 50% deposit.
Out of interest what is their variable rate?
Their rate switch/product transfer for those coming to the end of a fixed are slightly different to the above rates and do differ depending on LTV. Their 2 &3 fixed on a rate switch is 4.84% or 4.89% depending on LTV. 5 year is 4.44% or 4.59% depending on LTV.
Or you can gamble & go for their tracker rates which have no early redemption penalties, in case you think that this could all be over in 12 months or so & don't want to be tied into 5% rates for some time. Only do a 2 year tracker - ranging from 0.94% above base (60% LTV) to 1.34% above base for 85% LTV.0 -
Interesting thoughts on the property market. I’m coming up to selling my property but we have yet to sign contracts. Worrying times as we are very close to the finishing line but they could of course pull the plug due to the increase in interest rates. However, I clutch to the idea that the couple buying my property are high income earners and that the reduced taxation on their income will compensate for the increase in interest. Is this a valid counter argument to property buying, even though it’s only short term?0
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And their savings rates are still dire, I'll betgolfaddick said:Just had a mortgage rate update from Nationwide.
As from tomorrow their fixed rates for a House Purchase are as follows (all with a £999 product fee)-
2 & 3 year - 5.59%
5 year - 5.19%
10 year - 4.89%
The interesting thing (apart from the fact these are around 3.5%-4% more than 12 months ago) is that these are for ALL LTV's up to 85%. So makes no difference if you are putting down a 15% or 50% deposit.1 -
Their mortgage deal is presumably locked in at this point? Oh... I suppose they may have gone for a tracker if they were insane or something...Solidgone said:Interesting thoughts on the property market. I’m coming up to selling my property but we have yet to sign contracts. Worrying times as we are very close to the finishing line but they could of course pull the plug due to the increase in interest rates. However, I clutch to the idea that the couple buying my property are high income earners and that the reduced taxation on their income will compensate for the increase in interest. Is this a valid counter argument to property buying, even though it’s only short term?0 -
You'd hope if they needed a mortgage that was already sorted, so hopefully you'll be fine.Solidgone said:Interesting thoughts on the property market. I’m coming up to selling my property but we have yet to sign contracts. Worrying times as we are very close to the finishing line but they could of course pull the plug due to the increase in interest rates. However, I clutch to the idea that the couple buying my property are high income earners and that the reduced taxation on their income will compensate for the increase in interest. Is this a valid counter argument to property buying, even though it’s only short term?0 -
and depending on the value of your property they will be saving a chunk on Stamp Duty which if sensible they can offset against any increased mortgage costs BUT surely if they have been offered a fixed deal previously that will still hold?Solidgone said:Interesting thoughts on the property market. I’m coming up to selling my property but we have yet to sign contracts. Worrying times as we are very close to the finishing line but they could of course pull the plug due to the increase in interest rates. However, I clutch to the idea that the couple buying my property are high income earners and that the reduced taxation on their income will compensate for the increase in interest. Is this a valid counter argument to property buying, even though it’s only short term?0 -
Premium Bonds rate has gone up from 1.4% to 2.2%. A step in the right direction...2
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Thanks Golfie. Very interesting comparisons.golfaddick said:
Their variable rate (SVR) is 5.24%redman said:
wow. My daughters fixed is due next month. Currently at 1.24%. She is in for a nasty shock!golfaddick said:Just had a mortgage rate update from Nationwide.
As from tomorrow their fixed rates for a House Purchase are as follows (all with a £999 product fee)-
2 & 3 year - 5.59%
5 year - 5.19%
10 year - 4.89%
The interesting thing (apart from the fact these are around 3.5%-4% more than 12 months ago) is that these are for ALL LTV's up to 85%. So makes no difference if you are putting down a 15% or 50% deposit.
Out of interest what is their variable rate?
Their rate switch/product transfer for those coming to the end of a fixed are slightly different to the above rates and do differ depending on LTV. Their 2 &3 fixed on a rate switch is 4.84% or 4.89% depending on LTV. 5 year is 4.44% or 4.59% depending on LTV.
Or you can gamble & go for their tracker rates which have no early redemption penalties, in case you think that this could all be over in 12 months or so & don't want to be tied into 5% rates for some time. Only do a 2 year tracker - ranging from 0.94% above base (60% LTV) to 1.34% above base for 85% LTV.0 - Sponsored links:
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I'm hoping to get a mortgage in 2024, as we should have saved 25-30% by then, but this news is scaring the life out of me, more so will I havee to go to 50%,which will set us back years.
Already priced out of London and most of the south, Gloucester or Worcester were the areas we had picked out, I will be watching t goings on very closely over the next year but becoming really fearful that things are going to get worse. Already worried that despite having 2 kids we might have to settle for a 2 bed as it is.
Trying times.0 -
I really wouldn't worry right now, 2024 is still well over a year away and a lot could change.twiggyaddick said:I'm hoping to get a mortgage in 2024, as we should have saved 25-30% by then, but this news is scaring the life out of me, more so will I havee to go to 50%,which will set us back years.
Already priced out of London and most of the south, Gloucester or Worcester were the areas we had picked out, I will be watching t goings on very closely over the next year but becoming really fearful that things are going to get worse. Already worried that despite having 2 kids we might have to settle for a 2 bed as it is.
Trying times.
Make sure you are making the most of these higher interest rates, get the best interest rate you can on your deposit savings, assuming you are holding them in cash and keep saving.2 -
Did anyone else on here buy saga shares when they were floated a few years back,looks like they are on the brink,and our hard earned money has been lost.0
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I dipped in and out in late 2020/early 2021 as thought they were cheap at around £1.40 which at the time proved right as sold for a reasonable profit.thickandthin63 said:Did anyone else on here buy saga shares when they were floated a few years back,looks like they are on the brink,and our hard earned money has been lost.
They are now just under £1 predominantly driven by their insurance arm. I don't know what you paid, but I don't see them coming back massively anytime soon, it's a bit of a failed business really and were impacted a lot by COVID.
I wouldn't be surprised to see them sell of their insurance division and stick to Holidays. I don't think they are about to go bust, and not sure what they floated at, but I wouldn't expect much of a return if you paid more than £2 anytime soon.0 -
Well, my share / Fund portfolio has and continues to take a hammering. My share Isa down by 8% in less than a week. Fortunately that’s personal savings not a pension pot, I kept my DB pension as my life security. How are others faring in this shit storm…… ?0
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Yes, it’s pretty much this. Had a good chat with the advisor yesterday. Nothing I wasn’t really aware of already, but she’s sending me across a full report on the portfolio later. She did have a copy with her yesterday, but I was staying out (to drown my sorrows) afterwards. Have to keep remembering that this is a 30-40 (hopefully) year investment and we’re going to have periods like this.golfaddick said:
As an IFA I disagree. I would usually recommended somewhere between 12 & 15 funds in a portfolio ; a couple of US equity funds, 3 UK equity funds, a European equity fund, an Asia pacific fund (maybe inc Japan but of not then a separate Japanese fund) a commercial property fund & then 4 bond funds. That is for a 60/40 moderate risk portfolio.redman said:
I'm not an IFA so maybe take this with a pinch of salt. However if you're invested in funds 20 seems way too many. 5 or 6 should be plenty to give decent diversification. If it's direct investments I would wonder whether that's right from the limited amount you say or whether some funds might be better, particularly if you are worried about the downside.TelMc32 said:
A further drop to 9.29% down today…I hope she’s got a good limit on her credit card!!! 🤦🏻♂️TelMc32 said:Meeting my pension advisor in person for the first time tomorrow, having started with them 15 months ago. Investment is down 8.58% since opening on 30 June 2021, so I’ll be ordering some very nice wine with the lunch that she’s paying for!! 😉
But I'm in the minority as the advisor market seems to be going down the route of multi-asset funds. But even if I do this I would usually recommend 2 or 3 multi asset funds, maybe 4 depending on the amount being invested.0 -
at this rate my prediction of 6750 was too optimistic. FTSE100 dropping again.0
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My Pension remains up since May/June but only by a little over 1%, was a lot more! My ISA down about 1%. Mines propped up by the S&P 500 funds which are about 1/3rd doing well (up about 9%)RaplhMilne said:Well, my share / Fund portfolio has and continues to take a hammering. My share Isa down by 8% in less than a week. Fortunately that’s personal savings not a pension pot, I kept my DB pension as my life security. How are others faring in this shit storm…… ?
Markets go up and down, so to me I don't worry with big rises or falls, on the falls I try to buy a bit more, on big rises I try to bank a bit but never easy.1 -
Stop profit/stop loss has always been my MO.Rob7Lee said:
My Pension remains up since May/June but only by a little over 1%, was a lot more! My ISA down about 1%. Mines propped up by the S&P 500 funds which are about 1/3rd doing well (up about 9%)RaplhMilne said:Well, my share / Fund portfolio has and continues to take a hammering. My share Isa down by 8% in less than a week. Fortunately that’s personal savings not a pension pot, I kept my DB pension as my life security. How are others faring in this shit storm…… ?
Markets go up and down, so to me I don't worry with big rises or falls, on the falls I try to buy a bit more, on big rises I try to bank a bit but never easy.3 -
This year I bought some equities, which previously I steered clear of, in search of reliable income. Nearly all of them have been hammered, the only exception being P&G, and to a lesser extent Citibank, bolstered by being US stock. The one that has been specifically trashed by Kwarteng is called Primary Health Properties, reccoed by a Lifer but entirely my own choice. It had bumbled along for years at around 140p delivering a steady dividend, and in summer even announced an increased dividend.Then came Kwasi the Nutjob and it dived this week to a four year low. I tried to "buy the dip" at 118p and have been rewarded by seeing it dip further to 107p.RaplhMilne said:Well, my share / Fund portfolio has and continues to take a hammering. My share Isa down by 8% in less than a week. Fortunately that’s personal savings not a pension pot, I kept my DB pension as my life security. How are others faring in this shit storm…… ?
Kwarteng can do one with final effect.1
