Mortgage Rate Rises

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!
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You were in the exact same position as me. Apart from I did nothing and I'm waiting to see how things go. My ERC was about 1k and in hindsight I should have just paid it as that's now going to be 1 years additional interest!

Kicking myself as I looked into this in May and Barclays had a 10 year fix at 2.55% and I've still got the screenshot from when I looked.

It's going to bug me when we renew for a higher amount than we needed to but you never know! Things might calm down and rates come down. Lol.

If the ERC was £500 or less I'd have just paid it but £1k just put me off when it shouldn't have done.

My first mortgage had interest rates at 5.5 percent so I'm not stranger to high rates, but being used to them being low for so long is going to sting!
 
Nemiyen said:
You were in the exact same position as me. Apart from I did nothing and I'm waiting to see how things go. My ERC was about 1k and in hindsight I should have just paid it as that's now going to be 1 years additional interest!

Kicking myself as I looked into this in May and Barclays had a 10 year fix at 2.55% and I've still got the screenshot from when I looked.

It's going to bug me when we renew for a higher amount than we needed to but you never know! Things might calm down and rates come down. Lol.

If the ERC was £500 or less I'd have just paid it but £1k just put me off when it shouldn't have done.

My first mortgage had interest rates at 5.5 percent so I'm not stranger to high rates, but being used to them being low for so long is going to sting!
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Barclays are still offering 3.05 with a £749 fee for ten years.
 
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MichaelAwkward said:
We've got a 5 year fix with Barclays held from June at 3.35%, but waiting to see what Halifax will offer from October (fixed term ends Dec) on a shorter fix. Is it foolish to think rates might fall again in 1-2 years?

BoE are in a bit of a bind at the moment - increase interest rates to chase the Fed but crush demand or keep them low knowing it won't fix supply side inflation anyway.
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So we checked what Halifax would offer today - cheapest is 3.69% fix for 3 years, with 1 year and 5 year being over 4%, so we went ahead and now have until 31st December to accept the documents etc. Since we've repaid a fair bit more capital than if we'd never overpaid it still works out cheaper than we pay at the moment by a few quid and only £800 more expensive than the first 3 years of the Barclays deal.

We feel the flexibility of being able to revisit 2 years earlier is worthwhile and it's more straight forward to stay with our current lender with our history of overpayments, and we may be in a position by then to settle in full anyway rather than being locked in with 2 years worth of ERC.

Waiting to hear what our broker thinks before we go ahead though.
 
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adam cool dude said:
Barclays are still offering 3.05 with a £749 fee for ten years.
Nemiyen said:
I've got a meeting with them booked for the 14th October (earliest they could do) but I'm guessing that's for existing customers? I can't see that one right now if I look where I saw 3.5 on Thursday. :(
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It must only be for existing customers. The lowest 10 year fix on comparison sites and their own website is 4.85% (60% LTV) or 4.96% (80% LTV), both with a £999 fee.
 
Zefan said:
Can you explain why you're so sure about this? I'm not trying to be an arse, I am genuinely trying to work out what factors are at play here and what viewpoints people have based on predictions.
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Read a reuters article which reckoned around 4.25% is most likely. Might be paywall though to read the article.

www.reuters.com

Bank of England won't make emergency rate hike but will go big on Nov 3

The Bank of England won't raise interest rates before its next scheduled policy announcement on Nov. 3 despite a plummet in sterling but will make big moves in November and December and Bank Rate is now seen peaking much higher, a Reuters poll found.
www.reuters.com www.reuters.com
 
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Nemiyen said:
I've got a meeting with them booked for the 14th October (earliest they could do) but I'm guessing that's for existing customers? I can't see that one right now if I look where I saw 3.5 on Thursday. :(
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Just checked this - no where near this rate for new customers
 
Going to book a call with a broker i know for this week and get the ball rolling on getting all paperwork in line and seeing what deals are out there for us.

Absolutely mad how the rates have changed in the past couple of weeks alone.
 
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I never would have thought to fix for more than 5 years. Who knows what might happen in that time - could move location due to new job, unexpected change in relationship status…. or even just want to move house!
 
Nationwide are now at 5.94% to fix at 2-3 years. that’s a £170 increase to my mortgage since all this started a few months ago.

Am I mad about considering just staying on a tracker and dealing with the increases? Rather than commiting to that extra moneys from now? What’s the likelihood it’s gona surpass 7-8% ?
 
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ChrisD. said:
I do it myself, last broker was a muppet so I just went and got a mortgage from Nationwide which was a better deal than he found.
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We had a broker do ours initially and was some dodgy cowboy type lender and with everything going on in the financial sector at the time we gave it a miss. Barclays gave almost the same so went with them and never looked back. Have been renewing with them for the past 12 years. Easy to do on the app, zero fees and always ended up the cheapest for us every time we fixed. I guess when you have a very good LTV you are not much of a risk.

Hopefully get the paperwork back for our 3 year 3.48% this week. Barclays even emailed me yesterday to make sure I got my rate in which was a surprise!

I am hoping in 3 years everything will settle down by then. Jan 2026. If not there will be a huge plethora of Repo's on the market!
 
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kevman said:
Read a reuters article which reckoned around 4.25% is most likely. Might be paywall though to read the article.

www.reuters.com

Bank of England won't make emergency rate hike but will go big on Nov 3

The Bank of England won't raise interest rates before its next scheduled policy announcement on Nov. 3 despite a plummet in sterling but will make big moves in November and December and Bank Rate is now seen peaking much higher, a Reuters poll found.
www.reuters.com www.reuters.com
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That's BOE base rate though right? That would mean 5.5% mortgages at pretty much any LTV wouldn't it?
 
Yeah 90% LTV will be priced at 7% + just purely because of the risk of running instant negative equity should the market crash.

I wouldn't fancy buying anywhere atm with less than a 20% deposit. There is no protection at all.
 
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