Mortgage Rate Rises

First time buyer here, looking at a 2 bed flat @ £165k, with £30k deposit so need to mortgage £135k. Mortgage will be over 30 years.

My broker has come back with these options...

2 year fixed rates
4.64% £999 lenders fee added to the loan, £100 valuation survey fee payable on application £700.45 per month
4.76% £999 lenders fee added to the loan, free valuation survey, £710.23 per month (comes with a £250 cashback)
4.90% No added lender fees £100 valuation survey fee £716.48 per month
5.10% No added lender fees, free valuation survey £734.69 per month (comes with a £500 cashback)

3 year fixed rates
4.54% £999 lenders fee added to the loan, free valuation survey £692.32 per month
4.69% £999 lenders fee added to the loan, free valuation survey, £704.63 per month (comes with a £500 cashback)
4.77% No added lender fees, free valuation survey £706.04 per month
4.97% No added lender fees, free valuation survey £722.24 per month (comes with a £350 cashback)

5 year fixed rates
4.29% £999 lenders fee added to the loan, free valuation survey £672.22 per month
4.34% £999 lenders fee added to the loan, free valuation survey, £676.32 per month (comes with a £500 cashback)
4.46% No added lender fees, free valuation survey £680.82 per month (comes with a £500 cashback)

My first feeling is to sack off those with the £999 lenders fee, the reduction in monthly costs from the lower interest rates doesn't seem like it will claw back that extra money that needs to be repaid?

Any thoughts on the best deal? Will rates rise again this year and maybe even into next year, before falling back into the 2/3s, and if so, when? Or are we likely to be stuck with interest rates in the 4.5 to 5% region for long enough to make the 5 year fix @ 4.46 a safe bet?
 
Will said:
Any thoughts on the best deal? Will rates rise again this year and maybe even into next year, before falling back into the 2/3s, and if so, when? Or are we likely to be stuck with interest rates in the 4.5 to 5% region for long enough to make the 5 year fix @ 4.46 a safe bet
Click to expand...
A year ago banks were offering rates of 2 percent. The banks didn't think it'd get to this current price in 1 years time, else they'd have raised sooner. The same can be said for the year ahead. The banks can predict what it'll be, and it looks like they think it'll be less before the 5 years are up, however who knows? No one does is the answer.
 
Will said:
First time buyer here, looking at a 2 bed flat @ £165k, with £30k deposit so need to mortgage £135k. Mortgage will be over 30 years.

My broker has come back with these options...

2 year fixed rates
4.64% £999 lenders fee added to the loan, £100 valuation survey fee payable on application £700.45 per month
4.76% £999 lenders fee added to the loan, free valuation survey, £710.23 per month (comes with a £250 cashback)
4.90% No added lender fees £100 valuation survey fee £716.48 per month
5.10% No added lender fees, free valuation survey £734.69 per month (comes with a £500 cashback)

3 year fixed rates
4.54% £999 lenders fee added to the loan, free valuation survey £692.32 per month
4.69% £999 lenders fee added to the loan, free valuation survey, £704.63 per month (comes with a £500 cashback)
4.77% No added lender fees, free valuation survey £706.04 per month
4.97% No added lender fees, free valuation survey £722.24 per month (comes with a £350 cashback)

5 year fixed rates
4.29% £999 lenders fee added to the loan, free valuation survey £672.22 per month
4.34% £999 lenders fee added to the loan, free valuation survey, £676.32 per month (comes with a £500 cashback)
4.46% No added lender fees, free valuation survey £680.82 per month (comes with a £500 cashback)

My first feeling is to sack off those with the £999 lenders fee, the reduction in monthly costs from the lower interest rates doesn't seem like it will claw back that extra money that needs to be repaid?

Any thoughts on the best deal? Will rates rise again this year and maybe even into next year, before falling back into the 2/3s, and if so, when? Or are we likely to be stuck with interest rates in the 4.5 to 5% region for long enough to make the 5 year fix @ 4.46 a safe bet?
Click to expand...
I would go for a 2 year fix. Inflation should be under control by then. Rates are not going to be any higher in 2 years.
 
Will said:
First time buyer here, looking at a 2 bed flat @ £165k, with £30k deposit so need to mortgage £135k. Mortgage will be over 30 years.

My broker has come back with these options...

2 year fixed rates
4.64% £999 lenders fee added to the loan, £100 valuation survey fee payable on application £700.45 per month
4.76% £999 lenders fee added to the loan, free valuation survey, £710.23 per month (comes with a £250 cashback)
4.90% No added lender fees £100 valuation survey fee £716.48 per month
Click to expand...
That's the option I'd be taking.
 
^ Yeah paying £999 fee to get a tiny bit lower rate does not make sense. The lower rate won't pay back that £999 fee over the term as you'd be wanting to take a new deal after the 24 months anyway.
 
BUDFORCE said:
Yup and today several smaller specialist lenders have all pulled their rates (including us) because swap rates are soaring again.

Honestly I'll be out of a job in 6 months if things dont improve and there is nothing to indicate it will.
Click to expand...
RIP doing 30 mins of work a day and getting paid for 9. The smallest violin plays that your days of doing very little are almost over.
 
dLockers said:
I give as I would expect to receive. He regularly boasts about getting his job doing in an hour in the morning then playing video games all day.
Click to expand...

Haha yea, i know it won't last forever and it'll come hard no doubt.

But it's 11am and the sun is shining so I'm getting out into my "garden office" and going to try not to get too sunburned.
 
Been shafted today - have been waiting since 18th may for a valuer to come round and see how much our extension has added to the house. If all was well would have got the report and secured the deal early next week.

Loads of rates have gone up from today. Was looking at 4.19 now 4.59 2 yr fixed.

Brings back the option of riding out a variable again - such bad timing
 
I too have to apply for a new deal and I'm annoyed I missed the lower rates earlier this week alas I let things slip and I didn't get back from holiday until late Tuesday and was unaware of the hike until it was too late.

I've just been playing on the Nationwide site and there are two deals which come with no fees, these are:

2 year fixed @4.89%

5 year fixed @4.39%

There is one product that comes with a fee:

3 year fixed @4.49% product fee of £999

Now I need a crystal ball to choose which one! I'm not sure I'm ballsy enough to ride out a 2 year tracker @br +0.24%

So which one folks?
 
Gixer said:
I too have to apply for a new deal and I'm annoyed I missed the lower rates earlier this week alas I let things slip and I didn't get back from holiday until late Tuesday and was unaware of the hike until it was too late.

I've just been playing on the Nationwide site and there are two deals which come with no fees, these are:

2 year fixed @4.89%

5 year fixed @4.39%

There is one product that comes with a fee:

3 year fixed @4.49% product fee of £999

Now I need a crystal ball to choose which one! I'm not sure I'm ballsy enough to ride out a 2 year tracker @br +0.24%

So which one folks?
Click to expand...

It's not just about the interest rate.

I took my mortgage out for my new house just under 3 years ago on a 3yr term, so the renewal is coming up in October. I much prefer that as I plan to pay it all off, and if i put it on a 5yr I would have early repayment charges to pay.

Sometimes a longer term isn't always better.
 
Gixer said:
I too have to apply for a new deal and I'm annoyed I missed the lower rates earlier this week alas I let things slip and I didn't get back from holiday until late Tuesday and was unaware of the hike until it was too late.

I've just been playing on the Nationwide site and there are two deals which come with no fees, these are:

2 year fixed @4.89%

5 year fixed @4.39%

There is one product that comes with a fee:

3 year fixed @4.49% product fee of £999

Now I need a crystal ball to choose which one! I'm not sure I'm ballsy enough to ride out a 2 year tracker @br +0.24%

So which one folks?
Click to expand...

It's literally guess work and anyone who says otherwise is full of bull.

Although as others have pointed out you just need to compare products and factor in the product fee.
 
You must log in or register to reply here.
Back
Top Bottom