Mortgage Rate Rises

[stuman]

We tried Canada - the US holiday amount and how vulnerable employment is were the unexpected ball-kicking. 2 weeks is not enough holiday - we could spend more time enjoying Canada from this country! Your job being disposable on a whim is also very scary if you are not in a union and in a volatile industry. Support the wrong team and boss wants to, you’re gone.

We made the decision to come back to the UK but will return when we are freelance or running our own business.

 

[413x]

Definitely don't underestimate how far away NZ is either, getting back to the UK is a long and expensive undertaking!

I've moved abroad twice without ever visiting the city I was moving to, and it worked out great, no regrets at all. It depends hugely on your character, do you enjoy new experiences and different cultures? No problem. Are you the sort of person that complains on holiday that the bacon isn't as good as back home? Yeah, you probably shouldn't emigrate.

Is very far. Part of the appeal. Wouldn't have to go home and see family much. Christmas in the beach in the warm. Sounds like bliss.


Oh no when I'm abroad I do not want to be in UK away from home. Never seen the point going on a summer holiday to a resort? No thanks. I can go to the beach in Wales and have a better experience

 

[enigma27]

ok so looking for a little advice.

Fixed rate due to end in Feb (currently 1.94%) and I can change fee free on 01st November.

Just called my provider and to change today will cost me 3,800 as an early redemption fee (two weeks early) and they quoted me the below rates

2 Year fixed - 5.01%
5 Year fixed - 4.41%
10 Year fixed - 4.61%

The 2 year adds 400 extra per month to our mortgage. Current LTV is 52% on a 250k mortgage.

Not sure whether to hope and pray the rate doesn't move to much in the next 2 weeks to save on the redemption fee or bite the bullet now. Really doesn't help the other half is leaving her job on the 01st Jan and going self employed

 

[Mercenary Keyboard Warrior]

I would be sticking on the 1.94% right now I think if I had to pay a 3800 redemption fee

Its all a gamble but I am not convinced they will go up that much more, I think with the pressure mounting to fix what the government have caused the rates will probably have roughly peaked.
They may well stay at a similar level for a bit though.

 

[413x]

That's a high fee

If you're that close I wouldn't pay the fee.
Rates aren't going to up that much in 2 weeks to eat up that fee.

6 months ago, yes, but 2 weeks. No. Hopefully no.

 

[413x]

Interestingly, rates are lower if I was to remortgage now vs Monday

 

[Raymond Lin]

So I signed up to Barclay's Rainy Day Savings account which gives 5% interest, the downside is it requires joining their Blue Awards which costs £5 a month unless you have 2 DD set up (not a problem), then you get £5 back.

What i didn't see is that if you also have a mortgage with them, which as it happens, i do....i get another £3.

Woot....after a year i can get a free pizza!

 

[jon86]

I think its a pipe dream though. I don't think my career is in demand there. But it's nice to dream!

I'd check out the Skilled Migrant visa points calculator and just have a look to see how many points you might qualify for. It might surprise you.

https://www.immigration.govt.nz/new...-information/tools/points-indicator-smc-28aug

I just filled in the calculator to set how many points I'd get. I got 155 if I have no job offer, and 235 if I was to have a decent job offer, which I'd want before I was to emigrate there. It looks like 160 is the minimum that's required to get a Skilled Migrant Category visa right now.

We're actually looking at coming back to the UK in a few years' time. Although we're being warned off that by so many people.

I keep in regular contact with my family in the UK, and there is no way that I'd personally move back unless life was to get extremely hard here... and we're a long way from that yet. Life in the UK just seems like it would be so much harder for me and my family than it is now.

I'd do a lot of things to get out of here. I regret not when I was younger. Its quite frustrating but mainly myself to blame

People emigrate all the time, but I appreciate that it can be harder and easier at different stages of life.

Woot....after a year i can get a free pizza!

You can't get a decent pizza in the UK for less than £36!?

 

[dlockers]

So I signed up to Barclay's Rainy Day Savings account which gives 5% interest, the downside is it requires joining their Blue Awards which costs £5 a month unless you have 2 DD set up (not a problem), then you get £5 back.

What i didn't see is that if you also have a mortgage with them, which as it happens, i do....i get another £3.

Woot....after a year i can get a free pizza!

Slow and steady perks are brilliant. I've been tempted to bin my COOP account but I got £150 for joining and then in the early years at least £40/year and now get about £15/year. Free money is free money.

 

[413x]

Slow and steady perks are brilliant. I've been tempted to bin my COOP account but I got £150 for joining and then in the early years at least £40/year and now get about £15/year. Free money is free money.

If that barclays offer is still on when my nationwide 3pc offer expires (January) I'll be switching banks again.

I switch about once a year when the intro offers end and there's 150+ for joining

 

[Chrisc]

ive just checked my remortgage rate (due July 23) at the current rate based on 2yrs fixed, its going up £300per month. Absolutely ridiculous.

 

[Mysterae_]

I put some numbers in to a spreadsheet to work out and plot what I could possibly be paying when my fixed term ends.

The blue line is how much my monthly mortgage payment would be for the given interest rate and the orange line is the amount extra from my current mortgage payments at that rate.

So if the interest rate went to an economy crushing 7% I'd be paying an extra £450 a month. Scary stuff.

I don't think it'll get that bad, too many people would be broken by it. I think it's more likely to settle down to 4% in the next year or two.

 

[Martini1991]

ive just checked my remortgage rate (due July 23) at the current rate based on 2yrs fixed, its going up £300per month. Absolutely ridiculous.

That £300 a month would have been really useful for growth I bet.

 

[dlockers]

If that barclays offer is still on when my nationwide 3pc offer expires (January) I'll be switching banks again.

I switch about once a year when the intro offers end and there's 150+ for joining

Consider grabbing a cheap second account so it is a tad less disruptive. I have a Nationwide + RBS account I cycle around on the offers. I do manage my $ meticulously though - discipline required to keep the right $ in each account if minimum DDs are required etc.

*disruption = change of card numbers, any glitches on switch guarantee - but it is also good to have an account that has been open a long while for credit search reasons.

 

[413x]

Consider grabbing a cheap second account so it is a tad less disruptive. I have a Nationwide + RBS account I cycle around on the offers. I do manage my $ meticulously though - discipline required to keep the right $ in each account if minimum DDs are required etc.

*disruption = change of card numbers, any glitches on switch guarantee - but it is also good to have an account that has been open a long while for credit search reasons.

Good idea.
2 bank accounts. One steady for wages etc (maybe first direct) and then another to hop on offers.

Shame every offer seems to come with a 1 year savings offer. Think my nationwide one drops to approx zero on the 1 Yr anniversary

 

[JamesH85]

Have it on good info that Santander are pulling all their rates today. New fixed mortgages to be at 8% for 5 years by next week at this rate.

No idea how people are going to afford these 7% plus mortgages.

 

[Martini1991]

Have it on good info that Santander are pulling all their rates today. New fixed mortgages to be at 8% for 5 years by next week at this rate.

No idea how people are going to afford these 7% plus mortgages.

8% is game over lol

 

[Goodie]

Have it on good info that Santander are pulling all their rates today. New fixed mortgages to be at 8% for 5 years by next week at this rate.

No idea how people are going to afford these 7% plus mortgages.

you can't make comment like that without dropping a source.

 

[kevman]

Have it on good info that Santander are pulling all their rates today. New fixed mortgages to be at 8% for 5 years by next week at this rate.

No idea how people are going to afford these 7% plus mortgages.

This must be curb demand surely rather than related to interest rates going up to 7/8%???

 

[dowie]

Have it on good info that Santander are pulling all their rates today. New fixed mortgages to be at 8% for 5 years by next week at this rate.

That sounds a bit fishy; looks like it's currently 5.99% with a 25% deposit, we can check next week.