Mortgage Rate Rises

EvilRob said:
Yeah but he is trying to compare annual wage growth to year on year quarterly house price rises. Kind of major maths fail :)
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Its also not 6/7x salary? Did I read that right?

Mortgage lenders will lend 6/7x salary?
It was 4.5 for us.
And to be fair, tsb asked me to justify how I could afford 4.5.
I still don't think they should have lent us 4.5x
 
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413x said:
Its also not 6/7x salary? Did I read that right?

Mortgage lenders will lend 6/7x salary?
It was 4.5 for us.
And to be fair, tsb asked me to justify how I could afford 4.5.
I still don't think they should have lent us 4.5x
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Mortgage in principle for us was 3.5x yesterday.
 
wingman said:
Mortgage in principle for us was 3.5x yesterday.
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Was that max?
We got 226k on an approx 50-55k combined salary with TSB in 2020
2 years later got offered up to 310k on a combined 70-75k salary

When lloyds advisor said we could borrow 310k I think my exact words were "that seems irresponsible to me"

We do have very low financial commitments. Hence reaching nearly 4.5x. And an "A1" credit score, which she said was basically the max
 
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413x said:
Was that max?
We got 226k on an approx 50-55k combined salary with TSB in 2020
2 years later got offered up to 310k on a combined 70-75k salary

When lloyds advisor said we could borrow 310k I think my exact words were "that seems irresponsible to me"

We do have very low financial commitments. Hence reaching nearly 4.5x. And an "A1" credit score, which she said was basically the max
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Yeah, as I'd asked for more and it got pushed down to that.

A1 credit scores here and decent deposit, very few financial obligations, maybe a sign of the times.
 
you could say that there is a plan of action in the works .. well if it go's to 5pc .. that plan would be to cause lot's of people to lose there homes .. with rent prices sky rocketing even some landlords are selling what they have .. because they know people just can't afford to rent ..
and there for they can't pay there own mortgage.. yes i know most have interest only ..but for those middle age people that found they had 100k+ sitting in there house 5-7 yrs ago they bought another .. now they will lose both ..
might be wrong ..prob .. but lets see if it does go to 5 or above ..
 
flea.rider said:
you could say that there is a plan of action in the works .. well if it go's to 5pc .. that plan would be to cause lot's of people to lose there homes .. with rent prices sky rocketing even some landlords are selling what they have .. because they know people just can't afford to rent ..
and there for they can't pay there own mortgage.. yes i know most have interest only ..but for those middle age people that found they had 100k+ sitting in there house 5-7 yrs ago they bought another .. now they will lose both ..
might be wrong ..prob .. but lets see if it does go to 5 or above ..
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Yes, we did a **** job with our economy after the 2008 financial crisis, Brexit, Covid and Truss all with the master plan in mind of making people lose their houses.
 
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I'm a first time buyer, and a bit ignorant still to the whole process of buying.

I went to see a local mortgage advisor for Countrywide Mortgage Services, he was a really helpful chap, but would want £699 for his services at the point of application for a mortgage. It's a lifetime "subscription" and he would help secure a renewal for £99 a pop after that.

Should I consider this, or just do it on Habito or similar?
 
Pants said:
I'm a first time buyer, and a bit ignorant still to the whole process of buying.

I went to see a local mortgage advisor for Countrywide Mortgage Services, he was a really helpful chap, but would want £699 for his services at the point of application for a mortgage. It's a lifetime "subscription" and he would help secure a renewal for £99 a pop after that.

Should I consider this, or just do it on Habito or similar?
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Don't do that at all unless you have special circumstances. FTB isn't special. Go Habito IMO.
 
TheOracle said:
Well.....I've done it :eek:

was 2.29% £610

now 3.99% £697

Kicks in June....now watch the rates fall like a stone :cry:
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Tbh, I think you have a good rate.
Although Im of the opinion rates are soon peaking (I hope!) I don't expect them to fall like a stone. And 3.99 is lower than base rate even now. With one more hike expected, and a seeming like rates won't fall as quick as thought even a month ago I don't think see rates drop below 3.99 for a while. And even if they do I don't expect 3.00.

By that I mean I don't think you'll look back in 2 years and regret it massively.

I'd say anything under 4 now is a commit. Maybe not 5 years. But 2-3? yeah
 
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Rates won't fall quickly. The bank's will take their time passing on any BoE rate changes downwards.

Just look at the way they passed on rate increases to savers, in that they haven't.

The bank's are not your friends.
 
I could argue that yes ok
TheOracle said:
Well.....I've done it :eek:

was 2.29% £610

now 3.99% £697

Kicks in June....now watch the rates fall like a stone :cry:
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How many years did you fix ? I assume you went with a product with an arrangement fee at that rate.

Tbh with all this , maybe if I could get a better rate next time. What would annoy the living **** out of me is seeing the raise fall. Me not be able to remortgage during that time and whilst my fix term comes to an end the rates rise again. Meaning next time I miss out lower rates again . The product that was reccomended also has a flat rate 2% ERC so if your at year 5 it's 2 % or at year 1 it's 2% not the best. But could be worse

Kind of annoying though that I would have to cough up a 2% fee if I was to sell the house and move in somewhere temp to buy new house..
 
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DJMK4 said:
I could argue that yes ok


How many years did you fix ? I assume you went with a product with an arrangement fee at that rate.

Tbh with all this , maybe if I could get a better rate next time. What would annoy the living **** out of me is seeing the raise fall. Me not be able to remortgage during that time and whilst my fix term comes to an end the rates rise again. Meaning next time I miss out lower rates again . The product that was reccomended also has a flat rate 2% ERC so if your at year 5 it's 2 % or at year 1 it's 2% not the best. But could be worse
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No fee, but lucky as I kept checking the app and most days it was 3.99% with £999 fee or 4.18% with no fee. I noticed the one with fees you had to ring up, I assume because they need your payment details and can't process it through the app? anyway, I phoned up and said I wanted to get the 3.99% with no fee and they put it through. I did see it, so I guess it depends on how many products they have for sale, some are reserved for phone, and some for the app? God knows.

I did it anyway, thinking rates would need to drop a chuck for us to be better off taking into account if we did switch in the future, the new deal would almost certainly have another £999 fee with it.

The only downside is that rate was on a 5yr fixed, the shorter terms were higher, and another downside is the damn fixed ERC through the term. I plan to overpay the 10% each year, and hopefully have some savings at the end of the deal.

To be honest, our mortgage isn't as high as some, so worse case and rates drop we lose out maybe £50 a month tops? Nothing compared to gas and elec rises.
 
Is anyone here genuinely concerned about the impact of these rates on their own circumstance?

Last year I had l ideas of moving to a bigger detached property and doubling our mortgage commitment but my work plans changed and decided to stay where we were. This was seemingly a blessing.

Is anyone here in a position that will likely see them need to downsize or reevaluate things massively?
 
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