Mortgage Rate Rises

HoneyBadger said:
MrsHB and I moved from the south East (Kent) to Yorkshire. We sold 2 houses in Kent, one of those paid for a 4 bed cottage, with a separate 2 bed annexe on just over an acre of land. Mortgage free at 45.
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I moved from Nottinghamshire November 2023, sold one house down there (3 bed barn conversion) "downsized" to a 3 bed semi detached in the North East with huge double garage etc, started with 39k mortgage now 15k left on the mortgage after overpaying like hell, will be cleared this time next year, mortgage free at 36... life changing move.
 
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Just a little rant about product fees. How can lenders justify £999 / £1499 product fees? Especially if you’re renewing with the same lender.

I mean it should just be a small admin fee like insurance companies charge to amend your details -£50
 
Tech_Boss said:
Just a little rant about product fees. How can lenders justify £999 / £1499 product fees? Especially if you’re renewing with the same lender.

I mean it should just be a small admin fee like insurance companies charge to amend your details -£50
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That’s their real margin.

Every two years £3k
 
Tech_Boss said:
Just a little rant about product fees. How can lenders justify £999 / £1499 product fees? Especially if you’re renewing with the same lender.

I mean it should just be a small admin fee like insurance companies charge to amend your details -£50
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They usually offer products without fees, just with a higher rate. So if you don’t want to pay the fees then go for those instead?
 
SaBBz said:
They usually offer products without fees, just with a higher rate. So if you don’t want to pay the fees then go for those instead?
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Yeah I understand that. It was more about principle of the consumer getting screwed over. Because it probably costs the lender next to nothing for the customer to select a different deal.
 
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Tech_Boss said:
Yeah I understand that. It was more about principle of the consumer getting screwed over. Because it probably costs the lender next to nothing for the customer to select a different deal.
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But it’s not really about the cost to the lender for someone selecting a different deal, it’s a charge for them providing a lower rate.
 
Tech_Boss said:
Just a little rant about product fees. How can lenders justify £999 / £1499 product fees? Especially if you’re renewing with the same lender.

I mean it should just be a small admin fee like insurance companies charge to amend your details -£50
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I work for a mortgage lender and I recently seen one that was something like £64,000.

It was a big loan though, £700k or something like that.

It's just how the margin is factored into the product.

So something like 4% rate with a large product fee, but may end up costing exactly the same as a 6% rate without a fee over the term of the mortgage.

The advantage of the lower rate with the larger fee, is that mortgages are stressed based on the interest rate, lower stress rate, more you can borrow.

In fact some lenders out there are almost trying to "cheat" affordability calculations doing exactly that.

There are plenty of mortgages with no fees, not even and application or valuation fee, done even cover legal fees, but you'll pay for it in other ways.

If you can really be arsed you can get your calculator out and work it all out.
 
Rates need to come down before the end of the year. Taxes are going to go up and we'll all be squeezed harder and harder. They've held out high for long enough now to have the desired effects surely.
 
jaybee said:
Rates need to come down before the end of the year. Taxes are going to go up and we'll all be squeezed harder and harder.
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Your renewal up this year?

jaybee said:
They've held out high for long enough now to have the desired effects surely.
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They will continue to hold out high until it can be certain inflation will stick around the desired 2%. Dropping them as soon as that happens can cause inflation to rise if the underlying causes of inflation haven't been corrected.
 
Would be lovely if they do drop come the end of the year, my 1.59% deal comes to an end in December. :( Although I'll have about £80k so it's not going to be the largest increase in the monthly interest to clear
 
rather thankful given the last few years that we snagged a 5 year fixed 1.19% deal with Santander, runs until mid 2026 but for sure not looking forward to the inevitable jump upwards even if there's a downward trend in the market at the moment.

Also keeping an eye on the market I'm sure last time i looked i was taken aback by what looked to be a new trend rather than £999/£1499 product fee's to charge a fee by percentage of the mortgage balance, like 1.00 - 1.25% which for the majority of houses comes out at more than historic product fees :(
 
jaybee said:
Rates need to come down before the end of the year. Taxes are going to go up and we'll all be squeezed harder and harder. They've held out high for long enough now to have the desired effects surely.
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Last years July inflation data had some chunky falls in it from gas prices falling, if this month doesn’t have some big falls to match, inflation will actually start to march up again as those figures fall out of the annual figure believe it or not. Happens again in October too, so they could well hold.
 
BennoUK said:
Last years July inflation data had some chunky falls in it from gas prices falling, if this month doesn’t have some big falls to match, inflation will actually start to march up again as those figures fall out of the annual figure believe it or not. Happens again in October too, so they could well hold.
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And October to April is when the heating bill and usage increases..
 
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