Mortgage Rate Rises

dirtychinchilla said:
Inflation down. Is it worth waiting 2-3 months to see if rates go down?
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When does your fix expire? If it's a few months away, it's still better to lock in a new rate now - you can always change your mind later if rates drop. If it's already expired, variable rates are usually pretty high and rates aren't likely to go down all that much, so better to just fix again now imo.
 
EvilRob said:
When does your fix expire? If it's a few months away, it's still better to lock in a new rate now - you can always change your mind later if rates drop. If it's already expired, variable rates are usually pretty high and rates aren't likely to go down all that much, so better to just fix again now imo.
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30th March. We have a DiP already, although not the most agile broker. It would potentially be worth the penalty of going onto a tracker for a month if rates don't change until after 30th March
 
dirtychinchilla said:
Inflation down. Is it worth waiting 2-3 months to see if rates go down?
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Max you will see this year is 3 cuts to 3% but probaly to 3.25% by the Autumn . What does 0.5% mean to you is the answer to your question ?No penalty Tracker and sit it out if you can

Personaly i would lock something in now as i can see trackers getting more expensive as rates come down. Its a very good chance we will get a 0.25% cut on March the 19th BOE decision but lenders normaly pre empt this anyway .
 
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We've just started the mortgage application process and I reckon that we will be redeeming that in about a month or so when we complete on the house we're buying. Would be lovely for the rates to go down by 0.25%. Not a huge difference but every little helps. Would save us about £60/month or £720 a year which is not to be sniffed at.
 
dirtychinchilla said:
That's what I'm saying though - worth doing the maths on going on a tracker for a month or two vs. waiting in the hope that they might reduce rates.
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My mortgage advisor is already chasing me for an answer. Which has made me ask another question - do I really need a mortgage advisor? I think the fee is about £850 to change provider, I just want another two year rate. How easy is it for those that have done it themselves?

*edit* You're right though, I'll look into going onto a tracker for a short amount of time, it would definitely make sense.
 
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Worthy said:
My mortgage advisor is already chasing me for an answer. Which has made me ask another question - do I really need a mortgage advisor? I think the fee is about £850 to change provider, I just want another two year rate. How easy is it for those that have done it themselves?

*edit* You're right though, I'll look into going onto a tracker for a short amount of time, it would definitely make sense.
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I wonder that too, but mine is much cheaper as he's our financial advisor. I assumed mortgage brokers are good because they understand the ins and outs of mortgages
 
dirtychinchilla said:
30th March. We have a DiP already, although not the most agile broker. It would potentially be worth the penalty of going onto a tracker for a month if rates don't change until after 30th March
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You need to make an application and receive your mortgage offer to lock in a rate (usually for 6 months), not just get a DIP
 
Worthy said:
My mortgage advisor is already chasing me for an answer. Which has made me ask another question - do I really need a mortgage advisor? I think the fee is about £850 to change provider, I just want another two year rate. How easy is it for those that have done it themselves?

*edit* You're right though, I'll look into going onto a tracker for a short amount of time, it would definitely make sense.
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You really don't, at least not a paid one. It's easy to do yourself. If not just use a free one like L&C unless you really have no idea what kind of mortgage product you want.
 
Worthy said:
My mortgage advisor is already chasing me for an answer. Which has made me ask another question - do I really need a mortgage advisor? I think the fee is about £850 to change provider, I just want another two year rate. How easy is it for those that have done it themselves?

*edit* You're right though, I'll look into going onto a tracker for a short amount of time, it would definitely make sense.
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Who is charging you the fee?

A lot of lenders will charge a product fee, that's actually quite common. Usually higher fee/cheaper rate and visa versa, you pay for it one way or another.

If the broker is charging you a fee then you need to tell to **** off. The brokers will get a procuation fee from the lender, which is typically .35% of the loan, although that can vary depending, so they're already making money off the deal. The ones that charge a fee on top are absolutely taking the ****.
 
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BUDFORCE said:
Who is charging you the fee?

A lot of lenders will charge a product fee, that's actually quite common. Usually higher fee/cheaper rate and visa versa, you pay for it one way or another.

If the broker is charging you a fee then you need to tell to **** off. The brokers will get a procuation fee from the lender, which is typically .35% of the loan, although that can vary depending, so they're already making money off the deal. The ones that charge a fee on top are absolutely taking the ****.
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Thanks mate, appreciate the advice. They want a fee of £399 for the broker and a £579 solicitor fee. I’m being completely ripped off aren’t I?
 
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slinxy said:
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.
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Just picked this up

This is wrong.
Your charged fees if you exceed the annual amount your allowed to overpay by.
Say you owe £100k today and you have an overpay allowance of £15k, then you would be charged fees on £100k-£15k
If you overpay within the limit each year (which is typically 10% of the original amount) you won't be charged any fees no matter when you pay the mortgage off as long as you do not breach the annual allowance.
Eg I paid mine off in 7 years from a 10 year fixed term and paid no fees despite the paperwork saying the year 7 fee was 3%
 
BUDFORCE said:
Who is charging you the fee?

A lot of lenders will charge a product fee, that's actually quite common. Usually higher fee/cheaper rate and visa versa, you pay for it one way or another.

If the broker is charging you a fee then you need to tell to **** off. The brokers will get a procuation fee from the lender, which is typically .35% of the loan, although that can vary depending, so they're already making money off the deal. The ones that charge a fee on top are absolutely taking the ****.
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If they are just brokering the deal, yes. If they are advising as well, it’s not terrible.


There’s a tonne of work that goes into it, and in the case of my advisor, they do all the paperwork on your behalf too.
 
Worthy said:
Thanks mate, appreciate the advice. They want a fee of £399 for the broker and a £579 solicitor fee. I’m being completely ripped off aren’t I?
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If you want to chat to a decent, non pushy advisor let me know and I can refer you - I get nothing out of it but you’d get a reduced rate (might be free but not 100%) if you decided it was worth it.

I’m normally a deal hunter but given it was free for me I think, as I was a referral, it made sense to use them, as they are a qualified individual specialising in mortgages.



Again, for clarity, I benefit in no way from the referral. They’re just a decent, hard working individual and I always try and help that kind of person out :-)
 
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