Mortgage Rate Rises

[matt100]

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

I get the logic but we've yet to see any rate drops from the BoE which are borderline inevitable so it will almost certainly get noticeably lower over the next few years.

 

[pc-guy]

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?

People normally move to upsize etc which means they will need additional finance.

So likely need to remortgage.

 

[EvilRob]

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?

Yes, most mortgages are portable but if that's important to you then you should confirm it when you receive your mortgage offer.
If additional funds are needed, porting and then taking a second mortgage to top up is quite common when remortgaging isn't looking attractive. This can end up being a hassle and potentially lead to negative consequences as you have two products with two different rates and terms as seen in this thread. Probably an increasingly common option at the moment where those on low fixed rates from a year or two ago will be loathe to refinance and give them up.

 

[Angst]

Our fixed rate at 2.99% ends this month, just moving it onto a tracker rate for now and will see for a few months if the fix's drop further.

 

[Chihuahua7126]

Our fixed rate at 2.99% ends this month, just moving it onto a tracker rate for now and will see for a few months if the fix's drop further.

What's the rate you're getting on the tracker?

 

[Angst]

What's the rate you're getting on the tracker?

base rate + around 0.6%

 

[Skilid]

I'm due in April. Since November I've cancelled and re-fixed 3 times with First Direct and now I'm about to do it again as they've just dropped their 2 year fix to 4.59% with no fee. The first time I fixed at 5.42%. This makes them the cheapest lender for me. I'm hoping for, and expecting, a few more drops between now and renewal.

 

[jaybee]

I'm due in April. Since November I've cancelled and re-fixed 3 times with First Direct...

What does that actually involve? Do you phone them up, cancel the mortgage in principal offer and then re-apply online for the latest deal? Can you not just get them to do it all over the phone for you?

 

[Deleted User 298457]

What does that actually involve? Do you phone them up, cancel the mortgage in principal offer and then re-apply online for the latest deal? Can you not just get them to do it all over the phone for you?

For Nationwide, you have to phone and the SLA for cancellation is like 3 days (it's normally done in an hour or so). So "no" for Nationwide, you can't do it all over the phone...you have to cancel and then wait, and then re-apply.

 

[Chihuahua7126]

I'm due in April. Since November I've cancelled and re-fixed 3 times with First Direct and now I'm about to do it again as they've just dropped their 2 year fix to 4.59% with no fee. The first time I fixed at 5.42%. This makes them the cheapest lender for me. I'm hoping for, and expecting, a few more drops between now and renewal.

Yeah I've just spoken with them, I think I'm gonna go with the 5 year fix at 3.94%

So tricky deciding how many years to fix.

 

[Chihuahua7126]

base rate + around 0.6%

Wow that's a great rate. First direct is base + 1.34%

 

[Crizzy]

base rate + around 0.6%

That's quite a good rate, my fix ends in 7 weeks and is base rate +3.5, owch!

Our current provider is offering a 1 year fix at 4.8%, this seems crazy good as I'm quite confident that this time next year things will have settled even more. Could be wrong!

 

[Derek W]

Apparently I've just paid off my mortgage today. Obligatory cocaine and hookers from now until i die

 

[Bluecube]

Yeah I've just spoken with them, I think I'm gonna go with the 5 year fix at 3.94%

So tricky deciding how many years to fix.

That’s not a bad rate at all in the current climate. You may end up paying a bit more than you’d like in the latter half of the mortgage but you get peace of mind for five years

 

[matt100]

That's quite a good rate, my fix ends in 7 weeks and is base rate +3.5, owch!

Our current provider is offering a 1 year fix at 4.8%, this seems crazy good as I'm quite confident that this time next year things will have settled even more. Could be wrong!

Sure you're not confusing SVR with tracker there?

 

[DB_SamX]

Borrowers' pain eased as lenders cut mortgage rates

After the UK's biggest lender reduces rates on new fixed deals, other providers are expected to follow suit.

www.bbc.co.uk

Looking forward to HSBC's rate cut tomorrow! I could do with a sub 4.5% 2 yr fix.

I just changed my fix due in May from 5.04% to 4.64%; compared to what I expected 6 months ago, that's really good. I am not sure whether there'll be another drop by May to <4.5% but let's see.

 

[Skilid]

What does that actually involve? Do you phone them up, cancel the mortgage in principal offer and then re-apply online for the latest deal? Can you not just get them to do it all over the phone for you?

I phone them and say "I've previously arranged my renewal at x.xx%. I've seen you've dropped your rates. Please can I swap to this new rate?" They then cancel my existing rate and book me an appointment for the next day to speak to a mortgage advisor. I then have a 20 minute call where I answer "Yes, I understand" to many questions. I then receive an email with a PDF to digitally sign to say I'm happy with the new terms, then I'm done.

Then when rates drop, I do it again.

 

[Skilid]

Wow that's a great rate. First direct is base + 1.34%

First direct are good at many things, but tracker rates is not one of them.

 

[Crizzy]

Sure you're not confusing SVR with tracker there?

Nope, it's BERB +3.5%.

 

[Deleted User 298457]

I think I may YOLO a tracker till August -- only 0.5% higher than 5 year fixed.