Mortgage Interest Rates

[poosemon]

I'd say you'd be ok with what you've got. I'm guessing the solicitors are working from home or whatever, plus (assuming) its a residential mortgage offer, they are regulated and a lender shouldn't be able with withdraw that, well, under normal circumstances.

I'd say you'd be ok though.

In worst case I doubt you'll have problems in the future doing a rate switch with your current lender they probably won't do a valuation, just an AVM or not even bother at all, given they will already have a valuation of your property on file, more so the lower the loan to value.

Cheers BUDFORCE. Yes it is a residential mortgage, new mortgage offer was valued using AVM already, but current lender i believe is using value we purchased at (doesn't effect the mortgage rate they can offer even with the 30k price difference in valuations based on bought price 2 years ago vs current AVM).

Even if we end up on the banks 4% default rate as mortgage is delayed slightly, the extra paid for that month is still less then paying an upfront fee.

 

[BUDFORCE]

.

If it gets delayed and your mortgage doesnt complete until you go on SVR (standard variable rate) and you end up loosing out (EG paying some of the higher rate) becuase of the delay - complain to the lender, the most recent residential lender I used to work for (I do BTL's now which are a bit different) would 100% give you compensation for the differnce meaning you wont loose out. Im guessing but pretty sure mos tother lenders will do the same.

 

[Ritzo]

Yes, I've also had experience of this in the past. Transfer of mine took longer than my current fixed deal end, and new lender just adjusted the amount of interest charges at first to effectively give me a refund.

 

[The_Arbiter]

Waiting for a valuer to go in on a property this week. If they aren't working means i can keep money tied up for good return. But we'll see, and i'll report back if they do go in.

Looks like my valuation has been cancelled. Who knows when that'll go through.

 

[Simon]

Is it a new purchase or remortgage ?

 

[BUDFORCE]

The FCA are trying to negotiate with the government about valuations, but as you can imagine, the government and pretty busy with lots at the moment.

The lender I work for, we don't do AVMs on any of our products so our entire pipeline of new applications is now at the mercy of that. Because we securitise, the funding we have secured on the basis that we don't do AVMs, so even if we wanted to we can't

Business has plummeted in the last 2 days anyway so I suspect I'll be out of a job soon, or put on this ferlough thingy maybe.

Mrs also works in mortgages for a broker firm/intermediary (I know right) and she is going on ferlough from the 1st April.

Couple of other lenders our competitors I guess have already shut shop.

 

[The_Arbiter]

Is it a new purchase or remortgage ?

First time buy. As long as the sale doesn't fall through i'm not fussed. Though if i were renting i'd be annoyed. But obviously things right now ain't gonna be smooth going for anyone.

 

[Mercenary Keyboard Warrior]

So lenders starting to restrict, expected

https://www.bbc.co.uk/news/business-52106119

Never rely on remortgaging is always a piece of advice I give

 

[Jokester]

Got to get those customers on the nice fat SVR 4% bank rate!

 

[Mercenary Keyboard Warrior]

Got to get those customers on the nice fat SVR 4% bank rate!

Could well end up being what happens from some, which is really the risk of only taking short term fixes, making the assumption you can get another deal at the end
All those who were legacy Northern rock and on bad deals will testify thats not always the case

 

[alexakasloth]

Glad we switched our deal when we did, otherwise we'd be going to the SVR instead.

 

[HungryHippos]

Seems stupid to penalise existing customers with higher LTV's by forcing them onto an SVR. I understand not taking new customer applications, but existing customers should be able to get remortgages.

 

[Beerbaron]

I have less than 2 years left before i can renew. Decided to fix for 4 years when we moved house.

 

[Psycho Sonny]

So lenders starting to restrict, expected

https://www.bbc.co.uk/news/business-52106119

Never rely on remortgaging is always a piece of advice I give

25% equity shouldn't be an issue to anyone apart from first time buyers.

I was a first time buyer 3 years ago. I'm already at 50% equity.

If you don't have that amount of equity then you can't really afford the house would be my argument. You can on paper and are making the payments. However it's likely more than what you should have spent. I went for a 21 year mortgage too as a first time buyer. Sure I could have gone 35 year and bought bigger and better but being financially secure was a much better prospect. I've overpaid a lot sure on top of the lower term but still it shows you how much I could have went the other way and be stressed out if anything happened.

 

[Simon]

Yes everyone should get 50% deposit before buying a house. Of course

 

[Molep]

I had 4 months to go on a 5 Yr fixed at 4.99%.

just switched to a 5 Yr at 1.94%, at 72% LTV.

paying £240 a month less now.

 

[ivrytwr3]

I'm with Santander and along with other banks, there were news articles informing customers that they would be dropping their mortgage rates 0.5% along with BoE base rates - this was meant to happen today.

I've just logged onto internet banking and the rate is still the same - anyone seen any changes to their mortgages?

 

[Simon]

Mortgage payments are often after the period. Ie today’s payment would cover march.

 

[Semple]

Yes everyone should get 50% deposit before buying a house. Of course

Have you never heard Psycho Sonny's words of wisdom before?

 

[Mercenary Keyboard Warrior]

25% equity shouldn't be an issue to anyone apart from first time buyers.

I was a first time buyer 3 years ago. I'm already at 50% equity.

If you don't have that amount of equity then you can't really afford the house would be my argument. You can on paper and are making the payments. However it's likely more than what you should have spent. I went for a 21 year mortgage too as a first time buyer. Sure I could have gone 35 year and bought bigger and better but being financially secure was a much better prospect. I've overpaid a lot sure on top of the lower term but still it shows you how much I could have went the other way and be stressed out if anything happened.

Nonsense as ever, you seem completely out of touch with normal people in this regard.

Massive amounts of people can afford a mortgage, take one out and pay it off, over the original term, often 25 years.
On a 25 year mortgage this will often be 8 or so years in to get 25% if they went minimum deposit.
On top of that, most of the time owning with a mortgage is cheaper than renting. So people are better off buying a house than renting.
If renting was significantly cheaper than buying with a mortgage you may have a point, but its not, so you don't.

Your metric of affordability is miles off.