Mortgage Rate Rises

Nemiyen · 2 Feb 2024 at 12:37

413x said:
You got a 5.84 and paid an erc?
That must have been 2pc at the very least?

You couldn't have been on that 5.84 long?

We only just signed up to it in September / October which is bloody annoying and I did think about a no ERC tracker but that would have taken us from 2.24% (previous 5 year fix) up to above 6%

It did pain me to pay the ERC for such a short duration but it will save us £1500 over the next 2 years anyway in the reduced mortgage payments. (so only about £400 overall with the ERC factored in) It's going to save us more in the long term as I'm going to now overpay that reduction back into the mortgage.

This 4.04% we are on now is a 5 year fix so I'm hoping I've made the right choice. We will see! I just saw Nationwide have put their rates up slightly so I got a bit twitchy!

Kill_Phil · 2 Feb 2024 at 12:41

Nemiyen said:
We only just signed up to it in September / October which is bloody annoying and I did think about a no ERC tracker but that would have taken us from 2.24% (previous 5 year fix) up to above 6% It did pain me to pay the ERC for such a short duration but it will save us £1500 over the next 2 years anyway in the reduced mortgage payments. (so only about £400 overall with the ERC factored in) It's going to save us more in the long term as I'm going to now overpay that reduction back into the mortgage.

This 4.04% we are on now is a 5 year fix so I'm hoping I've made the right choice. We will see! I just saw Nationwide have put their rates up slightly so I got a bit twitchy!

Ouch expensive decision indeed!

Suspect rates won't drop all that much now til the summer

jaybee · 2 Feb 2024 at 12:44

I still think rates will come down by the end of the year, possibly even summer.

Nemiyen · 2 Feb 2024 at 13:36

Kill_Phil said:
Ouch expensive decision indeed!

Suspect rates won't drop all that much now til the summer

Yeah it was! If we are back into pre banking crisis normality then I'd say 4% is bloody good! If we aren't quite there yet and head back into sub 2.5% rates again then I've messed up! I'm not clued up enough to know really but my guess is these rates are here to stay and we will swing between 3.5% and 5.5% for the foreseeable.

omnomnom · 7 Feb 2024 at 23:03

Currently on 2.59 which finishes in August. Just been offered a 5 year fixed at 4.14.

Im thinking i should wait 3 months and see where i am at personally. What do you guys think? 2 year fixed is 4.44%

dlockers · 7 Feb 2024 at 23:07

omnomnom said:
Currently on 2.59 which finishes in August. Just been offered a 5 year fixed at 4.14.

Im thinking i should wait 3 months and see where i am at personally. What do you guys think? 2 year fixed is 4.44%

Just lock it in now and cancel as and if better offers appear

Whitewater · 7 Feb 2024 at 23:07

It’s a bit of guest work but IMHO at this point I think I’d wait.

Edit: I wasn’t aware you could just cancel, so best of both worlds really.

regulus · 8 Feb 2024 at 01:57

regulus said:
Replying to myself here with the benefit of 6 months hindsight.

Thank God I didn't do this.

There's been a huge uptick in the market and we've pretty much added 65 grand worth of value to our investments, just by holding it.

Same question again now, but this time I get to keep a respectable size of money in the markets too. Or keep chancing it and it increases again.

Longterm it'll probably keep increasing, but man, having the option of being mortgage free is so tempting.

Replying to myself here with the benefit of 7 months hindsight since the above post, and probably a year since the original thought of selling some shares to pay off my mortgage.

Truly, thank God I didn't do this.

The stock market has been going parabolic the last 7 months, and especially the last month. I would've lost many tens of thousands. Even in this higher interest rate environment, the market is just dominating my interest repayments by many many multiples.

Benofacter · 8 Feb 2024 at 11:50

Just finalising my 4.18% fixed at 5 years, it may come down a bit but i need some certainty and with world how it is right now, its not out of the question they may even go up.

Chris344 · 8 Feb 2024 at 14:34

I've just gone onto a tracker at 5.48% without an ERC, because we plan to move by summer.

b0rn2sk8 · 8 Feb 2024 at 14:53

You can port almost all mortgages at almost all lenders when you move. Going onto a 5.5% tracker is probably unnecessary.

Most even let you break the chain and will refund your ERC if you port within a defined period.

Chris344 · 8 Feb 2024 at 15:01

b0rn2sk8 said:
You can port almost all mortgages at almost all lenders when you move. Going onto a 5.5% tracker is probably unnecessary.

Most even let you break the chain and will refund your ERC if you port within a defined period.

I'm self employed thus, it is a bit more tricky for me. I want the option of not being stuck with a lender and a large ERC.

glenimp617 · 8 Feb 2024 at 15:22

Chris344 said:
I've just gone onto a tracker at 5.48% without an ERC, because we plan to move by summer.

You need to be one hell of a gucci belt high revenue earner to be paying that each month :eek:

Raymond Lin · 8 Feb 2024 at 15:35

I wish I earn £2888 before tax…

jaybee · 8 Feb 2024 at 15:47

glenimp617 said:
You need to be one hell of a gucci belt high revenue earner to be paying that each month

Hmm. If we remortgaged now at 5.48% our payments would go to about 2K a month. I am very much not at Gucci belt level. Think more Primark level. But yes, £2888 a month is pretty high. @Chris344 presumably has a nice house, or maybe a central London 2 bed flat?

EDIT: Personally right now I like the look of trackers too.

413x · 8 Feb 2024 at 16:16

Chris344 said:
I've just gone onto a tracker at 5.48% without an ERC, because we plan to move by summer.

Giving @dlockers stone competition

413x · 8 Feb 2024 at 16:18

jaybee said:
Hmm. If we remortgaged now at 5.48% our payments would go to about 2K a month. I am very much not at Gucci belt level. Think more Primark level. But yes, £2888 a month is pretty high. @Chris344 presumably has a nice house, or maybe a central London 2 bed flat?

EDIT: Personally right now I like the look of trackers too.

Pfft.
2k a month is a gucci cap but not belt as well.
I think at 5.5 it's would be at 1250.
If you're primark. I'm temu!

fez · 8 Feb 2024 at 16:19

glenimp617 said:
You need to be one hell of a gucci belt high revenue earner to be paying that each month

£480k ish mortgage.

As a sole earner you would probably need to be on about £120k year. As a couple a combined salary of £120-130k would do it.

jaybee · 8 Feb 2024 at 16:45

413x said:
Pfft.
2k a month is a gucci cap but not belt as well.
I think at 5.5 it's would be at 1250.
If you're primark. I'm temu!

So I'm at this level basically?

slinxy · 8 Feb 2024 at 16:59

Chris344 said:
I've just gone onto a tracker at 5.48% without an ERC, because we plan to move by summer.

Jeezzz how many maids do you have working for you?