Mortgage Rate Rises

Zefan said:
Not ideal but do if you're in dire straits do you think your lender might consider it acceptable to add the ERC to the new product?
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We have a few stages yet, one will be requesting full WFH status (£200 extra a month), and the next would be getting a lodger in (£625 extra a month).

If the crypto market can turn around by the end of the year and we can launch our project, then it should be smooth sailing regardless, but that's a big ask in the current worldwide economic climate.
 
BUDFORCE said:
A lot of smaller lenders are pulling their fixed rates.

Apparently one lender Together, have pulled all their fixed rates, at all stages of application, as in, if you are 3 days off completing, they are pulling it.

But not just them, across the market, the cost of swap rates have gone from something like .5% to 5.9% since earlier this year.

It's simply not profitable for lenders to provide mortgages at the moment without putting up rates drastically.

High street/main stream banks will be able to tank it slightly better and of course still have deposits (people savings accounts) which are clearly not paying 5+% interest....yet, but it'll catch up.
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Not going to lie, this does concern me with our remortgage - even though we've had the formal offer letter through, and accepted it with the solicitor, I'm still worried about them pulling it before we complete on 1st December. It's with Natwest, so not exactly a small lender, but still...
 
Haggisman said:
Not going to lie, this does concern me with our remortgage - even though we've had the formal offer letter through, and accepted it with the solicitor, I'm still worried about them pulling it before we complete on 1st December. It's with Natwest, so not exactly a small lender, but still...
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Am I in danger too? I got mortgage offer accepted over a month ago and the deal ends at the end of November and I'm in the process of buying my first property.

We have some of the searched and inquiry done already (I have full environmental search report at hand).

So I think we are 2/3 away from completion?
 
jonneymendoza said:
Am I in danger too? I got mortgage offer accepted over a month ago and the deal ends at the end of November and I'm in the process of buying my first property.

We have some of the searched and inquiry done already (I have full environmental search report at hand).

So I think we are 2/3 away from completion?
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It will depend on the lender I expect
 
ThriceNightly said:
Phew am glad to be mortgage free. Was fortunate timing wise too miss the high interest rates of 1989/90 (up to 15%) before getting my first mortgage Though housing prices were so much lower than they are now (My first mortgage was £40k) I get too thinking of all these new £££ estates that have cropped up around my town and what some must be facing.
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We're all in this together unless you emigrate
 
Damn scary times for high LTV mortgage customers, doubly unfortunate if current fixed rate periods are expiring any time soon.

We sold our current house STC back in 2018 but the sellers of the property we'd hoped to buy pulled out at the last minute, my wife and I made the decision to just forget about moving/upsizing and changed our tracker mortgage at the time onto a fixed deal for 10 years. 2.29% with Virgin Money, approx 40% LTV of property valuation at the time (£240K).
 
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Higher Than Average said:
Ours is up for renewal in December 2023. Have no clue what we can do. Looking likely to be £600 per month higher costs if the estimate for where the interest rates will be by then.

We currently have lodgers, but when kids arrive (were hoping to have 1 before next year end) we will need to kick the lodgers out.

That will bring us £1600 worse off per month, on top of higher electricity bills, and a kid to bring up.

Nuts to think about.

The ticking time bomb is slowly ticking away.
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Maybe time to get rid of the higher than average car?
 
ThriceNightly said:
Phew am glad to be mortgage free. Was fortunate timing wise too miss the high interest rates of 1989/90 (up to 15%) before getting my first mortgage Though housing prices were so much lower than they are now (My first mortgage was £40k) I get too thinking of all these new £££ estates that have cropped up around my town and what some must be facing.
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Good chance we are heading that way.
 
Haggisman said:
Not going to lie, this does concern me with our remortgage - even though we've had the formal offer letter through, and accepted it with the solicitor, I'm still worried about them pulling it before we complete on 1st December. It's with Natwest, so not exactly a small lender, but still...
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When I had my remortgage I was going to wait until right close to the expiry to action it. As we were on a better (slightly) rate with current. Erc was unavoidable.

Well, I got too twitchy. I read clauses in it saying about if house is valued too low at time of actioning it etc. I also wondered if a last minute credit check or something would scupper it.

Obviously as time went on rates were going up. So If it did fall through I'd never get that rate again.

In end I got it Done a month early. Wasn't worth the stress waiting.
 
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BUDFORCE said:
A lot of smaller lenders are pulling their fixed rates.

Apparently one lender Together, have pulled all their fixed rates, at all stages of application, as in, if you are 3 days off completing, they are pulling it.
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Do you have any source for this? I have a client due to exchange imminently with a Together mortgage offer
 
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