Mortgage Interest Rates

Psycho Sonny

Psycho Sonny

Psycho Sonny

Caporegime
Joined
21 Jun 2006
Posts
38,367
Looks like I was right telling everyone to fix for 2 years. Slashed again.

Mine is due for renewal next year earlier I can switch without penalty is May 2021 as it was acquired in August 2016.

I'm currently paying 2.84% due to buying before they tanked last time around. 2 weeks before my move in date.

I think it is a 1% fine within the last year with nationwide.

I am being offered 1.14% to switch now.

How long do you think this rate will last? I bet you it lasts until April next year a month before my renewal.

Bloody typical.
 
I've gone tracker in recent years, with no limit on overpayments it's been great whilst the rates are so low.
 
How long does it typically take between the bank announcing the change in interest rate and the updates to rates for mortgages, loans etc?
 
Maccy said:
How long does it typically take between the bank announcing the change in interest rate and the updates to rates for mortgages, loans etc?
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tracker mortgage - normally 30 days,
loans - these are not normally directly impacted by base rate changes. Each lender sets their own rates.
 
I've just received approval of my mortgage application today.
Completion date is still 12 weeks away. Am I likely to be able to switch to a better rate before drawing down the mortgage in that time?
 
touch said:
I've just received approval of my mortgage application today.
Completion date is still 12 weeks away. Am I likely to be able to switch to a better rate before drawing down the mortgage in that time?
Click to expand...

If you've only had an AIP then nothing is signed and you look for another rate - i'd defintiely be waiting in case of a drop (if it doesn't stop the house sale form going through!)
 
Just agreed to a 1.69% 2 yr fix (then todays interst drops doh!) with Santander
pretty much 50% LTV 20 years left
Looking to getting everythign down on paper for an extension and a few overpayment here and there.
Then lookign to release any remaining monies for having the extension sorted
 
ivrytwr3 said:
If you've only had an AIP then nothing is signed and you look for another rate - i'd defintiely be waiting in case of a drop (if it doesn't stop the house sale form going through!)
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It's not an AIP, it's a full mortgage application (although I still havn't signed anything - just received the approval by email this morning so not got the paperwork yet). It's a 2 year fix at 1.43% so i'm happy with the rate anyway but it would be nice if I was able to get it a little lower. I won't actually be drawing down the funds for 12 weeks yet, so I'm not sure if there will be a chance to review the fixed term deal during this time?
 
Psycho Sonny said:
Looks like I was right telling everyone to fix for 2 years. Slashed again.
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You were right to telling everyone to fix yet had they been on a variable rate they would now see their mortgage costs drop.... so in fact you weren't right.

Apparently this is a temporary adjustment to the rate to help in the short term.
 
touch said:
It's not an AIP, it's a full mortgage application (although I still havn't signed anything - just received the approval by email this morning so not got the paperwork yet). It's a 2 year fix at 1.43% so i'm happy with the rate anyway but it would be nice if I was able to get it a little lower. I won't actually be drawing down the funds for 12 weeks yet, so I'm not sure if there will be a chance to review the fixed term deal during this time?
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You will need to submit a whole new application and get them to terminate the current one. After rates have adjusted.

I know this because rates changed 10 days before my purchase date. I was told whole new application. I didn't want to hold up the deal or cause it to collapse so I never bothered submitting a new application so late.
 
Felix said:
You were right to telling everyone to fix yet had they been on a variable rate they would now see their mortgage costs drop.... so in fact you weren't right.

Apparently this is a temporary adjustment to the rate to help in the short term.
Click to expand...

I was right in the fact that people were suggesting fixing for 5 or 10 years and I said fix for 2 max. As I couldn't see rates going higher because of brexit. Looks like corona virus was the cause however I was still right in terms of not going for a 5 or 10 year everyone else was telling people to go for. I said fix for the shortest possible deal and renew when it was done.

Trackers overall are far too risky for most people so 2 year fix is a much better proposition for most.

I will be going to a 2 year fix when mine is up
 
Psycho Sonny said:
I will be going to a 2 year fix when mine is up
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I can do an early renewal soon (3-4 months), and if rates are still at current level I will be fixing for 5 years, maybe even 10 (so long as product is portable).
I cannot envisage them going lower, and if they do it will only be fractional so not much of a 'loss'. I would rather the stability of a low rate with option of overpayments for 5 years+ than the risk of rates going UP and me only having a short term on it.

But to each their own. We all have different circumstances and different appetite for risk.
 
Guess who fixed for ten years... On the plus side 2.94% is naff all for any sort of loan.

edit: 8 1/2 years to go with criminal early repayment fees before anyone asks :D
 
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