Mortgage Rate Rises

[glenimp617]

Renting for life would be fine if you knew you'd get state support later on. But with NHS creaking and state pension dwindling not having a house paid off by time you are retirement age is just going to mean you probably don't ever retire.

If we are all still here by then, I think the NHS will have long gone private

 

[glenimp617]

I was reading an article over the weekend that seemed to suggest that fixed mortgage deals would drop to around 3.5% this year. Something about bank swap rates?

 

[glenimp617]

Santander just dropped their 5yr fixed to 3.99%

 

[glenimp617]

it would be good to see a poll on here for people that have gone for a fix (2,3 or 5) vs tracker (2 year or 3 year)




one with product fee's?

iv not seen any of the 3.99% ones that are "non product fee" based and also not "5 year fixes"

I think they all have £999 fees now. I'm an existing customer and seem to get a 0.10% discount, so when I renew mine will be 3.89%

 

[glenimp617]

Yeah that's the worst thing about Santander. 5% erc right the way through the fixed rate term.

 

[glenimp617]

I think I'm going with the 5yr fixed Santander again

 

[glenimp617]

Well.....I've done it

was 2.29% £610

now 3.99% £697

Kicks in June....now watch the rates fall like a stone

 

[glenimp617]

I could argue that yes ok


How many years did you fix ? I assume you went with a product with an arrangement fee at that rate.

Tbh with all this , maybe if I could get a better rate next time. What would annoy the living **** out of me is seeing the raise fall. Me not be able to remortgage during that time and whilst my fix term comes to an end the rates rise again. Meaning next time I miss out lower rates again . The product that was reccomended also has a flat rate 2% ERC so if your at year 5 it's 2 % or at year 1 it's 2% not the best. But could be worse

No fee, but lucky as I kept checking the app and most days it was 3.99% with £999 fee or 4.18% with no fee. I noticed the one with fees you had to ring up, I assume because they need your payment details and can't process it through the app? anyway, I phoned up and said I wanted to get the 3.99% with no fee and they put it through. I did see it, so I guess it depends on how many products they have for sale, some are reserved for phone, and some for the app? God knows.

I did it anyway, thinking rates would need to drop a chuck for us to be better off taking into account if we did switch in the future, the new deal would almost certainly have another £999 fee with it.

The only downside is that rate was on a 5yr fixed, the shorter terms were higher, and another downside is the damn fixed ERC through the term. I plan to overpay the 10% each year, and hopefully have some savings at the end of the deal.

To be honest, our mortgage isn't as high as some, so worse case and rates drop we lose out maybe £50 a month tops? Nothing compared to gas and elec rises.

 

[glenimp617]

It is the classic "as soon as you think you've "made it", someone puts you back in your place!"

I know that feeling!

 

[glenimp617]

Yup. You haven't made it until you're where you wanna be and debt free.

Middle of nowhere in a nice little cottage?

 

[glenimp617]

Reporting on the news we could be on the verge of a second banking collapse?

Interest rate crash in 3...2...1

'The market is telling us something very bad is coming', as global banking crisis deepens

We simply don't want an environment where turmoil in financial markets forces central banks to slash rates while inflation rips, but it's become a real possibility, writes David Taylor.

www.abc.net.au

 

[glenimp617]

What does this mean for UK mortgage rates exactly ?

I'v got a re mortgage offer letter from Barclays . Are rates going to rise ? Fall ?

Nobody knows

Silicon Valley Bank: why did it collapse and is this the start of a banking crisis?

Until last Friday Silicon Valley Bank was the 16th largest bank in the US, worth more than $200bn

www.theguardian.com

The appetite to keep raising rates will now be tested if central banks become concerned that SVB’s problems are indicative of a broader weakness in corporate balance sheets caused by rising rates.

I'm no expert, but rising interest rates lower the value of bonds which is putting some banks under real pressure.

 

[glenimp617]

Credit Suisse has been flirting with disaster for years though.

In theory it should have no impact on the UK banking sector as protections were put in place after the 2008 crash to prevent it happening again.

It could mean a drop / no more rises in interest rates in the short term though, which means inflation will remain high

Yeah.....and I did say a while back that when I fixed my mortgage (two weeks ago now?) the rates would drop......so you know damn well they will do lol

Basically do the exact opposite of what I do

 

[glenimp617]

Maybe time for a new username?

You have no idea. You know I NEVER win at heads or tails? and I do mean NEVER!

 

[glenimp617]

Have you actually started on your new fix yet? Or waiting for it to start ?.

I'm.remortgaging now and hoping the lender drops rates before my new product starts. I'll ring and ask them to adjust it.

Don't hold much hope though. If they rise I'm covered by the offer letter and deal which is locked in for now

Sucks to be on a 5 year fix though at 4.15%

No it starts in June

 

[glenimp617]

Nobody knows, literally nobody.

 

[glenimp617]

I can't wait till mines all paid off, then I don't ever have to worry about mortgage rates.....one day!

 

[glenimp617]

I reckon with a bit of luck I can get mine paid off in 8. It would be sooner, but we need a new bathroom and kitchen.

 

[glenimp617]

Governments have let (helped) the wealth move towards the 1% of the 1%. There is no scenario where this is ever a good thing.

There needs to be a huge tax on the mega rich, and I don't mean those who have 1m or even 10m but those with hundreds of millions.

 

[glenimp617]

News changes every couple of weeks. Basically nobody has a clue.