Mortgage Rate Rises

jaybee said:
I'm literally considering all options really. I'm a month away from remortgage and recently swapped my 5 year down to a 2 year fix because a couple of weeks ago it was all about interest rates coming down, and will continue to all this year with each BOE meet reducing rates etc. (I know it's more about swap rates but still). And now we have in the news about inflation being much higher than it should be again and rates will need to stay or rise to combat this. It genuinely seems a very difficult time to make a decision which to do. Tempted to go on a tracker and try to ride the wave downward. They say statistically that overtime (a long time), a lot of people would have been better off on a tracker overall.
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Think of it simply. If you could survive rates going up higher then staying on tracker may work fine for you, if you need certainty then you fix. That's all there is to it really. Staying tracker and hoping rates fall is gambling.

World has changed, people expecting rates to fall rapidly and deeply are being proven wrong all the time. Only a big recession will see deep rate cuts now.
 
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jaybee said:
They legally have to pass on any offer so why not start low. 150K. The response from the EA and the behaviours following, will give massive clues as to how close you are to having it accepted.

How long has it been on the market? Often you find houses that have been listed for ages (with clearly minimal interest) suddenly magically have a load of higher offers than your one days after you make yours. ;)
As a first time buyer, you should understand one thing and one thing only; you can't trust Estate Agents. Let me repeat that... you cannot trust a word they say. So every time they speak, remember that those words are probably lies. Even if they're seemingly lovely in person. They have an agenda which is fairly obviously to sell houses for the most they can.
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Thanks for the info I really appreciate it, It's been on the market for about 5-6 weeks and they reduced it 3-4 days ago.
 
heeeed said:
Lloyds with their club account discount
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I see mortgage fixed rate deals pop up with the caveat of "Lloyds current account holders". Is this the same thing, or is club account a reward based thing you have to pay a monthly fee for?
My wife is a Lloyds current account holder but I am not. Would we both have to be to get the discounted rate on a joint remortgage, or just her would suffice?
 
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Rates seem to slowly be coming down but haven't quite come below the 4% over 5 years I got 2 years ago. I'm sure in a year or so I'll be wishing I was up for renewal though :p
 
bit of an odd one, just had a letter from the bank, saying BoE interest rates decreased by -0.25% last month to 4.25%
All relatively normal thus far, then they go on to say my monthly repayments will go UP a tenner as a result.

No fixes are ending, its on a tracker, they haven't seriously applied a 'decrease' of a negative number to increase the mortgage rate have they?

Anyone any thoughts on what might have occurred?
 
jaybee said:
I see mortgage fixed rate deals pop up with the caveat of "Lloyds current account holders". Is this the same thing, or is club account a reward based thing you have to pay a monthly fee for?
My wife is a Lloyds current account holder but I am not. Would we both have to be to get the discounted rate on a joint remortgage, or just her would suffice?
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It’s an account with a fee we have, and I think it’s probably only that one. I put enough in each month that the fee is waived I think. Not sure if need both, but it’s out joint current account.
 
Destination said:
bit of an odd one, just had a letter from the bank, saying BoE interest rates decreased by -0.25% last month to 4.25%
All relatively normal thus far, then they go on to say my monthly repayments will go UP a tenner as a result.

No fixes are ending, its on a tracker, they haven't seriously applied a 'decrease' of a negative number to increase the mortgage rate have they?

Anyone any thoughts on what might have occurred?
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No and lol.

.....and I work for a mortgage lender.
 
Our broker finalised our first remortgage today. Two months ago when he did our review we opted for 4.06% with Barclays on a five year fix, with a plan to revisit it shortly before it got completed.

This week he had another look, and the revised offer is now 3.89%. It turns out that the conveyancing solicitor had created a certificate the day before. He got the solicitor to cancel the certificate and issue a new one based on the revised offer. This has been done and the new mortgage is set to start 1st June.

I know you can DIY it but I'm glad of having him sort this out for us.

I guess I now need to contact Barclays to check the direct debit date for our first payment on the new deal, and cancel the direct debit with our old lender.
 
Tee Hee Johnson said:
Urgh my sub account on 1.49% is ending on 31 July, so thats looking to go to 4.33% if I swap to a new 2 year deal without fees.

The other sub account will tick over until 31 Dec @ 2.26%, then will likely join the other one on another @ 4.33% unless rates have fallen a wee bit.

Id love both of them to last into next year to see what will happen with the rates, but not doing my lenders mortgage base % until then... so 2 years it is for now and will see what things are looking like in a few years time!
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In a similarish situation on Halifax (I guess from your rates) with two sub accounts. Our 4.65% ends in July, and the 1.54% in Feb 2027. I've just gone with a 2 year tracker to lead us in to syncing our products in July 2027, with a view to then giving us flexibility of lenders.

The choice was between a base + 0.55% two year tracker and 4.33% fixed. I figured since forecasts seem to think base rate has a > 50% chance of dropping under 3.75% in the next 6 months, this means the tracker is the best bet. Time will tell.
 
StonedPenguin said:
Me and my partner are FTB and viewing now, we like the look of a house listed for 170k recently dropped from 180k.. we have a decision in principle for upto 190k but ideally wanted to stay a decent amount below this.

What would be a good figure to target for this house? would offering 158 with a view to up the offer to 162-164 if its declined?

The estate agent did tell us that the reason they recently reduced it was because they need it sold as the previous occupier of 50 years has gone into a care home so funds are needed for that which to me suggest they might accept a significantly lower offer as they are likely desperate to sell?

Cheers
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Acquiring a house for cheaper by taking advantage of an elderly person's desperation isn't how I'd want to be entering the housing market. At least, not if I wanted to feel good about it. I'd offer what I thought the house was worth.
 
StonedPenguin said:
Me and my partner are FTB and viewing now, we like the look of a house listed for 170k recently dropped from 180k.. we have a decision in principle for upto 190k but ideally wanted to stay a decent amount below this.

What would be a good figure to target for this house? would offering 158 with a view to up the offer to 162-164 if its declined?

The estate agent did tell us that the reason they recently reduced it was because they need it sold as the previous occupier of 50 years has gone into a care home so funds are needed for that which to me suggest they might accept a significantly lower offer as they are likely desperate to sell?

Cheers
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Stay classy.
 
Zefan said:
This is correct, feels like you're stating this in disagreement with my post somehow?
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Not really just saying that the price on market is irrelevant.
Clearly in reality houses have a price range, the more interest the closer to the top of that can be achieved, the lower the interest the lower the point of that range.

The process of offer and acceptance is the method for finding out that range or at least the bottom end of it in the case of only one offerer.

TBH in this case, if the owner needs a fast sale they are probably better off at auction where the realistic price can be easily found.

In this case chances are unless the person dies very quickly that the funds will all be spent pretty quickly anyway to take the person down to the maximum amount they can hold for the state to pick up the full costs.

Sometimes the financial situation may find a lower offer from someone chain free a preference to a higher one that takes longer.
 
StonedPenguin said:
Me and my partner are FTB and viewing now, we like the look of a house listed for 170k recently dropped from 180k.. we have a decision in principle for upto 190k but ideally wanted to stay a decent amount below this.

What would be a good figure to target for this house? would offering 158 with a view to up the offer to 162-164 if its declined?

The estate agent did tell us that the reason they recently reduced it was because they need it sold as the previous occupier of 50 years has gone into a care home so funds are needed for that which to me suggest they might accept a significantly lower offer as they are likely desperate to sell?

Cheers
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If the house is worth the price, it will sell. If it's not sold, it's most likely overpriced. Really desirable houses will be on the market a few days; others a few weeks. The average listing before SSTC was 12-16 weeks the last I checked. That should give you a good indicator of price and desirability.

If a house has been up much longer than 12-16 weeks with no price reductions, you can be pretty certain that the price is too high or it's undesirable for some reason.

There's nothing wrong with going in with a lower offer. Offer what you think it's worth and also what you're willing to pay. Start lower than your maximum offer then work your way up to your best and final offer. However, you do need to balance going that against going in too low and not being considered as a serious buyer. It's all a balancing act that comes with experience.

If you wish to read the room on the situation and negotiate based on circumstances, do it. Don't fall for any crap about offering more because you feel sorry for someone. Sympathy will only make your wallet lighter. This is a transaction, and usually one of the biggest of your life. Keep your emotions out of it.
 
Mercenary Keyboard Warrior said:
Not really just saying that the price on market is irrelevant.
Clearly in reality houses have a price range, the more interest the closer to the top of that can be achieved, the lower the interest the lower the point of that range.

The process of offer and acceptance is the method for finding out that range or at least the bottom end of it in the case of only one offerer.

TBH in this case, if the owner needs a fast sale they are probably better off at auction where the realistic price can be easily found.

In this case chances are unless the person dies very quickly that the funds will all be spent pretty quickly anyway to take the person down to the maximum amount they can hold for the state to pick up the full costs.

Sometimes the financial situation may find a lower offer from someone chain free a preference to a higher one that takes longer.
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Ah fair enough I was misreading :)
 
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