Mortgage Rate Rises

dlockers said:
I'm not sure -- I thought even the trackers have a minimum term/ERC. I will check though - as the first half is due April 1st, so I only need to survive till 1st September for the next half (and hopefully by then it'll be 2% and my house will be valued higher :D)

Edit: top man, I hadn't realised the trackers didn't have ERCs. I'll still have to do some maths, but combining my products was the main reason I only went for a 2 year fix when I bought this place!
Click to expand...
:D
 
Last edited:
We've just remortgage from our 2 year fix 1.39% deal to a 5.48% tracker at an additional cost of around £1200pm. We are looking to move (already sold and in the process of searching for a new property) and expect rates to come down hence the ERC-free tracker. Hopefully, by the time we come to move in March/April or so - we can lock into a sub 4% deal.
 
5+ percent wasn't going to stick around for long. It's too crippling and the economy would (will) slow significantly with rates this high.

I however didn't suspect swap rates would drop to allow sub 4pc rates already.
 
BurningHorizons said:
Yes. Preview of the Friday announcement.
Click to expand...
Rates now confirmed on Forbes

www.forbes.com

Mortgage News: Barclays, TSB Cut Rates As Survey Reveals Extent Of Borrower Distress

Find out what's happening with today's mortgage rates and calculate monthly repayments across a range of different rates and deals. 25 July: Higher
www.forbes.com www.forbes.com

Key rate changes include:

- First Direct's five-year fix dropped from 4.64% to 3.99%.
- Their ten-year fix decreased by 98 percentage points from 4.97% to 3.99%.
- Two- and three-year fixes are below 5% for loans up to 85% LTV (15% deposit), starting at 4.54% for new customers and 4.49% for existing ones.
- Mortgages with 90% LTV start at 4.69%, and 95% LTV mortgages at 5.44%.
- A 0.19% rate reduction for existing customers with an offset mortgage over two years.

First Direct's deals have no booking fee or a fee capped at £490.
 
Chihuahua7126 said:
Rates now confirmed on Forbes

www.forbes.com

Mortgage News: Barclays, TSB Cut Rates As Survey Reveals Extent Of Borrower Distress

Find out what's happening with today's mortgage rates and calculate monthly repayments across a range of different rates and deals. 25 July: Higher
www.forbes.com www.forbes.com

Key rate changes include:

- First Direct's five-year fix dropped from 4.64% to 3.99%.
- Their ten-year fix decreased by 98 percentage points from 4.97% to 3.99%.
- Two- and three-year fixes are below 5% for loans up to 85% LTV (15% deposit), starting at 4.54% for new customers and 4.49% for existing ones.
- Mortgages with 90% LTV start at 4.69%, and 95% LTV mortgages at 5.44%.
- A 0.19% rate reduction for existing customers with an offset mortgage over two years.

First Direct's deals have no booking fee or a fee capped at £490.
Click to expand...
Dayum. I hope Nationwide do something! Otherwise I will have to suck up the tracker and then go competitive/open market in September. Fingers crossed!
 
Chihuahua7126 said:
Rates now confirmed on Forbes

- Their ten-year fix decreased by 98 percentage points from 4.97% to 3.99%.
Click to expand...

hmmm not sure if this is a **** deal, or just a sign that around 3.5% is the rate for the next ten years…
I was considered bear-ish saying we won’t see 3.5% until 4 years time but 3.99% for the next ten years! Getting out of that contract will be costly with an average of 1% per year that’s left on the contract as an early repayment fine.

if they offer me 3% for the next ten years, I would take it now.. lol…
 
I think this will depend on what inflation continues to do, if it drops to 2% or lower and stays there for a prolonged period this year, interest rates will likely come down a fair bit in the next couple of years.
 
slinxy said:
hmmm not sure if this is a **** deal, or just a sign that around 3.5% is the rate for the next ten years…
I was considered bear-ish saying we won’t see 3.5% until 4 years time but 3.99% for the next ten years! Getting out of that contract will be costly with an average of 1% per year that’s left on the contract as an early repayment fine.

if they offer me 3% for the next ten years, I would take it now.. lol…
Click to expand...
It's 2% of the original drawdown amount, so that 10 fix isn't worth it, but the others would be.
 
I don't think the interest rates should come down below 4%, it's too low - cheap money feels like one of the main reasons we had these problems (inflation) in the first place.
 
Its interesting because these rate changes aren't base rate linked.
So your seeing the sentiment return to the market and not the BOE saying rates need to be lowered.
As such they will only move so far and then they will be far more tightly linked to base rate.

I don't think we will see base rate super low again, but expect its going to fall a bit over next year or two.
Any prediction beyond that is just pure fantasy prediction really.
 
The thing with “high” interest rates is that it encourage foreign savings into the country.

this is what the German government did to fund growth in East Germany when the wall came down, foreign governments and companies brought bonds and put savings into the country..

They just need a government that‘s capable of taking advantage of this and one that they can trust not to screw them over.

and we just need one that won’t spend 5 billion on the wrong satellite system.
 
I'm not seeing many sub 4% deals available to me right now for anything less than a 5 year fix.

My current fix term ends at the end of Feb, and my current provider are offering me a 1 year fix at 4.81% (no fee), this is looking like a sensible option right now as I expect rates will be even lower this time next year, or will have at least stabilised.
 
As a more general question just prepping for when we have to re-mortgage (never done it before and 3 years into our first 5 year fix), are the majority of products portable?
Say in 2 years I decide that actually 3% for 10 years it attractive so I lock in the long term deal. But...I am more than likely to move house during that 10 year period. Is it a case of basically just check that it is able to be ported over and buy accordingly? The alternative I should imagine is quite stressful as it's hard to line up the end of a mortgage fixed period with a house move?
 
dlockers said:
For those of us with 2 mortgages (i.e. we ported then topped up), we are stuck with nationwide unless we go fully variable on the first half so that the end dates align.
Click to expand...
I guess, and its just a guess with base rate rises very unlikely so dropping to tracker until both align and then picking up a better deal could work.
 
jaybee said:
As a more general question just prepping for when we have to re-mortgage (never done it before and 3 years into our first 5 year fix), are the majority of products portable?
Say in 2 years I decide that actually 3% for 10 years it attractive so I lock in the long term deal. But...I am more than likely to move house during that 10 year period. Is it a case of basically just check that it is able to be ported over and buy accordingly? The alternative I should imagine is quite stressful as it's hard to line up the end of a mortgage fixed period with a house move?
Click to expand...

Unfortunately the answer is it depends.
If your lender would lend against the new property then generally they are portable. If not then many will allow an early termination with no fee.
But there are many degrees in between those points that vary by lender, and circumstances so you really need to read that part of the small print closely when you remortgage.
It probably the one time for normal people a broker may help as they will be far more likely to know the lenders who are more flexible in their porting and those that are a PITA and very inflexible.
 
Now I'm not sure if we should pay the £1120 ERC charge on our 5.89 2 year fix (only 2 months into this, which is annoying!) and jump ship to the HSBC 5 year 4.09 fix. Maths tells me right now it works out in my favour - but only if the rates don't drop much further!

I can overpay the percentage difference back into the mortgage and save more over the 5 year period :o
 
Nemiyen said:
Now I'm not sure if we should pay the £1120 ERC charge on our 5.89 2 year fix (only 2 months into this, which is annoying!) and jump ship to the HSBC 5 year 4.09 fix. Maths tells me right now it works out in my favour - but only if the rates don't drop much further!

I can overpay the percentage difference back into the mortgage and save more over the 5 year period :o
Click to expand...
How much would you save over what's remaining of the 2 yr term?
 
You must log in or register to reply here.
Back
Top Bottom