Mortgage Interest Rates

Caporegime
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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.

You are right they can only go up and if they do go lower due to Brexit when that actually happens then I don't see them going negative. That wouldn't be good for anyone.

I might take a look at the 5 years and 10 years and look at the difference in payments.

My thinking is if I save X amount every month by going 2 instead of 5/10. I can overpay by that and more to get it down. Then I can also use the equity in future to potentially move up the ladder. Being locked in for 5 years or 10 years when you want to move and possibly free up some equity to do the place up would be a nice option to have on the table so I'd rather not fix long term.

My current house is actually fine I could do with a tiny bit bigger so I only envisage one such move in size. Other moves would be to better areas be the more likely option and much more expensive to the point I'd be putting all my eggs in 1 basket. That is the plan though as there seems to be more scum with money these days and infiltrating the half decent areas.
 
Soldato
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We got fixed 5 year around summer last year. Rate was pretty low (1.59%) anyways so not to annoyed about the lower rates.

We fixed for 5 years last year for 2.04% as FTB'ers. So a 0.5% drop or so isn't too much much to be annoyed about.

Would hate to been on 15% like parentd

Maybe so, but you wouldn't have hated to have purchased property at the current pricing in their day :p
 
Caporegime
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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

It's high though for a mortgage in this day and age. Mine is high at 2.84% as like I said I could get a re-mortgage today for 1.14%.

In terms of loans my past 3 loans have all been 3%. Bear in mind those are loans and not mortgages which are usually lower by some margin. So I would say it is high relatively speaking. The banks have you over a barrel though with the early repayment fees. I'm guessing by the tim yours comes to re-mortgage they will have likely risen. In terms of naff all you are likely going to end up paying what an extra £10K-£30K in interest at least over those 10 years? Depends on mortgage amount obviously but I'm assuming it's not below £100K.

I've learnt that flexibility is also an underrated option in this day and age. As have others who bought a house with someone then split up with them yet still have a fixed mortgage long term. 10 years is just too long IMO.
 
Soldato
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It's high though for a mortgage in this day and age. Mine is high at 2.84% as like I said I could get a re-mortgage today for 1.14%.

In terms of loans my past 3 loans have all been 3%. Bear in mind those are loans and not mortgages which are usually lower by some margin. So I would say it is high relatively speaking. The banks have you over a barrel though with the early repayment fees. I'm guessing by the tim yours comes to re-mortgage they will have likely risen. In terms of naff all you are likely going to end up paying what an extra £10K-£30K in interest at least over those 10 years? Depends on mortgage amount obviously but I'm assuming it's not below £100K.

I've learnt that flexibility is also an underrated option in this day and age. As have others who bought a house with someone then split up with them yet still have a fixed mortgage long term. 10 years is just too long IMO.

Thankfully my mortgage was only £50,000 and I've already paid £20k.
 
Soldato
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Nah, the extra interest won’t be that much. Last time I looked it was about an extra £5.5k over 9 years. That will have increased given the current BoE rate. A pain in the rear but hardly a disaster.
 
Caporegime
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Nah, the extra interest won’t be that much. Last time I looked it was about an extra £5.5k over 9 years. That will have increased given the current BoE rate. A pain in the rear but hardly a disaster.

extra £5.5K per year?

if over 9 years then i think you might want to use a MSE mortgage comparison calculator.
 
Soldato
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5,454
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?

I'm in the exact same position. I received my mortgage offer on Monday with Halifax, who let you transfer to a lower rate product if one comes available (which is looking likely). Fingers crossed!
 
Soldato
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First time buyer here shopping for mortgages. I guess this timing is good for us. How long until the mortgage products are all updated with the new rates then? Like next week? Next month?
Worth fixing for 10 years?
 
Don
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Just smack bang in the middle of re-mortgaging now, I'm looking at getting a 5 year fixed for 1.74% now, or I go onto the SVR of 4.99% for next months payment. Just trying to work out what's realistic, if I wait a month the best I reckon I'll get is another 0.2% off which saves me £160 over the duration of the fixed term - if they don't drop rates within a month, it will cost me more to wait than I'll save, so I'm just going to take the rate available now as it's not a massive potential saving and I feel it's more likely that it could just cost me more.
 
Soldato
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Just smack bang in the middle of re-mortgaging now, I'm looking at getting a 5 year fixed for 1.74% now, or I go onto the SVR of 4.99% for next months payment. Just trying to work out what's realistic, if I wait a month the best I reckon I'll get is another 0.2% off which saves me £160 over the duration of the fixed term - if they don't drop rates within a month, it will cost me more to wait than I'll save, so I'm just going to take the rate available now as it's not a massive potential saving and I feel it's more likely that it could just cost me more.

I'm in a similar situation. If I wait for the rate drops to take affect, I'll be paying more for a couple months which will undo any savings made by waiting for the lower rate. I'm just going to carry on with my current remortgage as it's probably not going to make a huge difference to me either way.
 
Soldato
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I'll be waiting to take advantage of the reductions later in the year when the rate drops to 0% or negative 0.25%. I'll be extending the borrowing in order to do a major expansion of the property and its surroundings, but looking for a 15 year term.

It's amazing how much you can save even if you are tied in at a higher rate with an exit fee, especially if it is a higher 2.80%+ rate on a decent chunk of money.
 
Caporegime
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Just smack bang in the middle of re-mortgaging now, I'm looking at getting a 5 year fixed for 1.74% now, or I go onto the SVR of 4.99% for next months payment. Just trying to work out what's realistic, if I wait a month the best I reckon I'll get is another 0.2% off which saves me £160 over the duration of the fixed term - if they don't drop rates within a month, it will cost me more to wait than I'll save, so I'm just going to take the rate available now as it's not a massive potential saving and I feel it's more likely that it could just cost me more.
Assume that’s staying with same provider as switching to another won’t be quick enough to avoid the SVR which will likely cost more than £160 more
 
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