We're also with Accord, 2.05% on 80% LTV fixed for 5 years, and just over 6 months in (fixed period applies from mortgage offer, not from redemption/completion day IIRC). I take it there's absolutely no point in us looking at this? We're fixed until March 2027 so after we've saved up for/paid for wedding and honeymoon in July '24, we can just focus on overpaying as much as we can to try and reduce the capital. Hopefully if there is a house-price slump we'll still be in a good LTV band come renewal.
Mortgage Rate Rises
- Thread starter glenimp617
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We're also with Accord, 2.05% on 80% LTV fixed for 5 years, and just over 6 months in (fixed period applies from mortgage offer, not from redemption/completion day IIRC). I take it there's absolutely no point in us looking at this? We're fixed until March 2027 so after we've saved up for/paid for wedding and honeymoon in July '24, we can just focus on overpaying as much as we can to try and reduce the capital. Hopefully if there is a house-price slump we'll still be in a good LTV band come renewal.
Soldato
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Im not heavy on legislation in regards mortgages but it may make sense to add an affordability check into extending term/reducing capital repayments.
But in the opposite direction to what people expect, ie you need to prove income again and outgoings to understand if your being hammered in outgoings then assuming they are not heavily optional then I would make it compulsory for lenders to allow a term increase and/or a repayment reduction of capital.
But in the opposite direction to what people expect, ie you need to prove income again and outgoings to understand if your being hammered in outgoings then assuming they are not heavily optional then I would make it compulsory for lenders to allow a term increase and/or a repayment reduction of capital.
You're in the best position possible, laughing all the way to the bank (no pun). Even if the interest rates are likely to come down over the next 24 months, i doubt we will ever see sub 2% rates for a long long time. You basically hit the jackpot.
If you hammer the lenders, you risk them increasing rates to offset the higher costs.
Nor should they return to below 2%, about 3% is an ideal rate it will probably come down to that at end of 2023. Provides a return to savers as well as sensible mortgage rates.
it's the whole budget really not just this small 2bn 45p tax cut that wrecked it.
Man there's a huge difference between this and the predictions of 5.5-5.75% which have just been revised following the uturn. How "probably" is "probably" to you?
Think a rate of 2pc-3pc (base) will be a sensible settle.
Should reduce house price ballooning and offer a bit for savers.
5pc will not last long (I hope!
)Edit.. 15 pc lasted a while!
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Soldato
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I agree, however nothing I posted would "hammer" lenders at all
It would make a minor adjustment to expected and actual cashflows, which would pale into insignificance compared to new lending or unexpected large repayments out of the blue.
Only if you want a long term future based on debt.
Although I agree and hope to see this I just don't think it will turn around that quickly. Maybe before the mini budget but I think Kwarsi has put paid to that. I'm due to renew in April 24 so expect a reduction from summer 24 onwards
I wouldn't be opposed to a long term slow steady rise.
Effectively weening us off such excessive debt.
I do agree that in general debt is being increasingly seen as a norm.
Look at klarna and all this "pay in 3" constantly being pushed by retailers.
Mortgages that are sensitive to historic normal rates.
The cars on finance. I had no idea how many cars were fiananced. Always wondered how so many early 20s people have mercs, audis and minis. Never thought car finance was so common!
I'm generally good with finance. But opened myself up to significant risk with my mortgage. And it's nowhere near max now.
What hope has average person got to resist?
Caporegime
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I used pay in 3 once earlier this year, for something that i can pay off in 1 go, about £200. It thought i wouldn't notice it but because i keep an eye on my balance, i do notice it and personally, once i made a decision to buy something, i want it now and pay it off now. Draw a line under it.
Pay in 3 is like having a cloud over my head, mentally i just didn't like it.
I've used it too. Also no need to. But also regretted it. Just something else to think about. Even with no interest it's there. Not doing it again.
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Heard plenty of stories about BNPL wrecking mortgage applications. Unsure how widespread/true this is but I would avoid.
I've had a couple of things on BNPL, and it's not caused any issues for me. I guess like all debt it depends how manageable it is though - if the available balance is maxed out then maybe alarm bells start ringing, if you've got a £2-300 used on a £5k account, then it could potentially be a good indicator the other way?
Pay in 3 (PayPal) doesn't show as credit.
But b the pay in 12 (PayPal) does.
I have heard these can cause issues. Same as any debt. It will be how much and how often etc etc that goes into a decision.
Have Halifax pulled their mortgages too? I can't see any mention of rates anywhere on their website.
Is there anywhere I can see at a glance who still has active products? Absolute nightmare of a time to wanting to buy a house and just my luck.
Is there anywhere I can see at a glance who still has active products? Absolute nightmare of a time to wanting to buy a house and just my luck.