Caporegime
This is what I am wondering too. There will be thousands of people who have agreements in principle at rates the bank will not want to offer. If those are "updated" or rescinded a lot of those house purchases will fall apart.
Mortgage Rate Rises
- Thread starter glenimp617
- Start date
This is what I am wondering too. There will be thousands of people who have agreements in principle at rates the bank will not want to offer. If those are "updated" or rescinded a lot of those house purchases will fall apart.
Caporegime
Our fixed rate comes to an end late next year, ~9 years into a 25 year mortgage on the main house.
We've decided to pay it off come renewal time, not paying 6% or whatever it will be then.
We've decided to pay it off come renewal time, not paying 6% or whatever it will be then.
Caporegime
Would be nice to have to decide whether to pay off the remaining 2/3rds of your mortgage or invest that money in the markets. How the other half live eh
Aips aren't really worth anything right? No binding in them.
I have read that formal offers can't be just rescinded, but a few posters working in the field have suggested this is happening?
Even the BBC said it couldn't?
(excluding drops in house prices and failed last minute credit checks.. These are in ts & Cs)
I have read that formal offers can't be just rescinded, but a few posters working in the field have suggested this is happening?
Even the BBC said it couldn't?
(excluding drops in house prices and failed last minute credit checks.. These are in ts & Cs)
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Soldato
An agreement in principle is meaningless its not a mortgage offer.
Soldato
Exactly. They need to have the formal mortgage review and pass the stress tests. Most mortgage companies were stress testing 5-5.5% they are probably going to stress a bit above that now. Valuations are going to be tougher too.
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Soldato
With the country in a recession (we are already), the usual way to get a country out of a recession (people spending) isn't here any more due to energy prices and now higher mortgage prices. This really is becoming a serious bovine excrement storm. Anyone taking out credit now is a fool, batten down the hatches as this is going to be prolonged and ugly.
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Wasn't the stress test scrapped in August?
Soldato
It depends if its regulated or non regulated.
So most residential mortgages (eg one you take for your own house to live in) are regulated and yes they cannot withdraw those unless there are certain circumstances, one good example of lenders share information and have fraud systems, such an Hunter, CIFAS, SIRA etc - if a lender offered on a regulated mortgage then found out through one of these systems the guy or lass was a naughty boy they have the right to pull it.
BTL mortgages are generally unregulated, and therefore can be pulled, however that obviously risks reputational damange so lenders generally wont, and is a sign of desperation if they do.
It was ,however most lenders still did it.
Soldato
Mortgage providers still did it and beyond what they had to
That makes it clear.
Soldato
Unlike the BBC which as usual leaves out half the facts.
It’s gone up substantially, the one I’ve been looking at with them has gone from high 3s / 4% to high 4s and then 5.99% today
I’m sure earlier in the year with <60% LTV you could have gotten under 2%.
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I just can't believe we will see 2pc the way its been going. I mean they didn't even do an emergency hike to spread the pain.
Mines 2.21% with Halifax and comes to an end next October. No doubt by then rates will have sky rocketed.
Might put my GF on the mortgage, with part ownership and might be able to work out a better deal as have been making overpayments for the past 3 years too
Hopefully wont be too bad if we increase the mortgage repayments quite a bit
Might put my GF on the mortgage, with part ownership and might be able to work out a better deal as have been making overpayments for the past 3 years too
Hopefully wont be too bad if we increase the mortgage repayments quite a bit
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Run that through a lawyer first and get terms drawn up
Last thing you want is breaking up with the GF and things turning nasty
Soldato
They also weren't adding a stress test for high increases in energy and food which are necessities of life.