Mortgage Rate Rises

EvilRob said:
:confused: I don't know why you keep telling me about the 90 day window with current lender. I'm suggesting he talk to a broker and lock in a rate now with a different lender, up to 6 months before his fixed rate with current lender expires.
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Confused too.
What is the issue with changing lender?
 
Richie said:
You may have misread what has been written.on the posts above.

If you stay with your current lender then it's likely they won't let you apply for a new fixed rate until within 90 days of current deal ending.

If you move to a new lender then, yes you are correct, you may have up to 6 months to proceed with the deal as this is no different than a first time buyer.


Edit: having reread them I agree it might be confusing. My initial reply was regarding renewing with the same lender albeit that wasn't clear
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IIRC Nationwide let me lock in a new deal within 6 months and apply it within 4 months of current deal end date. This was a straight up renewal.
 
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Not all do, that was my point.

413x said:
Confused too.
What is the issue with changing lender?
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None. It wasn't clear or I didn't pick up the fact that he was referring to changing lender as my own post prior to his was referring to renewal with existing lender which is why I cleared it up with an explanation a few posts up - HERE
 
kona786 said:
IIRC Nationwide let me lock in a new deal within 6 months and apply it within 4 months of current deal end date. This was a straight up renewal.
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I just remortgaged with nationwide, it was 3 months for me, which was annoying as there were 2 rate rises before I could do it!
Kept trying, but it said, nope.
 
rodders said:
I just remortgaged with nationwide, it was 3 months for me, which was annoying as there were 2 rate rises before I could do it!
Kept trying, but it said, nope.
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I did this back in October. I'm guessing with the demand and fast rate changes they've made it 3 months.
 
I'd have loved to save the erc fee. But that was 9 months away. It was a painful 2k to just "burn" but I'm hopeful it pays off.

All depends how rates play out.
If they say at this rate for 20 months i did the right thing
 
413x said:
I'd have loved to save the erc fee. But that was 9 months away. It was a painful 2k to just "burn" but I'm hopeful it pays off.

All depends how rates play out.
If they say at this rate for 20 months i did the right thing
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We paid £3k erc to get 1.86% for 10 years. I did the maths the other day.

We 'only' have £156k remaining (including erc and product fee). The cheapest 5 year fix I could find was 3.09%. 10 year was 3.6? I think.

Taking into consideration the erc, fee, difference in remaining balance at the end of a 10 year fix, it is a net saving of ~£13k over a 10 year period.

I originally did the maths based on 2.25%,as that's what rates jumped to originally, and it was still a net saving of a couple of grand.

Definitely worth it for me, if only for the peace of mind.
 
DanTheMan said:
We paid £3k erc to get 1.86% for 10 years. I did the maths the other day.

We 'only' have £156k remaining (including erc and product fee). The cheapest 5 year fix I could find was 3.09%. 10 year was 3.6? I think.

Taking into consideration the erc, fee, difference in remaining balance at the end of a 10 year fix, it is a net saving of ~£13k over a 10 year period.

I originally did the maths based on 2.25%,as that's what rates jumped to originally, and it was still a net saving of a couple of grand.

Definitely worth it for me, if only for the peace of mind.
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Did a 5. Was hard to decide 5 or 10.decided 5 as hope to move on 4-5 years.
Paid 2k for a 1.93 fix.

I worked out that if rates were 0.5pc over the 1.9 fix for the full term (60 months) I'd be in profit. Because with our chunky mortgage every 1pc was 100ppm.

When 1pc is 100 ppm it really hits home how over indebted we are allowed to become.

A tiny rate rise (say 1pc) wipes out a holiday.
A moderate rate rise (say 3pc) is life changing.
 
413x said:
Did a 5. Was hard to decide 5 or 10.decided 5 as hope to move on 4-5 years.
Paid 2k for a 1.93 fix.

I worked out that if rates were 0.5pc over the 1.9 fix for the full term (60 months) I'd be in profit. Because with our chunky mortgage every 1pc was 100ppm.

When 1pc is 100 ppm it really hits home how over indebted we are allowed to become.

A tiny rate rise (say 1pc) wipes out a holiday.
A moderate rate rise (say 3pc) is life changing.
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1pc is £300 more for me, yay London!
 
dLockers said:
Fixing for 10 years at such high LTV seems risky. You will be missing out on the massively different rates as your LTV steps down.
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That's true. We were at ~55% LTV and most lenders don't get any cheaper sub 60%.

I'd still be tempted if I was anything below 80% though.
 
When I was looat ltv bands I didn't see a massive benefit in dropping a band vs securing a good rate.

It drops a lot from 95 down to 75 but after that it doesn't seem worth planning to fix for an amount of time to come out to get into the next one.
 
Yeah the vast majority dont drop below 60%, its all about their safety in lending and if house prices were to drop 40% there would be more issues ahead.

The very high %, 95%, 90% have quite a premium, but there isn't that much typically between 75/80% and 60%.
Certainly not worth worrying about compared to the stability if your inclined for a long fix.
 
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