Interest rates increased

jonneymendoza · 15 May 2022 at 15:54

TNA said:
Nice. Hope there is no chain or at least a small one. A mate has one in a huge chain and he got a good percentage a few months ago, but I fear the deal offered which was for 6 months will expire before everything goes through and then he will end up on a much worse deal at a higher interest rate.

Make sure you chase the conveyancer, otherwise it may take a lot longer than it should. I had to chase ours and even picked up things that she missed.

I saw one property that i liked and may put offer down. Old lady owns it for over 40 years and downsizing but she has to find a place though...

I am of course a first time buyer so no chain for me and tbh i wanna get the keys to my first place by end of the year.

if this takes a while to complete and interest rates goes up. the whole process could fall appart as even a 1% increase would basically put a dent on this deal

kona786 said:
Also if you can keep in contact with the seller directly. I found if both buyer and seller are on the same page and keep on top of their respective solicitors, it saves significant time

Good to know

TNA · 15 May 2022 at 16:05

jonneymendoza said:
I saw one property that i liked and may put offer down. Old lady owns it for over 40 years and downsizing but she has to find a place though...

I am of course a first time buyer so no chain for me and tbh i wanna get the keys to my first place by end of the year

Good to know

You should be fine hopefully. For me it was just me and the seller and no chain and it took a little over 3 months from the time the offer got accepted. That’s with me chasing though, otherwise many have been 4 months.

Just make sure you do your due diligence. Once completed there is nothing you can do if you find out you have been sold a lemon. I must have viewed the house 4 times. Two before offer, and two after at different stages, one not long before exchange.

The_Arbiter · 15 May 2022 at 21:37

jonneymendoza said:
I saw one property that i liked and may put offer down. Old lady owns it for over 40 years and downsizing but she has to find a place though...

You have a huge desirable advantage being a FTBer having to not hold anything up. The sellers need to be aware of this as 6 month waiting to find out sale is lost is something nobody wants.

Being an elderly lady with 40yrs of living there, i wouldn't be surprised if there were some underlying/ lack of maintenance problems that could be hiding away that a survey won't always pick up.

Loads of reading/info in the "waiting to exchange thread" that may help.

omnomnom · 15 May 2022 at 21:42

jonneymendoza said:
I saw one property that i liked and may put offer down. Old lady owns it for over 40 years and downsizing but she has to find a place though...

I am of course a first time buyer so no chain for me and tbh i wanna get the keys to my first place by end of the year.

if this takes a while to complete and interest rates goes up. the whole process could fall appart as even a 1% increase would basically put a dent on this deal

Good to know

Also when you finalise stuff...get homeserve. Saved my arse with my drains today lol.

jonneymendoza · 16 May 2022 at 08:22

The_Arbiter said:
You have a huge desirable advantage being a FTBer having to not hold anything up. The sellers need to be aware of this as 6 month waiting to find out sale is lost is something nobody wants.

Being an elderly lady with 40yrs of living there, i wouldn't be surprised if there were some underlying/ lack of maintenance problems that could be hiding away that a survey won't always pick up.

Loads of reading/info in the "waiting to exchange thread" that may help.

Thanks. I am actually subscribed to that thread so i may put my queries in there!

Yes i wanna try and move out before Xmas as my current rent agreement ends next year feb but i have a break clause so i can leave anytime with a 2month notice.

It benefits me to get the keys to a new place asap because of two reasons:

1. Lock down the current 3% interest rate before it goes up again in aug/september
2. Lock down a fixed energy provider before it goes up again in October….

omnomnom said:
Also when you finalise stuff...get homeserve. Saved my arse with my drains today lol.

Ahh what’s homeserve? I will need to check that out. Im based in London so is this some sort of repair/maintenance company ?

TNA · 16 May 2022 at 08:34

jonneymendoza said:
Thanks. I am actually subscribed to that thread so i may put my queries in there!

Yes i wanna try and move out before Xmas as my current rent agreement ends next year feb but i have a break clause so i can leave anytime with a 2month notice.

It benefits me to get the keys to a new place asap because of two reasons:

1. Lock down the current 3% interest rate before it goes up again in aug/september
2. Lock down a fixed energy provider before it goes up again in October….

Ahh what’s homeserve? I will need to check that out. Im based in London so is this some sort of repair/maintenance company ?

Not sure the second point is something you would want to do. Fixed prices are looney right now. Only way I would fix is if it had a no exit fee and was no higher than the projected increase.

Did not bother with homeserve myself, though I think the insurance I got with my furniture are with them.

dlockers · 16 May 2022 at 08:35

TNA said:
Fixed prices are looney right now. Only way I would fix is if it had a no exit fee and was no higher than the projected increase.

TNA · 16 May 2022 at 08:38

dLockers said:

dlockers · 16 May 2022 at 08:40

TNA said:

Your post makes no sense. You would only fix if:
1) key feature of fixing wasn't in place (ERC)
2) you could see the fix was less than the projected rise

Unless you have a lead on some fixed deals that aren't fix and have a crystal ball, not sure how you do either of those.

TNA · 16 May 2022 at 08:50

dLockers said:
Your post makes no sense. You would only fix if:
1) key feature of fixing wasn't in place (ERC)
2) you could see the fix was less than the projected rise

Unless you have a lead on some fixed deals that aren't fix and have a crystal ball, not sure how you do either of those.

So in other words I would not fix it then? I do not expect another increase again come April, not a big one at least.

Last time around we had projections on where the prices would be in April, so there was data there. At that point you could take a gamble on whether you expected prices to go even higher for October and work out if it was worth paying the extra money early to benefit later.

Right now I would not pay more than the capped rate as I don’t expect prices will go up much or at all come April. Hence why I would not lock myself into a fixed deal with a big exit fee. I could be wrong, but everyone is free to make their choice.

dlockers · 16 May 2022 at 08:54

TNA said:
So in other words I would not fix it then? I do not expect another increase again come April, not a big one at least.

Last time around we had projections on where the prices would be in April, so there was data there. At that point you could take a gamble on whether you expected prices to go even higher for October and work out if it was worth paying the extra money early to benefit later.

Right now I would not pay more than the capped rate as I don’t expect prices will go up much or at all come April. Hence why I would not lock myself into a fixed deal with a big exit fee. I could be wrong, but everyone is free to make their choice.

Are you talking energy prices or mortgages now? I have to keep checking which thread I am in :cry:

TNA · 16 May 2022 at 09:05

dLockers said:
Are you talking energy prices or mortgages now? I have to keep checking which thread I am in

Lol. That has happened to me in the past also where I read the message but not what the person was quoting. Context is of course everything. If you look his second point was to lock down fixed energy prices which is what I am replying about

413x · 16 May 2022 at 09:23

TNA said:
Lol. That has happened to me in the past also where I read the message but not what the person was quoting. Context is of course everything. If you look his second point was to lock down fixed energy prices which is what I am replying about

I also thought you were talking about mortgages!

413x · 16 May 2022 at 09:26

Glad I didn't listen to some 3rd party "advice" I got from a third party.

They hinted that they didn't expect rates to go up by much by October.

This "advice" has not aged well

jonneymendoza · 16 May 2022 at 10:20

TNA said:
Lol. That has happened to me in the past also where I read the message but not what the person was quoting. Context is of course everything. If you look his second point was to lock down fixed energy prices which is what I am replying about

hi. yes it was two things really.

interest rates for mortgages and energy prices. two things that will increase in the next 6-18 month

Bounce · 16 May 2022 at 12:17

Our current mortgage deal is ending in September it’s going from 2% to 4%. What’s the going rate for mortgage interest rates and am I best fixing for short or long term ?

dlockers · 16 May 2022 at 12:20

Bounce said:
Our current mortgage deal is ending in September it’s going from 2% to 4%. What’s the going rate for mortgage interest rates and am I best fixing for short or long term ?

With average LTV you can get 2.44 fix for 2 years atm. 5 years is marginally higher.

I'd fix for 5 years as it appears we are at the beginning of the storm. 2 years definitely doesn't feel enough (annoyingly my current fix ends in 2 years).

Who knows though. I said the same thing 3 years ago when I took a 5 year fix, expecting Brexit to be the beginning of the problem!

Bounce · 16 May 2022 at 12:21

dLockers said:
With average LTV you can get 2.44 fix for 2 years atm. 5 years is marginally higher.

I'd fix for 5 years as it appears we are at the beginning of the storm. 2 years definitely doesn't feel enough (annoyingly my current fix ends in 2 years).

Who knows though. I said the same thing 3 years ago when I took a 5 year fix, expecting Brexit to be the beginning of the problem!

What’s the average LTV?

dlockers · 16 May 2022 at 12:23

Bounce said:
What’s the average LTV?

I'd guess majority on this board are somewhere between 70-80%; not withstanding lots of folk on this forum who are (~mid/late 30s):
1. living at home
2. aged 70
3. gazillionaires

TNA · 16 May 2022 at 12:39

413x said:
Glad I didn't listen to some 3rd party "advice" I got from a third party.

They hinted that they didn't expect rates to go up by much by October.

This "advice" has not aged well

Yea. You did well as I recall. But I am not listening to anyone on this occasion. Just gut feeling that it won't go up much more in April. Hence jumping on a fix right now with a high exit fee maybe a bad idea imo. If I do find a fix that has no exit fee that is similar to the expected rise then I may reconsider.

jonneymendoza said:
hi. yes it was two things really.

interest rates for mortgages and energy prices. two things that will increase in the next 6-18 month

Yeah. It is easy to get confused when not reading the post quoted so I can see why it happened.

Let's see how it turns out. I agree locking in mortgage prices ASAP is a no brainer. But just not so sure about energy prices. All depends on how greedy OPEC get I suppose? All they have to do is increase production but they don't want to as they are making record profits. But surely they will only go so far?