Not only that, the cost for banks to borrow money will also be going up so the cost to lend goes up.
Mortgage Rate Rises
- Thread starter glenimp617
- Start date
Soldato
- Joined
- 23 Nov 2004
- Posts
- 10,648
At the minute yea, looking at staying with Nationwide.
With another lender I would have to wait until the end of my 2 year fix or would I be able to start it early with no ERC the same way Nationwide are allowing.
I am able to renew from tomorrow so I have been keeping an eye on the rates from my lender over the last few weeks.
As of this morning they have actually reduced the rates by 0.1%.
Seems strange, given the anticipated Bank of England interest rate rise coming in the next few days.
As of this morning they have actually reduced the rates by 0.1%.
Seems strange, given the anticipated Bank of England interest rate rise coming in the next few days.
Soldato
- Joined
- 25 Mar 2004
- Posts
- 16,016
- Location
- Fareham
It seems inevitable rates will go up on the next meeting of the BOE, so take your chances waiting around I think.
If you can get a reasonably good longer term fix now I would definitely be considering it.
If you can get a reasonably good longer term fix now I would definitely be considering it.
Soldato
- Joined
- 4 Aug 2007
- Posts
- 22,433
- Location
- Wilds of suffolk
I feel very split about this.
The point of them was good but come renew they could cause issues
IMO they should have kept them for new mortgages but said they should be disregarded for renewals of fixes etc (just remortgaging to a new lender would need testing)
www.bbc.co.uk
The point of them was good but come renew they could cause issues
IMO they should have kept them for new mortgages but said they should be disregarded for renewals of fixes etc (just remortgaging to a new lender would need testing)
Mortgage affordability test scrapped by Bank of England
Some potential homebuyers may find it easier to get a loan as the central bank eases borrowing rules.
www.bbc.co.uk
When did you fix?My wife and I live in the USA and have a 30 year fixed rate mortgage at 2.5%. Adjustable rate mortgages do exist in the USA (where the fixed period is less and you move to SVR after the fix if you don't remortgage), but many homeowners here choose to fix the mortgage over a 15 or 30 year term. We paid "points" (upfront fee) to reduce our mortgage to 2.5% (from closer to 3%) and it had a 6 year payback period. We have no overpayment penalties on the mortgage so can overpay as much or as little as we like.
I just checked mortgage rates today and the average 30 year fixed as of yesterday was around 5.13%.
Hate how much of a lottery the whole thing is. Hundreds of thousands of pounds better or worse off just based on the timing of when your deal ends/starts.
With a 500k mortgage, you're looking at an extra 170k to pay over a full 30 year term when you compare 2.5% with 5.13%. Compound interest is great when you are a saver, but not so good when borrowing...
Last edited:
When I last read about this after a bit of digging and after you get past the big headlines 'BOE RELAXING RULES' it actually seems that nothing much will change because the other rules are stricter.I feel very split about this.
The point of them was good but come renew they could cause issues
IMO they should have kept them for new mortgages but said they should be disregarded for renewals of fixes etc (just remortgaging to a new lender would need testing)
Mortgage affordability test scrapped by Bank of England
Some potential homebuyers may find it easier to get a loan as the central bank eases borrowing rules.
Soldato
- Joined
- 4 Aug 2007
- Posts
- 22,433
- Location
- Wilds of suffolk
Well its a yes and no thing.
IMO its logical for remortgages since people could end up not being able to fix due to failing affordability and yet their circumstances have improved (most history of paying and mortgage amount due lower)
For new people its a bit 50/50
Some had issues with affordability as they may have high(ish) salaries and yet also had high outgoings and would have had issues with increased rate
Others were fine by all counts.
As always thats the issue, simple blunt rules never do anyone any favours.
Caporegime
- Joined
- 7 Apr 2008
- Posts
- 25,935
- Location
- Lorville - Hurston
I had a hosue fell through and i had locked in a 2.7% rate for a fixed 5 years and this was before the last increase to 3.3% that was done in the end of June and apparently it is still valid as we found another property we are trying to buy .
Soldato
- Joined
- 25 Mar 2004
- Posts
- 16,016
- Location
- Fareham
Mortgage deal will have an expiry date and will possibly only be valid for the amount you tried to borrow afaik (possibly less?)
It may be possible to extend if your house purchase doesn't complete quickly enough, but will differ from lender to lender.
It may be possible to extend if your house purchase doesn't complete quickly enough, but will differ from lender to lender.
Caporegime
- Joined
- 7 Apr 2008
- Posts
- 25,935
- Location
- Lorville - Hurston
well the property that we found is 20k less than the other one that was approved
Soldato
- Joined
- 25 Mar 2004
- Posts
- 16,016
- Location
- Fareham
Check with lender/broker but I suspect that being less value might be OK, although your LTV could theoretically change.
Also check on expiry date/options to extend if not completed before current expiry.
Any new fixes you go for will be more expensive now, so hopefully your current deal remains valid.
- Joined
- 14 Jun 2004
- Posts
- 17,571
- Location
- Newcastle U/T
Aye our 1.99% mortgage is with Natwest, the new build fell thru and I went back to them asking to reduced the mortgage amount by 75k
Frontline Natwest staff were terrible, script reading computer says no can only change 5%
Spoke direct to the underwriters, yes makes no sense doin a brand new application given the % you locked in
You're free to loan anything upto the original amount as long as it remains lower than 60% LTV
Personally I didn't think they'd be able to do anything but they've been mint (the underwriters)
Frontline Natwest staff were terrible, script reading computer says no can only change 5%
Spoke direct to the underwriters, yes makes no sense doin a brand new application given the % you locked in
You're free to loan anything upto the original amount as long as it remains lower than 60% LTV
Personally I didn't think they'd be able to do anything but they've been mint (the underwriters)
Soldato
- Joined
- 23 Nov 2004
- Posts
- 10,648
I just dealt with mine online tonight.
Automatically worked out the LTV so I've went with a 5 year fix @ 3.34%. added the fee to the loan for a £155 cost overall.
Paying £3 less PM than we do at the moment so it's manageable.
Someone I know checked today as they are up for a new deal in January I think they said. £1200pm to around £1690pm using rough figures on the Nationwide site. Must be coming off a 1.7% fix to 3%ish.
Automatically worked out the LTV so I've went with a 5 year fix @ 3.34%. added the fee to the loan for a £155 cost overall.
Paying £3 less PM than we do at the moment so it's manageable.
Someone I know checked today as they are up for a new deal in January I think they said. £1200pm to around £1690pm using rough figures on the Nationwide site. Must be coming off a 1.7% fix to 3%ish.
Last edited:
Dang a £500 rise... That's gotta sting in anyone's book.
- Joined
- 14 Jun 2004
- Posts
- 17,571
- Location
- Newcastle U/T
doesnt it work out at approx 100 per month for every 100k on the mortgage?
Or did I make that up lol
Or did I make that up lol
Just got my broker to secure a 5 year fix with nationwide for 3.29%, today. It’ll come into effect in November at the end of my current 1.96%
Circa £250/ month worse off.
Throw in an extra 250 a month to find for gas/elec and can see why its a disaster waiting to happen.
I'm just hoping it settles somewhat in 2 years when my fixed rate ends
They must have decided the housing "market" needs propping up againI feel very split about this.
The point of them was good but come renew they could cause issues
IMO they should have kept them for new mortgages but said they should be disregarded for renewals of fixes etc (just remortgaging to a new lender would need testing)
Mortgage affordability test scrapped by Bank of England
Some potential homebuyers may find it easier to get a loan as the central bank eases borrowing rules.
I can't see how that is a good idea, especially just as a lot of people are realistically going to get higher rates now. Joe Public are not clever enough to work out their affordability at 4, 5, 6% so this is going to end in tears for some.All this talk has made us start overpaying our mortgage, even though we're only in the first year of a 5 year fixed, mid-renovation and spending all of our money on that.. We really wanted to make a start on overpaying asap to try and improve the maths before our fix ends. It's only a token amount, but once we've done the work on the house we'll have to hit it hard assuming rates are still high/going up. Try to lessen the damage...