Mortgage Rate Rises

Raymond Lin · 30 Sep 2022 at 20:40

Barclays is doing Savings Account (Rainy Day Savings) with 5.12% interest rate. The conditions are that you need to have Blue Awards (cost £5 per month) but if you have 2 DD set up in your current account, you get that £5 back. Also max £5000 limit at this rate.

Easy access, no minimum amounts.

RockLobster · 1 Oct 2022 at 07:42

RockLobster said:
Lloyds offering 5 year fixed at 3.73 with no fee with 60% LTV. That's the best I've seen.

Looked today now the above is 4.43%

413x · 1 Oct 2022 at 09:20

Raymond Lin said:
Barclays is doing Savings Account (Rainy Day Savings) with 5.12% interest rate. The conditions are that you need to have Blue Awards (cost £5 per month) but if you have 2 DD set up in your current account, you get that £5 back. Also max £5000 limit at this rate.

Easy access, no minimum amounts.

Tempted to switch my account!

Zatoichi.uK · 1 Oct 2022 at 09:47

Definitely need a better rate. Only just switched to Chase for 1.5% which doesn't seem to be going up.

MatsyLR · 1 Oct 2022 at 10:26

Raymond Lin said:
Barclays is doing Savings Account (Rainy Day Savings) with 5.12% interest rate. The conditions are that you need to have Blue Awards (cost £5 per month) but if you have 2 DD set up in your current account, you get that £5 back. Also max £5000 limit at this rate.

Easy access, no minimum amounts.

Always with the DD noncense. I literally don't have any direct debits....last time I opened an account I had to put on 2 pet charitys for the DD.

MichaelAwkward · 1 Oct 2022 at 11:12

MatsyLR said:
Always with the DD noncense. I literally don't have any direct debits....last time I opened an account I had to put on 2 pet charitys for the DD.

Why would you not have any direct debits in this day and age? Are you one of those people who think they have more control by paying bills on receipt manually?

Skillmister · 1 Oct 2022 at 11:20

Zatoichi.uK said:
Definitely need a better rate. Only just switched to Chase for 1.5% which doesn't seem to be going up.

I'm sure they will if everyone else increases around them. No way they would go from market leader and have everyone move away

purplesky · 1 Oct 2022 at 11:22

Raymond Lin said:
Barclays is doing Savings Account (Rainy Day Savings) with 5.12% interest rate. The conditions are that you need to have Blue Awards (cost £5 per month) but if you have 2 DD set up in your current account, you get that £5 back. Also max £5000 limit at this rate.

Easy access, no minimum amounts.

More trouble than what it's worth. And a maximum of £5000 lol

PureAppleJuice · 1 Oct 2022 at 11:44

I've been offered 3.87% for five years, think it's probably wise to just take that?

Raymond Lin · 1 Oct 2022 at 12:01

PureAppleJuice said:
I've been offered 3.87% for five years, think it's probably wise to just take that?

Yes.

One More Solo · 1 Oct 2022 at 12:14

It’s likely we’ll be in a situation where savings rates are higher than people’s existing fixed mortgage rates. Has anyone run the numbers on overpayments and whether it makes sense to leave the money in a savings account for a year and then overpaying a lump sum annually?

unwashed potato! · 1 Oct 2022 at 12:16

One More Solo said:
It’s likely we’ll be in a situation where savings rates are higher than people’s existing fixed mortgage rates. Has anyone run the numbers on overpayments and whether it makes sense to leave the money in a savings account for a year and then overpaying a lump sum annually?

Perhaps this explains why savings aren't catching up with current interest rates, to encourage people with money, to put it into paying off more of their mortgage?

RockLobster · 1 Oct 2022 at 12:19

PureAppleJuice said:
I've been offered 3.87% for five years, think it's probably wise to just take that?

I’ve been looking this morning and the best rate I’ve seen is a 5 year fixed. 3.79% (£995) fee. Or 4.05% no fee. NatWest.

_Jimlad_ · 1 Oct 2022 at 12:28

RockLobster said:
I’ve been looking this morning and the best rate I’ve seen is a 5 year fixed. 3.79% (£995) fee. Or 4.05% no fee. NatWest.

its only going up in the next 12 months, so not sure you have much choice.

lemonkettaz · 1 Oct 2022 at 13:34

Raymond Lin said:
Barclays is doing Savings Account (Rainy Day Savings) with 5.12% interest rate. The conditions are that you need to have Blue Awards (cost £5 per month) but if you have 2 DD set up in your current account, you get that £5 back. Also max £5000 limit at this rate.

Easy access, no minimum amounts.

Just got on this, didn't realise til I read this post so thanks ha

kona786 · 1 Oct 2022 at 13:34

Higher Than Average said:
Perhaps this explains why savings aren't catching up with current interest rates, to encourage people with money, to put it into paying off more of their mortgage?

I saw an article a while back saying banks only increase saving rates when they need your money.

Since the pandemic they've seen people loads of extra savings being deposited as people couldn't do recreational activities. so they don't need extra money right now.

Mercenary Keyboard Warrior · 1 Oct 2022 at 14:43

Yeah thats correct, after the financial crash when BOE base rate dropped savings rates went up, and then QE happened and they dropped to basically nothing.
But its also competitive, as they start to need money the rates will go up.

413x · 1 Oct 2022 at 14:48

Yeah looks like competition for savings is hotting up.

That barclays offer is very good! Miles better than anything else I'd you have a few k but a low rate mortgage

Ripper · 1 Oct 2022 at 15:53

Been a very stressful time period. Mortgage up next April and I’ve been considering remortgaging for a few months. ERC has constantly put me off (1.6k) and I’ve watched as rates have risen bit by bit.

Bit the bullet on Monday and managed to secure Barclays 3.49% for 7 years. Have added ERC to mortgage, added 2 years to mortgage (frustrating, but needs must) and will eventually be paying £120 per month more than I was. Thankfully this is more or less covered by a recent pay increase at work.

Not ideal but pleased I acted eventually, could have been far far worse. Have checked rates every day since and I wouldn’t have got near 3.49% even a couple of days later.

Hopefully in 7 years time things will be more stable!

_Jimlad_ · 1 Oct 2022 at 15:58

Ripper said:
Been a very stressful time period. Mortgage up next April and I’ve been considering remortgaging for a few months. ERC has constantly put me off (1.6k) and I’ve watched as rates have risen bit by bit.

Bit the bullet on Monday and managed to secure Barclays 3.49% for 7 years. Have added ERC to mortgage, added 2 years to mortgage (frustrating, but needs must) and will eventually be paying £120 per month more than I was. Thankfully this is more or less covered by a recent pay increase at work.

Not ideal but pleased I acted eventually, could have been far far worse. Have checked rates every day since and I wouldn’t have got near 3.49% even a couple of days later.

Hopefully in 7 years time things will be more stable!

same boat as you, wise move.. you will be looking at 6% come April for sure