Mortgage Rate Rises

a1ex2001 said:
Nobody was expecting interest rates to go from sub 1% to 6% in a year (which looks likely) and I've not seen any evidence of any forecasting this level of rate rise a year ago! We took on a significant mortgage in January and the banks sure as hell were not stress testing people up to 6% interest rates.
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5-5.5% was the typical stress test. Ours with HSBC was stressed to 8% but they are a very conservative lender
 
It's been pretty mental today.

We ended up with about 850% of the usual volume today, basically all lenders are pulling their rates or temporarily stopping lending so quickly, it's a race to not be the cheapest - a bad thing believe me.

NatWest apparently had 4500 new applications in just today, which even for NatWest is a lot.

I reckon rates across the board have probably gone up several percent, literally just today.

Fun times ahead.
 
Guest2 said:
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
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Risky to add her just to help with the rates, of which I doubt will be any noticeable difference.

What sort of over payments have you been making?

We've tried to do up to 10 percent each year, doing around 30k. We've also been over paying by £300 per month.

I when ours renews at the exact same date as yours, I can't see my deal being any significantly different than yours.

Maybe a pro can give an idea historically what's happened, but as bud has just said, the offers now are a race to not be the cheapest.
 
BUDFORCE said:
It's been pretty mental today.

We ended up with about 850% of the usual volume today, basically all lenders are pulling their rates or temporarily stopping lending so quickly, it's a race to not be the cheapest - a bad thing believe me.

NatWest apparently had 4500 new applications in just today, which even for NatWest is a lot.

I reckon rates across the board have probably gone up several percent, literally just today.

Fun times ahead.
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I was annoyed at getting a rate of 4.74 from Skipton for an Expat BTL mortgage now it looks like a good rate but now worried they might pull it.

Definitely fun times ahead in the UK housing market
 
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BUDFORCE said:
It's been pretty mental today.

We ended up with about 850% of the usual volume today, basically all lenders are pulling their rates or temporarily stopping lending so quickly, it's a race to not be the cheapest - a bad thing believe me.

NatWest apparently had 4500 new applications in just today, which even for NatWest is a lot.

I reckon rates across the board have probably gone up several percent, literally just today.

Fun times ahead.
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From what I was reading a lot of products have disappeared and some new ones have come out but at a much higher rate. It's certainly not a good time to get a new mortgage.
 
BUDFORCE said:
It's been pretty mental today.

We ended up with about 850% of the usual volume today, basically all lenders are pulling their rates or temporarily stopping lending so quickly, it's a race to not be the cheapest - a bad thing believe me.

NatWest apparently had 4500 new applications in just today, which even for NatWest is a lot.

I reckon rates across the board have probably gone up several percent, literally just today.

Fun times ahead.
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You still finished at ~midday though right!?
 
Higher Than Average said:
Risky to add her just to help with the rates, of which I doubt will be any noticeable difference.

What sort of over payments have you been making?

We've tried to do up to 10 percent each year, doing around 30k. We've also been over paying by £300 per month.

I when ours renews at the exact same date as yours, I can't see my deal being any significantly different than yours.

Maybe a pro can give an idea historically what's happened, but as bud has just said, the offers now are a race to not be the cheapest.
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+500 / month for the past 3 years. Covid 'helped' as there was nothing much more to spend the money on! I've also been re-paying family which will be paid by this time next year.
If the deal is the same (with increased interest rates) then great.
 
Worthy said:
You still finished at ~midday though right!?
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Yea more or less.

I've actually been doing slightly more work this week as I'm doing a bit of a project.

Looking at hundreds of applications from the same two brokers, applicants all from the same community which I won't name*.

Anyway, these guys have lots of property yet are not declaring any of the income, basically apparently all unrelated applicants, all have the same style payslips, all with incomes of £10k or less. All using the same couple of accountants and all the mortgages are going through the same solicitor.

I think ...... What they are doing is instead of drawing the rental as income (and paying tax), they are setting up companies which exist on paper, probably invoicing from one company to another for some made up service, the same amount of profit made on rental income. Then getting all their mates to be "employees" of this company, and paying them all under the tax thresholds.

It's legitimate as in the income is real, but these people aren't actually doing these jobs. All declared as "admin" and when you look up the employer it's some boarded up take away or similar.

Tax evasion on a grand scale.

*Apparently it's not the done thing to be anti Semitic these days.

Shalom.
 
BUDFORCE said:
Yea more or less.

I've actually been doing slightly more work this week as I'm doing a bit of a project.

Looking at hundreds of applications from the same two brokers, applicants all from the same community which I won't name*.

Anyway, these guys have lots of property yet are not declaring any of the income, basically apparently all unrelated applicants, all have the same style payslips, all with incomes of £10k or less. All using the same couple of accountants and all the mortgages are going through the same solicitor.

I think ...... What they are doing is instead of drawing the rental as income (and paying tax), they are setting up companies which exist on paper, probably invoicing from one company to another for some made up service, the same amount of profit made on rental income. Then getting all their mates to be "employees" of this company, and paying them all under the tax thresholds.

It's legitimate as in the income is real, but these people aren't actually doing these jobs. All declared as "admin" and when you look up the employer it's some boarded up take away or similar.

Tax evasion on a grand scale.

*Apparently it's not the done thing to be anti Semitic these days.

Shalom.
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I hope you'll be getting them investigated.
 
BUDFORCE said:
Yea more or less.

I've actually been doing slightly more work this week as I'm doing a bit of a project.

Looking at hundreds of applications from the same two brokers, applicants all from the same community which I won't name*.

Anyway, these guys have lots of property yet are not declaring any of the income, basically apparently all unrelated applicants, all have the same style payslips, all with incomes of £10k or less. All using the same couple of accountants and all the mortgages are going through the same solicitor.

I think ...... What they are doing is instead of drawing the rental as income (and paying tax), they are setting up companies which exist on paper, probably invoicing from one company to another for some made up service, the same amount of profit made on rental income. Then getting all their mates to be "employees" of this company, and paying them all under the tax thresholds.

It's legitimate as in the income is real, but these people aren't actually doing these jobs. All declared as "admin" and when you look up the employer it's some boarded up take away or similar.

Tax evasion on a grand scale.

*Apparently it's not the done thing to be anti Semitic these days.

Shalom.
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Going by the work I do, they probably all claimed furlough for these employees too.
 
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Had colleagues who fixed at 3.5% only a couple of weeks ago, and most sites showing 5.5 to 6% today. Absolutely crazy. So glad we fixed at 2% earlier this year - just hoping 5 years is enough to ride this out!!
 
squerble said:
Had colleagues who fixed at 3.5% only a couple of weeks ago, and most sites showing 5.5 to 6% today. Absolutely crazy. So glad we fixed at 2% earlier this year - just hoping 5 years is enough to ride this out!!
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Me too. So annoyed about not going 10.
But with a joint mortgage (break ups are always possible) , and possibly wanting to emigrate I didn't want to be left with a 5pc erc for 5 years.
 
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