Soldato
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Probably sales volume is low and supply is also low, can still have rising prices in that scenario.
Mortgage Rate Rises
- Thread starter glenimp617
- Start date
Soldato
- Joined
- 14 Jul 2005
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- 9,556
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- Birmingham
Yeah remarkably consistent actually isn't it, more than I thought it would be. Only time you can really see much variation is during major events, eg pre/post 2008 and Covid.
If supply and demand stable then I guess makes sense for prices to track inflation roughly.
There seems to be loads of money sloshing around in the "convertibles" market at the moment, in areas and properties you just wouldn't have expected it 10 years ago outside of maybe London, they'll always be something propping up the housing market aside from your average buyer, you know wanting something to live in.
I discussed with HSBC this morning, ran through some figures and I came to the conclusion that the 3.94% was best for my risk appetite. The ones with fees would cost more over the term, so ruled them out. And with the tracker with no fee (not on my original post), I'd need at least 2 rate drops before breaking even with the 3.94% fixed. So, I just need to review the documents and accept the offer this evening.
Time for our renewal again, 2 years on since it went up £500 
Still can't really switch as Wife is now part time and on Maternity but current lender is offering 3.94% on 65% LTV for 2 years no fee, saving nearly £200 over currently monthly cost so can't grumble too much!
Still can't really switch as Wife is now part time and on Maternity but current lender is offering 3.94% on 65% LTV for 2 years no fee, saving nearly £200 over currently monthly cost so can't grumble too much!
After my additional 4k overpayment IV had the letter of readjustment. On the phone they said the mortgage would be recalculated at £671. In the letter it says 676.
It also says
"Important info"
It is likely to be in your best interest to apply any overpayments to outstanding fees before reducing the main mortgage balance. This is because it will reduce the amount of interest that you pay over the term of the mortgage. Until the outstanding fees balance is repaid your usual monthly mortgage payment will continue to cover the interest charged on those fees but won't reduce the fees balance.
The product I took was a no fee product. - what are Barclays going on about? Will have to call them.
It also says
"Important info"
It is likely to be in your best interest to apply any overpayments to outstanding fees before reducing the main mortgage balance. This is because it will reduce the amount of interest that you pay over the term of the mortgage. Until the outstanding fees balance is repaid your usual monthly mortgage payment will continue to cover the interest charged on those fees but won't reduce the fees balance.
The product I took was a no fee product. - what are Barclays going on about? Will have to call them.
I have always found that providers tend to want to lower your monthly payments so you keep the same term. I guess because it means more interest for them as the mortgage is paid over a longer period of time. Each year I have had to sit through the stupid mortgage affordability checks again, all because I tell them to make sure it reduces the term of the mortgage and keep the monthly payments the same. You only have to look at the money saving expert calculator to see what a huge savings it is to reduce the term with over payments.
Yeh I use the mse calculator
Spoke to them about the fee info they said it's just a generic info. For people who may have fees etc
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Yes, I did that too earlier today as per my previous post. Asked them to reduce my term from 13 years to 10 years, admittedly it increases my payments by £50 a month too. So I had to redo the whole affordablility process.
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Soldato
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- 2 May 2011
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I have no idea what to do with our mortgage. 2 year, 3 year, 5 year. The rates aren't particularly different - in around the 3.9-4.0% range.
Consideration is that we may want to move in a couple of years, but apart from that it's all in the crystal ball.
I've genuinely got no idea how to make the decision.
Consideration is that we may want to move in a couple of years, but apart from that it's all in the crystal ball.
I've genuinely got no idea how to make the decision.
Depends on all the other factors but a shorter 2 year might be good for now. My broker recommended that to me over a 5 year, the monthly difference is only about £50 or so quid.
Rates are stupid atm and theres not many signs of them dropping despite all the hubbub.
Most mortgages allow porting, so that should not be a big issue.
He probably wants that second commission from you tbh.
Depending on what the product fee is for the second/third mortgage you take out after the current one ends, that £600/yr savings could be wiped out, assuming interest rates don't drop as quickly as expected.
I think that’s standard.. if you have a 5 year deal and your additional payments make it so it can be paid off in 3 years. You will be hit by exiting fees.
It’s no difference in their eyes if you got a new deal somewhere else and switched after 3 years.
If you have no exiting fees in the final year, like most mortgages do.. then you can pay it off in 4 years without fees.
If your moving in the short term, the duration makes little difference except if your couple of year time frame exceeds the two year mortgage term and you need to remortgage again. Also avoid fees if you can.
I mean, if the rates for all 3 terms are the same that means they are suggesting that rates aren't going to change over the next 5 years by very much. They could be wildly wrong but I believe thats how they price the different terms. You also have to consider that broadly speaking you are paying ~£1000 for a new mortgage. If you get a 5 year then you avoid at least 1 lot of that fee so even if the 2 or 3 year is slightly better rate wise it would likely have to be even better to compensate for having to pay for a new product after 2 or 3 years.
Soldato
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- 2 May 2011
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- Woking
I'm set on 5 years now. Weathering current politics is likely going to be a good thing. Rates dropping far below where they are now seems unlikely, and I appreciate the financial predictability.
We've got a rate from Santander of 3.89% with an LTV of 67%, which I'm happy with.
We've got a rate from Santander of 3.89% with an LTV of 67%, which I'm happy with.
Yeah, I think that rates could drop 0.75% over the next 5 years but that will obviously be over a length of time so you can't compare your current rate with that anyway. In the grand scheme of things with everything going on in the world there is a certain peace in having a rate locked in for a bit of a longer period.