Mortgage Rate Rises

Currently not really sure what to do myself, Im with Coventry BS and have been since I bought my house 9ish years ago. My fix is up in March or April i think, which was a 5 year fix at quite a low 1.99% as we stuck this deal on based on my partner going on maternity leave to reduce our payments enough to be covered by my salary (single income at the time).

They are saying that we will be put onto the auto variable rate currently around 6.9% !!

Ive not looked at mortages for around 5 years, so kind of really lost what knowledge I did have, in regards to making a "best" choice.

From what i understand the interest rates are quote bad across the board, and im quite happy to stick with my current provider - unless there are some serious benefits to be had elsewhere?

Alternativly I guess I need to take a gamble and fix for another X years at the best % I can? vs a shorter fix and hope i have better options in a year or so?

Apologies for the dumb questions as I said its been a LONG time since ive really paid it much attention
 
Musty Pie said:
Currently not really sure what to do myself, Im with Coventry BS and have been since I bought my house 9ish years ago. My fix is up in March or April i think, which was a 5 year fix at quite a low 1.99% as we stuck this deal on based on my partner going on maternity leave to reduce our payments enough to be covered by my salary (single income at the time).

They are saying that we will be put onto the auto variable rate currently around 6.9% !!

Ive not looked at mortages for around 5 years, so kind of really lost what knowledge I did have, in regards to making a "best" choice.

From what i understand the interest rates are quote bad across the board, and im quite happy to stick with my current provider - unless there are some serious benefits to be had elsewhere?

Alternativly I guess I need to take a gamble and fix for another X years at the best % I can? vs a shorter fix and hope i have better options in a year or so?

Apologies for the dumb questions as I said its been a LONG time since ive really paid it much attention
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Just engage a mortgage broker. If you are particularly "vanilla" then just go to a place like Habito or Mojo Mortgages. Click through QuidCo and you might get some cash back. They are "free" as they recover the fee from the broker.

Don't worry about staying with Coventry unless they are the best deal. Loyalty rewards nothing.

They'll tell you rates and what it is available. I'd suggest a 2 year fix as rates might come down a bit; however if you are almost 10 years into a 25 year deal you are hopefully close to 50% of the way through (moneywise) and it should balance out.
 
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Musty Pie said:
Currently not really sure what to do myself, Im with Coventry BS and have been since I bought my house 9ish years ago. My fix is up in March or April i think, which was a 5 year fix at quite a low 1.99% as we stuck this deal on based on my partner going on maternity leave to reduce our payments enough to be covered by my salary (single income at the time).

They are saying that we will be put onto the auto variable rate currently around 6.9% !!

Ive not looked at mortages for around 5 years, so kind of really lost what knowledge I did have, in regards to making a "best" choice.

From what i understand the interest rates are quote bad across the board, and im quite happy to stick with my current provider - unless there are some serious benefits to be had elsewhere?

Alternativly I guess I need to take a gamble and fix for another X years at the best % I can? vs a shorter fix and hope i have better options in a year or so?

Apologies for the dumb questions as I said its been a LONG time since ive really paid it much attention
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go to money supermarket or similar comparison website and see what rates available to your borrowing.

once you got a rough idea of the market from those sites, i recommend you speak to mortgage adviser. I have used L&C mortgage for years and they have always found me very competitive rates that beat the comparison website. it is a free service.

Dont stress, and dont get put on standard variabe. at worst, go on a short term discount tracker mortgage for a couple of years in the meantime.
 
dLockers said:
Just engage a mortgage broker. If you are particularly "vanilla" then just go to a place like Habito or Mojo Mortgages. Click through QuidCo and you might get some cash back. They are "free" as they recover the fee from the broker.

Don't worry about staying with Coventry unless they are the best deal. Loyalty rewards nothing.

They'll tell you rates and what it is available. I'd suggest a 2 year fix as rates might come down a bit; however if you are almost 10 years into a 25 year deal you are hopefully close to 50% of the way through (moneywise) and it should balance out.
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When we took it out initially, we took the longest term we could get with the idea if we needed to reduce it at a later date we could. probably silly in hindsight, but oh well!

Then after my first 5 year fix was up I cant remember what term we selected, but it was a fix for another 5 years, probably at 25 years again because it gave me the best monthly repayment for that time in our lives.

I am currently at the point of 50% LTV options (I think) based on our current property value @ 290k estimated, with an oustanding balance of around 137k (ish) from memory - again all my paperwork is at home so I cant be 100% sure.

I will perhaps look at getting a broker involved, but im not sure i can be assed with all the faff! The one we used first time was a super keeno!

Ill see if i can do some MS websites tonight to see what options are available, but im dreading it already!
 
Musty Pie said:
When we took it out initially, we took the longest term we could get with the idea if we needed to reduce it at a later date we could. probably silly in hindsight, but oh well!

Then after my first 5 year fix was up I cant remember what term we selected, but it was a fix for another 5 years, probably at 25 years again because it gave me the best monthly repayment for that time in our lives.

I am currently at the point of 50% LTV options (I think) based on our current property value @ 290k estimated, with an oustanding balance of around 137k (ish) from memory - again all my paperwork is at home so I cant be 100% sure.

I will perhaps look at getting a broker involved, but im not sure i can be assed with all the faff! The one we used first time was a super keeno!

Ill see if i can do some MS websites tonight to see what options are available, but im dreading it already!
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That faff could save hundreds a year!
 
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413x said:
That faff could save hundreds a year!
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Yeah your probably quite right, but blame it on "learnt behaviour" from my Dad I do often stick with things to avoid the hassle of changing etc with 2 kids and a household to run the thought of these things often puts me off combined with fear of the uknown provider etc. Which is odd, as a while back i would change energy providers etc. to get the best deals, and I guess this is no different.

Ill try look at some comparison sites tonight to see if I can get a significant deal worth the time investment. And appreciate all the help so far.
 
Musty Pie said:
Yeah your probably quite right, but blame it on "learnt behaviour" from my Dad I do often stick with things to avoid the hassle of changing etc with 2 kids and a household to run the thought of these things often puts me off combined with fear of the uknown provider etc. Which is odd, as a while back i would change energy providers etc. to get the best deals, and I guess this is no different.

Ill try look at some comparison sites tonight to see if I can get a significant deal worth the time investment. And appreciate all the help so far.
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When I did the remortgage (1st remortgage) it was dead simple to switch provider. I even had an erc to pay and didn't use a broker. But it was significantly easier than getting that first mortgage.

For a saving (in my case) of 200 a month it was worth the faff! :D

I've even used part of the saving to pay for a cleaner to reduce that house burden
 
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413x said:
When I did the remortgage (1st remortgage) it was dead simple to switch provider. I even had an erc to pay and didn't use a broker. But it was significantly easier than getting that first mortgage.

For a saving (in my case) of 200 a month it was worth the faff! :D

I've even used part of the saving to pay for a cleaner to reduce that house burden
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Yeah, thing is, this time around the appeal to look to swap is dampened by the fact i know my fix of 1.99% at the moment is never going to be beaten no matter what effort i put in!
 
DJMK4 said:
For that lender maybe yeh, but i was originally looking for a product with no fee's , only downside is the % rate will generally be abit higher

IE one lender they would do a 3 year with no fees for 4.34% with fees 4.13%
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Surely that’s just dictated by your mortgage size , if it’s a big one the the lower rate applies and visa a versa.

I just fixed at 4.59 with HSBC for 2 years with no fees , we’re only talking a 44k mortgage and if I decide to use my savings to pay it off then it will only cost me £500 in early repayment charges.
 
Yep Sweden is spiralling out of control here currently it's now 5ish percent and suspect it's going up the rest of the year....maybe peaking 6.5%

We renew in 3 months and I'm seriously thinking pay it off with my slush fund. :P

It will be nice to know it's gone and when the game pics up we can remortgage and do some big changes to the house that we've been considering, although moving or knocking it down from scratch is probably the best move.

Anyway all will be decided when we meet our bank to either stay or go with some other.
 
Bald-Eagle22 said:
Surely that’s just dictated by your mortgage size , if it’s a big one the the lower rate applies and visa a versa.

I just fixed at 4.59 with HSBC for 2 years with no fees , we’re only talking a 44k mortgage and if I decide to use my savings to pay it off then it will only cost me £500 in early repayment charges.
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Yep as a rule of thumb, the bigger your mortgage, the more impact the interest has or conversely the less impact the fees have.

Also an often overlooked/misunderstood aspect is considering the balance remaining at end of fixed term. People get obsessed with the total amount payable over the fixed term and try and do basic sums when comparing mortages eg:
Mortgage A: Monthly payments during fixed term total = £40000, no fees
Mortgage B: Monthly payments during fixed term total = £39,100, £1000 fees.

They assume Mortgage A is better because it costs them £40k instead of £40.1k over the fixed term. But their outstanding balance at the end of the term might be more than £100 higher on mortgage B compared to mortgage A due to the higher interest rate meaning they've paid the capital down slower.
 
Seems the minutes have come out from the last Fed meeting and contra to market expectations the Fed are indicating a continuing rise in rates, rather than 1 more rise then some cuts as previously expected.

Will be interesting to see how this feeds through to the rates on fixed term offers.
 
Freakbro said:
Seems the minutes have come out from the last Fed meeting and contra to market expectations the Fed are indicating a continuing rise in rates, rather than 1 more rise then some cuts as previously expected.

Will be interesting to see how this feeds through to the rates on fixed term offers.
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When are they doing a next rise? i need to try and lock in a deal before they do!
 
Yes, well since when have the BOE ever been right? First it was the old "transitory" inflation theme, to negative interest rates (lol), to all sorts of predictions of rates never getting much past 2%. Now look where we are, 4%! They now reckon 4.25% is the peak (another lol). Watch and see how the BOE will do as the Fed do and take what the BOE say with a pinch of salt because their track record of getting anything right is alarming.
 
Just spoke to my existing lender and asked for the switch product rates

Lender: Virgin money

everyday 2 year fix with product fee (4.53%)
everyday 2 year fix without product fee (4.86%)

everyday 3 year fix with product fee (4.43%)
everyday 3 year fix without product fee (4.76%)

everyday 5 year fix with product fee (4.15%)
everyday 5 year fix without product fee (4.27%)

2 year ERC is 1.5% non decreasing
3 year ERC is 2.5% non decreasing
5 year ERC is 3.5% non decreasing



Flexible 2 year tracker with product fee (5.0%)
Everyday freedom to fix 2 year tracker iwht product fee (4.50%)




E.g. 5 year fix no prod fee's, monthly repay would be for me

£746​


where as my current is £612 per month,

thats an increase of £134 a month more per month
 
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DJMK4 said:
Just spoke to my existing lender and asked for the switch product rates

Lender: Virgin money

everyday 2 year fix with product fee (4.53%)
everyday 2 year fix without product fee (4.86%)

everyday 3 year fix with product fee (4.43%)
everyday 3 year fix without product fee (4.76%)

everyday 5 year fix with product fee (4.15%)
everyday 5 year fix without product fee (4.27%)

2 year ERC is 1.5% non decreasing
3 year ERC is 2.5% non decreasing
5 year ERC is 3.5% non decreasing



Flexible 2 year tracker with product fee (5.0%)
Everyday freedom to fix 2 year tracker iwht product fee (4.50%)




E.g. 5 year fix no prod fee's, monthly repay would be for me

£746​


where as my current is £612 per month,

thats an increase of £134 a month more per month
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From going through my mortgage and having to pay an erc I would NEVER sign up to a non reducing ERC.
If I had a 4pc fee at end of my last mortgage I would be now on a 5pc mortgage. Wouldn't have been able to justify 8k of ercs.
Because it was 1pc and thus 2k it was doable.

Its something I will. Always look at going forward
 
413x said:
From going through my mortgage and having to pay an erc I would NEVER sign up to a non reducing ERC.
If I had a 4pc fee at end of my last mortgage I would be now on a 5pc mortgage. Wouldn't have been able to justify 8k of ercs.
Because it was 1pc and thus 2k it was doable.

Its something I will. Always look at going forward
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Yeh i know, this is why im probably going to snub virgin money, if i had a decrecing ERC i may have been able to lock in to a lower rate from mid last year, this is why i have had to wait until now,

as my 5 year Fix from starting in 2018 had a 4.5% ERC, of course being a first time buyer then, i did not realise, and my broker didnt say much about the ERC terms, i was nieve as i was just happy to get a place.


Now a decreasing ERC is top of my list of wants in a product
 
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