Rates staying put then and likely to for a little while yet. Interesting that there was a three way split. Still two on the panel wanting to raise it to 5.5%. might take a little while for them to come to an agreement to actually drop them.
Mortgage Rate Rises
- Thread starter glenimp617
- Start date
Hmmmmmmmmmmm
I renewed my first half at 4.74% yesterday (with £1k charge). I need to make a decision as to whether I go onto a no-fees tracker that is substantially higher (6.22% with £0 charge) and extend the term (to preserve cashflow).
Then when my second half mortgage is due in September I can go to the open market and combine them.
Glitches:
1. House prices may go further down. I am at the absolute edge of 80% LTV atm.
2. Rates could increase - the tracker would be dinged directly.
3. The best mortgage offer come September could be Nationwide and it would prevent me from combining the mortgages.
Am I being an idiot seeking to combine the mortgages? I have effectively "hedged" my risk by 48/52.
I renewed my first half at 4.74% yesterday (with £1k charge). I need to make a decision as to whether I go onto a no-fees tracker that is substantially higher (6.22% with £0 charge) and extend the term (to preserve cashflow).
Then when my second half mortgage is due in September I can go to the open market and combine them.
Glitches:
1. House prices may go further down. I am at the absolute edge of 80% LTV atm.
2. Rates could increase - the tracker would be dinged directly.
3. The best mortgage offer come September could be Nationwide and it would prevent me from combining the mortgages.
Am I being an idiot seeking to combine the mortgages? I have effectively "hedged" my risk by 48/52.
I was surprised by this. Maybe they have a load of money in flexible savers!
I would have expected one or 2 vote for the fall and rest to stick. Didn't expect anyone to vote for a rise!
Given the fees seem to be increasing (based on no real evidence I must say) then only having one fee to pay might be good? I was fortunate enough to pay my mortgage off in January, but before I did I was still getting some offers with no fees, albeit at a slightly higher rate. It is a difficult time to try and predict; many rates are less than the base rate ATM and I don't think there is any guarantee that the rate will head downwards any time soon.
Edit: looking back at your amounts I guess the fee isn't a huge issue. 1.5% higher for 6 months or so could be a significant amount?
Last edited:
I was surprised by this. Maybe they have a load of money in flexible savers!
I would have expected one or 2 vote for the fall and rest to stick. Didn't expect anyone to vote for a rise!
Me neither. They are obviously fairly divided.
Be interesting to see what it ends up at by the end of the year.
You have to question how much is 'priced in', need another paradigm shift in rate expectations for mortgages to go materially lower between now and September. Conditions to allow that i.e big recession or inflation collapsing under 2% look very unlikely. But tomorrow it could all change.
It would kick in 1st April and my 2nd half starts 1st of September.
-----------------
Risk is that First Direct bin me on affordability but hopefully I can YOLO that.
Materially lower is OK as long as they don't go materially higher.
I guess if I go to Tracker I could always reserve another product and push out the start date to bridge the gap..??
Could I also apply to FirstDirect now/within 6 months of the 2nd mortgage finishing?
Edit: also Money Supermarket is complete BS>
NW can only offer me 4.74%....
Last edited:
Soldato
- Joined
- 2 May 2011
- Posts
- 12,136
- Location
- Woking
I've just been offered 4.15% for two year fixed with a £999 product fee, bringing us down to an increase of only about £425 per month (bah). That's down from near £600 though.
@dlockers any reason why you aren't using a broker?
@dlockers any reason why you aren't using a broker?
Last edited:
The broker wanted £50 to click the buttons I am clicking; they said because its in two halves they can't do much. This was with Habito (I used them years ago and got a bunch of cashback). I might try a proper broker though; because if I can execute my Tracker approach with lower risk (i.e. lock in a FirstDirect offer prior to 1st Sept) I am going to save a reasonable amount I think....
Soldato
- Joined
- 2 May 2011
- Posts
- 12,136
- Location
- Woking
I have a good broker if you want a hook up. They charge the bank instead of you, and in my experience they get preferential rates. I know you get charged in a roundabout away, but if I go on the Halifax website I'm unlikely to be offered the same rates. And they understand the interactions of the different mortgages etc.
I was surprised by this. Maybe they have a load of money in flexible savers!
I would have expected one or 2 vote for the fall and rest to stick. Didn't expect anyone to vote for a rise!
I guess there is some caution in the shape of macro economics, Brexit border checks incoming, Ukraine and Gaza could all be playing a part in that mindset, I guess slow incremental rises are better than having to suddenly rise by a few whole percentage points in one go.
It think at best we will see rates staying largely stagnent in the short to mid term.
Last edited:
Yes please - worth a shout!
--------------
My current man maths:
So basically if I consolidate and go elsewhere, I'll only save ~1500 over 5 years. Maybe I just forget the idea of combing them and take the 2x£999 fees and crack on. At least I can be sure this first bit is as good as it can be.
Last edited:
Looks like it's got a way to go before a fall.
Still hoping for H12024 myself.
Yes please - worth a shout!
--------------
My current man maths:
So basically if I consolidate and go elsewhere, I'll only save ~1500 over 5 years.
Your figures always make my eyes water!
Its all make belief man.Looks like it's got a way to go before a fall.
Still hoping for H12024 myself.
Your figures always make my eyes water!
Of course I completely forgot about the possibility of going higher, always possible, depends how much you value certainty. (whatever you do it'll probably be wrong like that gas fix!)
None of which lowering or upper base rate can help to control.
Much of the inflation is just that.
And UK economy is too small to have any sway on global markets.
A bit different if it is ECB or Fed or China central bank moving their base rates.
Last edited:
Well I've just gone and rate changed from 5.84 to 4.04 and paid the ERC charge. Hold on everyone, rates are sure to drop in the next week or two!
I had planned to keep going on to the site every 2 weeks and line up another acceptance deal in case the rates go down further but knowing my luck I'll forget to renew and they'll go up slightly and it will bug the crap out of me!
I had planned to keep going on to the site every 2 weeks and line up another acceptance deal in case the rates go down further but knowing my luck I'll forget to renew and they'll go up slightly and it will bug the crap out of me!
Last edited:
You got a 5.84 and paid an erc?Well I've just gone and rate changed from 5.84 to 4.04 and paid the ERC charge. Hold on everyone, rates are sure to drop in the next week or two!
I had planned to keep going on to the site every 2 weeks and line up another acceptance deal in case the rates go down further but knowing my luck I'll forget to renew and they'll go up slightly and it will bug the crap out of me!
That must have been 2pc at the very least?
You couldn't have been on that 5.84 long?
Yeah, was thinking the same. Not sure it adds up. Unless we are missing something?