Mortgage Rate Rises

In Q3 and Q4 of 2021 there was a stark difference in the rates for different LTVs (from HSBC) and the biggest differences were when you crossed below 90/80/70/60. 88% LTV and 81% would be the same, but 81% would be more expensive than 79%. After the saving for crossing below 60% (I had 59%) it stopped getting cheaper.
 
413x said:
I agree. Unless you are very risk adverse like like rates are due to fall. You also get more flexibility with trackers.

When 5 and 10s are cheaper than 2yr fixes the banks obviously expect rates to fall
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I'd say it's pretty obvious that the BoE mandate sort of means they'll have to flip from constraint to stimulation once inflation drops off which it does by it's very nature annually.

Means nothing Vs wages because the increases have happened after a year but the number itself goes away and the forecasts are all pretty much aligned that it's gone this year.
 
jaybee said:
Interesting. Yeah I checked rates when we first mortgaged 2 years ago and noticed after you get to 60% there's not much difference, so that was like the key milestone. When we remortgage in 3 years, we will be just above 70% LTV and I was generally trying to bust my butt getting below 70 with over payments thinking it would make a big difference to potential offered rates. Do you not think there will be much difference between say 72% and 69% crossing under the 70?
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As others have said, its not likely much difference.
Not every lender will take the same approach so you may just happen to pick up a difference but in general its once below 80% your not going to see much difference.
If however the lenders saw a higher risk appearing that 20% equity would not in most cases cover their risk then there is more chance they will load the rates differently.

You can only really get quotes when your ready and also to check if you close to a 5% bracket if taking a slightly lower mortgage will make a diff, many times its practically sod all anyway.
 
Tuppy_Glossop said:
In Q3 and Q4 of 2021 there was a stark difference in the rates for different LTVs (from HSBC) and the biggest differences were when you crossed below 90/80/70/60. 88% LTV and 81% would be the same, but 81% would be more expensive than 79%. After the saving for crossing below 60% (I had 59%) it stopped getting cheaper.
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Yep that's what I remember.

I made an extra payment to to better my LTV to 60% IIRC as it was worthwhile.
 
Mercenary Keyboard Warrior said:
As others have said, its not likely much difference.
Not every lender will take the same approach so you may just happen to pick up a difference but in general its once below 80% your not going to see much difference.
If however the lenders saw a higher risk appearing that 20% equity would not in most cases cover their risk then there is more chance they will load the rates differently.

You can only really get quotes when your ready and also to check if you close to a 5% bracket if taking a slightly lower mortgage will make a diff, many times its practically sod all anyway.
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Sod all but still a difference, can mean a big difference if you are paying it off over 30 years. :) But yeah I get it.
 
Mortgage rates have gone through the roof repayments the highest they've ever been... so decided to make some rather large overpayments that turned out to be quite a hassle. Had to contact the mortgage company first to authorise it and they don't want to answer the phone for gen enquires after umpteen attempts at that called the debt helpline instead and got transferred.... eventually. Got given a different bank account payment details to the DD monthly repayment so had to set up a new payment at the bank... except it didn't like that the name got truncated off the end off so had to phone the bank to get them to set up the new payment instead, which incidently they can only take today not a weeks time when the moneys been transferred so had to set up a token payment. They didn't like the mortgage co. name/account I was given it wasn't on their books but told them to authorise it because I was give explict instructions to use those details... now just have to wait and see if its gone through ok and the money hasn't vanished into the ether.

Won't be able to exhale until I get confirmation thats gone through...
 
Still a few weeks out from being able to softlock in a new rate, but the options aren't looking great.

Currently 1.28% @ £1,031/month

Options:
2 Year Tracker - 3.24% - £1,419/month
5 Year Fix - 4.33% - £1,523/month
2 Year Fix - 4.59% - £1,570/month
 
I'm looking forwards to end of April 23 when I will pay mine off.
Was going to be end of 22 but I spent that money on a solar install instead.

Must say its going to be a relief to no longer have that nagging mortgage feeling.

Was planning to move but with the economy going the way it is thats going on ICE, also likely a risk to my job so no way now.
Will hunker down and if I come out of this well maybe in a few years I will make that last move with cash as opposed to a small mortgage. (only looking to spend another £100k really, same sort of house just more remote is the plan)
 
jaybee said:
A strange mindset looking forward to misery for others having houses needing to be sold/repossessed. If you are aiming that hate directly at BTL landlords rather, then ok, but it will still impact renters.
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See it a lot. Especially with people who have profited from the insane rises over last 15 years
 
Mercenary Keyboard Warrior said:
I'm looking forwards to end of April 23 when I will pay mine off.
Was going to be end of 22 but I spent that money on a solar install instead.

Must say its going to be a relief to no longer have that nagging mortgage feeling.

Was planning to move but with the economy going the way it is thats going on ICE, also likely a risk to my job so no way now.
Will hunker down and if I come out of this well maybe in a few years I will make that last move with cash as opposed to a small mortgage. (only looking to spend another £100k really, same sort of house just more remote is the plan)
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I think with my next house it's possible I wouldn't have to increase the mortgage at all. I mean that would be lovely
 
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