Mortgage Rate Rises

[Haggisman]

100% it's required, it'll be in the legalese

Yeah, it's definitely required, it's written in the conditions of our mortgage offer, maybe they just randomly spot check people (I don't recall ever having been checked!)

Edit: actually, no, we had to send the policy details over when we did some additional borrowing a few years ago, but not on a remortgage

 

[NotAGolf]

Even if it's not in the mortgage t+c's, you'd be pretty bonkers not to get buildings insurance. Imagine having to rebuild your life from scratch if your house burnt down. £10 a month seems like a bargain when you think of the alternative.

 

[HungryHippos]

Even if it's not in the mortgage t+c's, you'd be pretty bonkers not to get buildings insurance. Imagine having to rebuild your life from scratch if your house burnt down. £10 a month seems like a bargain when you think of the alternative.

Even worse than from scratch because you'd owe money on a house that didn't exist.

 

[Jonny ///M]

Sorry I should have said I do have it but don't remember being explicitly told to prove I had it.

We had to Juno through hoops during covid to prove where deposits came from etc but not for insurance.

 

[grudas]

Sorry I should have said I do have it but don't remember being explicitly told to prove I had it.

We had to Juno through hoops during covid to prove where deposits came from etc but not for insurance.

I’ve got it too too and was told by solicitors to take it out before/on exchange but we were never asked for proof from the lender.

 

[One More Solo]

Surprised not been more take over talk of UK businesses. Must be real concerns around mid term value.

Companies are cheap in pound terms, and especially dollar terms.

Saw lots of this activity after the pandemic when the dollar was strong but I think inbound investors have been spooked now by the general state of the U.K. economy and political environment.

 

[Sankari]

Australia's Reserve Bank has raised interest rates 6 times in the past 6 months, and we've been told to expect more before the year is out.

Our current rate: 6%. Our current mortgage: £61,000.

 

[Skillmister]

Sorry I should have said I do have it but don't remember being explicitly told to prove I had it.

We had to Juno through hoops during covid to prove where deposits came from etc but not for insurance.

You don't need to show proof most of the time. A handful of lenders require insurance details on the certificate of title but most don't. Solicitors don't need to ask for it, no doubt their report told you to put it in place so it's not their problem if you don't.

 

[delta0]

UK is likely to follow the US strategy for tackling inflation by being stronger with interest rates earlier on to get inflation under control faster. 0.75-1% increase is expected next month. https://news.sky.com/story/interest...month-bank-of-england-chief-suggests-12721123

 

[BUDFORCE]

UK is likely to follow the US strategy for tackling inflation by being stronger with interest rates earlier on to get inflation under control faster. 0.75-1% increase is expected next month. https://news.sky.com/story/interest...month-bank-of-england-chief-suggests-12721123

I don't see how it can be any other way either.


Mortgage rates have already shot up if anything the BoE base rate is trailing behind.

 

[Harnser]

Australia's Reserve Bank has raised interest rates 6 times in the past 6 months, and we've been told to expect more before the year is out.

It's good to hear it's happening in other countries too. Our media isn't exactly good at saying what's happening int he rest of the world.

 

[200sols]

UK is likely to follow the US strategy for tackling inflation by being stronger with interest rates earlier on to get inflation under control faster. 0.75-1% increase is expected next month. https://news.sky.com/story/interest...month-bank-of-england-chief-suggests-12721123

UK base rates are already 1% below the Feds, ECB is 2% below. We need 1.5-2% rise in November. Mortgages are already priced for this anyway.

 

[LabR@t]

It's good to hear it's happening in other countries too. Our media isn't exactly good at saying what's happening int he rest of the world.

Why does it matter if other countries are raising the rate?
I'm only concerned that they manage this countries economy

 

[delta0]

UK base rates are already 1% below the Feds, ECB is 2% below. We need 1.5-2% rise in November. Mortgages are already priced for this anyway.

I don’t know if we will aim to match the base rates but rather just the strategy of going hard on the rises early to get things under control quicker rather than having a long drawn out set of rises.

 

[413x]

Why does it matter if other countries are raising the rate?
I'm only concerned that they manage this countries economy

Remember how much the price of the dollar affects our imports

I don't see much harm raising rates. Mortgages for example probably won't change

 

[Richie]

I don't see much harm raising rates. Mortgages for example probably won't change

You're assuming everyone is on fixed rates... Tracker mortgages, for example, will indeed change

 

[413x]

You're assuming everyone is on fixed rates... Tracker mortgages, for example, will indeed change

Ah yes! That is true. Probably better than current fixes though!

 

[dowie]

Ah yes! That is true. Probably better than current fixes though!

Yup! I never bothered fixing it, the lifetime tracker has been fine for me, no hassle, and don't need to change. Would have had to pointlessly pay additional fees every 2-3 years over the past decade or perhaps a higher rate if I'd pointlessly fixed for 5 years say.

I guess fixing for say 15 years might have been a nice move a few months ago IF I were staying put but I'm likely not and I want the flexibility so the tracker is fine, can pay it off in full with no penalty.

The rate is like 3%-ish or something now so still a much better deal than the current or recent fixed rate offers from banks.

 

[LabR@t]

I've been in life time tracker +0.5% the last 14 years, probably best thing I've ever signed up for as I just kept payments at pre credit crunch level and massively overpaid.

 

[MatsyLR]

Had an offer accepted on a house, mortgage come out to £333 monthly at 5.56% over 5 years (41.54% LTV)
Not sure whether to go tracker instead....its 4.34% at the moment concidering completion wont be for a few months, conflicting information on if the general consensus is that its just going to keep going up and up well into next year.