Mortgage Rate Rises

[caff]

Pretty good explainer on remortgaging strategies in the current market.

Good info there - especially securing an offer from another lender then sitting on it to wait your options.

TBH I hadn't thought that adding the product fee to the mortgage at completion was ever a good idea (i.e. it accrues interest), but maybe I'm wrong there? Do all lenders refund a "product fee" if you withdraw and go with another lender?

 

[EvilRob]

Good info there - especially securing an offer from another lender then sitting on it to wait your options.

TBH I hadn't thought that adding the product fee to the mortgage at completion was ever a good idea (i.e. it accrues interest), but maybe I'm wrong there? Do all lenders refund a "product fee" if you withdraw and go with another lender?

Not sure about different lenders policies for refunding product fees paid up front, but all the lenders I've been with in the last few years allow overpayments of up to 10% of balance per year without any ERC. So no downside to add product fee to mortgage balance and then just pay it off with an overpayment post completion if desired. I did exactly this with my most recent remortgage in June.

 

[caff]

Not sure about different lenders policies for refunding product fees paid up front, but all the lenders I've been with in the last few years allow overpayments of up to 10% of balance per year without any ERC. So no downside to add product fee to mortgage balance and then just pay it off with an overpayment post completion if desired. I did exactly this with my most recent remortgage in June.

Good tip, thanks.

 

[Richie]

Although mortgage rates aren't necessarily affected by BoE rises (apart from trackers), do we think mortgage rates will rise after today's announcement and, if so, by how much?

 

[a1ex2001]

Although mortgage rates aren't necessarily affected by BoE rises (apart from trackers), do we think mortgage rates will rise after today's announcement and, if so, by how much?

Of course they will, business always pass the bad news in fastest!

 

[jonneymendoza]

Although mortgage rates aren't necessarily affected by BoE rises (apart from trackers), do we think mortgage rates will rise after today's announcement and, if so, by how much?

Is it today that the mortgage rates rises?

 

[Mercenary Keyboard Warrior]

Is it today that the mortgage rates rises?

Today is bank base rate review date
Expected of course to go up

 

[Richie]

Is it today that the mortgage rates rises?

Today is the BoE interest rate decision but not necessarily mortgage rates.

 

[jonneymendoza]

Today is bank base rate review date
Expected of course to go up

Does that mean our ISA saving interests goes up too?

 

[touch]

Does that mean our ISA saving interests goes up too?

Depends who your account is with. My savings account increased the interest yesterday. I guess they have prior knowledge of base rate changes?

 

[Mercenary Keyboard Warrior]

Does that mean our ISA saving interests goes up too?

The only things that will change directly are things linked to base rate, tracker mortgages, and tracker investments etc
Everything else is at the choice and timing of banks/lenders etc

 

[Freakbro]

Depends who your account is with. My savings account increased the interest yesterday. I guess they have prior knowledge of base rate changes?

That was probably in response to the last rise 2 months ago

 

[200sols]

Depends who your account is with. My savings account increased the interest yesterday. I guess they have prior knowledge of base rate changes?

What did they raise it to?

That was probably in response to the last rise 2 months ago

This tbh, and probably still lowballing.

 

[touch]

What did they raise it to?

It's gone up to 1.5%.
Maybe not the highest available but competitive enough for an easy access account to hold a small emergency fund.

 

[Liquid_Entity]

mehh I can't get my offer accepted quick enough to get a cheaper rate mortgage now. Doing my head in.

 

[dl8860]

mehh I can't get my offer accepted quick enough to get a cheaper rate mortgage now. Doing my head in.

Can sympathise, it's a real pain. What's your position at the moment, are you first time buyer?

 

[Liquid_Entity]

Woohoo, first offer rejected at 242k but second offer accepted at 246k, list price was 'in excess of £250k" so I've done a bit of saving there

My position is I am seperating from my wife, we're splitting the equity 50/50 and im using my half as deposit to get my own place and an investment for the kids futures.

 

[JamesH85]

Lenders are putting their rates up daily I don't know if this is in anticipation of today, or if they are still behind from the last rise.

It must be awful for FTB atm that don't have a rate locked in.

 

[R.O.S.S.I]

Rather depressing reading this thread and seeing how much mortgage rates are going up/have gone up/are set to go up when i'm due to buy at some point early 2023.

Surely house prices will have to adjust a little to factor in the fact that a lot of people will have to stump up substantially more in a monthly mortgage to acquire their houses compared to last year for example at todays prices?

Otherwise looks like i'll have to chop 50k off the max price of the houses were looking at :'(

 

[Uther]

As expected, 0.5% rise.