And its so expensive and stressful to move
Mortgage Rate Rises
- Thread starter glenimp617
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And its so expensive and stressful to move
Soldato
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There is a massive difference for people with high LTVs and newer mortgages vs those on low LTVs and older mortgages
Plus people with lower are far more likely to have other savings etc
Once your LTV is low typically your risk from interest rates is significantly lower and you can afford to take a far more risky approach compared to people with high LTV and likely a high percentage of their income is going on the mortgage
As ever, you cant just compare people without getting a similar group.
Plus people with lower are far more likely to have other savings etc
Once your LTV is low typically your risk from interest rates is significantly lower and you can afford to take a far more risky approach compared to people with high LTV and likely a high percentage of their income is going on the mortgage
As ever, you cant just compare people without getting a similar group.
No idea what to do, 13 years 8 months left. I have two products on my mortgage, one runs out end of March and one end of August. I can get a rate for March part now but not August.
2 year fix is 4.94% with Natwest, and the best I can find.
5 year fix is 4.39% also with Natwest. No fees for either, and 69% LTV.
Habito reckon they can move me into one mortgage product now and not pay any early redemption at 4.94% for both with a total term of 13 years. Payments go up 24% which is affordable but undesirable. I've asked for a price at 13 years 6 months to see if that saves any.
Not sure if I should take their offer, or fix one part of my mortgage (the March one) at 4.94% and wait it out until August to see what happens. Tricky! Anyone got any crystal ball insight?
2 year fix is 4.94% with Natwest, and the best I can find.
5 year fix is 4.39% also with Natwest. No fees for either, and 69% LTV.
Habito reckon they can move me into one mortgage product now and not pay any early redemption at 4.94% for both with a total term of 13 years. Payments go up 24% which is affordable but undesirable. I've asked for a price at 13 years 6 months to see if that saves any.
Not sure if I should take their offer, or fix one part of my mortgage (the March one) at 4.94% and wait it out until August to see what happens. Tricky! Anyone got any crystal ball insight?
That's an amazing rate, you should jump all over that. Rates are unlikely to drop below that in the next 5 years
A lot of 5 year fixes are that at the moment. They’ll drop more over the year and next.
Got to say my gut is saying the same, as we come out of the worst of the new inflationary pressure and into a recession etc I see the rate dropping away.
The economic pressure that we'd be under from sustained high rates will ironically lead to inflation, I suspect most people's highest bill is their mortgage, shove that up by loads and people will get even more fixated on earning more to cover it etc.
The 3.99% is factoring a rate they think they can make a profit on over that period so it follows that if it's higher than that now they're expecting it to be lower for a good portion of that 5 years.
I'm entirely ready to be wrong (I was a Norther Rock customer for example) but I could see a fairly sustained slow drop off of rates in '24/'25
The economic pressure that we'd be under from sustained high rates will ironically lead to inflation, I suspect most people's highest bill is their mortgage, shove that up by loads and people will get even more fixated on earning more to cover it etc.
The 3.99% is factoring a rate they think they can make a profit on over that period so it follows that if it's higher than that now they're expecting it to be lower for a good portion of that 5 years.
I'm entirely ready to be wrong (I was a Norther Rock customer for example) but I could see a fairly sustained slow drop off of rates in '24/'25
Not sure. A lot of people don't have a mortgage or have a healthy ltv.
Its probably a toss up between utilities, mortgages/rent, council tax.
For us is definitely mortgage. Then it's close between utilities and CT.
This is what L&C came back with
I have gone away and conducted some basic research to give you an overview of the market based off the information you told me. I will list some basic details below on Fixed rates and Tracker rates over 2,3 and 5 years for you to look at, I will stress these are rough averages for now until you figure out exactly what it is that you want.
Fixed 2 years: £760 per month - No Proc fee - ERC's involved
Fixed 3 years: £752 per month - No Proc fee - ERC's involved
Fixed 5 years: £733 per month - No Proc fee - ERC's involved
Tracker 2 years: £764 per month - No Proc fee - ERC's involved
Tracker 3 years: £714 per month - No Proc fee - ERC's involved (This was a SVR product as there was no BOE available)
Tracker 5 years: £772 per month - No Proc fees - No ERC's involved
Of course these are all best case averages and until I conduct full research into a particular scheme length/type I cannot give full details, I hope this helps and if you could have a think about what it is you would like to go ahead with, we can have a catch-up in the next few days and get the ball rolling.
Still doesnt really help me decide, not sure if i should go with a tracker or fix, i dont really want to fix for 5 years :/
Is anyone adjusting the mortgage term in number of years slightly to the right to bring the cost down just for this iteration? then move it more to the left again (reducing years on the next re-mortgage ?
How many are fixing at 5 years on these kind of rates this time?
I have gone away and conducted some basic research to give you an overview of the market based off the information you told me. I will list some basic details below on Fixed rates and Tracker rates over 2,3 and 5 years for you to look at, I will stress these are rough averages for now until you figure out exactly what it is that you want.
Fixed 2 years: £760 per month - No Proc fee - ERC's involved
Fixed 3 years: £752 per month - No Proc fee - ERC's involved
Fixed 5 years: £733 per month - No Proc fee - ERC's involved
Tracker 2 years: £764 per month - No Proc fee - ERC's involved
Tracker 3 years: £714 per month - No Proc fee - ERC's involved (This was a SVR product as there was no BOE available)
Tracker 5 years: £772 per month - No Proc fees - No ERC's involved
Of course these are all best case averages and until I conduct full research into a particular scheme length/type I cannot give full details, I hope this helps and if you could have a think about what it is you would like to go ahead with, we can have a catch-up in the next few days and get the ball rolling.
Still doesnt really help me decide, not sure if i should go with a tracker or fix, i dont really want to fix for 5 years :/
Is anyone adjusting the mortgage term in number of years slightly to the right to bring the cost down just for this iteration? then move it more to the left again (reducing years on the next re-mortgage ?
How many are fixing at 5 years on these kind of rates this time?
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My 7 year fixed rate @ 3.5% starts next month. Got this secured just as the **** started to hit the fan back in October or whenever it was.
Apprehensive about fixing for so long ofcourse, but hoping it won’t come much below this throughout the term.
Apprehensive about fixing for so long ofcourse, but hoping it won’t come much below this throughout the term.
Soldato
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You need to take account of your appetite for risk and decide if its more important to minimise your interest over the risk of overpaying
If you dont want 5 years then dont take 5 years. It tends to indicate your more in preference of taking some risk that rates go down as opposed to locking in what you can get now
If its affordable for you you should absolutely not be increasing term, you will pay far more over the lifetime doing that.
Yeah, I've got 5 years at 3.95% at the most (maybe it'll come a little lower in the next 2 months)
Can always extend the mortgage term and overpay if you fancy it.
But generally I agree. I've shortened mine and will do next time as well. Because I'm not one for wanting to overpay.
Soldato
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Iv always said to people recently the mortgage rates are likely to go down possibly the same pace fuel costs spiked then start gradually going down. Or maybe slower, who knows! They do like dragging it out, the longer they drag it out the more money they make.
I wouldn't want to fix at 4% on 25 years if there is going to be a decline.
What would annoy me is fixing at 4% then a week later they drop the rates to 3.5 then two weeks later 3 then two weeks later 2.5% that would annoy me but very unlikely
If there is a gaurenteed decline i would like the option to fix at a low , which is one reason I was looking at a tracker. But on the other hand something could stir up later this year or next and rates start climbing again.
I would fix at 2 years but the bloody lenders have made this their expensive product.. not like 5 years ago where it was more expensive to fix at 5 .
Gaurentee which ever I choose it will end up being the wrong one
Yes but in that example there is no fee after 3 years, so at that point nothing to stop you going for a remortgage.
Feels like normal risk aversion people have is inversed when it comes to mortgage rates, you are taking a much higher risk by not fixing, in the attempt to gain minimally.
If you can afford it, why not increase the term. Am i reading things wrong because all the lifetime fixes (25 years), there is no fee after 1-4 years, so if things are much better by then, you can remortgage, not much lost if at all.
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I have added the % rates of my above L&C quotes there, seems quite high! looking at the news i thought there were some products offering just around 3.99 -4% at the moment ? or were they talking about the 5 year fix being close to 3.99 - 4%
L&C broker search with % displayed
Fixed 2 years: £760 per month - No Proc fee - ERC's involved 4.45%
Fixed 3 years: £752 per month - No Proc fee - ERC's involved 4.35%
Fixed 5 years: £733 per month - No Proc fee - ERC's involved 4.10 %
Tracker 2 years: £764 per month - No Proc fee - ERC's involved 4.5%
Tracker 3 years: £714 per month - No Proc fee - ERC's involved (This was a SVR product as there was no BOE available)
Tracker 5 years: £772 per month - No Proc fees - No ERC's involved 4.6 %
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I expect that 5yr fix with a fee would be under 4pc
Yeah it's the long fixes that are sub 4pc
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Soldato
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On a mortgage of £150,00 at 4% over 25 years you will pay £87,428 of interest. 20 year term is £68,078 total interest.
Soldato
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Could just be LTV, plus of course the market has picked up so some may be attracting too much attention
Rates always shuffle around a little as the companies try to increase or decrease their takeup rates
Rates always shuffle around a little as the companies try to increase or decrease their takeup rates
So not likely to get any better than above based on a no fee product?
iv asked if they could provide the equivilent but with fee's involved, and also a search to see if there is any cashback offers. If a cashback offer is available but has a fee, but gives me a lower pcent it may offset it