Mortgage Rate Rises

[Martynt74]

I need more coffee clearly
Sorry mate.

Easily done. Although you had me thinking i was insane!

Long term mortgages do exist, although personally I would probably not recommend more than a 10/15 year fixed.
In 15 years on a typical 25 year mortgage you have paid around half of the capital off.

If we did move towards much longer fixes we would need to have a really sensible conversation in regards get out clauses etc.

I guess it just depends on where the banks position them and how volatile the market gets over the next few years. If they're priced around 3-4% where you get to avoid the pain of 7-8% rates but also miss out on the benefits of 1% rates, then i think they'd be a good option.
The problem comes in places like the US where they're currently being priced at the 6-7% levels of current rates which seems crazy.

Suppose the other problem is there's a bigger culture here of moving around, i don't seem to see that as much in Europe. Although it's never usually a problem to port mortgages upwards.

 

[413x]

I'll say it again.
BoE should pause here

They know very well that base rate rises take a while, and a lot of inflation is external.

5-6pc.is plenty enough to achieve hurting people's spending. We are keeping up with the fed.

We don't need anymore for now as long as inflation is going in the right direction

 

[413x]

Long term mortgages do exist, although personally I would probably not recommend more than a 10/15 year fixed.
In 15 years on a typical 25 year mortgage you have paid around half of the capital off.

If we did move towards much longer fixes we would need to have a really sensible conversation in regards get out clauses etc.

I dread to think what erc type charges are on these. Break ups, porting etc. That's the only reason I didn't go for longer

 

[Mercenary Keyboard Warrior]

I dread to think what erc type charges are on these. Break ups, porting etc. That's the only reason I didn't go for longer

My last 10 year had 5% ERC years 1-6, then declined 1% per year.

I cannot remember what my previous 10 had, think it was similar.

 

[413x]

My last 10 year had 5% ERC years 1-6, then declined 1% per year.

I cannot remember what my previous 10 had, think it was similar.

Yeah we were considering a 10 which was 5 for 5 then 4,3,2,1.


It was. 1.93.but being a joint mortgage/emigration etc we didn't go for it. It was a tough call

 

[adidan]

You sure?

When i'm on the Santander site the most i see as an option is 5yrs, with this article from December saying Virgin are boasting the longest Fix at 15yrs

Virgin boasts the longest fixed-rate mortgage

Super-long fixed rate mortgage deals continue to make a comeback, as Virgin Money launches the first 15-year fix since 2008.

www.unbiased.co.uk

With a few articles from June discussing longer fixed terms

Why doesn't the UK have longer mortgage terms?

Most UK mortgages are two or five years long, meaning homeowners remortgage often. This makes it easier to find a bargain when mortgage rates are low.

www.thisismoney.co.uk

You sure you're not thinking of 25yr Terms rather than 25yr Fixes?

Back in the early 2000s you could get a 25 year mortgage capped to never go above 6 or so percent.

Not fixed but you had an upper figure you could always work with

 

[Mercenary Keyboard Warrior]

Back in the early 2000s you could get a 25 year mortgage capped to never go above 6 or so percent.

Not fixed but you had an upper figure you could always work with

Capped tracker.

 

[Chris344]

Good news for Nationwide tracker customers:

The new Bank of England base rate​

The latest Bank of England base rate is: 5.00%.
This is an increase of 0.50%, and was announced by the Bank of England (BoE) on 22 June 2023.
We have reviewed our Base Mortgage Rate (BMR) and Standard Mortgage Rate (SMR) and have decided not to pass on the latest base rate increase at this time.

https://www.nationwide.co.uk/mortgages/bank-of-england-base-rate-changes-and-your-mortgage/

 

[Martynt74]

Good news for Nationwide tracker customers:

The new Bank of England base rate​

The latest Bank of England base rate is: 5.00%.
This is an increase of 0.50%, and was announced by the Bank of England (BoE) on 22 June 2023.
We have reviewed our Base Mortgage Rate (BMR) and Standard Mortgage Rate (SMR) and have decided not to pass on the latest base rate increase at this time.

https://www.nationwide.co.uk/mortgages/bank-of-england-base-rate-changes-and-your-mortgage/

Be nice if Coventry did this too!

 

[Chris344]

Be nice if Coventry did this too!

Could be a trend...

 

[adidan]

Capped tracker.

I seem to be using more words than necessary today

 

[kevman]

Good news for Nationwide tracker customers:

The new Bank of England base rate​

The latest Bank of England base rate is: 5.00%.
This is an increase of 0.50%, and was announced by the Bank of England (BoE) on 22 June 2023.
We have reviewed our Base Mortgage Rate (BMR) and Standard Mortgage Rate (SMR) and have decided not to pass on the latest base rate increase at this time.

https://www.nationwide.co.uk/mortgages/bank-of-england-base-rate-changes-and-your-mortgage/

Not sure this impacts tracker customers ( i.e. BOE rate +%)?? Only those who are on BMR and SMR which are eye watering already

 

[CaptainRAVE]

I'll say it again.
BoE should pause here

They know very well that base rate rises take a while, and a lot of inflation is external.

5-6pc.is plenty enough to achieve hurting people's spending. We are keeping up with the fed.

We don't need anymore for now as long as inflation is going in the right direction

Absolutely. The combination of global inflation largely beyond our control, the delay in effect of interest rate rises and inflation chilling slightly. Then again, we know they don’t care about us plebs.

 

[alexakasloth]

I'll say it again.
BoE should pause here

They know very well that base rate rises take a while, and a lot of inflation is external.

5-6pc.is plenty enough to achieve hurting people's spending. We are keeping up with the fed.

We don't need anymore for now as long as inflation is going in the right direction

I hope that the interest rate remains as it is, it is unfortunately predicted to go up by .25% next month.

 

[LiE]

UK interest rates forecast to rise less sharply after inflation falls to 7.9%

Annual rate back on downward path, which eases pressure on Bank of England

www.theguardian.com

This is a good watch, he goes into the data to talk about inflation.

 

[Joe Jones]

Nice video about wage price spiral, which causes inflation to continue.

EDIT - LiE beat me to it!

 

[jaybee]

Excellent video, for those that want the quick summary, it's 8 minutes 46.

 

[delta0]

This is a good watch, he goes into the data to talk about inflation.

Wage inflation is higher in the UK than US and EU so it’s going to keep persisting.

 

[LiE]

Wage inflation is higher in the UK than US and EU so it’s going to keep persisting.

Tell me about, each April for the past 2 years I've been hit with national living wage increases for my staff all the while I'm expected to keep prices the same. If they keep pumping the wages then prices will also go up.

We estimate the National Living Wage will need to rise to between £10.90 and £11.43 in 2024 to meet its target

ffs...

 

[413x]

Absolutely. The combination of global inflation largely beyond our control, the delay in effect of interest rate rises and inflation chilling slightly. Then again, we know they don’t care about us plebs.

Nah. They don't care.
But more, not waiting for the effects to kick in and at same time saying "we know there's a lag".

What do these guys do apart form set rates?