Mortgage Rate Rises

The_One · 19 Jun 2023 at 19:45

My current deal at 2.14% (5 year) ends in Nov

I've been offered a new 5 year fixed deal from same lender (HSBC) at 4.69% with no fee

That seems really good in current market?

pc-guy · 19 Jun 2023 at 19:54

The_One said:
My current deal at 2.14% (5 year) ends in Nov

I've been offered a new 5 year fixed deal from same lender (HSBC) at 4.69% with no fee

That seems really good in current market?

I would take that deal if it is a 2yr or 3yr fixed. But even for a 5yr fixed it’s a pretty darn good deal.

fez · 19 Jun 2023 at 20:11

Seems decent enough. Best I can get on a 3 year is 4.59% and we have about 35% LTV so are being offered the best rates. Thats with over £1000 of fees though.

The_One · 19 Jun 2023 at 20:59

fez said:
Seems decent enough. Best I can get on a 3 year is 4.59% and we have about 35% LTV so are being offered the best rates. Thats with over £1000 of fees though.

My LTV is 48%

fez · 19 Jun 2023 at 22:30

The_One said:
My LTV is 48%

Thought most deals didn't get any better after 65% or so?

ChrisD. · 19 Jun 2023 at 22:50

fez said:
Thought most deals didn't get any better after 65% or so?

Not really, depends on the lender though. And sometimes when LTV is really low, you can end up paying higher rates as the lenders aren't as interested due to not being able to make as much money.

HungryHippos · 20 Jun 2023 at 11:08

60% LTV seems to be the cutoff for the best possible deals, though the gap between that and say 90% is very small at the moment.

413x · 20 Jun 2023 at 11:57

HungryHippos said:
60% LTV seems to be the cutoff for the best possible deals, though the gap between that and say 90% is very small at the moment.

From when I've looked at what a better ltv. Would get me, it's always seemed negligible.
95 to 85pc is a decent drop. But after that doesn't seem worth worrying about

Keep seeing articles about 6pc base rate.
There's going to be more and more people dropping of 1.5-2pc straight onto 6-7pc with all other cost of living increases. Some unlucky people are going to be stuffed

SixTwoSix · 20 Jun 2023 at 12:31

While I appreciate it's pure crystal ball territory, my wife and I aren't going to be in a position to buy for maybe another 4-5 years - any thoughts on where the interest rates might be by then? We should be somewhere between 25-30% deposit territory assuming nothing goes wrong with our plans over that time.

unwashed potato! · 20 Jun 2023 at 12:34

SixTwoSix said:
While I appreciate it's pure crystal ball territory, my wife and I aren't going to be in a position to buy for maybe another 4-5 years - any thoughts on where the interest rates might be by then? We should be somewhere between 25-30% deposit territory assuming nothing goes wrong with our plans over that time.

Honestly don't even think about it or worry about it. 6 years is ages. Ask in 4.5 years

adam cool dude · 20 Jun 2023 at 12:41

SixTwoSix said:
While I appreciate it's pure crystal ball territory, my wife and I aren't going to be in a position to buy for maybe another 4-5 years - any thoughts on where the interest rates might be by then? We should be somewhere between 25-30% deposit territory assuming nothing goes wrong with our plans over that time.

In around two years time the repos will start kicking in. Good for you.

SixTwoSix · 20 Jun 2023 at 12:43

adam cool dude said:
In around two years time the repos will start kicking in. Good for you.

Yeah but then all the cash buyers have scooped them up by the time we get to buy, lol.

Could do with a drop in prices, around Rugby they're getting a bit silly and I shudder at moving back to Coventry.

squerble · 20 Jun 2023 at 12:50

SixTwoSix said:
While I appreciate it's pure crystal ball territory, my wife and I aren't going to be in a position to buy for maybe another 4-5 years - any thoughts on where the interest rates might be by then? We should be somewhere between 25-30% deposit territory assuming nothing goes wrong with our plans over that time.

At that LTV you should get good rates regardless. That said, it's far too soon to even guess where we'll be. I'd only revisit this in 3.5+ years, to be honest with you. Just get saving as much as you can

SixTwoSix · 20 Jun 2023 at 13:01

squerble said:
At that LTV you should get good rates regardless. That said, it's far too soon to even guess where we'll be. I'd only revisit this in 3.5+ years, to be honest with you. Just get saving as much as you can

Yeah, that's all we can do, just keep maxing out the LISA each year and also saving on top of that - would just be nice to have an expectation of interest rates at that point as i'm a planner by nature.

Steedie · 20 Jun 2023 at 13:22

413x said:
From when I've looked at what a better ltv. Would get me, it's always seemed negligible.
95 to 85pc is a decent drop. But after that doesn't seem worth worrying about

Keep seeing articles about 6pc base rate.
There's going to be more and more people dropping of 1.5-2pc straight onto 6-7pc with all other cost of living increases. Some unlucky people are going to be stuffed

I'm going to be going from 1.09% to whatever it is next July

I've got a suitable barrel and lube ready

413x · 20 Jun 2023 at 13:38

SixTwoSix said:
While I appreciate it's pure crystal ball territory, my wife and I aren't going to be in a position to buy for maybe another 4-5 years - any thoughts on where the interest rates might be by then? We should be somewhere between 25-30% deposit territory assuming nothing goes wrong with our plans over that time.

No one saw this coming a couple of years ago. I wouldn't even want to guess.

Probably not as good as before this rate rise. Probably not as bad as now

413x · 20 Jun 2023 at 13:39

Steedie said:
I'm going to be going from 1.09% to whatever it is next July I've got a suitable barrel and lube ready

Hope it's a plentiful supply! Hand sanitiser during covid. Lube is the new hype!

fez · 20 Jun 2023 at 13:41

Steedie said:
I'm going to be going from 1.09% to whatever it is next July I've got a suitable barrel and lube ready

With that rate you deserve some sort of rogering

How on earth did you get a rate that low? Lowest I ever saw was about 1.5%

SixTwoSix · 20 Jun 2023 at 13:50

413x said:
Probably not as good as before this rate rise. Probably not as bad as now

About as precise an answer as I can get at the moment

pc-guy · 20 Jun 2023 at 13:53

413x said:
No one saw this coming a couple of years ago. I wouldn't even want to guess.

Probably not as good as before this rate rise. Probably not as bad as now

If I could have fixed my mortgage at 3.99% for 10yrs or longer a couple of years ago I would have. It would have brought so much stability to anyone’s financial budgeting.

10yr fixed were just so rare at the time.