Escape to the Countryside presenter Sonali Shah has appeared on Channel 4 daytime show Steph’s Packed Lunch to offer some money saving advice and a give warning to those with a mortgage.
She joined Steph McGovern to talk about energy bills, identity fraud, and the housing market. Steph joked with Sonali that every time she appears on the show, they discuss energy bills. Sonali responded, “But we need to. We were expecting them to go up, but some suppliers have really come through on that.”
She explains that energy regulator Ofgem has told suppliers that they need to justify their price hikes, otherwise they could face a substantial fine. She continued: “If you have been looking at your direct debit payment and thinking, ‘Does it really need to be so high?’, you are not alone.
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“Loads of concerns have been raised that some companies might have been raising those direct debits more than is necessary. So much so, that yesterday we learnt that Ofgem, the regulator, has contacted suppliers saying ‘You have got three weeks to reply and justify those numbers’.
“If they think those payments are unfair, there are going to be some substantial fines.”
She suggests that those who think their direct debit is too high need to get in contact with the supplier to challenge them. They should ask the supplier to go through the calculations on what they are charging, and then make sure that the figures are in line with the metre reading.
“Hopefully you took pictures,” she added, “And then if you think you are in credit to them, you can either leave it with them and then make your direct debit payments a little bit smaller going forward.
“It depends on your circumstance, you might need it back immediately and you have got the right to claim that.”
Sonali also warned homeowners and potential homeowners that their mortgage payments could change from tomorrow. The Bank of England is expected to raise interest rates to at least 1%, and those with a tracker mortgage should be aware of any potential changes.
She said: “The cost of mortgages could go up tomorrow because that's when the Bank of England is expected to raise interest rates, from the current 0.75% to 1% at least, and that would be its highest level in 13 years.
“That is to curb inflation which is at a 30 year high, but of course, the consequence is that anyone on a tracker mortgage, your cost could go up and new mortgages as well.”
She voiced concerns about whether the cost of living crisis would eventually feed into the property market. Already, she explains there is a “stamp duty shock” due to the lack of supply in the housing market for the demand.
“The stock is just not there,” Sonali explained, “We had this huge frenzy in the housing market when we had the stamp duty holiday.
“What is happening at the moment, despite everything that is going on, there is still a really strong appetite to still own your own home. As people are going back to work, there is more demand for flats in the city centre.
“And if there is more demand, but not enough supply, the prices are going up and it is causing something called ‘stamp duty shock’”
She explained that according to Zoopla, 4.3 million houses have been pushed into a higher stamp duty bracket. This means that on average, a UK house has another £4,000 cost when it is bought.
Average house prices have jumped up since March 2020 by £29,000, now reaching £249,700. First-time buyers are now spending an average £27,000 more on their property from two years ago, now averaging £225,000.
